A sustained focus on digital, agility, and advanced technologies is likely to prepare enterprises for the future, especially following COVID-19. Many enterprise leaders consider IT infrastructure to be the bedrock of business transformation at a time when the service delivery model has become more virtual and cloud based. This reality presents an opportunity for GBS organizations that deliver IT infrastructure services to rethink their long-term strategies to enhance their capabilities, thereby strengthening their value propositions for their enterprises.
GBS setups with strong IT infra capabilities can lead enterprise transformation
Over the past few years, several GBS organizations have built and strengthened capabilities across a wide range of IT infrastructure services. Best-in-class GBS setups have achieved significant scale and penetration for IT infrastructure delivery and now support a wide range of functions – such as cloud migration and transformation, desktop support and virtualization, and service desk – with high maturity. In fact, some centers have scaled as high as 250-300 Full Time Equivalents (FTEs) and 35-45% penetration.
At the same time, these organizations are fraught with legacy issues that need to be addressed to unlock full value. Our research reveals that most enterprises believe that their GBS’ current IT infrastructure services model is not ready to cater to the digital capabilities necessary for targeted transformation. Only GBS organizations that evolve and strengthen their IT infrastructure capabilities will be well positioned to extend their support to newer or more enhanced IT infrastructure services delivery.
The need for an IT infrastructure revolution and what it will take
The push to transform IT infrastructure in GBS setups should be driven by a business-centric approach to global business services. To enable this shift, GBS organizations should consider a new model for IT infrastructure that focuses on improving business metrics instead of pre-defined IT Service Line Agreements (SLA) and Total Cost of Operations (TCO) management. IT infrastructure must be able to support changes ushered in by rapid device proliferation, technology disruptions, business expansions, and escalating cost pressures post-COVID-19 to showcase sustained value.
To transition to this IT infrastructure state, GBS organizations must proactively start to identify skills that have a high likelihood of being replaced / becoming obsolete, as well as emerging skills. They must also prioritize emerging skills that have a higher reskilling/upskilling potential. These goals can be achieved through a comprehensive program that proactively builds capabilities in IT services delivery.
In the exhibit below, we highlight the shelf life of basic IT services skills by comparing the upskilling/reskilling potential of IT services skills with their expected extent of replacement.
Exhibit: Analysis of the shelf life of basic IT services skills
In the near future, GBS organizations should leverage Artificial Intelligence (AI), analytics, and automation to further revolutionize their IT capabilities. The end goal is to transition to a self-healing, self-configuring system that can dynamically and autonomously adapt to changing business needs, thereby creating an invisible IT infrastructure model. This invisible IT infrastructure will be highly secure, require minimal oversight, function across stacks, and continuously evolve with changing business needs. By leveraging an automation-, analytics-, and AI-led delivery of infrastructure, operations, and services management, GBS organizations can truly enable enterprises to make decisions based on business imperatives.
If you’d like to know more about the key business transformation trends for enterprises in IT infrastructure, do read our report Exploring the Enterprise Journey Towards “Invisible” IT Infrastructure or reach out to us at [email protected] or [email protected]
72% of enterprises cite IT infrastructure services as a key hurdle to becoming digital-first enterprises; new Everest Group report describes how ‘Aware’ automation—underpinned by AI and analytics—can solve this problem
According to Everest Group, aware automation can help achieve more than 35 percent cost savings as compared to traditional automation approaches and can help enterprises realize significant improvements in business operations and user experience.
With IT infrastructure complexity at an all-time high, Everest Group has found that 72 percent of enterprises cite infrastructure services (IS) as a key hurdle in becoming a digital-first enterprise. Most enterprises believe that their IT infrastructure services are not moving fast enough to support and drive the future of their business.
“Aware” automation holds promise for resolving the challenges and complexity of traditional IT infrastructure. Aware automation is a concept wherein automation systems are underpinned by artificial intelligence (AI) and analytics, making them conscious of the environment and capable of driving self-configuring, healing and evolving IT infrastructure services.
“The trinity of analytics, automation and AI can make the infrastructure run the way business needs it to, without requiring significant oversight or bandwidth,” said Ashwin Venkatesan, practice director at Everest Group. “So, in essence, this next-generation automation can make infrastructure services ‘invisible’ rather than a glaring nightmare that causes executives to lose sleep at night. Already in the last two to three years, we’ve witnessed intelligent automation making enterprise inroads, backed by a rapid proliferation and maturation of solutions in the market.”
Everest Group offers a featured analysis of aware automation in its newly released annual report on Cloud and Infrastructure Services: “AI Stands to Make IT Infrastructure Services ‘Invisible’.” This research deep dives into the cloud and IS landscape. It provides data-driven facts and perspectives on the overall market. The research covers cloud and IS adoption trends, demand drivers, and buyer expectations. The research analyses buyer challenges, describes trends shaping the market, and provides an outlook for 2018-2019 for the broader IT as well as cloud and IS market.
Highlights of the Cloud and IS market analysis:
10 resource unit pricing drivers you must normalize to ensure a like-to-like comparison in benchmarking resource unit pricing
A significant driver motivating companies to migrate workloads out of their legacy environment into the cloud is the increasing frustration of operating under onerous, complicated services contracts. Of course, these workloads migrate to the cloud and a software-defined environment primarily for greater efficiency and agility. But many workloads are too expensive and risky to migrate and thus are better suited for maintaining in a legacy environment. So, I’m calling for a better, more rational legacy infrastructure contracting vehicle. Here’s what it would look like and how companies would benefit.
Large, cumbersome, difficult master services agreements (MSAs) with functional areas or towers govern the legacy IT outsourcing market. No matter the function outsourced, these legacy contracts have in common several characteristics that make them too complex and make administering these contracts incredibly complicated and frustrating.
49% of organizations have implemented or piloted IOT with the goal of business optimization and efficiency; however, the unfamiliar IT/IOT convergence is creating adoption challenges across the IOT stack, and enterprises are taking a cautious approach
Thursday, April 13 | 11:00 am – 12:00 pm EDT
Research Practice Director Ashwin Venkatesan will help lead an GAVS Technologies-hosted webinar titled How Smart Machines Will Drive the Next Generation IT Infrastructure Transformation. The webinar will feature key speakers from Everest Group and GAVS Technologies
Practice Director, Research
Chandra Mouleswaran Sundaram
VP, Infrastructure Management
Today’s IT departments face a profound challenge: the delicate and precarious balance between stability and innovation. “Keeping the lights on” has never been more important. Business quite literally runs on technology and any downtime or blips in the user experience can cause major negative consequences, from brand equity and sales to internal productivity and morale. But innovation is equally imperative. The pace of technological change demands that businesses evolve or go extinct. You can’t afford to stand still – but you cannot compromise your core operations, either. In response, most organizations split the difference. IT assumes that legacy systems are stable and continues to rely on them as foundational infrastructure. When new requirements arise, they invest in new technology with a greater emphasis on agility and responsiveness, often in the cloud. Read more at Cecilia’s blog.