The IT services sector is changing. It no longer wants to be the IT services sector but the business services sector.
Infosys has decided to part with the word Technologies in its name to "more accurately reflect the company's evolution over the last 30 years from technology services to business-led consulting and solutions," it says. It's intials are no longer IT as well.
Infosys, as it is now known, is not alone in its efforts to become seen as a business consultancy. In May this year I spoke to Mark Livingston, who heads up Cognizant's business consultancy arm globally and is a former A.T. Kearny employee.
He said the company is searching for someone to run its business consultancy operation in Europe as it attempts to emulate the growth rates of its IT services business. The IT services provider has about 2,500 business consultants globally with all but about 400 in the US and India. The business, which is separate from its massive IT delivery capability, advises customers on business issues. The difference is it has contact with CIO rather than CEO s and CFOs.
Jean Louis Bravard, director at sourcing broker Burnt-Oak Partners, says the market has changed and service providers need to have more services capabilities.
He says there is particular pressure on the Indian service providers. "Because of things like increased competitiveness, the cloud and jobs moving back to the UK the Indian companies want to do more. The Indian companies are best known for app work, and although there is still a lot of this available they are offering customers more."
He says companies like Infosys are well positioned to become one stop shops providing everything from datacentres to business consultancy.
In May last year Wipro told me about its plans in the business consultancy space
Do you think IT service providers can offer business consultancy?