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Risk Factors and Challenges in the Technology Industry - Essay Example
Decline in customers' spending on IT and decreasing budgets : After spending more than $1.2 trillion in the US alone on information technology products and services during the late 1990s, companies are slashing their IT budgets (Mattern 4).
Pressuring competition and increasing sophistication of customers' needs: More customized solutions and additional services, including IT consulting and technical support are required by the market…
Moreover, business enterprises are very concerned about "outsider" company having access to the sensitive commercial information.
Escalating complexity of the products and solutions: It is hard to test all the scenarios for the applications involving extremely lengthy and complex code, which sometimes leads to "bugs" and malfunctioning.
Growth of in-house IT: Many non-computer firms joined the industry by adding divisions or by acquiring computer services companies. Banks, publishers, airlines, and telecommunications companies were among those whose information technology divisions were involved in this industry (SIC Computer Related Services n/p).
Dependability on the readiness of the customers to engage in electronic interactions or networking: Value of network grows in line with the number of participants. If the market does not successfully adopt the new technology on a wide scale, it will not exist long.
The wave of year-2000-related new equipment purchases that took place at the end of the 1990s, as well as the availability of quality used equipment from bankrupt Internet companies in the early 2000s, had a negative impact on the corporate market for new electronic devices and computers. (Electronic Computers n/p)
From 1998 to 2000, reported IDC, ave ...