IT consulting

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Information technology consulting is a field that focuses on advising businesses on how best to use information technology to meet their business objectives. In addition to providing advice, IT consultancies often implement, deploy, and administer IT systems on businesses' behalf.

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IT consulting

  1. 1. IT Consulting
  2. 2. What is IT Consulting? Information technology consulting is a field that focuses on advising businesses on how best to use information technology to meet their business objectives. In addition to providing advice, IT consultancies often implement, deploy, and administer IT systems on businesses' behalf.
  3. 3. IT Consulting – A Three-Tier System <ul><li>The IT consulting industry can be viewed as a three-tier system: </li></ul><ul><li>Professional services firms </li></ul><ul><li>Staffing firms </li></ul><ul><li>Independent consultants . </li></ul>
  4. 4. Professional services firms <ul><li>Maintain large professional workforces and command high bill rates. </li></ul><ul><li>These firms are increasingly sourcing their employees from low-cost nations. </li></ul>
  5. 5. Staffing firms <ul><li>These firms place technologists in businesses on a temporary basis. </li></ul><ul><li>These firms are pejoratively known as &quot;body shops&quot;. </li></ul><ul><li>While they are geographically limited by their customers, they can exploit global cost differences by bringing guest workers to their host country. </li></ul><ul><li>Body Shops are typically distinguished from Consultancies by their commercial practice of pricing service by the day (the input), rather than by the results of their work (the outputs, or deliverables). </li></ul>
  6. 6. Independent consultants <ul><li>Independent Consultants function as - contractors, </li></ul><ul><li>- employees of staffing firms </li></ul><ul><li>- subcontractors in their own right. </li></ul>
  7. 7. Top 20 IT Consulting Firms <ul><ul><li>McKinsey & Company </li></ul></ul><ul><ul><li>Boston Consulting Group </li></ul></ul><ul><ul><li>Bain & Company </li></ul></ul><ul><ul><li>Booz Allen Hamilton </li></ul></ul><ul><ul><li>Monitor Group </li></ul></ul><ul><ul><li>Mercer Management Consulting </li></ul></ul><ul><ul><li>IBM Global Services </li></ul></ul><ul><ul><li>Deloitte Consulting </li></ul></ul><ul><ul><li>Accenture </li></ul></ul><ul><ul><li>Gartner </li></ul></ul><ul><ul><li>A.T. Kearney </li></ul></ul><ul><ul><li>PwC Consulting* </li></ul></ul><ul><ul><li>KPMG Consulting </li></ul></ul><ul><ul><li>Cap Gemini Ernst & Young </li></ul></ul><ul><ul><li>Marakon Associates </li></ul></ul><ul><ul><li>Hewitt Associates </li></ul></ul><ul><ul><li>Mercer Human Resource Consulting*** </li></ul></ul><ul><ul><li>Towers Perrin </li></ul></ul><ul><ul><li>Electronic Data Systems </li></ul></ul><ul><ul><li>The Parthenon Group </li></ul></ul>
  8. 8. Present Scenario <ul><li>The Indian IT Consulting Services industry has grown at a CAGR of over 28 per cent since FY 1999-2000 </li></ul><ul><li>The industry’s contribution to the national GDP has risen from 1.9 per cent in FY 1999-2000 to a projected 4.8 per cent in the current fiscal. </li></ul><ul><li>IT Consulting services continue to account for a lion’s share of the Indian IT-ITES industry, contributing over 47 per cent of the total industry revenue in FY 2005-06. </li></ul><ul><li>Source : Nasscom Annual Report : 2000 , 2005 - 2006 </li></ul>
  9. 9. Year Wise Break up Source : Nasscom Annual Report : 2004 , 2005,2006 USD billion FY 2004 FY 2005 FY 2006 IT Consulting 10.4 13.5 17.5 Exports 7.3 10 13.2 Domestic 3.1 3.5 4.3
