InformationWeek

Service Providers Look Beyond The Millennium

Year 2000 conversion has prompted many companies to look to outside parties to help them get their act together before the big date change. But after the "millennium crisis" dust settles, those service providers are hoping the year 2000 party will continue, and they'll be invited to stay, according to a survey released yesterday by Dataquest.

Dataquest surveyed nine service providers that currently focus on year 2000 issues, including Unisys, Data Dimensions, Complete Business Solutions Inc. (CBSI), and Cognizant, to find out how they plan to grow new business after the new year. All the companies said they were committed to helping their customers with any year 2000-related problems for at least 12 to 18 months following the new year. Each of the vendors, however, said that once those issues were addressed, they would use the relationships established with their year 2000 services as a stepping stone to new business. The majority of the providers intend to focus on electronic commerce, legacy migration and conversion, and ERP.

But the service providers know that simply having a foot in the door doesn't guarantee new business. Each of the vendors plans to either partner with or acquire a product company that would allow them to expand the number and types of services they offer. Some vendors, such as Keane Inc., have already started to move in that direction. The services company recently inked a partnership with Sterling Commerce to provide E-business services and technology.

--Eileen Colkin