Could Responsible AI Spark Transformative Change at HCLTech?

In mid-August, TBR met with Heather Domin, HCLTech’s vice president and head of Office of Responsible AI and Governance, and Grace Davin, Responsible AI and Governance Thought Leadership and Enablement leader, to discuss HCLTech’s Responsible AI Advisory Services practice. The following reflects that conversation as well as TBR’s ongoing analysis of HCLTech, the IT services ecosystem, AI and disruptions across business models in the technology space.

 
HCLTech’s strengths lie in its engineering DNA; entrenched and well-managed client relationships; and extensive alliance partnerships, which include critical technology players and even HCLTech competitors. Playing to those strengths has been one element separating HCLTech from IT services peers in the last few years, especially with respect to profitability. With a suite of AI Advisory Services, the company continues to follow its proven strategy: focus on core values, deliver relentlessly, partner smartly, and expand within an existing client base.
 
Responsible AI, a critical subset of AI Advisory Services, could serve as a strategic enabler of HCLTech’s market leadership ambitions, elevating its market stature and strategic relevance with clients, peers and ecosystem partners.

Responsible AI: The basics

AI Advisory Services is aligned with HCLTech’s overall organization and strategy including partnerships across technology companies, industry organizations, nongovernmental organizations and governments. In Domin’s view, staying current with the fast-changing AI landscape requires partnering broadly as well as putting HCLTech through the rigors of leading AI, technology and organizational certifications. Domin noted HCLTech’s partnerships with Microsoft and IBM, as well as a growing collaboration with the Massachusetts Institute of Technology.
 
HCLTech’s core client value proposition combines Responsible AI governance with large-scale engineering and transformation delivery. Unlike niche governance or AI red-teaming providers, HCLTech’s AI advisory capabilities span AI red teaming, AI governance, enterprise strategy, agentic engineering, and road-mapping from prototype through production. The company brings technical talent, local regulatory knowledge, customization by industry and geography, and the ability to embed governance into major AI programs rather than treating it as a stand-alone compliance exercise.
 
According to Domin, HCLTech has seen increasing demand for AI advisory services from clients, particularly in financial services, healthcare, and energy & manufacturing, all areas that face significant regulatory challenges. HCLTech has developed expertise in addressing governance, risk and compliance (GRC) issues for clients in part by hiring talent from legacy GRC firms and by recruiting professionals with backgrounds combining legal, compliance and AI experience. In TBR’s view, HCLTech’s decision to explicitly call out Regulatory Services as a component of AI Advisory Services provides a subtle but significant differentiator when contrasting HCLTech with its closest IT services peers.
 
HCLTech bakes Responsible AI into every element in the AI Advisory Services suite, as well as across the broader set of HCLTech’s AI offerings, such as AI Force (see TBR’s assessment from late 2024). Domin acknowledged that Responsible AI should be at the forefront of any engagement with an AI component and not, like change management traditionally, left to the end of the engagement process.

Responsible AI: The nuance

When discussing whether HCLTech’s Responsible AI services offering allowed the company to interact with decision makers beyond the usual CIO clients, Domin noted that organizations have different approaches to “placing the responsible AI responsibilities … sometimes they put it in the technology office, sometimes in the CIO, sometimes it’s in the chief risk officer’s office, and so [CIOs will] bring in the right people.”
 
These changing roles and responsibilities help expand HCLTech’s influence and footprint within a client. Domin added that some “big companies that we work with already have pretty well-established [AI and tech] broad capabilities. What they need is to understand how to deploy a specific AI deployment with the right guardrails integrated. So it just depends on the company. We might not even need to go to that other buyer, but in some cases we do.” In TBR’s view, expanding HCLTech’s role by providing Responsible AI services will undoubtedly bolster client retention and help prove the company’s overall value.
 
In multiple client use cases presented by Domin, HCLTech’s AI Advisory Services practice essentially solved complex problems driven by a lack of responsible AI practices or guardrails and emerging technology deployments. For example, one client’s use of GitHub Copilot had returned underwhelming results and created unwanted risks, providing an opening to use nearly the full suite of HCLTech’s AI services. In TBR’s view, these brownfield opportunities will likely remain plentiful as hype around AI’s promise coupled with fears of being left behind outpace responsible approaches to AI deployments.
 
TBR noted Domin and HCLTech’s emphasis on governance, risk, and compliance, as well as the operational aspects of AI and not the specific technology itself (discussion touched on broader aspects beyond the common technology aspects such as which large language model to choose, vibe coding, retrieval-augmented generation, or token consumption). Every IT services company does tech. Not every company understands and delivers on broader governance and risk management.

What Responsible AI really means for HCLTech

Domin discussed HCLTech’s customer-zero story and how the Responsible AI team participated in the firm’s ongoing internal AI deployment, including ISO 42001 certification and an AI ethics board. She added that, “some of our experience around our own tooling, it’s been useful. Like where clients are deploying similar tools or things, we’ll say, ‘Oh yeah, but our team is doing that internally. Go talk to them.’ And so yes, [customer zero] is very much a core integral part of what we do.”
 
In TBR’s view, HCLTech’s customer-zero story around Responsible AI could be part of a catalyst for change within the company. Not only will the customer-zero story resonate with clients and with HCLTech’s technology and ecosystem partners, but employees will also be able to see the company’s value to clients in a different way.
 
Domin’s presentation and the discussion with TBR included frequent mentions of “board-level narratives” and deliverables from HCLTech ready for “audit committee review,” all wrapped around the Responsible AI and AI Advisory Services offerings. TBR had not previously considered that HCLTech’s value proposition includes board-level contributions, except for highly specific, technology-centric issues, such as large-scale IT implementations or business-model-changing AI deployments at scale.
 
Domin subtly suggested the company’s Responsible AI professionals would consult consistently at the board and audit committee levels, bringing HCLTech’s brand repeatedly into that environment in a different way.
 
Notably, Domin commented on a “cultural transformation of our teams” as part of the positive effects of internal AI adoption at HCLTech. Continued adoption and cultural transformation could help the company position itself as a different kind of partner to boards and C-Suites than other IT services companies. That shift would likely strengthen HCLTech’s standing as a strategic advisor to clients and ecosystem partners, creating opportunities for additional services engagements beyond Responsible AI.

Grant Thornton Expands Its Oracle Practice Through Leadership, Industry Expertise and AI

TBR recently spoke with Brandon Johnson, Oracle Advisory Leader at Grant Thornton, about the firm’s growing Oracle practice, his experience prior to joining Grant Thornton, and his expectations for Oracle and Grant Thornton over the next few years. The following reflects that discussion as well as TBR’s ongoing analysis of both companies, their competitors and peers, and trends across the entire technology landscape.

 
TBR believes Grant Thornton has built a differentiated Oracle practice around senior leadership, direct field access, and focused industry investment, all centered on midmarket clients. Grant Thornton has Oracle breadth without bloat, connecting finance, human capital management (HCM) and supply chain with tax, risk, cyber and industry advisory while keeping experienced leaders close to the work.
 
Existing demand supports growth, and, notably, Oracle generates about half of Grant Thornton’s leads, while Grant Thornton creates the remaining pipeline internally, reflecting the depth of the two companies’ relationship. Scale remains the biggest challenge, with Johnson admitting the bench needs strategic growth and a better balance of offshore and nearshore talent.
 
Despite this constraint, TBR expects Grant Thornton’s annual Oracle practice revenue to grow in the high teens to low 20% in the near term, potentially higher if Grant Thornton institutionalizes more of a relationship-led practice through standardized delivery, a broader talent pipeline, and reusable AI offerings with defined governance and outcome measures.
 
In short, Grant Thornton recruited the right leadership and developed tight relationships, and now it must execute on Oracle’s platform changes plus client demand.

Leadership, industry focus and co-selling have deepened the Oracle alliance

Grant Thornton hired Johnson, a 25-plus-year Accenture veteran, where he had successfully built a substantial Oracle business and established strong relationships with Oracle’s sales, product and alliance teams. He has been joined by additional experienced professionals specializing in Oracle HCM, finance, supply chain and enterprise transformation.
 
In TBR’s assessment, Grant Thornton gained unusually broad and deep access to Oracle for a firm of its relative size, and its long-standing experience working with Oracle provides it with the discipline and confidence to treat Oracle’s consulting practice as a delivery partner rather than a competitor.
 
For decades, professional services firms, particularly the Big Four, have maintained strained — at best — relationships with the consulting arms of software giants such as SAP, Microsoft and Oracle. In contrast, according to Johnson and Grant Thornton Chief Marketing Officer David Clarke, Grant Thornton enjoys a more mature, cooperative understanding of different consulting opportunities and roles.
 
Grant Thornton, in their view, leads transformation and draws on Oracle for specialized infrastructure and product depth. Of course, the age-old challenge of converting personal access and relationships into consistent field enablement and referrals remains.
 
