Top Priorities for Tech & Service Providers: Leadership Vision for 2021

Top Priorities for

Tech & Service
Providers: Leadership
Vision for 2021
Tech CEO

© 2021 Gartner, Inc. and/or its affiliates. All rights reserved. CM_GTS_1114728 1
 Top Priorities for Tech & Service Providers: Leadership Vision for 2021

Introduction
As every organization becomes more dependent on technology in all facets Enterprises that successfully leverage technology prowess, including
of business, the market for technology products and services will expand robust diagnostics and benchmarking, will be able to strategically transform
to cover more aspects of business and open new markets. into competitive threats to existing technology products and services.
These companies will drive growth through innovation by creating both
Advances in digital technologies continue while the digitalization of the competitive and substitute products.
world’s economy is still a work in progress. The path toward a digital future
is accelerating, however, due to the COVID-19 pandemic. The combination
of these factors strengthens demand for technology products and services. Rishi Sood
Despite challenges, high buyer optimism in the near term will drive increased Group Vice President, Tech & Service Provider, Gartner
buying effort, which signals increased opportunity for providers.

Several forces are playing a larger role in the way enterprises differentiate

their business models. Further, these forces also serve as a basis for startups
to disrupt existing markets. They will continue to drive large changes in the
technology and services markets.

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 Top Priorities for Tech & Service Providers: Leadership Vision for 2021

Introduction
As tech CEOs look to the future with an eye on accelerating growth, 6 forces challenging tech CEOs
a number of forces will impact the very definition of what it means to
be a technology and service provider. These forces will reshape how Forces
tech CEOs approach key initiatives, including product strategy and
launch, customer acquisition, business performance management and d Geo
man p
corporate development. Tech CEOs who understand and adapt to these r De ations Wor olitic
e t ld E s
key disruptions will be well-positioned to discover and respond to new om pec ve a
t Ex nt
opportunities for growth.

an us

nd s
d
C
iness Models

Technologies
and Trends

Emerging
Technology
and Service
Providers

Bus
In
us

d
n

ts
tr
yD t ra
yna En
m ic s New

Forces
Source: Gartner 3
 Top Priorities for Tech & Service Providers: Leadership Vision for 2021

3 trends that will impact tech CEOs

in 2021

Cloud infrastructure and platform Free trials and freemiums will no Disruptive events and geopolitical
service providers will have significant longer be optional change will impact demand generation
implications for growth Free trials or freemium models will and customer acquisition
The spectrum of dependence on cloud become the new normal for enterprise The ability to predict how disruption
infrastructure and platform service IT offerings. Service providers will adopt and geopolitical change affect demand
providers will vary by organization. business models, pricing and packaging generation and customer acquisition
However, Gartner predicts that by 2025, that enable these options as essential will be key for tech CEOs.
95% of the software application providers tools for customer acquisition.
Long-term changes such as those brought
that consume cloud platform services as
These models will transform “proof by COVID-19 or the evolution of two distinct
part of their product offerings will also
of concept” into “proof of value” for digital ecosystems, one in the U.S. and
market, sell and provision their offerings
customers, and enable tech CEOs to the other in China, will inform decisions
through cloud platform marketplaces.
increase their organizations’ ability about markets, technology, investment
to close deals. and supply chain for tech CEOs looking to
accelerate growth.

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 Top Priorities for Tech & Service Providers: Leadership Vision for 2021

2 challenges facing tech CEOs in 2021

Although tech CEOs will face many challenges in 2021, here are two to begin
strategizing for:

Positioning does not fit new market realities Growing the business by improving customer
Due to the sudden global downturn, reduction in productivity and acquisition in post-pandemic times
pressure on technology budgets, tech CEOs must reassess their ideal Cost optimization will be a major initiative for most organizations
targets and revisit their understanding of buyer needs and ability to in the post-pandemic world. Tech CEOs need to position solutions
differentiate in the market. to capture “smarter spending” initiatives to acquire new clients
and retain existing ones.

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 Top Priorities for Tech & Service Providers: Leadership Vision for 2021

2 actions for tech CEOs to take in 2021

Given the challenges tech CEOs will encounter, consider these two actions to help
move the organization in the right direction:

Embrace new technology, partnerships and application Support the shift to contingent and diverse workers
ecosystems to drive growth collaborating with AI in virtual workspaces
Collaborate with partners to create or participate in ecosystems that Adapt organizational policies and procedures to foster the agility
can elevate the value and competitiveness of all involved. Tech CEOs and innovation of contingent labor and increasing diversity across
must be prepared to address four key realities: the organization. Identify and invest in augmented intelligence to
• Buyer demands for whole-product solutions discover scenarios where human and AI workers can collaborate
in virtual workplaces.
• Increasingly regional technology ecosystems
• Importance of defensive marketplace strategies solutions
• The need for delivery supply chain continuity

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 Top Priorities for Tech & Service Providers: Leadership Vision for 2021

Five essential areas of focus for tech CEOs

1 Cloud: Tech CEOs must adapt to thrive in a world

where cloud infrastructure and platform service 4 Talent: Tech CEOs must evaluate and adapt their
talent management strategies to stand out from
dominates every market. the competition heading toward 2025.

2 Service strategy: Leading service providers will

leverage assets and expertise, requiring a dynamic 5 Geopolitics: Tech CEOs must understand and
adapt to the dynamics of geopolitical forces for
ecosystem to extend their business models. growth and market differentiation.

3 Pricing models: Free trial and freemium offerings

are no longer optional, as they become a “must
have” for buying team consideration.

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 Top Priorities for Tech & Service Providers: Leadership Vision for 2021

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