You are here: Home1 / Competitive Insights – Analyst Perspectives – TBR2 / Competitive Insights and Analyses Blog
AI Agents: What Are They, and How Will They Impact the AI PC Space in 2025?
Over the past several quarters, OEMs have focused on incorporating local AI-powered features into their new PC releases, with initial neural processing unit (NPU)-enabled use cases leveraging AI to further enhance collaboration experiences and extend battery life. However, AI agents take the NPU’s functionality a step further, combining the capabilities of large language models (LLMs) with other resources to partially or fully automate a wide range of tasks, including responding to emails, booking hotel stays, or opening and closing IT help desk tickets.
AI Buzz Sparks IT Infrastructure Shifts, but Privacy and Strategic Challenges Are Impacting Adoption
The industry enthusiasm surrounding AI has quickly led to shifts in organizations’ strategic priorities and expected investments such as demand for servers. Despite the hype, few organizations have operationalized GenAI to date. Instead, most are focused on overcoming initial barriers to adoption, including understanding the business implications of this new technology frontier.
GenAI, IT Modernization and Strategic M&A Drive Infrastructure as a Service and Platform as a Service Growth
Top hyperscalers Amazon Web Services (AWS) and Microsoft are capturing legacy Oracle and SAP workloads as customers continue to migrate to the cloud to not only outsource their IT operations but also drive lasting business value. Though the geopolitical outlook is increasingly uncertain, we expect customers will continue to prioritize more traditional “lift and shift” migrations, and steps vendors are taking to deliver more integrated solutions could help.
Harnessing AI and Automation in Business Process Outsourcing to Drive Growth Amid Shifting Buyer Priorities
Vendors’ business process outsourcing (BPO) businesses continue to benefit from the ongoing shift in buyer priorities from innovation and growth toward business resiliency and optimization. Buyers are investing in automating business processes to free up costs, providing pathways to growth for vendors with AI-powered and platform-based offerings.
Emerging Consultancy Trends: Talent Management and Innovation in the Spotlight
Technology continues to threaten the nature of consulting engagements, requiring consultancies to showcase value and deliver on outcomes. Greater investment in talent frameworks, structure and skill will equip staff to lead client discussions and effectively leverage technology to assist workflows. Partnerships remain a core piece of the technology integration, bringing in new expertise and go-to-market opportunities that enable consultancies to meet a wider variety of client needs. Client retention remains a priority across consultancies but will require the firms to effectively deliver value through services.
Federal IT Spending Will Remain Robust in FFY25 Amid AI Prioritization
Since coming into office, the Biden administration has fueled an unprecedented federal IT bull market. While the White House’s proposed federal civilian technology budget of $75.1 billion for federal fiscal year 2025 (FFY25) is the smallest increase in several years (up less than 1% compared to $74.5 billion in FFY24), it is still an increase of more than 14% from $65.8 billion in FFY23, and up 25% from $60.1 billion in FFY21, the last year of the prior administration. FFY25 has started with a continuing resolution (CR), as have most of the last several fiscal year. The impact of the latest CR on the largest federal systems integrators may be limited to shorter-cycle programs in their order books, but some disruptions to larger, longer-term engagements are not out of the question.
Meet MAMAA: The Top 5 Hyperscalers Shaping the Future of Digital Ecosystems
TBR research shows only the Tier 1 hyperscalers can transcend most, if not all, of the major lifestyle categories to provide a seamless end-to-end ecosystem experience, touching all aspects of people’s lives, primarily due to their scale and access to resources.
Growing Infrastructure as a Service Commitments and Competitive Dynamics
Market leaders Amazon Web Services (AWS) and Microsoft have highlighted that customers are signing larger cloud contracts with longer terms. At least in the case of AWS, customers are increasingly applying their cloud credits toward one- or three-year subscription offerings like Savings Plans and Reserved Instances.
Our most-read analysis, free in your inbox each week!
Fill out the form to the right to subscribe to Insights Flight today
Native PaaS services delivered via hybrid architectures shape the cloud market in 2022
/by TBRThroughout 2022 cloud service providers continue to recognize that PaaS services are only as effective as the architecture they run on
Automation enables business continuity and offsets macroeconomic-pressured human-centered implications
/by TBRMacroeconomic pressures have compelled vendors to reconsider the true opportunity to scale the integration of automation in service delivery.
5G and edge computing remain top focus areas for telecom industry in 2022
/by TBRRevenue growth from 5G and edge computing remains tepid thus far in 2022, but new use cases for these technologies are likely to emerge and scale as the digital ecosystem evolves
2022 was a good year for federal IT, but will 2023 be as growth-friendly?
/by TBRCloud-centered IT modernization, cybersecurity enhancement, and accelerating adoption of digital technologies feature heavily in federal IT outlays in 2022 and will again in 2023
Will IT services revenue grow despite the competitive talent environment?
/by TBRFor the rest of 2022, attracting and managing talent will remain vendors’ core challenge to successfully growing IT services revenue and managing costs
Turmoil in IT services: Talent, org charts and acquisitions
/by Patrick Heffernan, Practice Manager and Principal AnalystLearn whether talent will remain a headache in the IT services space for the remainder of 2022 and into next year
Why are Deloitte’s, Accenture’s and TCS’ revenues per hyperscaler practice much higher than the benchmarked average?
/by Patrick Heffernan, Practice Manager and Principal AnalystLearn why TBR’s data shows Accenture’s revenues per hyperscaler practice are much higher than our benchmarked average
Demand pull and cost push: Two sides of the inflation coin
/by adminA nonfactor for decades, inflation is now being parsed into demand pull and cost push, and pricing analysts are having to adjust.
SAP use case reveals big things for PwC
/by Patrick Heffernan, Practice Manager and Principal AnalystIn early 2022 a PwC use case drew TBR’s attention, particularly its assertion that “PwC and SAP co-developed a process to allow clients to migrate to SAP’s Group Reporting module at any point in the year.”
Global IT talent: Accelerated hiring for IT services counters persistent attrition
/by Bozhidar Hristov, Principal AnalystIn TBR’s latest Global Delivery Benchmark, one particular number leapt out as both surprising and indicative of the sustained battle for technology talent.