- Forrester Councils
- Councils Overview
- log in
Posted by Fred Giron on February 27, 2012
I’m currently working on a report entitled “IP-Based Solutions Will Transform The Global IT Services Industry.” In a nutshell, I believe that the business model of IT services firms (consulting firms, systems integrators, and outsourcing firms) will transform from a traditional human capital-intensive model to a software capital-intensive model over the next five years. As I will detail in my report, I believe this transformation will have far-reaching implications on the IT services firms’ organizations, including their sales, marketing, portfolio management, and delivery capabilities.
As I’m based in India, I also see this change as a major disruption for India’s export-oriented IT services industry (AKA “offshore services”). I believe that the growth model for India’s IT/ITeS industry’s in the next 20 years will be much different than it has been for the past 20 years. Software assets — what I also call IP-based solutions — will become critical to the competitiveness of the Indian IT services industry. The recent investments of companies like Infosys, HCL, and NIIT Technologies in such IP-based offerings are strong proof points.
This means a couple of things for the Indian industry:
In order to be successful in this IP era, Nasscom and other IT trade associations in India will have to work collaboratively in order to:
The Nasscom Industry Leadership Forum (NILF) celebrated its 20th anniversary two weeks ago in Mumbai. With a 19% growth rate expected in the fiscal year ending in March 2012, we cannot say that the industry is going through a “youth crisis.” Still, during my interactions with executives from IT services firms there, I felt that the industry is getting more anxious about its future, as its main value proposition — labor arbitrage — is slowly but surely losing traction. At the same time, it received four amazing anniversary gifts: big data, cloud, mobility, and social computing. I am curious and eager to see how it will leverage these gifts on the road to adulthood and IP-based solutions.
Save Money On Your Next Software Negotiation
Work with our software negotiation experts to save 10–20% on your next contract »
Lead BT Transformation
Develop customer-obsessed strategies to drive growth »
Forrester's CX Index
Predict how actions to improve CX will affect revenue performance.
Measure the customer experiences that matter most »