digital Archive

The Impact of New Digital Business Models on IT Services

Suddenly, on-shoring is becoming more in vogue. Like many U.S. CIOs and their C-suite colleagues, you may be actively exploring how to duplicate or offset the loss of cost benefits from offshore/labor-arbitrage services. I have good news for you, along with a crucial tip. Four primary factors are driving U.S. companies to make the

Big Shifts at 2017 NASSCOM India Leadership Forum

I think the annual NASSCOM conference is always a great time. I get to catch up with old friends, at least one-third of the Indian service providers industry’s leadership attends and it’s an insightful venue for capturing the mood of the industry’s providers. This year the mood was more somber and more reflective than

The Cognizant Dilemma

A very public debate has been taking place between Cognizant and Elliot Management Corp – the activist investor that bought a $1.4 billion stake in Cognizant a year ago. Effectively, Elliot has actively sought to alter the course Cognizant’s board has taken for dealing with the changing situation in the IT services industry. As

The Infosys Dilemma

Is Infosys moving in the right direction? At the end of 2014, I blogged that Vishal Sikka, who had been on board as CEO and MD only a few months, had made an effective start in reshaping the company’s strategy. In Q1 2015, I blogged about how Infosys was aligning with the digital direction

Stepping Back from Globalization and Offshoring

A sea change is starting because of digital technologies. The impact as companies apply these technologies to their business will be massive – much bigger than the Industrial Revolution with the invention of the loom for manufacturing clothing and Ford inventing the production for manufacturing automobiles. Everyone has been talking for some time about

Powerful Wave of Digital Services Has a Classic Snarl for ROI

The world of business strategies is changing for U.S. businesses. All eyes are now on the bottom-line cost and productivity improvements achievable through digital technologies such as automation, analytics, robotic process automation (RPA), cognitive computing and cloud, along with their associated digital business models. The same is true with third-party service providers — all

Services Industry at Inflection Point in 2017

As I recently blogged, 2016 was a disappointing year for the services industry as discretionary spend was not robust and growth in labor arbitrage services is now flat. I see an industry desperate for growth in 2017. Here is what I believe will happen. I think we’ll see more acceleration in adoption of the

How Digital Technology is Changing the Status Quo in Services

What business wouldn’t want a 700% improvement in developer productivity or a big reduction in testing time or reduced time to market? The move to digital technologies carries the promise of dramatic transformation. With digital technologies, companies can do things that they have never done before. Digital is not a matter of delivering existing

The Digital Trough

The hottest thing out there is digital, and a lot of projects are being spun up in an attempt to start moving companies into digital. The problem is that many of these initiatives quickly lose momentum, then lose funding, and end up with less work for the service providers than they anticipated. Hence, the

Avoid the “Gotchas” in Purchasing Next-Gen Tech Services

The new technologies sweeping the market hold great promise of competitive advantages. But there’s a disturbing trend occurring in the services sales process for these technologies that poses a risk for buyers. Look out for providers talking about cloud, mobility, big data, the Internet of Things, and social in the same breath as SaaS/BPaas,