According to Johnson, Grant Thornton’s Oracle practice concentrates on financial services, healthcare, hospitality and travel, professional services, transportation and logistics, with new investments in energy, utilities, oil and gas, and consumer sectors.
 
TBR’s research has consistently shown that concentrated industry specialization, rather than serving all industries, yields faster, more sustained revenue growth. Technology vendors increasingly reward partners that combine industry talent, subindustry offerings and reusable IP; broad but shallow coverage carries less value than proven depth in a limited set of markets.
 
Like many consultancies, Grant Thornton creates demand for Oracle through a presales team that demonstrates the technology, joint go-to-market campaigns and introductions to existing Grant Thornton clients.
 
Not surprisingly, Oracle, according to Clarke, promotes Grant Thornton in partner forums. More surprising, Oracle generates about half of Grant Thornton’s Oracle pipeline, reinforcing a shift from simple referral flow to co-selling.
 
TBR believes a technology company’s ability to explain a consulting partner’s value and tell that consultancy’s story remains the most critical indicator of the current depth and long-term potential of a tech vendor-consultancy alliance. A tech vendor must be able to effectively communicate a consultancy’s story to generate significant pipeline, and clearly, Oracle is doing this well for Grant Thornton.
 
Further cementing the alliance, Grant Thornton’s relatively early participation in Oracle’s AI Agent Studio gives the firm a foothold in the transformation layer between applications and infrastructure, enabling the firm to use agents to connect data, automate processes and coordinate decisions across Oracle and non-Oracle systems.
 
Oracle’s Fusion Agentic Applications expand that opportunity rather than reduce services demand. Clients still need integration, controls, process redesign, data readiness and change management, and Grant Thornton should be able to tie each deployment to measurable gains in close cycles, workforce operations, procurement, service or supply chain.

Grant Thornton’s Oracle sweet spot: Complex midmarket transformations

Grant Thornton’s ideal clients share a few basic characteristics: large enough to have outgrown boutique consultancies and IT services companies; small enough to neither need nor want to pay the higher prices of a Big Four firm or global systems integrator; and experiencing rapid growth fueled by acquisitions, carve-outs and increased technology investments while contending with fragmented IT systems and business model disruptions.

How does Grant Thornton marry its client base and Oracle’s technology?

  • Integrated Fusion transformations: Grant Thornton positions HCM with finance and supply chain; it reported to TBR that roughly 70% of its Oracle pipeline includes HCM packaged into a broader bundle. Oracle’s common application and data architecture enables the firm to frame workforce, financial and operational change as a single program.
  • Private equity (PE) carve-outs and post-acquisition integrations: Grant Thornton combines PE relationships and preconfigured designs to establish finance, consolidation, HR and operational systems quickly, especially when a portfolio company must separate from a parent or prepare for another transaction. Undoubtedly, Grant Thornton brings its customer-zero experience to these opportunities.
  • Industry-specific transformations: In the healthcare, financial services, transportation, hospitality and energy verticals, Grant Thornton can combine Oracle with regulatory, tax, risk, cyber and operating expertise. Grant Thornton is not unique, but by staying focused on a handful of industries, the firm’s expertise sets it apart from its peers. TBR notes that even if the industry transformations are not unique among services companies, there is a level of differentiation among tech partners. In our opinion, Oracle is one of the very few SaaS vendors that offer fully prepackaged industry applications, giving firms like Grant Thornton opportunities to build around these applications, helping them lead with business discussions and work backward into horizontal finance and HR transformations.
  • AI-enabled finance and enterprise transformation: For Grant Thornton’s clients, Oracle agents can improve finance, HR, procurement, supply chain and service workflows, but only when Grant Thornton pairs the deployments with process redesign, governance, controls, data readiness and workforce change.
  • Alternatives to large integrators: According to Johnson and Clarke, Grant Thornton’s senior-level attention and practical delivery style appeal to buyers concerned about junior staffing, change orders or standardized playbooks. Sustaining that advantage may require Grant Thornton to make its capacity model as credible as its relationship model.

In TBR’s view, Grant Thornton will likely avoid infrastructure-heavy Oracle Cloud Infrastructure (OCI) programs, complex database modernization and very large global transformations until it builds deeper capabilities — though these may be necessary as OCI matures and continues to underpin the broader platform and applications portfolio.
 
OCI will also become more essential to the One Oracle positioning and sales strategy Oracle will increasingly emphasize with its partners. Until then, Grant Thornton can own the transformation agenda with its clients from the apps layer and continue developing its deep relationship with Oracle without overstating its full-stack depth.

Capacity, field awareness and technology depth will set the ceiling

Talent remains the most pressing constraint. With almost no Oracle bench, each large win for Grant Thornton creates staffing pressure, even as the firm continues building a talent base in India and recruiting top-flight nearshore talent as well as considers investing in Philippines-based capacity ahead of demand, all without weakening the firm’s promise to lead every delivery with senior, experienced professionals.
 
Compounding the talent shortage, Oracle field awareness of Grant Thornton’s strengths remains uneven. Executive access opens opportunities, but scale requires a formal enablement system that gives sellers concise guidance on target clients, industry plays, credentials, reference architectures, available capacity, and reasons to select Grant Thornton. The firm could also develop more depth across analytics, data and OCI.
 
Although becoming an infrastructure outsourcer would not fit Grant Thornton’s strategy or brand, strengthening OCI architecture, integration, security and data governance would prove more credible ownership of the transformation layer.
 
To further differentiate from peers, Grant Thornton could assign ownership, governance, version control and performance metrics to its own accelerators and link each asset to faster deployment or better client outcomes. Those metrics could also be a catalyst for disruption of the commercial model, should Grant Thornton and its clients together see benefits in fixed-fee and/or value-led commercial structures.
 
In TBR’s view, consulting commercial models have begun to evolve rapidly toward explicitly tying fees to adoption, productivity, transaction speed, working capital, workforce efficiency and/or financial close improvement. Grant Thornton’s Oracle practice could be an internal catalyst or accelerator for that change.

Productize, scale, prioritize, invest and attach

Leadership, client demand, alliance access and proven delivery competency give Grant Thornton the foundation to make its Oracle practice one of its fastest-growing technology businesses. With C-Suite-to-field-level relationships that run deeper than market awareness, the practice has room to take market share before larger competitors react.
 
Adding capacity, converting beta AI work into marketable solutions, proving industry plays, and expanding Oracle-originated opportunities could all help Grant Thornton when it comes to hiring, delivery, and field awareness.”
 
TBR believes Grant Thornton will likely accelerate its growth and increase its relevance to Oracle and shared clients by:

  • Productizing a small set of repeatable offerings in Oracle’s AI Agent Studio, including financial close, procurement, HR service delivery (HRSD), workforce planning and supply-chain, through ideally defined deployment methods and outcome metrics
  • Scaling through delivery pods, which will preserve senior client leadership while expanding offshore and nearshore leverage across the entire Oracle stack
  • Prioritizing sectors where Oracle commitment, Grant Thornton relationships and midmarket demand overlap, especially financial services, healthcare, energy, transportation and logistics, and hospitality
  • Investing in OCI architecture, Oracle Integration Cloud, data governance, security and cross-platform orchestration rather than commoditized infrastructure
  • Attaching optimization, managed services, agent governance and adoption support to implementations while providing recurring revenues

To bring the greatest value to its clients and to Oracle, Grant Thornton does not need scale parity with the largest Oracle partners — a point Johnson and Clarke made repeatedly to TBR. Instead, the firm will institutionalize its alliance access, focus its industry model and bring measurable results to its midmarket  clients. Capacity, repeatability and field execution will help Grant Thornton punch well above its weight.

Lenovo’s AI-native Support Services Transformation: From Reactive Support to Intelligent Service Orchestration

Enterprises are under pressure to do more with less. Infrastructure estates are becoming more complex, user expectations are rising and support organizations are being asked to deliver faster, more personalized and more consistent support across varying geographies, device types and service channels. TBR’s 2026 Infrastructure Strategy survey reflects this operational burden, with 66% of respondents agreeing or strongly agreeing that most of their team’s time is spent trying to keep up with day-to-day tasks. Additionally, according to respondents, shortages of skilled IT staff remain a major compounding constraint. The result is a widening gap between what customers expect from support services and what traditional operating models can consistently deliver.

AMD Enters the Execution Phase of its Full-stack AI Strategy

Advancing AI 2026 showed that AMD has assembled the architecture and road map required to compete at rack scale. Helios connects the company’s GPUs, CPUs, networking and software into a system-level platform, while expanding partnerships with Microsoft, OpenAI, Anthropic and Meta provide credible paths to large deployments. ROCm.ai gives AMD a new way to reduce the engineering effort required to bring up and optimize applications on Instinct GPUs. Agentic workloads also expand the AI-driven opportunity for EPYC beyond its role as a host CPU for accelerators, allowing AMD to address the agent sandboxes, applications, databases and data services surrounding GPU inference.

