Upfront: Alliances Grow, But Modestly

According to Larraine Segil, a partner with Vantage Partners in Los Angeles, alliance activity will pick up a bit in 2004, as companies turn their attention from cost cutting to growth. The popularity of marketing and promotion alliances will rise because businesses will find them an effective way to create and promote brands. In the IT space, an increasing number of competing companies will align -- particularly to secure and deliver complex service deals. But most companies will wait for more evidence of continued economic recovery before making major investments.

Making alliances succeed and create value will become an increasingly important part of the CFO's role.