GROWTH WITHIN IT

CONSULTING
 CONTENTS

Types of Companies Progress within

01 Introduction
02 Providing IT 03 IT Consulting
Consulting Services

Growth of IT Consulting
04 IT Consulting: A 05 Services: A Broad 06 Growth within IT
Consulting Services
Framework View

Example: Growth of How IT Consulting

07 Moving from IT to BT
08 IBM as an IT 09 Can Drive Business
Consulting Firm Growth
 INTRODUCTION

IT Consulting, referred as Technology Consulting is a give and take of services between businesses and aimed at helping clients with
implementations of IT and grow digitally to achieve their business goals. ITC includes both advisory and implementation services but does not
include transactional IT activities.

Revenue in the IT Consulting & Few IT Consulting Firms divided by Continent

Implementation segment is
projected to reach
US $57,467.3 million in 2021 • Infosys • Accenture
• KPIT • Capgemini
Revenue is expected to show an annual • NTT Data • Deloitte
growth rate (CAGR 2021-2025) of 6.19%, • TCS • Alten
resulting in a market volume of US$73,084 ASIA EUROPE
million by 2025.

In global comparison, most revenue will be North South

•Cognizant America America
generated in the United States (US$21,205 • Genpact
million in 2021). • Stefanini
• IBM • IT Solutions
•Unisys
Source: Statista Outlook on IT Consulting
CATERGORISATION OF COMPANIES THAT PROVIDE
IT CONSULTING SERVICES
 Focus is on large, high priced Individual firms usually
System Integrators implementation and integration specialize in either technology or Accenture, PWC, IBM
projects. strategy.

Smaller firms that emphasize

Web design firms This category is specially for helping
technical delivery with focus on Lounge Lizard. 500 designs, upqode
clients with web development
business strategy.

Web-site design and development the Agency.com, Razorfish, Modem

Creative design, branding, and

EXAMPLES
Interactive Agencies marketing expertise
services they already offered to their Media
clients.

Combination of creative and strategic deliver applications, either as a

Pure e-business
talent To develop e-business strategy general contractor role or by using Scient, Dimension Data holdings
players and messages. their own development staff

These companies lead with strategy

Management & organization consulting. IT Rarely goes beyond strategy into
McKinsey, BCG
consulting remains secondary to actual application development.
Consultants
strategy.

Customizes an application package;

ASPs claimed to make it easy for any
Application Service charges back for it through an up-
firm to conduct business on the Oracle, SAP and peoplesoft
Providers front installation charge and a
Internet.
monthly fee
A JOURNEY
TO
GROWTH
OF IT
CONSULTIN
G

6
 PROGRESS OF IT CONSULTING
1990s
(The Growth Era)
During 1990s when internet began to
commercialize, IT Consulting activities in
many firms became a dominant source of
growth and profits with reengineering led
IT projects and ERP installations becoming
a way of providing competitive advantage.
A new term entered the business
vocabulary: “e-business”. But still, Indian
IT consulting firms could not reach the
expected level due to two main reasons –
• Lack of proper infrastructural facilities.
• Lack of knowledge workers.
2000s
(Explosion of IT Consulting)
During this phase IT consulting was facing
an implosion due to global problems like
Y2K, dotcom crash and recession in US
which forced many global firms to utilize
services of Indian IT consulting firms. This
resulted in placing Indian IT consulting on
the global map. The total market share of
IT industry at that time in India was $8.3
billion and IT consuting accounted for half
of the market where ERP segment grew
from Rs 1.72 billion to Rs 3.15 billion
(35% growth) emerging as most dominant.
Source: NASSCOM Strategic Review 2001
IT Consulting’s Current
Scenario
Today customers have drastically moved
towards digital channels, especially due to
the pandemic. This speed of development
of digital sector is causing structure of
some firms to fails as they are unable to
reorganize with the pace. As a result,
digital transforation of business process
remians at top agenda for many firms
where majority of firms would spend of
tech consulting and ousoucing services.
This will bolster the IT consulting and the
revenue in this segment is projected to
reach US $57 billion by 2021 (8.4%
growth).
Source: Statista Outlook on IT Consulting
 GROWTH OF IT CONSULTING: A FRAMEWORK

PLACING IT CONSULTING IN THE BELOW MATRIX • Extent of New Initiatives

• Structural Protection of Current Providers
 Lean Cuisine - tough times for everyone, industry contraction • Role of Scale
• Role of Speed
 Good Ole Times - attractive conditions & growth for established providers • Role of Cost
 New Cherry Pickers - emergence of new and nimble players • Role of Proprietary Knowledge
 Hay Days - established and emerging players prosper
Enablers of IT Consulting
Competitive Change

High
• Business Context “Good Ole Times” “Hay Days”
• Competitive Pressure
• Life-cycle of Adoption Pre
• Degree of Process/Culture/ Now
Drivers of IT 1990s
Behaviour change required
Consulting
• Adoptee Change Management
Growth “Lean Cuisine” “New Cherry
Capabilities
• Degree of IT Architecture/ Pickers”
Infrastructure change required
• IT Capabilities of the Adoptee 1990s
Low
Source: Harvard Business School
Low High
 IT CONSULTING SERVICES – A BROAD VIEW

 This is on strategic IT Propositions & advisory that represent 1 st phase of IT undertaking.

