Buyers in the life sciences space need to evaluate their infrastructure services roadmap on a business impact versus investment paradigm. They need to establish meaningful relationships with strategic partners in order to enable the true synergistic benefits of a comprehensive and relevant infrastructure services roadmap. At the same time, services providers need to expand their infrastructure footprint to partner with enterprises in this transformative journey.
They need to adopt a holistic mix of traditional tenets co-location models, data warehousing, BI, hosting, and network services along with next-generation services such as multi-tenancy solutions, cloud delivery and storage, and BYOD.
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Double the fun! Sure, HCL has shifted some positions in its leadership team.
The strategy behind the leadership shifts was to ensure future growth. Gupta has been with HCL for 19 years and built its infrastructure business — which is now the dominant marketplace for HCL. Previously I blogged about payment companies outperforming their BPO brethren : it was because they implemented platforms for transaction pricing. As I explained then, there are few examples of transitioning successfully to transaction pricing models outside the payments space.
Where success happens in rolling out and implementing transaction pricing, a service provider can reap tremendous benefits because it captures productivity gains from automating. When a provider can scale this strategy, as HCL is doing, the financial and competitive benefits are spectacular.
CSC and HCL announced an alliance a few weeks ago, which is more of a go-to-market than structural change. But what if the twosome were to agree to a follow-on alliance to do something really big — something with huge industry and market consequences? It would be extremely brave and very risky. But it would address the inevitable whopping market threat for CSC and position both companies for future growth.
Let me paint a picture of what that speculative alliance would look like. The alliance would address the elephant in the room: CSC losing half its client work. Such an alliance would first enable CSC to grasp the mantle and really address its big problem — its current huge commitment to an asset-heavy outsourcing model. Our research and insights reveal that over 50 percent of the workloads currently in an asset-heavy model are able to migrate to the cloud over the next three to five years— and are incented to do so.
With half of its work exiting the asset-heavy model, this mass exit would leave CSC with a huge revenue hole. The situation is doubly threatening in that the exit from the asset-heavy model will leave CSC with huge stranded costs on facilities, equipment and people along with the revenue hole. Alliance step one.
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Step one is to deal with the people. CSC could move its people servicing clients in the asset-heavy model over to HCL, taking costs down and removing the stranded costs. CSC already has a vehicle in its offer set to catch the cloud work but would be replacing this revenue at 50 cents on the dollar. Step two.
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It would leave CSC with a much smaller set of stranded assets in overhead and equipment to deal with. In this way CSC would be able to navigate the inevitable shrinkage of its asset-heavy business and deal with those stranded assets.
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Although CSC is attempting to drive this strategy now, it has conflicting incentives as it fights to maintain revenue in its existing asset-heavy model while standing up new revenue. What would emerge from this alliance strategy would be a cloud-based CSC — a smaller, more profitable, more nimble CSC without the huge write-downs that it likely will incur as the cloud transformation happens naturally over the next few years.
What do you think? Will the twosome be brave and take the risk of a market-changing follow-on alliance? Tag HCL.
Three of the Fortune 20 companies have deployed Lucy enterprisewide. Lucy was recently updated to be natural-language-processing-engine-agnostic so that it works with open- source technologies or with platforms like Amazon Alexa or Microsoft Cortana, he said. Also new are 40 different integrations out of the box, including integrations with SAP, Oracle and Workday, Gupta said. DRYiCE creates opportunities for us to provide services and integration and address pain points. Artificial intelligence is a big buzzword, but it is also a very real way to help solve many customer issues, Khabe said.
It lets you be forward-looking for customers and help them be more efficient in IT automation and management efforts. Splunk has proven to be a really good platform for gathering data and turning it into information, Hammelman said. Commons said DRYiCE's main route to market is via channel partners, and the company expects to see 70 percent of it revenue through indirect channels.
But only those we can work closely with to build the business. We want to deliver a deep relationship with the partners. Last month, TCS, the company that is most conservative in the areas of buyout has made its first digital acquisition with design studio W The industry, whose model has increasingly been rendered obsolete over the past few years by the emergence of new technologies, is making acquisitions and investments in areas like automation, artificial intelligence, and big data to stay ahead of the more agile startups.
HCL Technologies Ltd. Bulk and Block deals on NSE and BSE
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