A new convergence IT, management and business services

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A new convergence?IT, management and business
services

• Andrew Bibby
• www.andrewbibby.com

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• I am a strategy consultant, and
• I know nothing about hardware
• and software
• IBM senior employee

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• A convergence between companies
• with an IT background
• and those offering business consultancy
• ?

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IT companies
Business services companies
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• International Business Machines
• Services

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Evidence?
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Evidence?

• IBM
• 2002 Acquisition of PwC Consulting
• 2004-5 Sale of PC division to China

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Evidence?

• IBM
• 2004 Understanding our Company
• Significant growth opportunities
• beyond the traditional IT industry
• Business performance transformation services

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Evidence?

• Capgemini acquires EY consultancy (2000)
• Accenture moves into IT
• EDS buys AT Kearney (1995).. sells it
• Strategic alliances
• CSC/Aon, EDS/Towers Perrin

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Evidence?

• HP adaptive enterprise (business and
• IT synchronised to capitalise on change)
• EDS agile enterprise
• CSC result-driven computing

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The analysts say?

• IDC Attempting to cross over from IT
• products to services is a high-risk,
• high-reward strategy it is a necessary
• one

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The analysts say?

• FT The mish-mash of services classified as
• BPTS whether IBM has the skills
• to change from IT stalwart into a trusted
• business partner
• Not yet clear whether the IBM vision is
• correct or not

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The background outsourcing

• Outsource non-core functions including IT
• A move from tactical to strategic
• outsourcing

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The background outsourcing

• Capgemini

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The background outsourcing

• European Outsourcing deals 2004
• Source IDC.

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And the implications for jobs?

• IBM The IT services industry is increasingly
• moving from a predominantly
• labor-based business model..
• IBM, May 2005 lt13,000 jobs cut
• HP, Sep 2005 14,500 jobs cut
• Capgemini lt10,000 jobs lost since 2001
• Back to the 1990s?

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And the implications for jobs?

• Gartner IT workforce management prepare
• for a future unlike the past
• 4 key forces?
• Global sourcing
• IT automation
• Business reconfiguration
• Consumer IT services and behaviours
• By 2010, 6 out of 10 IT professionals will take
  on
• Business-facing roles

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Does the evidence stack up?

• HP Were technologists at heart
• Were going to stay very focused on services as
  it
• relates to technology
• EDS You no longer need to buy consultancy and
• IT in one place, in fact its probably not in the
  clients
• Interest
• IDC The challenge of transforming a strong
  technology
• brand into a credible business services brand

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Other ways of looking at IT futures

• Google?
• Web-based software applications?
• Salesforce.com etc
• Web 2.0
• India? China?

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Does the evidence stack up?

• Some conclusions
• Long term trend Hardware gt software gt IT
  enabled
• services
• IT professionals less techie, more business
  orientated
• IT professionals will need to develop other,
• generic, business skills
• Increasingly sophisticated globalisation
• Convergence between IT/business services
  companies
• taking place but the extent of this is
  debateable

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A new convergence?IT, management and business
services

• Andrew Bibby
• www.andrewbibby.com