IT Strategy  Lasts from 6 weeks to 6 months.
 Ex: setting up business case for ERP or designing a cyber vision

 Looks at the IT processes and systems, and defines the technological blueprint that enables business processes.
IT Architecture Lasts between 6-12months.
These services precede any IT implementation or systems integration efforts.

 Understanding requirements, selecting the right software, planning the implementation, installing and
IT configuring the software, integrating with other systems, deploying to users, managing organizational change and
Implementation many more

 These are activities that support clients with designing, implementing and/or maintaining ERP systems and
modules.
ERP Services  Key propositions include ERP package selections, business process redesigns and implementations of SAP or
Oracle products.
  This domain looks at how different computing systems and software applications can link together in order to
System ensure systems acts as a coordinated whole.
Integrations  It often involves ensuring ERP systems/modules can interact with other, more tailored applications that run in the
IT landscape.

 IT security focuses on risk, security and compliance responsibilities in the IT landscape, while the IT
IT Security implementation line of business encompasses all services related to the design and implementation of technology-
driven projects

 This is techniques and tools that turns data into valuable information in order to support decision making.
Data Analytics Typical propositions are BI, workforce analytics, customer intelligence, data warehousing & predictive modeling.

Software  Software management refers to the practice that involves managing and optimizing the purchase, deployment,
Management maintenance, utilization, and disposal of software applications within an organization.
 A DEEP DIVE INTO IT CONSULTING SERVICES IN
TODAY’S WORLD
There is a lot of change in IT consulting industry as every firm is digitally transforming their business.
Hence, need for IT has increased and need for consulting has increased because every company cannot
have expertise in every aspect of business.

The next slide shows the services provided by IT consulting firms in today’s era
(GROWTH WITHIN IT CONSULTING SERVICES)
 MOVING FROM IT TO BT

Source: Forrester Research

 In today’s constantly evolving world, increasingly powerful customers are
pushing all organisations and businesses to adopt a customer obsessed
culture.
IT Consulting
 As a result, today IT consulting firms are shifting their agendas from IT c. 1998
infrastructural management and internal operations (Information
Technology – IT) to acquiring, serving and retaining the customers with
help of technology systems, which we call as Business Technology (BT).
 The IT continues to remain critical as it consists of tools to support
automation, supply chain and managing all resources for software
IT IT Consulting
products, hardware, storage and networking. c. 2008
 BT does not directly make use of automated processes rather it involves
BT
making use of less mature but emerging technologies for providing
superior customer experiences like ERP-CRM, customer analytics and
risk management for customer operations. IT IT Consulting
 BT shall compromise of mobile technologies that permit the organizations c. 2018
to serve the customers wherever and whenever they need, social BT
technologies that enable customer engagement throughout customer
journey and customer analytics system that disclose customer
The above figure shows the adoption of BT by IT
engagement patterns.
consulting firms over a period of time. Initially IT
consulting was only about IT but later a little adoption
of BT came into picture and currently BT is at par with
IT.
 GROWTH WITHIN IT CONSULTING FIRM – IBM EXAMPLE

2000 2008 2020

2003 2015
 HOW IT CONSULTING CAN DRIVE BUSINESS GROWTH

Saves time & Matchless Enhances Focus on Core Choosing an Best Return
Money Expertise of Productivity business IT Consultant on Technology
Tech Functions Investment
If a tech consulting
team is hired: Consultants
 REFERNECES

1. https://www.statista.com/outlook/tmo/it-services/it-consulting-implementation/worldwide

2. https://www.consultancy.org/consulting-industry/it-consulting

3. https://www.globalitsvcs.com/how-it-consulting-can-drive-your-business-growth/

4. https://www.ibm.com/in-en/services/technology

5. https://www.forrester.com/report/India+Tech+Market+Outlook+2020+To+2021/-/E-RES142203

6. IDRISH ALLAD and DR. MAHENDRA H. MAISURIA, “IT sector in India – Evolution, Growth and a Tool of Economic
Development”, International Journal for Research in Management and Pharmacy

7. George F. Colony and Peter Burris, “Technology Management In The Age Of The Customer”, Forrester Research

8. Richard Nolan and Larry Benningson, “Information Technology Consulting”, Harvard Business School
THANK YOU