Global Analyst Summit 2026: Value Creation Through Operating Model Transformation  

As consulting continues to evolve due to AI’s influence on business models and day-to-day operations across enterprises, EY’s leaders discussed how the firm is adapting its approach to guide clients through uncertainty and increased speed of change, and introduced featured clients, giving them an opportunity to share their experiences. The client stories emphasized the speed at which they need to navigate market changes and their desire to work with a long-term partner such as EY to guide the transformation as well as to create an ecosystem of vendors that support their end goals. The notion of value was consistent throughout the event, as the firm seeks to reconfirm its positioning in the consulting space despite ongoing market uncertainty about consulting’s future relevance.

Are Hyperscalers Really Competing for Services Revenue? 

TBR has consistently highlighted hyperscalers’ professional services units, despite their relatively small revenue streams, as potentially credible threats to IT services companies.  Hyperscalers do not intend to displace global system integrators (GSIs) in consulting or managed services, but their growing services capabilities create more margin pressure for (and anxiety among) the GSIs each quarter. This report examines where hyperscalers’ professional services units overlap with GSIs’ and how their roles continue to evolve. We begin by comparing the companies’ services operating models.

How hyperscalers work alone

Among the hyperscalers, Amazon Web Services (AWS), Google and Microsoft have their own services units, with AWS having the highest cloud professional services revenue and being the most vocal about its offerings. AWS ProServe (Professional Services) and Amazon Managed Services take tailored approaches and have customer-forward strategies. AWS provides ProServe offerings on AWS Marketplace, making it easier for account teams and customers to procure consulting alongside cloud products.
 
At the end of 2025, AWS launched the Professional Services Delivery Agent, which changed the workflow for AWS and its clients, making agents the first step, not a consultant-led pilot. Now agents can perform architecture validation, migration planning, code generation and documentation while consultants focus on customer-specific decisions. In comparison, Google Cloud Consulting introduced packaged engagements around new technologies, such as AI Readiness and Agent Launchpad, to help customers reach production quickly before partners scale the deployments.
 
Microsoft’s professional services practice, which once focused on paid implementation, is moving toward adoption and customer success through services like FastTrack, Unified, and Cloud Solution architects. The introduction of Microsoft Frontier Company could change the dynamic by giving the company a more direct role in helping clients design, deploy and scale agentic AI solutions. The model creates a more comprehensive delivery motion that may resemble AWS’ and Google Cloud’s by taking a more formalized approach to technology, engineering support and consulting around emerging AI workloads.
 

 
Figure 1 contains TBR’s proprietary data and includes estimates of professional services revenue developed over years of experience covering these companies and the broader IT services market. Microsoft receives the smallest share of revenue from cloud professional services, and this may be part of why the company rebranded its former Microsoft Consulting Services to be included as part of Microsoft Industry Solutions and the broader Microsoft Professional Services unit, which is more closely aligned with the client-facing brands AWS ProServe and Google Cloud Consulting. Microsoft intends to gain higher margins in consulting-related work as part of its broader strategy to become AI-first.
 
TBR believes Microsoft may be trying to emulate margin leader AWS’ approach in its professional service business. Compared to five years ago, Microsoft’s and Google Cloud’s professional services revenue has been declining as a percentage of total cloud sales. Yet, many vendors are increasingly giving away managed services as a value-add.
 
As AI matures and repeatable solutions become more attainable, AWS may borrow Microsoft’s and Google Cloud’s more platform-based approach. In addition, repeatable outcomes will make services partners even more important, and they can focus on ecosystem orchestration. Services orchestration of go-to-market motions incorporating emerging solutions indicates that interconnected revenue is rising. Google Cloud saw a 9x combined increase in seats sold with partners and in the number of partners using the application internally in 1Q26. On the GSI side, TBR believes hyperscaler partnerships will become more important and account for a larger share of revenue, as described in TBR’s 1Q26 Accenture report, for example.

Where is the threat to services partners?

Hyperscalers’ services revenue is increasing much more year-to-year than GSIs’. Each of the three hyperscalers’ professional services revenue grew by more than 10% from 2024 to 2025. TBR believes this is due in part to adding services to existing and emerging product lines. Hyperscalers want to ensure customer satisfaction, since it is their AI platform and software on the line, while GSIs remain technology agnostic as their measure of client satisfaction comes from their own services and not the technology products or platforms delivered by the hyperscalers. In addition, hyperscalers also want to obtain more consumption usage around AI.
 
TBR believes GSIs may be losing ground around adoption and solution-specific implementation engagements. TBR’s Cloud Professional Services Market Forecast 2025-2030, which focuses on a GSI perspective, predicts that hyperscalers “can influence not only how services are delivered but also how outcomes are achieved, strengthening their role in driving client success and increasing their share of the value chain.”
 
Typically, GSIs are more instrumental in broader transformation and change management engagements that require greater scale and complexity. TBR does not expect these areas of influence to change anytime soon. As discussed in TBR’s 1Q26 Cloud Go-to-market Benchmark, “As [cloud] portfolios shift toward consumption-based and modular pricing, [services] partners play a critical role in driving adoption, expansion and usage discipline, which directly influences lifetime value even when the initial transaction is small.”
 
In turn, hyperscalers are increasingly relying on GSIs’ large benches. As we also noted in the benchmark, “many AI and platform revenues are usage-based or deferred, while partner services revenue is front-loaded. [Cloud] vendors use incentives to bridge this timing mismatch and keep partners economically engaged even when vendor revenue recognition lags. Essentially, incentives are replacing guaranteed margins, enabling [cloud] vendors to steer partners’ behavior without permanently increasing the ecosystem’s costs, which would happen if they continually added headcount.”
 
Hyperscalers’ growing influence is affecting which services GSIs offer. Each new frontier model and agent release promises new, exciting potential outcomes across business workflows, security measures and applications. Yet it is up to GSIs to ensure all technology layers are prepared for AI, beyond what hyperscalers’ professional services teams offer. Hyperscalers are more interested in developing advanced solutions and earning more consumption-based revenue.

How are cloud professional services evolving on their own?

Do hyperscalers and GSIs differ in their delivery approaches? Hyperscalers may have more depth in platform-enabled delivery, given their closer proximity to innovation and heavier IP assets. Hyperscalers are not headcount-heavy and thus are motivated to keep headcount in check. AWS’ Professional Services organization is adding AI agents internally, including a Professional Services Delivery Agent, to speed consulting work and reduce delivery costs. More broadly, GSIs are an entry point for multiparty orchestration when clients need packaged repeatable offerings across cloud, services, AI-native and hardware ecosystems. We expect cloud-partner-backed revenue to increase as a share of overall revenue over the second half of the decade. However, multiparty orchestration creates competition for margins. A strong partnership means all parties need to be upfront about pricing expectations and about which engagements are best for each point of contact, the latter of which TBR believes hyperscalers and services vendors are already addressing.
 
Hyperscalers want to be the first choice of technology providers for basic migration. As such, the three companies are focusing on providing consulting with designated solutions and more defined frameworks. Alongside strong alliance partners, repeatable solutions help hyperscalers keep consistent professional services despite some recent increases in cloud professional services revenue. For example, Google Cloud’s cloud professional services revenue rose an estimated 26.7% from 2024 to 2025, but the company’s professional services headcount grew an estimated 6% year-to-year from 4Q24 to 4Q25. The conservative headcount growth is indicative of hyperscalers staying true to their nature and not becoming a services business. Google Cloud, which has significantly lower headcount numbers in its professional services unit comparable to peers, may increase hiring or, at the very least, redirect resources to make services headcount more accommodating for effective AI deployment.
 
Forward-deployed engineers (FDEs) are changing the conversation around services headcount. As the IT market scrambles to accommodate growing client demand for ROI, hyperscalers are introducing FDEs. These professionals are being deployed alongside GSIs’ teams and are gaining headlines, but a deeper look suggests these roles previously existed in some capacity. The FDE model is less a clean break from prior services roles and more of a product- and adoption-oriented version of technical architecture support. FDEs share similarities with systems architects in that both sit close to the client and translate platform capabilities into workable solutions, but FDEs are more tightly linked to implementation and iteration as AI use cases move into production. One example of this is Avanade, the joint venture between Microsoft and Accenture.
 
The two companies are deploying FDEs together, with a focus on Microsoft’s Frontier Suite. As described in TBR’s 1Q26 Microsoft Cloud report, “The announcement is important because the FDE model, while made prominent by Palantir, has historically been less common among software vendors that prefer more scalable and margin-accretive delivery models. FDEs are expensive because they place technical resources close to the customer, but that proximity becomes more valuable as AI moves from experimentation into mission-critical workflows that require customization, governance and fault tolerance.” Hyperscalers are rebranding existing solutions to highlight their capabilities.
 
