Technology Paradigm Shift
The IT services industry is undergoing a technology paradigm shift that has strategic implications for service providers. The world has seen many changes in last four decades that includes #Mainframe to #IT Stack to #Outsourcing. The age we live now is #Digital and this will define the future of the ‘born connected’ generations.
Market analyst predicts that this is $900B plus business – sooner or later; it will be evident that few big logo’s will fade away – companies will initiate M&A discussions – new entrants will capitalize the market. So, what should the traditional players should do for themselves before taking tit to their clients?
First, Understand the challenges
Business leaders should think of transforming their organization by creating value thru a) Outside-in Innovation b) Access to digital platforms & c) Creating agility & cost efficiency. Business transformation is possible by digital transformation – To do that leaders should first understand the challenges with the eco-system.
The most significant challenges are
- Skill-Gap (almost 94% of organizations lack of digital skills)
- Business model disruption (4 in top 10 incumbents expected to replace by disrupters)
- Transformation pressure (more than 65% project fail when attempt for digital transformation)
- Increased cyber threat (500 M+ estimated cyber threats per day)
Second, Build Digital Business Offerings
Digital disruption is the next big cycle for service providers. Organizations should co-create product/service offerings with digital theme around a) Cloud b) Cybersecurity c) Applications d) Mobility & e) Analytics.
This is possible only when leaders develop their talent pool in the organization. It should attract new next-gen graduate, reskill/upskill their existing talents and rejuvenate the career management across layers.
Third, Help CxO solving problems
No business development executive would like to waste their golden first 30 minutes conversation with any CxO talking nonsense. We all know the existing problems any CxO have today are
- Multiple license models
- Distributed systems
- Shadow IT
- Traditional business models
- Refresh cycles
- Outdated applications
- Data center management
- Service management
- Cost pressures
- Shortfall of talents
Good conversation to have with them is show ‘what value you’ll bring him to succeed?’ and stop doing things that not required (in other words – traditional offerings). Work with partner to find solution (have various models/options) – at times, it should be of startup team that innovates to integrate end-to-end, scale quickly, enabled by next-gen talents.