Chicago's Information Technology Consultancies See Rapid Growth in Internet Driven Demand

Chicago's information technology consultancies have witnessed a significant surge in growth due to the increasing demand from corporate America for Internet-based solutions. The industry is witnessing a massive expansion, with companies like Whittman-Hart and Diamond Technology Partners experiencing substantial growth in their stock prices. Whittman-Hart's stock has doubled since September, while Diamond Technology Partners' stock has tripled since early August. The industry is expecting a tenfold expansion in the worldwide market for Internet professional services, from $7.8 billion in 1998 to $78.5 billion in 2003.

Key Takeaways:

• The Chicago-based information technology consultancies are experiencing rapid growth due to the increasing demand for Internet-based solutions, with Whittman-Hart's stock doubling since September and Diamond Technology Partners' stock tripling since early August.
• The industry is expecting a tenfold expansion in the worldwide market for Internet professional services, from $7.8 billion in 1998 to $78.5 billion in 2003 (International Data Corp.).
• Companies are experiencing talent shortages, with Braun Consulting, Inc. hiring 60 employees out of 900 students interviewed on 30 college campuses.
• $1 billion to $1.5 billion - the estimated amount Chicago-based consultants will earn in the year 2000 (International Data Corp.).
• Big-ticket assignments include the development of Sears, Roebuck and Co.'s appliance Web site, the end-to-end e-commerce initiative for a major pharmaceutical concern, a Web site for the government of Western Australia, and a retooled site for Diner's Club.
• The traditional view of consulting is blurred, with companies like Andersen Consulting and Ernst & Young adapting to the changing market by investing in e-strategy projects and partnering with other companies.
• Smaller firms like Interim Technology are focusing on being nimble and able to turn their business to adapt to the ever-changing market.

Statistics:

• 10 - the number of times the worldwide market for Internet professional services is expected to expand, from $7.8 billion in 1998 to $78.5 billion in 2003 (International Data Corp.).
• 900 - the number of students interviewed by Braun Consulting, Inc. on 30 college campuses for potential hires.
• 300 - the current number of employees at Braun Consulting, Inc.
• 50% - the growth in Braun Consulting, Inc.'s Chicago-based consulting ranks this year.
• $1.25 billion - the market capitalization of Braun Consulting, Inc.
• 64% - the increase in Diamond Technology Partners' income for fiscal 1999 ended in March.
• 60 - the number of employees hired by Braun Consulting, Inc. out of 900 students interviewed.
• $7 - the initial public offering price of Braun Consulting, Inc.'s stock in August.
• $25 - the current stock price of Braun Consulting, Inc.

Sources:

• Whittman-Hart Inc.
• Diamond Technology Partners Inc.
• Braun Consulting Inc.
• International Data Corp.
• Andersen Consulting
• Ernst & Young
• Interim Technology
• Xpedior Inc.