  10. 10. Growth In India <ul><li>India has seen a tremendous growth in terms of no. of IT Consulting firms since 1991 </li></ul><ul><li>Indian Giants </li></ul><ul><li>Wipro Ltd. </li></ul><ul><li>Infosys Technologies Ltd. </li></ul><ul><li>Satyam Computer Services </li></ul><ul><li>Tata Consultancy Services </li></ul><ul><li>HCL Technologies </li></ul>
  11. 11. Source : www.nasscom.com
  12. 12. Distribution According to size Source : www.nasscom.com
  13. 13. Services <ul><li>The services provided by the IT Consulting firms can be classified as follows: </li></ul><ul><ul><ul><li>Core </li></ul></ul></ul><ul><ul><ul><li>Expected </li></ul></ul></ul><ul><ul><ul><li>Augmented </li></ul></ul></ul><ul><ul><ul><li>Potential </li></ul></ul></ul>
  14. 14. <ul><ul><li>Core Services </li></ul></ul><ul><ul><ul><li>Technical Advice </li></ul></ul></ul><ul><ul><ul><li>Network support services </li></ul></ul></ul><ul><ul><ul><li>Database development </li></ul></ul></ul><ul><ul><ul><li>Software development </li></ul></ul></ul><ul><ul><ul><li>Project management </li></ul></ul></ul><ul><ul><ul><li>Web development </li></ul></ul></ul>
  15. 15. <ul><ul><li>Expected Services </li></ul></ul><ul><ul><ul><li>Hosting and Support </li></ul></ul></ul><ul><ul><ul><li>Staffing and Recruitment </li></ul></ul></ul>
  16. 16. <ul><ul><li>Augmented Services </li></ul></ul><ul><ul><ul><li>Training </li></ul></ul></ul><ul><ul><ul><li>Internet Marketing </li></ul></ul></ul>
  17. 17. <ul><ul><li>Potential Services </li></ul></ul><ul><ul><ul><li>Partnerships in Excellence </li></ul></ul></ul><ul><ul><ul><li>Franchisee operation </li></ul></ul></ul><ul><ul><ul><li>Quality standards </li></ul></ul></ul>
  18. 18. IT Consulting Market <ul><li>Banking & Finance </li></ul><ul><li>Retail </li></ul><ul><li>Healthcare </li></ul><ul><li>Manufacturing </li></ul><ul><li>Telecom </li></ul><ul><li>Government </li></ul>
  19. 19. Properties <ul><li>Intangibility </li></ul><ul><li>Inseparability </li></ul><ul><li>Variability </li></ul><ul><li>Perishability </li></ul>
  20. 20. Intangibility <ul><li>Not physical and cannot be possessed </li></ul><ul><li>Consulting services are performances or actions rather than objects. </li></ul><ul><li>Nearly all the services in the IT Consulting sector are intangible in nature, barring a few like: </li></ul><ul><ul><ul><li>Network Support </li></ul></ul></ul><ul><ul><ul><li>Computer Hardware </li></ul></ul></ul><ul><ul><ul><li>Staffing Manpower </li></ul></ul></ul><ul><ul><ul><li>Hosting architecture </li></ul></ul></ul>
  21. 21. Inseparability <ul><li>Pretty high degree of inseparability involving continuous upgradation & customization </li></ul><ul><li>Production and Consumption occurs in the same time and space </li></ul><ul><li>‘ Hard’ services, such as software architecture design are more separable </li></ul>
  22. 22. Variability <ul><li>The consultants are trained to provide the consulting operations in a standardized way. </li></ul><ul><li>The process is standardized, but the final product is not. </li></ul><ul><li>Services are shaped by the interaction of the customers with the consultants so , the processes can be highly individual, and thus the final product might not bear any resemblance to another product, provided to another client. </li></ul>
  23. 23. Perishability <ul><li>IT Consulting Services are highly perishable due to following reasons: </li></ul><ul><li>Technology is changing very rapidly </li></ul><ul><li>Unused man-hours of Consultants are lost irretrievably if they are not engaged. </li></ul>
