The death of IT services?
Lots of noise over TCS layoffs over the past few days.
Those who are writing obituaries for the IT services industry overlook two truths:
One, the core competence of IT services firms is not only IT.
It’s also agility.
IT services firms have not only overcome but have grown - profitably - through multiple crises moments in the past when death knell was sounded for them.
But this time is different - you may think.
This is where you need to understand the second truth which is grossly overlooked by fear mongers.
For most large corporations today, the tech ecosystem running them - applications, infrastructure, databases, and such - is a complex web built over decades.
As an analogy, think of the plumbing system of a large and old building complex - embedded in the structure of the building, outdated and messy, repaired and upgraded piecemeal from time to time, leaky here and there. You can’t turn it off or replace it fully. You just make sure that the plumber who knows and understands it all is accessible to you when you need him.
In a way, IT services firms are that plumber for global corporations - only a lot more critical. As a management consultant, I have sat through countless design sessions where it was evident that the IT services vendor for the client knows much more about their systems than the in-house IT teams.
The plumbers are not going away anytime soon. If at all, they are likely going to get more busy tweaking the pipes and valves to make sure the new shiny tap in your bathroom (I mean AI) works properly.
***
That’s not to say that this time is not different.
AI is indeed a force like none other in the past few decades. Also, clients are setting captives to take control of their plumbing.
This does require a re-think of the business model and value proposition on offer by IT services firms.
This is where their ‘agility’ muscle will be needed and tested more than ever before.
Time will tell.
But clearly too early to ring the death knell.
#AI #IT #Services #Future
P.S. - views are personal.