TCS is the largest Indian heritage player in the services industry and is a true market leader. But like the rest of the services industry, TCS faces the maturity of the labor arbitrage market. We see it reflected in TCS’ growth over the last year and in its prospects of growth going forward. Like
“This time is different” are often thought of as the most dangerous words on Wall Street. I’ve been in the outsourcing services industry since 1983 in the early days of outsourcing pioneer EDS. I watched the rise of the asset-intensive infrastructure space. Then I watched the rise of labor arbitrage and the enormous changes
In another blog almost a year ago, I called for a consumption-based pricing mechanism for automation. Like the software industry has proved, I believe the concept of moving away from a traditional software license structure to a SaaS basis makes sense in the automation space. Instead of paying for a robot, a company would
For the last 30 years, companies have built shared service organizations, and IT shared services units have been the best known of these. IT shared services have created a lot of value for companies, delivering high-quality, low-cost IT capacity. But today they’re almost like zombies – resembling a body that’s alive but really isn’t.
At this point in time, every CIO knows that the cloud is a more agile, faster and cheaper place to be. But they have a tremendous amount of technical debt in legacy ecosystems, which, so far, has proved to be largely resistant to moving into cloud. There are a lot of companies, like AWS,
One of the prevailing myths in the services industry is that more automation means higher profits for the service providers. The theory: as they introduce automation they reduce the number of FTEs per revenue dollar; therefore, they would get higher profits. The reality: it’s not true in the market overall. Higher profits from automation
The services market is aflutter with the coming impact of migrating work from legacy environments to cloud environments. Twenty-five to 30 percent of capacity in legacy environments today is utilized for testing, making it ideal as the first workload in services to migrate to cloud. We see signs that this migration is already underway.