IT Services Rebound

1. Improved profitability: The rebounding economy, combined with cost-cutting actions, will result in higher operating profitability.

2. Outsourcing strong: Large outsourcers will see a solid pipeline, as the market for business-process out- sourcing services grows.

3. Offshore goes mainstream: Offshore application development and maintenance will move into the mainstream as large, established firms build more capabilities.

4. Utilization up: Utilization rates for consultants and integrators will improve in 2002, evidenced by companies such as Accenture, which is already seeing increased productivity (see page 26).

5. No 'Next Big Thing': The next growth wave won't be from one specific technology, but rather from the integration of many of them, including supply-chain management, client-server, ERP, CRM and the Net.