The imminent entry of International Data Corporation (IDC) in the local market should stir up competition within the IT research sector, observers say.
Last month, local research organisation BMI-TechKnowledge admitted it had cut ties with the US company, after a relationship that spanned 15 years, as it looked at repositioning its products and services.
In reaction to the move, IDC has decided to open its own direct office in the country and this is expected to become operational by the end of this month.
"I think IDC will have some success," says Jonathan Saulez, MD of MarketWorks, the local Datamonitor representative. "BMI-T has beaten the drum for some time that there is little local demand for international research, but there is most definitely a place for it."
A CIO at a large financial institution, who wishes to remain anonymous, says there is a need for local quantitative and qualitative research that is reliable and that organisations can use to make certain decisions.
"End-users and vendors do need that research to either justify their decisions or to ensure they can formulate a strategy," he says.
Small margins
BMI-T has been criticised for its PC and other market quantitative reports. However, MD Denis Smit says these products have since been stopped.
"The margins in those products were just too small and so we have changed our service offerings through the introduction of our 'Go-to-Market' products," he says.
Smit says IDC will only compete with a small part of his company's current product offerings.
Saulez, who is a former employee of BMI-T and IDC, says the US-based company has a well-founded reputation for quantitative research, but is also respected for its qualitative output.
"They have quite a good array of products that will be of use in the local market."
Related story:
BMI-T cuts IDC ties
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