Report from the IIAR Webinar with Everest Group, on the 19th March 2014, presented by Eric Simonson (Managing Partner, Research), Rajesh Ranjan (VP, BPO), Jimit Arora (VP IT Services) and hosted by Simon Levin (IIAR Board)
In the webinar, Everest Group examined key trends that are re-shaping global services (Everest Group defines global services as the intersection of the solution model, technology model, talent and location model, and the sourcing model). In addition, Everest Group identified seven technology themes that are creating broad-based disruption in the IT and Business Process Services market.
- Cloud (SaaS, IaaS, PaaS), Mobility/BYOD, in-memory computing, and the Internet of Things are fundamentally altering the demand profile for IT Services
- Business Process as a Service (BPaaS), robotics, and social media are causing disruption in the business process services market.
As these technologies alter the demand profile for clients, there are significant implications for labour arbitrage oriented supply models. Everest Group predicts that as technology adoption accelerates, underlying volumes for select outsourced services will diminish. For example, application modernization for cloud infrastructure depresses ongoing maintenance and production support volumes; robotics reduces the need for labour-based manual processesing.
To succeed in this new demand environment, Everest Group shared five key implications for the service provider community
- Functional silos across service towers are diminishing and there is greater market demand for services and solutions that cut across traditional service boundaries of infrastructure, applications, and operations (impacting existing structures for sales, solutioning, and delivery)
- Service providers will need to embrace “self-cannibalization” to ensure relevance to clients
- Account management focus need to shift from “grow” to “protect and grow”. Consequently, providers need to not only employ “offense” strategies but also effective “defense” strategies
- Success in the new demand profile requires a consultative, “needs-based” sales motion versus the traditional “offer-based” sales motion
- Re-skilling of the workforce becomes a strategic talent management priority to ensure the organisation is able to deliver next-generation services
Many thanks go to the three presenters from Everest Group who gave this IIAR Webinar. A recording of this IIAR Webinar plus the presentation pack are available from the Members Resources, on Huddle.
Links:
Websites:
www.everestgrp.com
research.everestgrp.com
Blogs:
www.sherpasinblueshirts.com
www.gainingaltitudeinthecloud.com
