STC Industry Impact 2010
Every spring the STC membership is surveyed to determine the amount of revenue that STC independent consultants influence through client engagements during the previous year. According to industry analysts, 2010 was a year of growth for Information Technology, with estimates of a 5.4 percent increase over a sluggish 2009. Telecom equipment had the strongest increase, rising 14 percent over the prior year, and represents 21 percent of over 2 Trillion dollars in global telecom spend (Equipment and Services).
The latest survey shows STC consultant members influenced $850,000,000 in Information Technology spending in 2010, with one member reporting $2 Billion in influence and recommendations (Note: This $2 Billion was excluded from the averages and aggregate statistics in order to report trends more relevant to the majority of STC Consultant members). Of the reporting members the average vendor revenue influenced by each STC member for the year was $11,810,556.
STC President Jim O‘Gorman commented on the latest survey, stating, "As STC consultants we know the role we play in shaping the decisions made by our clients. These results clearly show our financial impact to our industry. As enterprises recover from the 2009 recession, many will be on the fast track to ramp up their network, and communications infrastructure with current technology. Many will likely turn to objective, outside specialists to accomplish their goals. I would venture to say that the benefits from our work in improved client services or bottom line efficiencies, far exceeds the dollar value of the consulting engagements and RFPs.”
Vendor Interaction with STC Consultants
The STC's Code of Ethics requires that all consultant members be independent, with no compensation or competing interests from telecom equipment or service providers. A variety of equipment, software and service providers are associated with the STC through the Vendor Advisory Council (VAC). Many VAC members provide product information and support for consultant members during client engagements. Commenting on the VAC relationships, Jim O‘Gorman noted, "When an STC consultant is engaged, it means that the client is serious about making a decision.”
The Value of an Independent Consultant.
The aggregate IT spending and the diversity in project sizes influenced by STC consultants indicates that business enterprises of all sizes value the contribution of an unbiased, experienced consultants when assessing service requirements and new product acquisitions. Vendors and Service Providers should recognize that the STC represents a significant opportunity since consultants serve as customer advocates. Ideally, this benefits both the vendor and the customer, with a much higher level of confidence and customer satisfaction from purchases involving an independent, unbiased expert.
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