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TBR releases exclusive webinar content from 2022 Prediction series

Technology Business Research, Inc. (TBR) announces on-demand availability of all of our 2022 Predictions webinars. Predictions is an annual special series examining market trends and business changes in key markets, such as cloud, IT services, digital transformation and telecom.

Deep dive: Management consulting and analytics services leading trends in 2021

Join Practice Manager and Principal Analyst Patrick Heffernan, Principal Analyst Boz Hristov, Senior Analyst Elitsa Bakalova and Senior Analyst Kelly Lesiczka Thursday, Feb. 24, 2022, at 1 p.m. EST/10 a.m. PST for an in-depth analysis of leading trends in the IT services industry, such as vendor performance across regions, service lines and select verticals and the evolving value proposition as pent-up demand for run-the-business awards continues. The team will also do a deep dive into management consulting and analytics services segments.

Mark your calendars for Thursday, Feb. 24, at 1 p.m. EST,
and REGISTER to reserve your space.

Related content:

  1. Top 3 Predictions for IT Services
  2. Top 3 Predictions for Management Consulting

Click here to access more TBR webinars.

WEBINAR FAQS

Understanding industry needs and accelerating tech adoption: How IT services vendors are growing in financial services

Financial services benefited from emerging technologies over the past decade, creating a highly lucrative and exceedingly competitive market for IT services

While historically, financial services has been ahead of other industries in digital technology adoption, the COVID-19 pandemic accelerated technology-enabled transformations as IT services vendors and consultancies sought to address the needs of financial services clients, including the need to interact with customers and conduct business transactions through digital channels, as well as the needs of financial services employees, who began working remotely. Such changes in operating models drove an increase in advisory, application and infrastructure managed services work and accelerated revenue growth for IT services vendors beginning in early 2020.

With increasing pressure to embrace digital banking and digital payment platforms to address demand for cashless transactions across different economies and businesses, financial services clients look to transform supply chain, data analytics, management and workflow as well as address security needs and improve overall operations. These clients need to become agile, enhance their customers’ experiences, and modernize their information and communication technologies environments. For IT services vendors, capturing market share requires a fundamental understanding of financial institutions’ technology landscapes as well as a differentiated value proposition, pushing vendors to augment industry-specific capabilities through acquisitions.

Note: Includes financial services revenues for 16 of the 30 vendors covered in TBR’s IT Services Vendor Benchmark; not representative of a total global market view

Revenue growth in the financial services segment of IT services was also driven by vendors addressing clients’ needs around data protection, regulatory compliance and governance. Supporting adoption of next-generation technology solutions like blockchain to address topics such as commission tracking and recording, asset management, and AI-enabled hybrid cloud management is also a factor for revenue growth.

Leading IT services vendors leverage acquisitions to expand industry-specific capabilities and broaden client reach, particularly in Europe

Acquisitions enable vendors with well-executed strategies to access new portfolios, cultures and client bases, largely focusing on top-of-mind areas for digital transformation budget spending such as cybersecurity, AI and digital product engineering. As enterprises move IT workloads to the cloud, vendors are compelled to invest in both talent and technology to leverage newly accessible data for analytics and AI-powered insights. But as services remains a people business, we expect most vendors will continue to manage risk by assessing cultural and portfolio fit when selecting acquisition candidates.

Understanding industry needs and accelerating tech adoption: How IT services vendors are growing in financial services

Understanding industry needs and accelerating tech adoption: How IT services vendors are growing in financial services

Key insights

The COVID-19 pandemic accelerated technology-enabled transformations as IT services vendors helped financial services clients interact with customers and conduct business transactions through digital channels.

Financial services clients need to become agile, enhance their customers’ experiences, and modernize their information and communication technologies environments.

Capturing market share requires a fundamental understanding of financial institutions’ technology landscapes as well as a differentiated value proposition, pushing IT services vendors to augment industry-specific capabilities through acquisitions.

Check out our special report Top 3 Predictions for IT Services in 2022 for additional thoughts on the IT services market in the new year.

Register for our upcoming webinar on Deep dive: Management consulting and analytics services leading trends in 2021 for an in-dpeth chat on leading trends in the IT services industry, such as vendor performance across regions, service lines and select verticals and the evolving value proposition as pent-up demand for run-the-business awards continues

2022 Predictions: Digital Transformation

Join Practice Manager and Principal Analyst Patrick Heffernan, Principal Analyst Boz Hristov, Senior Analyst Evan Woollacott and Senior Strategy Consultant Geoff Woollacott Thursday, Feb. 3, 2022, at 1 p.m. EDT/10 a.m. PDT for an in-depth, exclusive review of Top 3 Predictions for Digital Transformation in 2022, part of TBR’s Predictions special series examining market trends and business changes in key markets, such as cloud, IT services, digital transformation and telecom. 

