TBR’s Business Insights

Consulting Will Rebound in 2026

02.10.26

After a period of relative softness, consulting revenues are expected to rebound to high-single- or low-double-digit growth as pervasive uncertainty pushes enterprises to seek external guidance. Demand will be particularly strong around risk mitigation, strategic planning and AI adoption, positioning forward-deployed engineers, supply chain management and people advisory services as leading revenue drivers in 2026.

Bad Debt Expenses Will Rise for CSPs in 2026

02.06.26

In a K-shaped economy that increasingly separates financial winners from losers, the majority of households and businesses on the lower arm of the “K” are under mounting financial strain and are finding it more difficult to pay their bills. As these economic pressures persist, communications service providers (CSPs) should expect bad debt expenses to continue rising, with the potential to meet, or even exceed, levels experienced during the Great Recession.

How Will Advanced AI Impact Pricing, Labor Practices and Client Expectations?

02.05.26

Advanced AI may be front and center in IT services strategy, but execution challenges remain a familiar story. Despite ongoing hype around unlocking new efficiencies and nonlinear growth, IT services firms continue to grapple with the reality of needing labor arbitrage in the short term and meeting client expectations.

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AI Alliances Will Increasingly Target OT

02.03.26

New and expanding partnerships are increasingly targeting the convergence of IT and OT, as system integrators (SIs) align with OEMs, manufacturing ISVs and silicon providers. This momentum is driven by the strong growth potential in high-tech manufacturing, where solutions that improve accuracy, efficiency and safety can be deployed on-site without reliance on rack-scale compute systems in neoclouds or Tier 1 clouds. As a result, while AI has long operated at the edge, these partnerships will accelerate both the sophistication of AI-driven use cases and the pace of solution framework development.

Agentic AI Adoption Is Pressuring Security Architectures to Converge

01.29.26

The emerging pattern of multicloud security consolidation has direct implications for both Amazon Web Services (AWS) and Microsoft, as enterprises reassess detection pipelines, governance models and operating frameworks heading into 2026. Although AWS remains well positioned in analytics-heavy workloads, the company needs to reevaluate its long-established “building block” approach, especially as peers deliver more integrated platforms. For Microsoft, its strengths will continue to be with organizations where Microsoft 365 already anchors their identity and collaboration strategies.

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The U.S. doesn’t have a Spectrum Shortage — It has a Utilization Problem

01.13.26

The mobile industry continues to beat the drum for more spectrum, but it should instead focus on fully utilizing the spectrum already allocated. TBR notes there are vast tranches of spectrum in the U.S. market that are broadly underutilized, either for technical or economic reasons. And challenges will only worsen as the industry aims to bring upper midband frequencies into the fray, which have greater propagation challenges and are less suited for macro coverage.

Shutdown Ends, but Federal Contractors Face a Slow Return to Normal

12.17.25

The 43-day U.S. federal government shutdown, the longest in history, came to a welcome end on Nov. 13, 2025, but for some federal systems integrators (FSIs), the shutdown’s impact could linger well into federal fiscal year 2026 (FFY26). According to the Professional Services Council, the national trade association for federal technology and professional services contractors, it will take three to five days for agency functions to return to normal for each day of the shutdown, implying that operations at some agencies may not return to normal until March 2026.

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Partnerships, Not Products, Will Define How Consultancies and Native AI Companies Share Value in Agentic AI Era

11.03.25

Just like supporting startup programs, many traditional IT services companies and consultancies have struggled to adequately put themselves in their alliance partners’ shoes. And when those partners are startups or immature native AI companies, that struggle will be harder in the absence of leadership, strategic direction and sustained investment. But that’s the potential downside. The upside is that consultancies are perfectly positioned to be change management specialists, helping their largest clients adopt the best new AI.

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Human Capital Management in the Age of (Agentic) AI

10.07.25

Fundamentally HR management remains a back-office function that IT services companies and consultancies can use to drive managed services engagements. And TBR’s research shows that managed services can lead to additional consulting opportunities, particularly when managed services providers (whether a traditional IT services company or consultancy) partners smartly with technology companies, leveraging the data and insights generated through back-office platforms to uncover issues and opportunities.

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The next 5 years: A successful strategy for Infosys

10.13.13/by Patrick Heffernan, Practice Manager and Principal Analyst

Updated available: Click here to read about Infosys’ 2025 strategy in this new TBR blog, Infosys’ Future: Scaling GenAI and SLM Innovation to Drive Growth and Stakeholder Trust. In July, after resuming his role as executive chairman, N.R. Narayana Murthy said the following about Infosys’ future: “The strategy is to focus on opportunities from […]

TBR’s Business Insights

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