Leading IT services vendors position ahead of the curve due to past and ongoing investments in next-generation solutions

Vendors that have diversified their portfolios and skills in digital and cloud are able to scale transformational activities with clients and offset growth pressures in traditional IT services areas, accelerating revenue growth year-to-year during the past several quarters. Expanded proximity to clients, collaborative innovation capabilities and applications expertise, for instance around solutions from SAP, Microsoft, Oracle, Google Cloud and Amazon Web Services, drive advisory, implementation and integration activities. Vendors upskill and reskill their workforces on digital and cloud to support the continued transition of their portfolios from traditional and commoditized IT services and outsourced solutions. However, training initiatives, along with increased business development and higher volumes of presales and sales activity due to shorter-term contracts, lead to increased costs and temporary margin pressures. Reluctance of employees to participate in reskilling initiatives may increase attrition. — TBR’s 4Q17 IT Services Vendor Benchmark