There are several reasons why analysts leave a firm: just want a change or new professional challenge, recruited by another company, desire to start own firm, the current employer has grown too large and its culture has changed and a few others. In this current sitaution, there are two primary reasons why the analysts are leaving: lured by startups and hanging out their own shingle.
From late 1997 to early 2000 a number of analysts covering ecommerce/ebusiness got lured away from the firms by Dot Com startups. For example, in one week Gartner lost four of five analysts covering ecommerce. Yes, they were lured away by various startups dangling stock options, but these analysts were also annoyed at the money Gartner was investing in Jupiter Communications (ancestor of JupiterResearch) rather than beefing up Gartner’s own ecommerce/ebusiness research team.
Another common reason for analysts in a hot research area to leave a firm is to (more…)