09-12-2021

MBAFT-6208: Management of
Information Systems
Strategic Foundation for IT Services Business

IT Services Industry & Portfolio

Session 1-2
Sanjiva Shankar Dubey

1
Source : IT Services business management Sanjiva Shankar Dubey,
PHI learning ISBN: 978-81-203-4531-7

Evaluation
 Internal
 MLS GF
1. Class Room 10 % 10 %
Participation &
Attendance
2. Presentation on Case 40 % -
Work
3. Tests/Quizzes 10 % 10 %
4. Case Study - 20 %
Solution/Term Paper
 End term 70
2

1
 09-12-2021

Understanding IT service Business

 IT Services are leading India’s growth story.
 Driven by technology, Business need the right tech infrastructure to stay
competitive, reduce risk, and protect data. IT Budgets are increasing
 Gartner says that global IT spending is predicted to grow by 6.2% in 2021.
 As a result, IT services professionals like you are in high demand
 IT Services is 8% of Indian GDP, major source of forex
 IT Services needs another 5 million trained professionals in next five-seven
years
 Not just software development but running the business of IT services
 40% of IT Services is delivered to BSFI) industry clients,
 24% to "emerging verticals" comprising of healthcare, retail, media and
utilities, and 20% from the high technology and telecom sectors
 Emerging technology and Digital Transformation is giving the push
3
DIS Session 1-2 2016 FMS

2021 trends

 Worldwide IT spending is projected to total $4.1 trillion in 2021, an increase

of 8.4% from 2020, according to the latest forecast by Gartner, Inc. The
source of funds for new digital business initiatives will more frequently come
from business departments outside IT and charged as a cost of revenue or
cost of goods sold (COGS).

2
 09-12-2021

 For it services vendors working with manufacturers, resiliency,

business continuity, security and digitalization spark new revenue
growth
 Digital twins, supply chains and iot fuel near-term opportunities

3
 09-12-2021

Challenges
 Global Competition: IT products and services are able to overcome
geographical limitations
 Rate of Obsolescence: It is fair to say that the IT industry re-invents its
own technical infrastructure every few years. Moore’s law and Nielsen’s
law have proven themselves to be exceptionally resilient.
 Disruption of business models: Using IT as an enabling technology has
disrupted traditional businesses in many areas. Whether it is in bookselling
(Amazon), hospitality (Airbnb) or Ride sharing (Uber), there is no telling
when the next wave of disruption will come in.
 Quality and Security: As IT becomes more and more embedded in
traditional products and traditional businesses, it is critical to ensure that
quality and security are not compromised. Imagine if a software bug
causes a space shuttle mission to fail or a car to malfunction. Security is
an even bigger concern. Recent malware and ransomware attacks have
shown how heavily dependent we are on smooth functioning of IT systems.
A huge global company like Maersk shipping was down on its knees for
nearly week, trying to recover from these attacks. 7

IT Services Industry Landscape

 India is for IT what Automobile is for Japan or
Wine is for France
 ITSE has made “brand India”
 ITSE desires to
 go up the value chain
 Win and execute large services and Solution
contracts
 Transforming from Product to Services enterprise
 Keep focus on Client Value

8
IT Services business management Sanjiva Shankar Dubey,
PHI learning ISBN: 978-81-203-4531-7

4
 09-12-2021

IT services spans across

 Software development and maintenance
 Management of IT operations and
infrastructure,
 Network management,
 Business process outsourcing (BPO) , Voice
and Data Services
 e-business services
 Digital Technology, AI, Robotics , Big data
etc
IT Services business management Sanjiva Shankar
9
Dubey, PHI learning ISBN: 978-81-203-4531-7

IT Services can be categorized as :

Figure 2.1. INTERRELATION OF PORTFOLIO OF IT
SERVICES

10
IT Services business management Sanjiva Shankar Dubey,
PHI learning ISBN: 978-81-203-4531-7

5
 09-12-2021

IT Services can be
categorized as
 Advising includes consulting, Planning and envisioning
 Build services
 Application Development and Installation
 Product Development and/or implementation
 Perform services :
 Application maintenance and operations,
 IT infrastructure Operations and management
 Governance services
 Management of Quality, Project Management
 Software as Service
11
DIS Session 1-2 2016 FMS

IT Services and Solution: Value delivery chain

Figure 2.2 IT SERVICES VALUE CREATING CHAIN

Digital
Technologies, AI,
ML, Robotics

12
IT Services business management Sanjiva Shankar Dubey,
PHI learning ISBN: 978-81-203-4531-7

6
 09-12-2021

Learning Pause

 Plot various ITSE along the value chain,

TCS, Infosys, IBM, SAP, Accenture etc
 What is advantage of moving up the value
chain?
 Name any ITSE company which had made
acquisition to enhance its Services
portfolio.

13
IT Services business management Sanjiva Shankar Dubey,
PHI learning ISBN: 978-81-203-4531-7

Activity
 Summarize the key points after reading this link
1. https://connect.comptia.org/content/research/it-industry-trends-analysis
2. https://tbri.com/special-reports/digital-twins-innovation-and-godzilla-3-
it-services-trends-for-the-rest-of-2021/
3. https://www.mckinsey.com/business-functions/mckinsey-digital/our-
insights/building-a-tech-services-ecosystem-to-deliver-products-not-
applications
4. https://www2.deloitte.com/xe/en/insights/industry/technology/enterpri
se-it-as-a-service.html
5. https://alcorfund.com/insight/what-is-technology-enabled-services-and-
how-are-they-disrupting-industries/

14