In the newest example, Microsoft has launched the Microsoft Frontier Company and announced a $2.5 billion investment. The company will “embed” 6,000 professionals to design and implement AI solutions, suggesting a more services-forward approach to clients, perhaps similar to AWS’. Although FDEs and related professionals are important and are likely to expand in some capacity, especially in the short term, as technical expertise is necessary for enterprises navigating AI transformation, we believe the build-out will be confined to when AI solutions begin to reach maturity. For now, hyperscalers’ professional services units will stay in their lane, focusing on how their solutions are best built and deployed, leaving the other noise, such as change management and ecosystem orchestration, to the GSIs.
 

 

PwC India Moves From a Growth Market Story to an AI-enabled Execution Engine

Trust, AI and impact shift from event themes to integral parts of the operating model

Two years after PwC India used its 2024 analyst event to emphasize India’s strategic importance as a growth market, the firm has returned with a more mature, execution-oriented message. India is no longer simply a promising geography for PwC; it is becoming a core engine for AI-enabled consulting, technology transformation, managed services, global delivery, Global Capability Centers (GCCs), support and emerging-market expansion.
 
PwC India Analyst Summit 2026’s tagline themes — trust, AI and impact — could have easily become broad consulting slogans. Instead, PwC India grounded them in client examples spanning cybersecurity, privacy, SAP, Oracle, data transformation, AI platforms, consumer growth, steel manufacturing, GCCs and public sector digital infrastructure. The result was a clearer view of how PwC India wants to compete: not by selling AI experiments or strategy road maps alone, but by combining technology partnerships, industry knowledge, delivery scale and outcome-focused accountability.
 
PwC India’s 2026 story reflects a more ambitious role within the global PwC network. The firm continues to benefit from India’s macroeconomic growth, client maturity, GCC expansion and technology talent base. But PwC India’s leaders also described a more deliberate operating model built around global integration, AI-native delivery, upskilling, expansion into emerging markets, lower-cost delivery and a stronger managed services business. In TBR’s view, PwC India is positioning itself as both a high-growth domestic consulting business and an increasingly important global transformation change catalyst for PwC.

PwC India’s strategy is shifting from growth participation to capability leadership

PwC India Chair Sanjeev Krishan framed the broader opportunity in India around economic resilience, entrepreneurship, technology adoption, manufacturing growth, the importance of services and the need for trustworthy, inclusive progress. He also described PwC India’s strategic priorities through the lens of PwC’s Vision 2030 agenda. Five priorities stood out: upskilling PwC’s people; becoming more AI-native; expanding into emerging Indian markets through the Kal Ka Bharat program; lowering delivery costs through AI and delivery industrialization; and investing more deeply in operate-led services. These priorities suggest PwC India is not merely adding AI to existing offerings but is rethinking talent, delivery economics, geographic reach and post-transformation operating models.
 
Advisory Leader Dinesh Arora expanded on that message, focusing on client concerns including geopolitical risk, AI uncertainty, cyber risk and the increased importance of trust. He highlighted that PwC India’s approach emphasizes agility, speed, AI democratization, AI-enabled delivery, industry-specific AI solutions, startup collaboration and outcome-linked commercial models. The discussion about outcome-based pricing was particularly important. Arora indicated that more large proposals now include client questions about PwC’s “skin in the game,” and he suggested that outcome-linked work could become a much larger share of the business over the next few years, aligning with the broader direction of consulting where clients want measurable value, not simply transformation activities.
 
Arora also emphasized PwC’s globally integrated consulting model, under which offerings, methodologies, tools and teams are increasingly shared across member firms. For PwC India, this matters in two ways. First, it gives India access to global credentials, methods and teams. Second, it positions India-based talent as a larger delivery base for global clients, particularly as remote and distributed consulting delivery becomes more accepted.

Palantir partnership gives PwC India (and potentially PwC as a whole) a sharper enterprise AI story

A panel discussion featuring PwC, Palantir and a joint insurance client was one of the most strategically significant sessions at the 2026 summit. It shifted PwC’s AI story from a generic generative AI (GenAI) discussion to the more challenging enterprise realities of data integration, governance, traceability, sovereignty, observability and operating model change.
 
The client described Palantir Foundry as a long-standing strategic platform, initially used for analytics and increasingly central to AI adoption and data management. The client is moving from a central data warehouse to a more business-owned data integration model built on Palantir Foundry. The scale is significant: roughly 100 source systems and double-digit terabytes of data are being moved into a new operating environment.
 
The client highlighted PwC’s data engineering, architecture and delivery expertise. PwC India’s role is particularly relevant as the client has a major GCC presence in Bengaluru, allowing PwC India teams to work closely with the client’s local and global stakeholders.
 
Further, Palantir executives emphasized the company’s strategic relationship with PwC in key markets and described PwC as a partner that brings enterprise access, cultural fit, domain experience and engineering scale. Additionally, Palantir positioned India as a critical talent pool and force multiplier, especially as global clients seek to use GCCs as centers of transformation rather than support.
 
In TBR’s view, the Palantir partnership gives PwC India a more differentiated narrative for its enterprise AI platform. Many consulting firms talk about AI strategy, AI governance and GenAI use cases. Few can combine a high-profile AI and data platform, global client transformation, regulated-industry trust requirements, and India-based engineering talent into a single story, especially when the message is amplified through a key technology partner. PwC’s opportunity will be to turn this partnership from a select marquee engagement into a repeatable global growth engine as the firm relies on its dedicated Palantir Foundry team and leans on similar use cases where PwC provides GCC services to two to three other large global clients.

Client stories highlight PwC’s evolving business plus technology operating and delivery model

During the event, PwC hosted 11 client use-case panel discussions. While each highlighted a key aspect of the firm’s evolving value proposition, some really brought the story home.
 
A pharma client’s SAP transformation was among the most compelling client stories as it demonstrated PwC’s multidisciplinary model in a complex, global environment. The engagement began with business process redesign, industry best practices, global leadership alignment and a business blueprint, then moved into the technical blueprint and implementation. Several aspects stood out: The program covered 17 manufacturing sites across several geographies; PwC brought global pharma and life sciences expertise into local market workshops; the client pursued one global SAP template, with incremental adjustments for specific countries, businesses and regulatory requirements; and PwC’s business process specialists worked alongside SAP implementation teams to ensure a smooth transition from process design to technology delivery. This case reinforced PwC’s strength as a business integrator and system integrator and its ability to drive large SAP-led business transformation. For clients with complex multinational operations, this is the kind of integrated role PwC wants to own.
 
An India-native e-commerce client implementing Oracle Fusion offered a different but equally useful proof point. The client’s finance transformation involved moving multiple businesses and acquired entities from disparate ERP environments into Oracle Fusion. The risk profile was also high. The client needed to migrate critical finance, payment and purchasing systems with limited fallback options. The timing added pressure because the go-live occurred shortly before India’s festive season, when e-commerce volumes surge.
 
The client emphasized change management as a major success factor. PwC helped identify impacted areas, prepare stakeholders, support training, and guide users through the shift from customized legacy ways of working to more standardized enterprise processes. In TBR’s view, the e-commerce use case stood out because it showed PwC in a setting where execution risk was immediate and measurable. Unlike conceptual AI programs, ERP transformations of this scale expose weaknesses quickly. The client’s description of three-shift workdays, relay-race execution and a no-fallback go-live underscored PwC’s role as a delivery partner in business-critical transformation.
 
A panel discussion between a global engineering R&D services client, PwC and Google about the client’s implementation of Google SecOps effectively connected PwC’s trust and AI themes. The client moved from a legacy outsourced managed security services provider security operations model to an AI-led, automated and more forward-looking security operations center using Google SecOps, with PwC as the implementation and operations partner. The client chose PwC after evaluating multiple partners, including other large firms.
 
The client highlighted that PwC’s key differentiators included the firm’s experience with Google SecOps, its certified Google team, and prior client implementations. Gaining partners’ trust by investing in the development of certified resources is a recurring theme in TBR’s ongoing Ecosystem Intelligence research. This further confirms PwC’s understanding of the importance of shifting from the usual vendor-agnostic message to a focus on becoming a preferred player in specialized sectors. Additionally, this use case supported PwC’s broader argument that AI creates value when embedded in operating workflows. It also reinforced the trust theme: faster security operations yield not only efficiency gains but also improvements in risk and resilience.
 
