2018 Services Predictions: ‘Food truck-ification,’ the end of audits, and data-infected healthcare — Digital transformation services in 2018
In recent years, we have seen IT services engagements shrink in scale and shorten in length, partly driven by budget pressures and significantly driven by clients looking to make changes more manageable and less disruptive to their organizations. Cloud pricing models and everything offered “as a Service” further pressured IT services vendors and consultancies to find new ways to deliver value — and generate revenue — in smaller chunks. Going into 2018, TBR sees change fueled by an expansion in the volume and variety of consulting and IT services as automation, analytics and artificial intelligence (AI), delivered in part through increasingly agile digital transformation centers, allow vendors to ramp up scale at an accelerating pace. With scale comes longer-term, more stable revenue streams, especially when tied to software-enabled managed services, leading to shifting business models for the consultancies and IT services vendors. Healthcare IT services provides a useful case study in how this early stage of digital transformation will likely be a short hop from hype to substantial change in how consultancies and IT services vendors deliver at scale and recover revenue and growth rate that had stalled in recent years.