The Latest Trends in IT Services – 4 Prescriptions to Make Digital Real in 2019 and Beyond (2021)
An interesting webinar hosted by Everest group last week (7th Aug 2019) titled “The Latest Trends in IT Services – 4 Prescriptions to Make Digital Real”. - https://www2.everestgrp.com/reportaction/7Aug19-Webinar/Marketing and a detailed report "Reimaging Enterprise Operating Model" -
It has very insightful findings
1. 4 prescriptions
i. Digital transformation = Organizational change ; Digital transformation ≠ Modern technology
ii. #UserExperience focus is key to delivering #ConsumerExperience
iii. Talent is biggest challenge to overcome, in the near term
iv. New vendor model needed to unlock value from the supply ecosystem
2. Digital transformation = Organizational change
i. 78% of enterprises fail in their digital transformation initiatives
ii. 73% of enterprises fail to realize sustained returns
iii. 63% of enterprises lack a well- defined set of success metrics
iv. 57% of enterprises witnessed an increase in their operating costs
3. Why enterprises adopting Digital ? (% of enterprises with the following ROI objectives)
i. 80% Improving efficiency of workforce
ii. 52% Growing revenue for the existing business
iii. 44% Innovating new products, services, or business models
iv. 37% Reducing operating costs
4. Top 5 challenges that CIOs encounter when dealing with digital Transformation
a. Business case
b. Access to talent - ( In 2018 – US says There are now more job openings than people looking for work); Talent shortage is one of the worst kept secrets of the jobs market
c. Change management
d. Policy and regulations
e. Vendors and partners
Threats
1. Intensified adoption of DIY approach by enterprises i.e. 50% increase in new GICs / captive centres setup between 2016 – 2018.
2. Between 2018 – 2021, Agile is expected to grow at 25% CAGR; and it has the maximum no of FTEs (supply) available i.e. as of 2018, 780,000 approx Agile skills available
3. Enterprise / customers perception on the services provider is very low at
i. Innovation and value-addition
ii. Talent management
iii. Strategic partnership
4. 3 parameters that impact enterprise-service provider relationship
a. Dissatisfaction with real business impact
b. Poor talent availability for next-gen needs
c. Capabilities gap to become strategic partner
Opportunities
1. Talent deficit is forcing clients to increase outsourcing and offshoring
2. Skills with High demand-supply gap in the future (3 -5 years)
i. Infra -> VMware, AWS, Azure;
ii. Tools-> React, Riverbed, AppDynamics, RPA tools, Workday;
iii. Languages -> Ruby, Go, R, NoSQL, Python;
iv. Agile/Devops ->Ansible, Chef, Puppet, Docker, Jenkins
v. DB technologies -> QlikView, Apache Spark, Hadoop, Teradata
3. New outsourcing deals announced -> 69% (in 2018) digital focused from 49% (in 2016)
4. From/to
Cost optimization is the key objective function à
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Business value and growth are the primary objective functions
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Designed to make IT more efficient à
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Designed to make IT more efficient and effective for business
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Geared toward service efficiency à
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Geared toward services efficiency, resilience, and agility
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Diffused provider focus and accountability à
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Well laid-out provider roles and expected outcomes
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