Gartner Says Third-Party Software Support Market to Triple By 2023

Gartner Says Third-Party Software Support Market to Triple By 2023

April 21, 2020

According to the latest report by Gartner, the third-party software support market is predicted to triple to more than USD 1 Billion By 2023, as the report finds uptake is increasing YoY.

According to a recent research note from Gartner, the third-party enterprise software support market is expected to grow from USD 351 million in 2019 to USD 1.05 billion by 2023 – a 200% increase.

The report claims that compared with the first nine months of 2018, the first nine months of 2019 show a 50% increase in Gartner client inquiries related to third-party support and Gartner inquiry volumes suggest that SPVM leaders are now acknowledging third-party support as an established option.

Gartner goes on to list a number of key findings for CIOs and sourcing, procurement and vendor management (SVPM) leaders to consider as they look to adapt their approaches to control costs while enabling digital business growth.

Key Takeaways

Each year, support costs for legacy software increase, while the benefits gained from that support decrease, leading to more organizations seeking lower-cost third-party support options.

More buyers are aware of the value-added offerings from third-party support providers, such as custom-code support, interoperability support, and global tax, regulatory and security services.

Uptake of independent third-party support is increasing year over year. The software vendors’ cloud-first fixation means that, for certain on-premises applications, third-party support may be the only alternative. As on-premises clients face a decreasing number of options, uptake of independent third-party support is expected to increase substantially.

Another key benefit of third-party support is that it allows customers to use the savings (of at least 50% in costs) to fund digital transformation projects that they were unable to achieve while stuck in an ever-increasing support cycle.

Gartner’s research note includes several recommendations, including that SPVM leaders should evaluate third-party support as an alternative to the vendor’s support in order to help fund future innovation. In parallel, analyze the software vendor’s support contract and policies to understand any restrictions on terminating support.

Commenting on the report, Rimini Street Senior Vice President and Chief Marketing Officer David Rowe says they believe this research from Gartner further validates the increasing and widespread global leverage and use of third-party support to maximize ROI on current enterprise software investments and shift savings to fund innovation.

“To date, more than 3,100 clients with operations in 117 countries around the world, including 175 Fortune 500 and Global 100 organizations, have made the switch from vendor support to Rimini Street, and have saved more than USD 4 billion in total maintenance costs,” says Rowe.

(Ed. Rimini Street is providing complimentary access to this new Gartner research note; please click here.)


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