InformationWeek

roblem or opportunity? Let's face it, the much-needed but nevertheless-painful slowdown in the U.S. economy is leaving few businesses untouched. As sales flatten, earnings decline, and cost-cutting measures come into play, it's easy to shift into hunker-down mode. But what are problems for some companies are opportunities for others. Now is a great time for IT service companies to demonstrate their worth to the hundreds of businesses out there that could use some help.

For years, big IT service companies such as Computer Sciences, EDS, and IBM have helped other businesses plan and implement a wide range of technology projects. In doing so, these multibillion-dollar, multifaceted service firms have proved to be great partners in many ways, amassing impressive client rosters and long lists of successfully completed projects.

But there are things these mature companies haven't been so great at--being fast, flexible, or free thinking, for instance. That became clear over the last couple of years with the emergence of boutique E-specialists that were better prepared to do whatever was necessary to help businesses build out their Web sites and other online initiatives. E-service upstarts grew quickly and had high ambitions for even better things.

As it turns out, the rising fortunes of many E-service firms were quickly reversed as the dot-com meltdown cut them off at the knees. And their situations were made worse as it became increasingly clear that IT decision makers in brick-and-mortar businesses generally prefer working with more established firms for systems integration, consulting, and outsourcing.

The result of these converging forces has been a golden opportunity for service firms that combine the size and experience of an established company with the nimbleness and innovation of a startup. So how are they responding? That's the question explored in this week's cover story by associate editor Larry Greenemeier. What he found was plenty of evidence that service firms have indeed begun to change the way they do business. And that strikes a chord with business and technology managers. "We're looking for both innovative thinking and proven experience," says Stephen Midgley, general manager of Inovera Solutions, a coalition of Canadian credit unions.

So the planets are aligned. Businesses need help during these tough economic times, and service firms seem to be in a better position to provide it. Problem or opportunity? Let me know what your experience has been.