As the IT services industry takes a different route with enterprise clients moving from traditional to cloud-based services, Indian IT service providers too are shifting gears to keep pace with their global competitors. For the IT services industry, it’s the time to wake up to new realities. Strategic outsourcing is increasingly considered to be dead, IT models are being realigned to new technology needs, and long-term deals are shrinking with every passing year. Of all the major technology disruptors that have shaken up and stirred the industry, cloud has been one of great significance. The advent of cloud has not just transformed the way IT is consumed by enterprises, it has also in many ways questioned the tried and tested ways of functioning of IT services companies and left them scrambling for answers.
“Over the past few years and now with disruptive technologies stepping in, IT vendors have started to acquire smaller companies and start-ups or making seed investments into the smaller companies that add focused offerings to their portfolios,” says Sanchit Vir Gogia, Chief Analyst & Group CEO, Greyhound Research. Infosys’ acquisition of Panaya, a US-based Software-as-a- Service (SaaS) company that specializes in automating application management service was a key step in this direction.
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