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A Storm is coming!

Have you noticed the trends the changes that is happening in IT ,notable IT service companies. There are several trends which suggest  IT service companies are on decline.

I will give you some of the reasons, why .You may be strong enough with 8 packs and well-built and can successfully defend against one or two well-built opponents but what happens when more equally trained opponents starts hitting you at the same time, the chances are you may not survive the onslaught. This is what happening with Indian IT right now .

Question number one, what is the real cash cow and revenue generating streams for these IT majors ,with out a doubt it’s their support model : we make money on head counts ,infrastructure and software supports. We provide resources based on the requirements for multiple clients , till now it worked fine ,not fine really great and we made a $150 billion business opportunity out of it .All worked well it was an equally beneficial model for both Indian IT and US/European companies ,they needed cheap and quality support and we are happy to provide it in turn it reduces their IT operations costs and all are happy. So what happens now .

Consider a medium-sized client X say with a 500+ servers is requesting a proposal for IT support for their infrastructure On a traditional model we will consider the support cost on a 24/7 model with multiple technology domains like.

**This is based on an approximate calculation not exact **

We need an army of 30 IT pros working 24/7 and if it’s a T&M model client need to pay per resource. There is no draw backs here this model worked fine for more than a decade .What changes now .Check out these latest cutting edge technologies and I will explain how each one affects IT services.

Cloud Computing

Automation

Artificial Intelligence

……

Now if I include all these into mix client X can easily go for a public cloud solution like AWS or Google and save money on building datacenter(all those concerns of security are going very fast and market is thriving ,if you need more info look on AWS quarterly growth rate).

Now with server in cloud all the hardware expertise IT pros has accumulated over years are now useless. Means ,no need to know Blade technologies , Superdomes, EMC, Netapp storage etc .

Now look at the support model for cloud normally if you see the AWS job requirement you can see it is greatly different from traditional model, you need to know devops and automation tools so if we include automation also We don’t need these three resources backup/storage/network there goes our 9 resources and now add the final nail on the coffin: AI .AI equipped with latest machine learning powers we will be able to completely eliminate L1/L2 tasks .Consider what happens now in monitoring ,suppose a server is having a storage space crunch and sends out an alerts L1 Team , L1 IT will raise a request to L2 team and L2 team will allocate additional storage and close the ticket .This whole process can be easily automated instead of L1 IT monitoring the dash board, an intelligent tool can directly send the request to the L3 team and if the tool is intelligent enough with some machine learning capabilities, it can easily learn the storage addition script and include it in the process and from now on if the Tool get an IT request asking for more space it know exactly what to do without L1/L2 support.

You can think of any L1/L2 process truth is these tasks can be easily automated .It may sound like an exaggeration ,even I thought like that but check these links and consider the time and effort these companies put in automation ,they won’t do this if the business scope is so small .

http://www.digitate.com/

https://www.infosys.com/mana/

https://www.accenture.com/us-en/insight-intelligent-automation-technology

http://www.wipro.com/holmes/

Every single IT service company has on AI strategy .This brings us back to resource planning for our client X, we can remove L1 monitoring and App support and can remove L2 from Linux and Windows things bring us to

So now the question is for 5 to 7 L3 resources why should a US/Europe company look for outside

And why do they need an outsourcing contract for this, they can easily hire these resources and get the job done without any outside help. This is same for all IT service verticals. Only time will answer this and if we can’t innovate and come up with any game changing technology we are not going in the right path as of now.

When the companies start innovating IT professional also should or they will be thrown out in no time.

So Upgrade Yourself is the only way to go.