At the end of 2021, TBR declared, “Digital is dead; long live business transformation.” In this webinar, our team will discuss the trends and shifts in 2021 that led enterprises to focus increasingly on the business transformation and change management aspects of digital transformation as well as what will come next as emerging technology adoption continues to accelerate.

Coming around to specific vendors, the team will highlight which firms will outpace peers in the 2022 market, including a look at how innovation and transformation centers will — or will not — provide differentiation. Building on a key prediction around leadership and talent, they will also examine whether IT services vendors, consultancies and their technology partners have invested smartly in building, training and equipping their executive leadership ranks.

Don’t miss:

  • How will the business side of digital transformation eclipse technology imperatives in 2022
  • What will consultancies and IT services vendors do to stay relevant in a fast-changing market
  • Whether executives are prepared to lead in a post-pandemic world.

Mark your calendars for Thursday, Feb. 3, at 1 p.m. EDT,
and
REGISTER to reserve your space.

Related content:

2022 Predictions: IT Services, Management Consulting, Federal IT Services and Global Delivery


Join Practice Manager and Principal Analyst Patrick Heffernan, Principal Analyst Boz Hristov, Senior Analyst John Caucis, Senior Analyst Elitsa Bakalova and Senior Analyst Kelly Lesiczka for an in-depth look at TBR’s predictions for the IT services market, including management consulting, federal IT services and global service delivery, in 2022 as well as trends they expect to see during the year.

Don’t miss:

  • Services is still people, even as compelling new forces like environmental, social & governance initiatives and emerging technologies challenge IT services vendors  
  • Managing talent and restructuring and building decarbonization credentials will drive management consulting in 2022
  • Federal spending priorities shifting to favor civilian agencies
  • Fallout from the pandemic will lead to the most disruptive year in global delivery since the start of outsourcing

Mark your calendars for Thursday, Jan. 27, 2022, at 1 p.m. EST,
and REGISTER to reserve your space.

Related content: 

  1. Top 3 Predictions for IT Services 
  1. Top 3 Predictions for Management Consulting 
  1. Top 3 Predictions for Federal IT Services 
  1. Top 3 Predictions for Global Delivery 

Click here to access more TBR webinars.

WEBINAR FAQS

HCLT’s groundbreaking apprenticeship initiative: Long-term vision, near-term effects

In the battle for talent, prepare for the long war

Recruit, retain and train. Every IT services vendor over the past couple of years has been pulling every lever to find, manage and reward talent in a chaotic market in which new competitors and newly empowered professionals have spiked attrition across the board and strained HR staffs as never seen before. The pandemic brought about a new appreciation for employee well-being while proving virtual engagements and delivery could work for IT services vendors. As 2022 starts, filling talent gaps in the near term will continue to challenge every vendor. Notably, HCL Technologies (HCLT) has begun investing in the long term with a program that is perhaps unique among IT services vendors and certainly, in TBR’s view, timely, a little risky and genuinely good for society. 

On Dec. 9, TBR spoke with Ramachandran Sundararajan, HCLT’s EVP of Human Resources at HCL America, and Rohan Varghese, HCLT’s VP and global head of Analyst Relations and Customer Advisory Board, both of whom provided details on the new apprenticeship program. The following reflects that discussion and TBR’s ongoing analysis of HCLT.

Flexibility, STEM and a 5-year apprentice journey  

With the company’s new apprenticeship program, announced in November, HCLT has crafted an expansive, flexible, multiyear journey for students intent on joining the IT services and science, technology, engineering and math (STEM) ecosystem. The core program begins with a year spent at HCLT as a salaried employee, including a three-month “boot camp” that introduces apprentices to various aspects of HCLT’s IT services, consulting and technology businesses. The second phase focuses on practice-based learning. Sundararajan emphasized the “practice” part, noting that apprentices would have exposure to and gain experience working across many of HCLT’s core areas, such as SaaS, cloud, security and networking services. Over the final three months of the first year, apprentices join a live project environment, supporting and providing help at an appropriate proficiency level and putting to use skills learned from working in sandbox environments.

When apprentices graduate from this last phase, they become eligible for an HCLT-funded college program and can fully appreciate the flexibility that HCLT offers. Graduated apprentices can enroll in a four-year STEM program at any university, with HCLT picking up the tuition and fees and keeping the student on the company’s payroll. Apprentices can also choose an associate degree track to move more quickly to full-time employment. Or apprentices can opt for industry-recognized certifications, moving even more rapidly into the full-time workforce. In all three journeys, HCLT pays the academic costs, allowing the apprentices to earn a degree without any student debt.

