Making the Leap from Labor-Centric to Cognitive Platform–Centric Service Delivery: The Productivity Challenge

Making the Leap from Labor-Centric to Cognitive Platform–Centric Service Delivery: The Productivity Challenge

This IDC study provides a set of benchmark metrics of productivity rates and productivity growth rates comparing traditional services provider business models for IT and business process with platform-based models over a 10-year period from 2005 to 2015."Buyer shift to platform-based service consumption and delivery is placing increasing pressure on service providers to incorporate cognitive/artificial intelligence (AI) capabilities that can meet the increasing business and market requirements placed on enterprises from improving financial performance and worker productivity to accelerating provisioning of business capabilities," says David Tapper, vice president, Outsourcing, Managed, and Offshore Services at IDC. "Success for traditional service firms in moving from a labor-centric to a cognitive and automated platform-centric service delivery model will require architecting the shift to automation based on a productivity growth rate target, incorporating key building blocks ranging from meeting top buyer needs of automation to aligning business risk and investment with productivity target growth rate requirements, and leveraging market-based platforms that can optimize and accelerate the value of cognitive/AI capabilities."

Please Note: Extended description available upon request.

IDC Opinion
in this study
Situation Overview
Changing Enterprise Procurement Process: From Labor-Centric to Automated Platform-Centric Services
Productivity: From Labor-Centric to Platform-Centric Service Providers
Productivity: SaaS Versus Traditional Services, 2005–2015
Productivity: Traditional Service Providers, 2005-2015
Productivity: Traditional IT-Centric Versus BPO-Centric Offshore Providers, 2005–2015
Service Provider Productivity CAGRs, 2005–2015
Productivity: Employees Versus Customers, 2015
U.S. Expectations of Automation, 2016
Platform Investments
Future Outlook
Projected Productivity Trends and Implications, 2015–2025
Key Challenges in Driving Productivity Growth Rates
Productivity Growth Rate Targets and Selection Criteria
Factors Driving Selection of Target Productivity Growth Rate
Buyer Needs and Factors
Aligning "Cognitive" Platform Strategy with Productivity Growth Targets
Ranking of Cognitive Platform Options
Investment Strategy and Risk
Investment Strategy
Business Risk
Aligning Business Models with Cognitive Scalability: Volume and Variability
Strategic Factors in Achieving Platform-Centric Productivity Growth Rates
Essential Guidance
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