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INPUT AtriumatGlenpointe,400FrankW.BurrBlvd..Teaneck,NJ 07666 Tel.(201)801-0050 Fax(201)801-0441 December21,1992 Mr.DenisHawkins IBMCorporation MailStop3C2206MD330 1133WestchesterAvenue WhitePlains,NY 10604 DearDenis: AttachedistheproposalforINPUTsanalysesoftheprofessionalservicessector andvendorISrevenues. Ithasbeenrevisedtoincorporatethechangesmadeper yourmeetingwithusonthe15th. Theschedule(SectionVI)allowsforpreliminaryforecastdatathebeginningofMay tosupportyourinternalMaypublicationdate. Ifyouhaveanyquestions,pleasegiveJoanneormeacall. Sincerely, ThomasO'Raherty VicePresident TOF:jb a:prop2:YNI21 f INPUT PROPOSAL AMARKETFORECASTANDANALYSISOF PROFESSIONALSERVICES SYSTEMSOPERATIONSSECTORS ForMarketAnalysisandMeasurements InternationalBusinessMachines WhitePlains,NewYork December21,1992 INPUT TheAtriumatGlenpointe 400FrankW.BurrBoulevard Teaneck,NewJersey 07666 201-801-0050 Fax: 201-801-0441 Attachment1 ServicesandDeliverables AMarketForecastandAnalysisof theProfessionalServicesSector I. OBJECTIVES IBMisalong-timesubscribertoINPUTsMarketAnalysisProgram,whichsizes, analyzes,andforecaststheU.S.informationservicesmarket. TheMarketAnalysis Programanalyzesthemarketintermsofdeliverymode(e.g.,professionalservices, softwareprocessing,etc.)aswellasbymarket(e.g.,verticalmarkets). The informationandanalysisisdeliveredtoclientsannuallyinover20separatereports. IBMhasfoundthatthismethodofinformationdeliveryisuseful;however,IBM needstobringtogetherintooneplaceallINPUTsinformationrelatedtothe professionalservicesmarket. INPUTwillregroupandre-analyzepreviously assembleddataandanalysistofocusspecificallyonprofessionalservices. The reasonsfordoingsoinclude: Toproduceafinergranularityinmarketsizingandforecasting,especially for: Professionalservicedeliverysubmodesbyverticalmarket Leadinginformationservicevendorsandassociatedmarketshareby verticalmarket Toidentifyissuesthataredrivingspecificsegmentsofprofessionalservices (bysubmodeand/orverticalindustries) fromINPUTS ToapplyIBM'seconomicassumptions Thiskindofre-analysisprovidesIBMasingle-pointinformationsourcethatunites marketsizing,forecasting,competitiveanalysis,andsectortrendanalyses. IBMhas foundthisdeepeningoftheanalysisveryusefulinthepast;IBMhasrequestedthat INPUTperformsixsimilarre-analysesoftheprofessionalservicesmarketsince 1987. IBMCorporation(YNI21) Page1of14 f INPUT Additionally,INPUTwillprovideIBMwithtwoothersegmentsofinformationon theISindustry. INPUTwillprovideIBMwiththeirestimateoftheinformationservices revenuesbymdustryfor60vendors. ISyNsPteUmTswOipllearlastoiopnrsovmiadrekeItB:Mhawridtwhaareb,rseoafktdwaorwen,omfaicnotreonpaonnceen,tapnardtsofthe" personnel__ IBMCorporation(YNI21) Page2of14 f f n. THEPROFESSIONALSERVICESMARKET A. Scope Professionalserviceswillbesegmentedasfollows: Thefirstcutswillbetosegmentprofessionalservices(includingthe professionalservicescomponentofsystemsintegration)andsystems operation(platform,applications,network,anddesktop)intonotmorethan 26industrygroupsasdescribedintheIBM-supplieddocument"Industry ClassificationCodes". Withineachindustry,theprofessionalservicesdatawillbeallocatedinto professionalservices"submodes": Consulting SoftwareDevelopment EducationandTraining SystemsOperations Note: Theprofessionalservicecomponentofsystemsintegrationwillbe allocatedamongthefoursubmodesabove,aswellasbeingseparately summarized. Thefollowinginformationwillbesuppliedbyprofessionalservicesandsystems operationsforeachindustry: Marketsize Leadingvendorsandtheirmarketshare. Note: Generally,INPUTwillshow specificmarketshareinformationforfivevendorsineachindustrygroupor atleasthalftheapplicablemarket(whicheverislarger). Exceptionsmay occurforsmallmarketsandfragmentedmarkets,orwhereinformationisnot availableand/orcarmotfeasiblybeestimated;INPUTwillnotewheresuch casesoccur. Othervendorsactiveinamarket(listedalphabetically) IBMCorporation(YNI21) Page3of14 f