A use case from an India-based pharmaceutical client provided one of the clearest examples of AI value being built on data discipline. Following a multiyear transformation journey — from establishing a cloud data lake to building more than 1,000 enterprise dashboards with strong governance and data quality — the client introduced an AI-powered conversational analytics platform. The solution, built in partnership with PwC, enables business users to interact with enterprise data in natural language, instantly generate insights, and accelerate decision making without relying on traditional dashboards or technical teams. PwC’s AI-led data managed services role was notable. The client moved from a more transactional data engineering relationship with PwC to a managed services model centered on cross-functional teams, shared ownership, agile delivery discipline, AI in the software development lifecycle, and productivity improvements.
 
The company cited that it had already achieved a 15% productivity gain, with a longer-term goal of 30% and, eventually, higher productivity improvements. This use case aligned closely with PwC’s central summit message: AI value does not come from pilots alone. It requires governed data, process ownership, shared incentives, productivity discipline and operating model change. We also believe that use cases like this one will help PwC test its ability to drive outcome-based pricing at scale, as productivity gains remain a focal outcome objective for clients.
 
A session with a multinational technology provider in the travel industry highlighted how India-based GCCs are transforming from mere cost centers into global value centers, owning not just execution but strategic decision making for their parent organizations. The client story aligned with PwC India’s own GCC positioning. PwC is positioning itself to serve global companies both at clients’ headquarters and at PwC’s India-based GCCs, using its network model and India’s talent depth to connect strategy, engineering, transformation and operations under one coherent offering. The earlier use case with the insurance client and Palantir echoed this point: India GCCs are no longer just client organizations to be advised from the outside; they are co-innovation partners, with PwC India embedding itself as a strategic architect of that transformation.

AI Labs move PwC India’s AI story from presentation to productized go-to-market

A notable addition to PwC India’s 2026 Analyst Summit was a GenAI pop-up lab that shifted part of the event from client storytelling to hands-on demonstrations. The lab showed how PwC India is working to translate its AI positioning into a more tangible portfolio of assets, accelerators, solutions that have delivered value to customers, and repeatable use cases aligned with CXO priorities: revenue enhancement, cost optimization and risk reduction.
 
PwC framed the AI lab around the layers where enterprise clients can most directly influence outcomes: platform orchestration, models, data and knowledge, agents and applications. Rather than focusing on foundational compute or model development — areas dominated by hyperscalers, chipmakers and governments — PwC emphasized the enterprise-facing layer where clients need orchestration, process integration, data unlock, domain context and governance. We see the framing aligning with PwC’s broader strategy to position itself as the integrator of AI into enterprise workflows.
 
The lab demonstrations also reinforced a key message from the summit. PwC India’s AI strategy is not limited to advisory or proof-of-concept work. The firm is building use-case-specific solutions that can be shown, adapted and commercialized across sectors. PwC’s AI lab highlighted use cases including an agentic procurement suite; an AI-enabled Social Registry platform for the government of Assam; a multi-agentic AI project management twin; an agentic e-commerce solution; and a Palantir-enabled procurement and sourcing offering.
 
The lab’s session structure was important as PwC did not present the assets as disconnected demos. They were mapped to business priorities and to a maturity stack, AI factories and data centers, platforms and orchestration, models and weights, data and knowledge, agents and apps. That structure gave the lab more strategic relevance than a conventional technology showcase.
 
In TBR’s view, the AI lab served three purposes. First, it made PwC India’s AI capabilities more concrete. Throughout the summit, PwC leaders noted that clients want AI to improve revenue, reduce cost and manage risk. The lab gave tangible examples of how PwC intends to meet those needs through repeatable assets focused on delivering business value with AI at the center rather than bespoke consulting alone. Second, the lab supported PwC’s broader move toward asset-based and lower-cost delivery.
 
Several PwC leaders discussed the need to reduce delivery costs using AI, institutionalized delivery and reusable tools. The lab demonstrated how PwC India is packaging domain expertise into repeatable AI-enabled solutions that can accelerate client work and potentially improve margins. Third, the lab strengthened PwC India’s go-to-market credibility with enterprise buyers by aligning demos with recognizable business problems. Such positioning can help PwC address key pain points in scaling AI adoption as clients increasingly want AI solutions that integrate directly with business processes, rather than generalized AI experimentation.

PwC India is making a credible case for scaled AI delivery, but proof must remain outcome-led

PwC India is increasingly playing a more consequential role within PwC’s global consulting network as the firm is being positioned — and increasingly tested — as a platform for AI-enabled delivery, global client execution, alliance-led transformation and outcome-accountable commercial models. PwC India’s 2026 event showcased a stronger, more coherent model than in 2024: trusted relationships, India-based delivery depth, global integration, AI-asset-based delivery and commercialization and partner-enabled platforms.
 
The challenge is that every major professional services firm is pursuing similar themes. PwC India’s differentiation will depend on whether it can turn client-specific success stories into repeatable offerings without weakening the local intimacy, senior partner involvement and execution discipline clients and partners praised throughout the event. The firm’s opportunity is substantial; so is the operating complexity it is choosing to absorb.

Forward-deployed Engineers: The Last Mile of the AI Value Chain

Hyperscalers and ISVs add new title to their technology consulting bench: forward-deployed engineer

Although agentic AI platforms have proliferated across the enterprise software and platforms industry, monetization has been primarily concentrated within the narrower agentic coding space. Even there, where early adoption has transitioned to annual run rate (ARR) in the tens of billions of dollars, growing usage has been constrained by cost concerns and capped token budgets. In some cases, AI capability has grown faster than many enterprise customers can digest efficiently. In other cases, agentic engagements are stalling because the value is not proven. As a result, many customers are experiencing greater uncertainty around AI adoption and showing an inclination toward capping usage versus expanding token consumption, even in the most mature part of the market.
 
Against this backdrop, hyperscalers, ISVs and model leaders have begun rapidly positioning forward-deployed engineers (FDEs) as embedded technical builders who work directly inside customer environments to identify high-value AI use cases, build or configure agentic systems, contextualize those systems on enterprise data, and help move deployments from pilot to production. FDEs are being framed as hands-on engineers who code, debug, test, iterate and ship alongside customer teams. To many, this definition may prompt the question: Are FDEs meaningfully different from the cloud architects, solution engineers and consultants whom vendors have deployed into enterprise transformation projects for years? In many respects, the answer is no, but the name change suggests a new urgency among technology vendors to accelerate and influence enterprise AI architectural strategy.
 
In TBR’s opinion, the decision to pursue a more embedded services posture with FDEs suggests two things: Agentic AI technology has reached a point where vendors are willing to raise the stakes and work directly with customers to enable hands-on adoption support, and AI value remains very hard to deliver. By putting boots on the ground, vendors are betting that the right FDE paired with the customer’s technical talent can identify the opportunities for agentic automation that overcome these adoption hurdles, expand usage, and convert AI experimentation into repeatable commercial value.

Forward-deployed engineers are the solution architects for the AI era

The distinction between FDEs and solution architects that vendors might point to can be traced back to Palantir, which popularized the role through its high-touch, FDE-led operating model. Each Palantir engagement starts with the company’s portfolio of modular microservices, and the solution that comes out of the engagement is a unique configuration of these microservices combined with custom-built microservices to form a bespoke platform. The emphasis is on  the customized nature of the platform at the end of the engagement. By using Palantir’s nomenclature, the industry is leaning into the idea of a bespoke agentic system, one built alongside the client and contextualized on the client’s data.

The market’s FDE go-to-market strategy will look different than Palantir’s FDE operating model

In TBR’s opinion, the push toward FDEs does not represent an industrywide shift toward Palantir’s operating model, and TBR expects the company to remain an “n of 1.” It is possible a more customized platform strategy will emerge within select, strategic customer relationships, but most vendors will target a broader market than a bespoke approach requires, keeping the emphasis on selling repeatable solutions. In fact, for some vendors, internal FDEs will act more like development resources than go-to-market resources. These vendors are deploying FDEs with select clients with the goal of codeveloping agentic capabilities that can be packaged and sold elsewhere without the burden of field engineers. Microsoft’s industry model strategy is a strong example of this in action, with the company relying on customer-partners to provide the domain data necessary for training smaller, niche AI models.
 
Hyperscalers are inserting FDEs into a much broader AI go-to-market apparatus that already includes professional services, solution architecture, partner delivery, field engineering, marketplace programs, industry teams and customer success. Microsoft’s Frontier Company is a clear  example of this approach. Microsoft is not positioning FDEs as a stand-alone Palantir-style business model but rather as part of a broader enterprise AI deployment push that embeds industry and engineering experts more directly with customers. Amazon Web Services (AWS) is taking a similar ecosystem-oriented approach, pairing internal FDE investment with a partner-led motion designed to scale delivery through trained consulting partners. Google Cloud’s FDE job postings place the role inside Google Cloud Consulting or AI go-to-market and describe FDEs as embedded builders focused on moving generative AI (GenAI) products into production-grade customer environments. These examples suggest hyperscalers are not trying to replicate Palantir’s operating model outright. Instead, they are adopting aspects of Palantir’s FDE approach and scaling them through existing technical field organizations and partner ecosystems.
 
