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GBS (Global Business Services) is dead. Long live GBS (Generative Business Services)
For more than two decades, Global Business Services (GBS), the centralized service delivery model leveraging a mix of internal shared services and/or 3rd party outsourcing, has been a tried and tested modus operandi for large enterprises to save costs, drive process discipline and improve compliance.However, with the rapid advent of real generative AI capability, the current GBS model is dated, fails to deliver much (if any) value beyond cost and efficiency and has struggled to create viable career opportunities for ambitious talent. Let’s face it, GBS is still stuck squarely in the back office and fails to provide a career track for the best and brightest to pivot their firms into the generative AI era.Read More
Not even God can save DXC!
DXC Technology's latest play is to bring Raul Fernandez off the bench as the new interim chief and move on from a difficult four years under Mike Salvino, who's passing the torch. But when you look at the challenges facing this firm, you might just come to the conclusion that not even God can turn this one around.Let's not kid ourselves; this isn't your usual passing of the baton – it's more like handing off a ticking time bomb. The company's market value is literally running on fumes and barely a third of its revenue numbers. And that's not just a hiccup – it's a full-blown identity crisis.Read More
Services firms are out of runway. They must forget Labor Arbitrage and conform to Technology Arbitrage
The fundamental value creation lever in the legacy Labor Arbitrage era has been the centralization of people in a global delivery model. The fundamental value lever in the Technology Arbitrage era is all about architecting and orchestrating the rapidly changing technology ecosystem in line with the client’s business model. It’s past time for the IT and BPO Services industry to jump to a new S-curve driven by Technology Arbitrage if they wish to get back to another season of hockey stick growth.Read More
Employers can save $350 Billion a year if they shift to a self-insured healthcare model
Self-insured employers have a generational opportunity to course-correct on the health and care needs of their employees in an apolitical, sustainable, and materially cost-effective mannerRead More
IBM’s acquisition of Apptio can shine if IBM Software and IBM Consulting work together to deliver cost-managed innovation at speed
HFS believes this is a good deal for both IBM and Apptio. IBM didn’t have much spend data; therefore, there is little overlap in terms of products. The ambition is bold. But the Holy Grail of operations is having an operational single pane of glass that includes automation and AI. If IBM can integrate all those acquisitions and get all that telemetry data out of its often highly specific domains, it can achieve strong differentiation in the market. Conversely, Apptio had hit a sales plateau as it struggled to scale its sales reach. Getting $4.6bn for hitting a plateau is too good an opportunity to turn down.Read More
ServiceNow and Celonis just threw down the Workflow Platform gauntlet. The darlings of IT and process workflow execution make their joint move…
The new Celonis – ServiceNow partnership blends operationalizing data science with the capability to design workflows in the cloud. Read More
HFS adds more beans to fuel healthcare research – meet Rohan Kulkarni
Phil Fersht sits down with new analyst hire Rohan Kulkarni to discuss his healthcare focusRead More
UiPath will finally find its true path as IPO beckons. Now can its leadership develop some humility to embrace this incredible opportunity?
UiPath poised to become the first robotics platform to IPO in the USRead More
As the industry churns Tom Reuner returns
Tom Reuner talks to us about his return to the analyst foldRead More
Who’d have thought… Wipro went for Delaporte
The current economic and health crisis may have even driven the board to look harder at a leader with discipline and financial acumen. They seem to have got oneRead More
