Smart Enterprise Magazine

Volume 7, Number 1, 2013

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Smart Partnering Tata Consultancy Services (TCS), headquartered in India, is a good example of a global service provider that is broadening its services. Historically, TCS had earned approximately threequarters of its revenue from application development and maintenance. But by 2007, that had fallen to 50 percent. It has continued to fall, reaching, in TCS���s most recent fiscal quarter, less than 45 percent of all revenue. Broader Services Illustration: �� Michael Glenwood Gibbs As CIOs transform into supply chain managers, their service providers are transforming themselves, too. At the same time, TCS has expanded its offerings in IT infrastructure and managed services, business process outsourcing, enterprise solutions, mobility, big data, digital marketing, supply chain management and consulting. Today, infrastructure services account for more than 11 percent of revenue at TCS, a growth rate of nearly 34 percent over the past year, according to the company. Similarly, business-process outsourcing now accounts for more than 12 percent of TCS���s revenue, up by more than 39 percent since the same quarter last year. And enterprise solutions account for 15 percent of revenue, a 16 percent increase over the year-earlier quarter. These moves have also changed the nature of the conversations TCS has with its customers, says Brij Gupta, Head of Alliances for the Americas, U.K. and Europe. The conversations with customers have become more strategic, he says, often involving a client���s highest-level executives, including the CEO and board members. ���The CIO is a prime customer, but not our only customer,��� Gupta says. ���The discussion is no longer just about onboarding a specific solution. Now they need a services provider that can help them experience certainty for their business transformation and offer a full services play.��� PM-Partners Group has seen a similar expansion of its services into the executive suite. The Australia-based company was established more than 17 years ago, running projects and supplying project management staff to corporate clients. Since then, PM-Partners has become one of the most highly accredited project management companies in Australia and has expanded its consulting capabilities to provide health checks, advice and process improvement. The company now advises CIOs and other executives on managing project portfolios, whether internal, external or both. PM-Partners can even take over a company���s entire project management function, creating and operating a project management office under a ���managed services model��� that can also be transitioned back to the client at a later date. This managed services model combines significant cost savings with best practices, agility and expert skills on demand. PM-Partners��� consulting practice now accounts for nearly 30 percent of the firm���s overall revenue, up from just 10 percent two years ago. ���It���s changed quite substantially, in that we���ve now moved to more of a shared-risk model,��� says Ray Wall, a Principal Consultant at PM-Partners. ���More and more organizations are asking us to run the entire project and bundle in a suite of support services, rather than just provide a body or two.��� Stefanini, another IT services provider, is similarly transforming itself into a global provider of high-value services. The company, based in Brazil, is expanding globally to provide 2013 ��� Smart Enterprise 25

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