The strategies of hyperscalers and most ISVs are markedly more partner-driven as the leaders look to add a scale multiplier via formal FDE resources with existing strategic partners. Salesforce was early with its launch of a new FDE Partner Program. Microsoft’s Frontier announcement followed the launch of Accenture’s formal Microsoft FDE practice, as well as Microsoft’s FDE-oriented partnership expansion with EY. For their part, services firms are already emphasizing the size of their FDE benches, the number of certified resources they can mobilize, and the breadth of capacity they can bring to market as the market shifts toward the evolving opportunity.
 
TBR Snapshot of recent FDE-related announcements and strategies from ISVs and hyperscalers

Services partners bring scale, industry expertise and an agnostic opinion to FDE engagements

When technology vendors’ announce billion-dollar investments in consulting capacity, the natural reaction is to assess the new potential for competitive friction, but TBR suspects the current trend, which places more influence in the hands of partners, will prevail. Digital transformation projects have long combined technical resources among alliance partners, and many existing joint go-to-market positions will be preserved as the solution architect title shifts to FDE.
 
The services vendors still hold an important position, armed with greater domain expertise and a technology-agnostic approach. Before the FDE buzz gained steam, TBR was hearing more from services leaders about how they were transitioning from a purely agnostic adviser toward a posture that is still technology-agnostic but somewhat opinionated, meaning enterprises were expecting providers to come to the table knowing the right solution configuration to meet their transformation goals. If services providers can build robust benches with resources trained in agentic AI, an opinionated position could become their point of entry, offering an opinion without a conflict of interest in selecting the right AI model and harnessing architecture for the use case.

FDE engagements should be equal parts coinnovation and change management

In TBR’s opinion, services partners are also better positioned to support the nontechnical aspects of AI transformation. Agentic AI requires customers to rethink workflows, roles, permissions, approval processes, risk controls and success metrics. A technically sound agent that does not fit how employees actually work, how decisions are governed or how accountability is assigned will struggle to scale. This makes FDEs part engineer, part translator and part change agent. The coinnovation component is still central, but the value of that work depends on whether the customer can absorb the change. Many enterprises are still learning where AI should augment work, where it should automate work and where human oversight remains necessary.
 
This is another area where the FDE label may overstate what is new. Consultants and architects have long helped customers manage technology-enabled change. The difference in the AI era is the speed and ambiguity of the work. FDEs are often helping customers discover the use case while building it, making changement management less of a downstream activity and more of a core part of the engagement. Vendors that treat FDEs only as technical builders may miss the larger adoption challenge.
 

Forward-deployed engineering is likely to be a loss leader for technology vendors, while monetization pressure for services partners will promote repeatable frameworks

The economics of forward-deployed engineering will vary by provider type, making monetization as important as operating model design. For technology vendors, FDE or FDE-like support is unlikely to appear as a stand-alone line item in every engagement. Instead, the cost can be embedded in broader software, cloud consumption, enterprise agreement, marketplace, premium support or strategic account economics. This gives vendors room to subsidize embedded technical resources when the downstream value is large enough, including higher product adoption, faster consumption growth, larger renewals, stronger account control, reusable product feedback and customer proof points that can be applied elsewhere.
 
That equation is more complicated for services partners. SIs and consulting firms cannot usually recover FDE investment through core platform pricing, model usage or cloud consumption in the same way a hyperscaler, AI model provider or enterprise software vendor can. Their FDE-like resources, therefore, need to be monetized more directly through advisory, implementation, managed services, engineering, governance or transformation fees. Vendor-funded incentives, training subsidies, marketplace programs and cosell motions can help partners build capacity, but partners still need a clear commercial model for converting embedded AI engineering into billable, repeatable services.
 
This difference will shape how the market scales. Technology vendors can selectively subsidize FDEs in strategic accounts to drive product learning and consumption. Services firms need broader repeatability and utilization discipline. As a result, the partner-led forward-deployed engineering market is likely to look less like free embedded engineering and more like AI transformation services with stronger technical depth, faster prototyping cycles and closer alignment to vendor agentic AI platforms.

FDE involvement raises the stakes in every engagement

The promise of forward-deployed engineering is that vendors can get closer to the customer’s highest-value AI opportunities. The risk is that getting closer also raises expectations. Once a vendor embeds technical talent into a customer’s environment, the engagement becomes harder to frame as a generic software deployment. The vendor is no longer just selling a platform and enabling a partner. Instead, it is participating more directly in the customer’s attempt to prove AI value. That dynamic increases the pressure on both sides. Customers will expect clearer business outcomes, faster iteration and more accountability for results. Vendors will need to be more selective about which accounts and use cases receive FDE support, as not every opportunity will justify the scarce technical resources. Partners will need to understand where their role begins and ends, especially when vendors want to retain control over product learning and strategic customer relationships. Poorly scoped FDE engagements could create delivery risk, margin pressure and customer disappointment if the promised AI outcomes do not materialize.
 
Forward-deployed engineering also changes the economics of AI adoption. The model makes sense when embedded engineering produces reusable assets, consumption growth, expansion opportunities or strategic customer proof points. It becomes harder to justify when each engagement remains bespoke. This is why repeatability is the key test. If FDE teams help vendors identify patterns that can be turned into packaged agents, industry templates, implementation playbooks or product enhancements, the model can support software-led growth. If not, forward-deployed engineering risks becoming an expensive services layer attached to products whose stand-alone value remains difficult to prove.

Conclusion

Forward-deployed engineering is becoming the preferred language for the final mile of AI adoption, but the label should not obscure the underlying uncertainty. Vendors have embedded technical resources into customer transformations for years, and much of today’s forward-deployed engineering activity builds on that history.
 
What has changed is the urgency. Agentic AI has widened the gap between product capabilities and production value, forcing vendors to place more technical talent closer to customer workflows.
 
TBR does not expect the broader market to move fully toward Palantir’s FDE-led operating model. Palantir will likely remain an “n of 1,” with most vendors adopting narrower, more selective versions of the FDE role that fits existing partner ecosystems and software business models. The market will settle into a spectrum: Palantir at one end, early forward-deployed engineering explorers at the other, and most major AI and enterprise software vendors in the middle, using internal FDEs for strategic coinnovation while relying on partners for scale.
 
The durability of forward-deployed engineering will depend on whether vendors can turn high-touch engagements into repeatable value. If FDEs help customers identify validated use cases, manage organizational change and generate reusable product assets, the model could become an important layer in enterprise AI adoption. If forward-deployed engineering remains a rebranded services motion, its impact will be more limited. The next phase of competition will therefore be less about which vendors announce FDE teams and more about which vendors prove that those teams can convert AI experimentation into scalable, value-accretive outcomes.

HPE’s AI Infrastructure Strategy Takes Shape as Juniper Moves to the Center

HPE’s Discover message was broad, but the structure was clear. The company is repositioning around AI infrastructure architecture, with networking serving as the foundation, GreenLake as the hybrid operating layer, Private Cloud AI as the governed agentic AI platform and partners as the scale mechanism to bring the combined HPE and Juniper portfolio to market. Discover announcements showed that HPE possesses the pieces needed to build an AI infrastructure and is beginning to connect them. The next question is whether HPE can turn that architecture into easier buying motions, faster deployments and measurable production outcomes for customers.

Reinvention Services Marks the Beginning of Accenture 2.0

Accenture employs a ‘disrupt yourself rather than being disrupted’ strategy as it gears up to transform its business model and capitalize on AI

In late April, Accenture hosted over 30 industry analysts and clients and included a large number of senior leaders, such as CEO Julie Sweet and Manish Sharma, Accenture chief strategy and services officer, for its first analyst event in seven years in Bengaluru, India. In the spirit of disruption over the last seven years — a pandemic, several geopolitical conflicts and the AI boom — Accenture executives shared how the IT services behemoth has embarked on its own disruption enabled by the recently launched Reinvention Services growth model. Clients’ stories reinforced the notion of disruption. Trust, transparency and simplification best describe Accenture’s reorganization of its services as the company looks to secure its foundational revenue base while pursuing new growth opportunities in areas such as products, among others. The balanced approach at scale has made Accenture successful over the past three decades — since the boom of outsourcing.
 
Executing against Reinvention Services’ priorities will test Accenture’s proven engagement and delivery capabilities, which have been further disrupted by all things AI. But as Accenture’s leadership discussed at length, enterprise AI is less about technology deployment and more about an operating model transformation. Turning this challenge into an opportunity for its own business model will shape the pace and scale of Reinvention Services’ success. In 2019 we wrote “Disrupting, but Not Disrupted: Accenture Pivoted to Become a Solutions Broker Through Innovation,” but this time the disruption has caught up to Accenture, and the humility executives demonstrated throughout the event — also emphasized during Sweet’s discussion of the new growth model — is what we believe will help Accenture navigate the current market environment and prepare the company for its next chapter.