Looking beyond the usual boundaries while staying aligned to HCLT’s core

Notably, HCLT has designed the apprenticeship program to seek candidates both geographically and economically diverse from the standard STEM talent pool. HCLT wants to attract students with fewer financial advantages than the average college student and will be recruiting most heavily in cities away from the technology hubs of Silicon Valley; Austin, Texas; and Boston. Sundararajan said HCLT will work with community groups in Cary, N.C.; Hartford, Conn.; and Sacramento, Calif., among other cities, although HCLT would welcome apprentices from any part of the U.S. In addition to throwing the net wide in terms of who and from where, Sundararajan said the goals of the program centered on building skills for the future, recognizing that the technical skills, who has them, and where they live will have lasting effects across their communities.

TOP 3 PREDICTIONS FOR DIGITAL TRANSFORMATION IN 2022

In the end it is all about business outcomes

Digital is dead; long live business transformation

Although the term “digital transformation” has served an important purpose of focusing the attention of business leaders and the IT services and consultancies working with them, it has been among the most overused phrases of the last 10 years in technology. At the start of 2022, no one will need to be reminded that technology — digital — can drive transformation. Business transformation is returning to the forefront for enterprises as a result of the pandemic, the advantages of emerging technologies, and the generational shift in the C-Suite, with newly promoted decision makers fully soaked in all the possibilities of technology.

The shift from digital transformation to business transformation will accelerate in 2022, amid the change in buyers and as digitally mature businesses are more inclined to bring technology talent in-house. These trends, along with the return to in-person workplaces and a resurgence of innovation and transformation centers, will create opportunities for leading IT services vendors and consultancies to separate from the pack by expanding managed services, returning clients to in-person creative sessions, and shifting away from technology-first mindsets.

2022 will be a pivotal year for digital transformation … perhaps its last. 

2022 digital transformation predictions

  • As clients graduate beyond digital transformation, vendors scramble to stay relevant
  • Funky chairs only matter if you can physically sit in them: The resurange of innovation and transformation centers
  • New generation of business leaders expect business transformations, not digital ones

 

Send me a free copy of TBR’s Top 3 Predictions for Digital Transformation in 2022

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.

devices, data center, and services & digital.

Top 3 Predictions for Global Delivery in 2022

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.

We are not exaggerating: By the end of 2022, global delivery will be a different game. 

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

Send me a free copy of TBR’s Top 3 Predictions for Global Delivery in 2022

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.

Top 3 Predictions for IT Services in 2022

Sustainability in talent, decarbonization and emerging tech becomes the watchword for IT services

Services is still people, even as compelling new forces like ESG and emerging technologies challenge IT services vendors

Even with a rush of emerging technologies and responses to the pandemic at the forefront of IT services vendors’ strategies and client success stories, the fundamentals of IT services remain rooted in people — in recruiting, training and deploying the right talent to solve IT-related business problems and staff enterprise IT needs. The changes TBR expects in 2022, including new competitors in the war for talent, new opportunities around decarbonization and accelerated adoption of emerging technologies, will not substantially alter IT services vendors’ business models. Differentiation among the vendors, in offerings, capabilities and financial performances, will come more through execution than strategy, at least in the near term. Vendors more adept at pivoting to new revenue streams and more patient with pressured margins will see greater success beyond 2022, provided they are able to adequately navigate talent challenges in the near term.      ​

The vendors that were ahead of the game in 2019 in portfolio and resource expansion around next-generation technology-enabled solutions are experiencing revenue growth improvement in 2021. New growth initiatives, such as around product engineering, supply chain improvement and sustainability, along with steady investments in areas such as hybrid cloud, AI, security, IoT, blockchain and industry-specialized offerings, will continue to expand vendors’ addressable market opportunities and support revenue growth acceleration into 2022. Virtual delivery enables increased productivity but pushes employee utilization to the limits and supports a surge in attrition. Managing talent to market demand, especially as macroeconomic conditions improve and digital exhaustion continues, will be key as IT services vendors strive to ensure service quality requirements are met.​

While the COVID-19 pandemic remains an external factor that can negatively affect IT services spending, subsiding pressures thanks to global vaccine rollouts indicate a potential for continued revenue growth acceleration from the 6% year-to-year revenue growth during the full year 2021 for the 30 vendors in TBR’s IT Services Vendor Benchmark. Moving into 2022, revenues will be driven by a mix of three activities: short-term projects around operational resilience and running businesses; larger transformational engagements that enable clients to improve their business models; and innovation engagements that allow clients to do something completely different — all supported through technology solutions and services.​

2022 IT services predictions

  • Focus on talent management, refined during the pandemic, will recede in a post-pandemic environment
  • The decarbonization shift from promises to actual results opens a massive opportunity for IT services
  • Blockchain winter ends and 5G & edge bloom in 2022, bringing new enhanced revenue streams to IT services

Send me a free copy of TBR’s Top 3 Predictions for IT Services in 2022

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.