Robots hire robots, talent uproots to anywhere, and TikTok takes on TCS
Fallout from the pandemic will lead to the most disruptive year in global delivery since the start of outsourcing
TBR anticipates sea changes on three fronts in 2022. First, accelerated adoption and sustained refinement of automation will lead to AI-enabled platforms determining the automation tools needed to optimize an increasing number of processes. And those AI-smart platforms will make procurement decisions independently. In short, robots are hiring robots, with all the implications on talent, productivity, KPIs and pricing.
Second, the pandemic proved IT services can be delivered from anywhere. In 2022 that reality will shift compensation models, as vendors begin to eliminate disparities based on location. Smart IT services vendors will hire talent anywhere and reward professionals who find ways to meet their colleagues in person. Lagging IT services vendors will cling to now-outdated compensation models that pay a professional in Boston more for doing the exact same job as someone in Bangalore, India.
Third, the rise of enterprises that are outside the software and IT services realm but differentiate based on software and IP will exacerbate the ongoing war for software developer talent. Is that too many mentions of “software” in one sentence in an IT services predictions paper? Yes. But the large IT services vendors with business models built around skilled developers will start losing talent to the likes of TikTok and Tesla, and may also eventually lose business to those new competitors.
2022 global delivery predictions
- The robots will hire each other, complicating the people part of global delivery
- Get paid for what you do, not for where you live goes global, with business model and business culture implications
- Software developers defecting to TikTok challenge IT services vendors’ talent models
Telecom Business Research’s 2022 Predictions is a special series examining market trends and business changes in key markets. Covered segments include cloud, telecom, devices, data center, and services & digital.