COMMENTARY: The tech services world is facing a whirlwind of growth challenges. AI is shifting investment and buying priorities, inflation is pressuring profits normally used to fund new offerings, and ongoing macroeconomic uncertainty is testing the limits of resilience.
But in the midst of these headwinds, one strategy continues to stand out for its efficacy: Partner-led growth.
Collaborations with software companies have benefited the IT services sector for decades, enabling firms to reach in-market customers and close deals faster than they could on their own. However, even this tried and true tactic is starting to look different these days.
Why One Partner Is No Longer Enough
Over the past decade, it wasn’t unusual to see mid-size and even large tech services firms doubling in size year over year by attaching themselves to a single software partner. Many of these firms orbit large software players like Adobe, Atlassian, AWS, Microsoft, Salesforce, ServiceNow and Snowflake (a group we refer to as Market Anchors).
These cloud players grew considerably over the last few years – upwards of 20 or 30 percentage points year-over-year on some pretty large numbers – relying on partners to fuel much of that growth. This kind of market momentum fed both the Global Systems Integrators, as well as hundreds of boutique firms that specialized in only these platforms.
These “pure play” firms found they had a leg up on more generalist competitors. They could go deeper on platforms, keeping up on new capabilities being rolled out every four to six weeks. They could focus their resources on one market rather than spreading themselves too thin, while still expanding their TAM as the vendors acquired their way into new areas.
However, times are changing. Growth is slowing for many of these juggernauts as their products mature and newer technologies put pressure on them to stay relevant. Customer needs are evolving as well. IT systems are more complex, cyber threats are more sophisticated, and buyers across industries are looking to modernize and integrate data across silos to truly leverage AI. In short, customers want partners who can solve their biggest problems, not just work within one ecosystem.
All this is pushing IT services firms to take a closer look at their partner strategies. More and more are choosing a multi-partner approach.
The Benefits of Going Multi-Vendor
A recent survey of 269 CEOs and managing partners of tech services firms highlights this shift. The vast majority of those surveyed (83%) said they already had relationships with more than one software vendor, typically working with between three and six vendors. Approximately one out of five (17%) said they’re looking to enter a new software ecosystem within the next 12 months.
Multi-vendor partnerships bring clear advantages. They let firms offer more comprehensive solutions, which makes them indispensable to clients. Instead of one-off projects, these firms build long-term relationships by addressing the full spectrum of customer needs.
Diversifying vendors also reduces risk. If one vendor shifts strategy or faces market trouble, firms with multiple partnerships have options. This flexibility is critical in a fast-changing industry.
It turns out having more than one partner – but not too many – can also lead to better growth. In the aforementioned survey, those respondents who said they work with multiple partners saw on average greater growth (27%) than those that worked with only one partner (17%).
But here’s the key: there is a sweet spot. Successful firms don’t just collect partnerships like trophies. They’re selective, focusing on ecosystems that fit their growth aspirations, the customers they serve, and where they can have the greatest impact.
Looking to Diversify? Start with a Strategy
Expanding into new ecosystems takes both planning and investment. The first step is to understand how an ecosystem fits into your overall go to market strategy. We speak with hundreds of services firms every year, and in those conversations, we see four main ecosystem plays:
- By segment: Those focused on a specific market segment may look at adjacent segments for new hunting grounds. For example, a digital commerce expert might move into payments or inventory management; while an endpoint security specialist may move into data or network security.
- By platform: Those all-in on one specific vendor may expand into a complementary (non-competitive) platform that extends or deepens the capability of that platform. For example, a Salesforce partner may choose to partner with one of the hyperscalers (like AWS or Microsoft) or a data platform provider (Snowflake or Databricks).
- By industry: Those that are vertical specialists may diversify into other industry platforms or solutions. For example, if you play in Healthcare, it could make sense to establish relationships with EPIC or Cerner.
- By role or function: Those that service a particular customer archetype like marketing or finance leaders may choose to diversify into other platforms that are critical to those buyers.
Identifying and Evaluating the Right Partner
Now that you have an idea for how you want to direct your diversification efforts, you need to pick the vendor to hitch your wagon to. Picking the right one can open up huge opportunities. Picking the wrong one can waste precious time and resources, so do your homework!
Here are a few of the areas we look at when evaluating which ecosystems hold the greatest opportunities for services firms (which we lay out in more detail as part of our Tercera 30 research):
- Market Growth: Is there strong demand and future potential in this market, and for this particular product set? The market doesn’t have to be huge, especially if you’re looking for secondary or solution partners, but it has to be big enough to warrant the investment.
- Project Potential: Does the platform offer a steady stream of work and opportunities for ongoing engagement? Complex platforms can lead to larger projects, recurring services and reliable revenue streams.
- Partner Support: Does the vendor take a partner-first approach to selling, or will you be competing with their own sales and professional services teams? The best partner programs have structure, senior level support and co-innovation opportunities.
- Winnable Whitespace: Is there room in the ecosystem for a new partner, and do you have something unique to offer? If you want to make traction in a new ecosystem, you need to bring something of value to the table, whether that’s a strong track record with customers, access to new markets, or scarce skillsets.
By evaluating potential vendor partnerships through these lenses, firms can identify ecosystems that align with their strengths and strategic goals. However, choosing the right partners goes beyond technology—it’s about building relationships that deliver mutual success.
Partnerships as a Path to Growth
The tech services industry is evolving fast, and multi-vendor partnerships will be essential to navigating a world of growing complexity and competition. These multiple alliances can provide flexibility and offer stability in times of turbulence.
However, beware of trying to foster too many relationships at once and spreading yourself too thin. Managing multiple partnerships can make it harder to deliver the high-quality services that your partners and customers demand.
The most successful firms pick a few strategic ecosystems where they can go deep, build strong relationships and become trusted experts. It’s these firms that embrace a balanced approach to diversification that are best positioned to capture new opportunities.
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