Aligning Reinvention Partners to buyers’ personas will help Accenture deliver on outcomes better and faster at scale

Throughout the three-day event, leaders from Accenture’s seven Reinvention Partners (RPs) — Cybersecurity, Digital Core, Finance, Industry and Enterprise, Song, Supply Chain and Engineering, and Talent — presented why and how each of their areas aligns with the company’s go-to-market strategy and, more importantly, with clients’ pain points that are largely disrupted by AI. Although the company’s Market Units still oversee the P&L, the announced changes within Accenture’s go-to-market strategy under the Reinvention Services model will help the company demonstrate agility at scale, especially as AI expands the number of enterprise changes required to make the technology useful. Although AI may reduce the cost of some work, the technology increases the ambition and complexity of clients’ transformation agendas. Here lies Accenture’s biggest opportunity.

‘We have more tech fluency than most of their tech people’

While each RP serves as an important link in Accenture’s efforts to expand its addressable market, we believe Talent, in particular, carries a certain weight as it can help Accenture close buyers’ AI adoption gap by bringing organization and change capabilities to the forefront of transformation discussions and, more importantly, sustain these efforts beyond the initial introduction and into post-deployment and management services. In the Talent RP, Karalee Close, global lead for Talent & Organization, stated, “Change has to change … [it] can no longer be, ‘Here is a thing, and we are rolling it out.’” Accenture’s customer-zero use case — while well documented across ongoing TBR research — can play a crucial role here as the company has a massive opportunity to demonstrate its tech fluency at scale as talent is a large cost for most clients. Supporting the Talent RP, Accenture’s platform and services bet on enterprise reskilling for the AI era, enabled though LearnVantage, can act as the scalable engine for workforce transformation. The LearnVantage model is a combination of proprietary learning platforms, partner content, expert instructors and reusable modular assets, helping Accenture support clients, partners, academia and governments. For example, Accenture, through LearnVantage, is the exclusive partner for SAP’s in-person training.
 
Song, Accenture’s ever-evolving business, will remain critical to the company’s growth story, especially as most AI adoption use cases over the last two years have happened in the front office around transforming customer experience and sales automation. Accenture’s GrowthOS, which was recently enhanced through the company’s investments to use WEVO’s synthetic persona capabilities, will allow Accenture to offer more targeted solutions at speed as CMOs and growth leaders increasingly look for a holistic view of the customer rather than disconnected functions across brand, digital, sales, commerce and service. Importantly, this will be how Accenture approaches contract structures, especially as the engagement timeline shortens and clients look for promised outcomes. Focusing on using agentic AI and connected data to redesign the full customer life cycle will elevate Song’s profile, especially as many of Accenture’s peers lack the breadth and depth the RP carries.
 
Accenture’s cybersecurity story is strong and continues to evolve around the notion that the technology is a major AI-enabled growth area centered on speed, cost and productivity gains as the primary value drivers. Accenture’s consistent emphasis on industry-specific knowledge remains the cornerstone of the company’s cybersecurity capabilities as clients look for real use cases and industry context, rather than generic AI and cyber capabilities. Accenture’s Cyber.AI platform, backed by a network of ecosystem partners, will help Accenture test and deploy cyber response services at scale and introduce new commercial models that can help deliver AI-augmented managed services. According to TBR’s December 2025 Digital Transformation: Voice of the Customer Research, “Enterprise spending continues to emphasize technologies that address risk, automation and AI-driven productivity, with buying patterns reflecting both strategic priorities and market-driven pressure. Cybersecurity remains the top purchase category, driven by escalating regulatory and operational risk.”
 
Cyber and cloud have gone hand in hand in the buyer purchasing cycle, and we believe Accenture can extend that opportunity to position AI and analytics, along with the attached cyber services, as a more compelling value proposition, especially as all parties face a new reality in which robots, or generative AI (GenAI), are protecting themselves from other robots (cyberattacks). Balancing the development of AI security models with enabling workforce productivity through AI will help Accenture build strong use cases for navigating the complexities that have arisen from the growing need for AI security. Accenture can then bring these experiences into client discussions, as clients often face similar struggles as shadow AI becomes mainstream. Relying heavily on niche cyber partners will be key, especially as the cybersecurity segment ecosystem remains largely fragmented, and will help services vendors demonstrate depth. At the same time, building relationships with large AI-first vendors will support Accenture’s efforts to execute at scale and pressure-test services vendors’ pyramid evolution in a segment where trust remains the linchpin of success.

‘To make brownfields agentic takes a fundamental shift … getting clients to adopt agents is a step-change’

Accenture positioned Digital Core as the practical foundation for AI-led reinvention, rather than as a traditional IT modernization story, with the core message being that AI value is trapped inside legacy systems and processes, fragmented data, and brittle architecture, so clients cannot scale AI unless they modernize the underlying core first. Accenture’s framing around three priorities — foundational AI enablement; modernizing data, applications and infrastructure; and future-proofing through digital resilience —  allows the company to move up, down and sideways across clients’ tech stack, emphasizing process first, then people, then workbench (i.e., tools). With the strongest opportunity for Accenture existing within brownfield environments, especially among Global 2000 clients, Digital Core can become the bridge between the promise of AI and the reality of enterprise architectures (Digital Core Reinvention Partner Ajoy Menon’s quote above demonstrates that Accenture appreciates the challenges and opportunity in brownfield IT environments). Successful execution can shape Accenture’s and clients’ economic models, as the savings from modernization can fund growth initiatives with the desired end state of driving more nonlinear revenue growth. With Digital Core housing the largest talent pool of the seven RPs, the balance between traditional and new ways of doing business with clients will pressure-test Accenture’s business model, especially as the company is trying to shift the value story from cost takeout to reinvestment capacity.
 
We believe Digital Core’s message can resonate especially well with clients that are struggling with ERP modernization, data fragmentation, application complexity, resiliency requirements, cloud cost pressures and AI pilots that have not scaled. The biggest execution challenge for Accenture is to avoid using messaging that sounds like a rebranded infrastructure modernization pitch. We believe the Digital Core narrative works best when it is tied directly to measurable business outcomes, including the ability to run agentic AI safely at scale. Keeping it pragmatic — where Accenture leaders start with the process and architecture, accept partial autonomy, control the economics and use the modernization savings to fund reinvention — will help Accenture maintain its incumbent position.
 
Technology alliance partners remain critical to the success of Accenture’s RPs, and throughout each presentation company executives made sure to elevate the value of these relationships. As Accenture looks to grow its alliance-enabled revenue mix, we expect the next wave of opportunities will come from developing a multiparty Business Groups, which will test its orchestrating capabilities. In the meantime, Accenture’s growing relationships with AI-native companies such as Palantir will also pressure-test the alignment around portfolio, commercial and delivery models. Accenture’s Palantir relationship is aligned in three areas: Palantir’s ontology and AI operating layer, Accenture’s process and industry transformation capability, and Accenture’s ability to industrialize delivery. The opportunity for this relationship is significant, especially in regulated industries, sovereign AI, SAP modernization, workforce optimization, defense and public sector, and complex data-rich enterprises. Accenture must prove repeatable economics, avoid over-relying on expensive platform layers, and scale true Palantir engineering talent beyond a small core of experts to sustain trust as Palantir continues to build similar relationships with other services companies. (See TBR’s Ecosystem Intelligence research stream for additional details and analysis on Accenture’s relationships with alliance partners.)

Reinvention Engines: The backbone of Accenture’s Reinvention Partners

Serving as the enabling layer for Accenture’s evolving operating model, the Reinvention Engines (REs) — AI and Data, Industry and Process, and Technology — provide the connective tissue between functional expertise and technology capabilities, supporting the company’s shift from project-based delivery to outcome-led, AI-enabled enterprise reinvention. The goal is not to bolt AI onto existing processes but to redesign the work, workforce and workplace around AI-native capabilities. As Accenture shifts its value proposition from services to measurable outcomes, the REs are positioned around continuous value creation rather than isolated delivery or one-time implementations. Central to this shift is the Reinvention.AI platform, powered by the Intelligent Digital Brain, which codifies Accenture’s institutional knowledge, delivery patterns, industry experience and reusable assets so teams can apply AI more effectively across sales, solutioning and delivery, ultimately accelerating time to market.
 
