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#DBS2016 Digital Labor Disruption
The document discusses how IT is being transformed by digital technologies. It provides 5 reasons why IT as we know it has changed forever: 1) 50-70% of enterprise workloads will be in the public cloud, 2) Agile operating models are becoming dominant, 3) IT is becoming a revenue generation engine, 4) Internet of Things and platforms are essential capabilities, and 5) 20-40% of labor will be removed through automation. It also discusses how the "as-a-service" model is disrupting traditional outsourcing markets and driving double-digit productivity and cost savings through automation.
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#DBS2016 Digital Labor Disruption
- 1. © 2016 InformationServices Group, Inc. All Rights Reserved.
- 2. © 2016 InformationServices Group, Inc. All Rights Reserved The Enterprise Digital Fabric Connected Customers Connected Partners Connected Employees Connected Suppliers Digital Fabric
- 3. © 2016 InformationServices Group, Inc. All Rights Reserved. Top 5 Reasons IT as we know it has changed forever 50% to 70% of enterprise workloads (applications) will be in the Public Cloud over next 3 to 5 years Number 1:
- 4. © 2016 InformationServices Group, Inc. All Rights Reserved. The Agile Enterprise is the dominant operating model – focus shifting from Run the Business Change the Business – to radical transformation Number 2: Top 5 Reasons IT as we know it has changed forever
- 5. © 2016 InformationServices Group, Inc. All Rights Reserved. The Digital Fabric changes the role of IT -- IT becomes the Revenue Generation Engine Number 3: Top 5 Reasons IT as we know it has changed forever
- 6. © 2016 InformationServices Group, Inc. All Rights Reserved. The Internet of Things (IoT) and Platforms are must have capabilities Number 4: Top 5 Reasons IT as we know it has changed forever
- 7. © 2016 InformationServices Group, Inc. All Rights Reserved. Top 5 Reasons IT as we know it has changed forever 20% to 40% of labor will be removed through extensive Automation of IT services Number 5:
- 8. © 2016 InformationServices Group, Inc. All Rights Reserved. Market Size in Perspective As-a-Service vs. Traditional Outsourcing Market Size billions IaaS $24 SaaS $51 Outsourcing $114 Combined Market 40% $189 The “as a Service” model disrupts everything
- 9. © 2016 InformationServices Group, Inc. All Rights Reserved. With Digital Adoption Accelerating SaaS IaaS Legacy $26.1 $23.7 $22.3 $3.1 $3.6 $4.1 $3.5 $4.9 $6.9 2014 2015 2016E 95% ‘14-’16E 33% -15% % ChangeACV $B 113% Americas 34% 5% 51% APAC 33% -35% 90% EMEA 31% -25%
- 10. © 2016 InformationServices Group, Inc. All Rights Reserved. • Historical 3% - 5% annual improvement is now nearly 30% • Robotic Process Automation (RPA), Data mining and machine learning driving dramatic increases ISG Automation Index: Double Digit Productivity Improvement
- 11. © 2016 InformationServices Group, Inc. All Rights Reserved. • Significant double-digit cost savings from all towers ranging from 26% to 66% • Up to 28% of savings directly associated with RPA. • Tremendous cost pressure on creating an incumbency dilemma ISG Automation Index: Double Digit Cost Savings!
- 12. © 2016 InformationServices Group, Inc. All Rights Reserved. IT is completely changed by Digital Transformation Processes Automation Cloud Customer Analytics Collaborative Product Innovation Business Insights Customer Experience Product Analytics IoT Platforms Access Channels Social Media Collaboration Enterprise Customers
- 13. © 2016 InformationServices Group, Inc. All Rights Reserved.