Over time, we expect Reinvention.AI to become increasingly aligned with partner technology stacks, similar to how Accenture has connected prior platforms such as myConcerto. Accenture’s talent is another core pillar, with its resource model built around senior expertise, judgment and trust at the top; broad upskilling at scale in the middle; and AI-native talent by default at the entry level. The REs also serve as Accenture’s customer-zero proof point for Reinvention Services, supported by Reinvention Deployment Engineers (RDEs), in pod-based teams that combine architects, change experts, data specialists and AI-native full-stack engineers with partner ecosystem capabilities, industry depth, rapid delivery and reusable assets. Accenture’s biggest challenge will likely be evolving its commercial model for a token-based AI world while maintaining clear linkage to client outcomes and value realization.
 
Lan Guan, Accenture’s chief AI & Data officer and lead for AI and Data Reinvention Engine, discussed at length Accenture’s vision and strategy positioning the AI business around industrialized AI operations that include advisory, platform build, evaluation, tuning, managed services and ongoing optimization. In her presentation, Guan repeatedly argued that Accenture’s advantage is its ability to codify industry know-how into reusable assets, architectures, skills, ontologies and reasoning systems. For example, Accenture helped a life sciences client capture its domain experts’ knowledge from structured files such as Excel. This information was converted into machine-readable artifacts such as markdown-style skills, combined with deterministic adapters and data connectors, and used to power a pharmaceutical reasoning engine.
 
Although the industry context does give Accenture an advantage, we believe the true value will come more from delivering measurable business outcomes and less from cost-optimization, IT-centric service-level agreements. As Accenture looks to move its positioning from AI implementation partner to enterprise intelligence architect, the company’s Intelligent Digital Brain — an industry-specific architecture intended to give enterprises a reusable intelligence layer — will serve as the tech backbone helping Accenture to execute on its vision as the solution connects data foundations, knowledge engineering, models, agents, ontologies and business workflows into a more durable enterprise AI system. Ecosystem orchestration and delivery at scale will remain critical as Accenture expands its network of partners to include frontier AI labs, research institutions and academia within its ongoing relationship with hyperscalers and hardware providers.

Client use cases elevate the theoretical to the practical

Use cases presented throughout the event provided additional depth around the vision and execution of Accenture Reinvention Services, with clients bringing candor, transparency and expectations and raising the bar for Accenture as it looks to take on the risk to deliver outcomes through service quality and innovative commercial models.
 
For example, a telco executive discussed at length how they did not want pay for people and could not internally develop metrics around outcomes. The client “assessed that Accenture was the best [among global systems integrators] at AI” and created a joint venture (JV) with Accenture, with both companies fully invested in the outcomes over the next seven years. The transformation was repeatedly described as a whole-business reinvention, not a technology project. The telco executive emphasized that technology is “less than 50%” of the work, as stakeholders, processes, customers, reporting and operations are equally — or more — important. That same client has moved from experimentation to scaled AI with roughly 380 AI use cases, organizing them into eight overarching transformation priorities tied to company objectives related to oversight and measuring outcomes.
 
The same executive praised Accenture’s AI Refinery tools, control plane, talent and capabilities. His view was that Accenture’s key strengths are its capabilities; its tools that make reinvention faster, thinner and more disruptive; and its ability to remain objective and help clients avoid lock-in to hyperscalers, large language model (LLM) providers or software vendors. Overall, the conversation served as a strong proof point for Accenture’s AI reinvention narrative where AI at scale requires aligned commercial models, board-level commitment, data foundations, governance, architecture discipline, cost control, ecosystem orchestration and deep workforce change, not just tools or pilots.
 
In another presentation, a global Resources client positioned the relationship as a strong proof point for AI-led reinvention without traditional outsourcing. The use case was a corporate-function transformation in which Accenture is not managing the operations but instead is leading an agentic transformation with Microsoft and SAP in the ecosystem, with the commercial model structured around outcomes rather than people-based delivery. The client did not want a long discovery or workshop-heavy engagement, and the expectation was that Accenture already had enough data, pattern recognition and domain experience to offer some solutions. The client chose Accenture not only because of its thought leadership but also its execution capacity.
 
Additionally, the use case amplified Accenture’s role as an ecosystem orchestrator, as the engagement involved Accenture sitting with Microsoft and SAP to help architect the transformation. Overall, the conversation served a different purpose compared to the one with the telco client. The telco story was about establishing a strategic JV and AI at scale operating model, while the global Resources client use case focused on agentic, outcome-based, outsourcing-free corporate function reinvention, supporting Accenture’s argument throughout the event that AI can reshape commercial models, client delivery, ecosystem orchestration and enterprise operations when tied to measurable outcomes.
 
Last, for a global transportation client, the on-stage discussion was used as a proof point about Accenture’s ability to take a messy, high-scale operational problem; apply AI and process redesign; rebuild client trust — probably the hardest thing in any relationship — and expand from HR transformation into a broader, outcome-based enterprise relationship.

Products: A new (or semi-new) strategic bet Accenture views as the next growth frontier, beyond a pure financial boost

Expanding addressable market opportunities — usually through acquisitions (Accenture had a dedicated breakout session about its acquisition strategy) — has allowed Accenture to stay abreast of innovation and often turn itself into a market setter (think the launch and expansion of Accenture Interactive, now Song, in the last 10-plus years). This time will be no different. Accenture leadership outlined priority growth areas for the company, with Products piquing the most interest among analysts in both formal and informal discussions throughout the event. That is not surprising, as this bet represents a fundamental change in Accenture’s engagement and delivery models.
 
Expanding the Products portfolio — defended by three moats: data, domain and distribution — will provide a fresh boost of revenue and support the success of Reinvention Services. Growing the share of product sales will be a strategic pivot toward non-FTE, IP-led, subscription-style revenue. Although Products represents a rather enticing opportunity for Accenture, accounting for the dynamics of running a software organization including sales channels, the development life cycle and the all-important positioning against ecosystem partners offerings will be critical.
 
We believe the recent purchases of Faculty and Ookla will provide greater insights into Accenture’s products endeavors as the company looks to grow the share of nonlinear revenue-based sales. Faculty provides Accenture with AI-native talent, decision intelligence IP, AI safety credibility and product-led revenue opportunity. An important next step will be for Accenture to show that this can translate into viable, repeatable examples of AI changing the economics of core business processes, beyond compelling demos. Ookla arms Accenture with the IP that can help the products part of the business act as a data intelligence terminal for communications and telco clients.
 
TBR remains cautiously optimistic about Accenture’s pursuits in Products. We believe Accenture has an opportunity to use the bet to drive enough business that can boost short-term profitability and grow relationships with new personas — a strategy that historically has paid off for the company.
 
The rest of Accenture’s growth strategic bets include Capital Projects, Data Centers, LearnVantage, Cybersecurity, Agentic Commerce, New Ecosystem Partners, AI and Data Services. TBR’s ongoing coverage of Accenture provides deeper analysis on these areas.

Reinvention Services’ success goes through meticulous execution of Accenture’s AI strategy

As Accenture begins to execute on Reinvention Services’ agenda, the company’s AI strategy will be among the key pillars shaping the pace and scale of success. Based on the company’s track record, we are positive Reinvention Services will be a successful endeavor. Accenture’s AI strategy is becoming more coherent and more revealing, as the company still has to prove that the push into higher-growth, higher-margin assets and non-FTE revenue streams is more than a polished narrative wrapped around a familiar playbook. The company’s executives are saying all the right things: more outcome-based work, more proprietary platforms, more ecosystem leverage, more non-FTE revenue and, eventually, more software- and data-like economics. Accenture’s executives are also arguing that faster AI-enabled delivery will create more downstream work rather than compress the addressable market. That is possible, but it remains the classic incumbent-consulting answer to every automation wave. Yes, the old work gets faster, but somehow the pool of adjacent work gets even bigger. It remains to be seen whether Accenture is cannibalizing parts of its own labor-based model faster than it can replace them with scalable IP-led revenue.
 
We expect Accenture to keep winning business in the near term as enterprises still need a translator between frontier models, legacy estates and operating-model change, and Accenture remains one of the few firms with the ability to play that role at scale. But over the next 12 to 24 months, the burden of proof will increase as stakeholders demand clearer evidence that AI is producing differentiated commercial models, not just better human-based utilization. Further, a key indicator of Reinvention Services’ success will be Accenture’s ability to grow its operating margin faster than it has in the past. Accenture’s operating margin expanded from 13.1% in FY03 to 14.7% in FY25, reflecting the company’s consistent strategy rooted in service delivery. Accenture has an opportunity to increase the metric from the midteens to the low-20% range, provided it continues to rotate its workforce, prioritizing the hiring of AI-ready salespeople and reducing support staff where needed. Ramping up hiring of freshers will also help it maintain a steady financial profile as the company counts on graduates from the class of 2026 and subsequent years, who have had exposure to GenAI for most of their time in college, making it cheaper for Accenture to calibrate their AI training during the onboarding process.