  24. 24. Perishability ( Contd.) <ul><li>Perishability occurs because services are destroyed during consumption and have to be repeated. For strategic advice the ownership of the service, including some of the intellectual property rights, transfer from the seller to the buyer, which the buyer may reproduce internally. This means that although repeat business often occurs, the new purchase will usually be for a service that is significantly different from previous purchases, requiring new tailoring. </li></ul>
  25. 25. Components of Service <ul><li>Physical Product: Softwares, Manuals, </li></ul><ul><li>Service Product: Technical Advice </li></ul><ul><li>Service Environment: Includes Service quality, other services like Customer Support . </li></ul>
  26. 26. Marketing Mix (Product): <ul><ul><li>Product is highly customized and depends on customer’s personal requirements. </li></ul></ul><ul><ul><li>Quality Level (Six Sigma/SEI-CMM Quality Assurance) </li></ul></ul><ul><ul><li>Warranties (Maintenance Contracts) </li></ul></ul>
  27. 27. Price <ul><li>Flexibility-Depends on the various factors: </li></ul><ul><ul><li>Depends on the modules/features required by the user. </li></ul></ul><ul><ul><li>If the consulting is on a running basis or one-time advice. </li></ul></ul><ul><li>Allowance- Loyal Customers are provided additional services. </li></ul><ul><li>Discounts- In some firms, the first advice is free of cost. </li></ul>
  28. 28. Promotion <ul><li>Marketing literature--commonly referred to as collateral </li></ul><ul><li>Logo and graphics </li></ul><ul><li>Advertising-mass media </li></ul><ul><li>Paid advertisements </li></ul><ul><li>Free Demo Sessions/Seminars </li></ul><ul><li>Tie-ups with educational institutions (IBM Campus Initiative) </li></ul>
  29. 29. Other Promotion methods <ul><li>Newsletters </li></ul><ul><li>Posters </li></ul><ul><li>Sales promotion : </li></ul><ul><ul><li>Training sessions </li></ul></ul><ul><ul><ul><li>Present information </li></ul></ul></ul><ul><ul><ul><li>Stress the benefits of the new technology. </li></ul></ul></ul><ul><li>Publicity: </li></ul><ul><ul><li>Media </li></ul></ul><ul><ul><li>News releases </li></ul></ul><ul><ul><li>Speeches and presentations. </li></ul></ul>
  30. 30. Place <ul><li>Channel Type: Direct Personnel Contact </li></ul><ul><li>No intermediaries </li></ul><ul><li>No outlets locations </li></ul><ul><li>Transportation- The product is delivered directly to the client. </li></ul>
  31. 31. People <ul><li>Client’s interact with the Consultants </li></ul><ul><li>Special Customer support centers are also available for expertized help. </li></ul><ul><li>Training is given to the clients. </li></ul><ul><li>Consultants </li></ul><ul><li>- Recruiting (Through Campus recruitments and walk-ins) </li></ul><ul><li>- Training </li></ul><ul><li>- Appraisal </li></ul><ul><li>Customer </li></ul><ul><li>- Training </li></ul>
  32. 32. Physical evidence <ul><li>Facility- Software Development Centers </li></ul><ul><li>Guarantees- SLA </li></ul><ul><li>Signage </li></ul>
  33. 33. Process <ul><li>Consulting is a complex process involving multiple steps. </li></ul><ul><li>Activity flow from company to customer through a number of stages and is customized at the lowest level. </li></ul><ul><li>Customer involvement is high as they give regular feedback of the service they are getting. </li></ul>
  34. 34. Factors affecting IT Consulting Industry <ul><li>Demographics </li></ul><ul><li>Regulatory Environment </li></ul><ul><li>Economic Environment </li></ul><ul><li>Technological Factors </li></ul>
  35. 35. Demographics <ul><li>Size </li></ul><ul><li>This factors aims to measure the size of the customer/client through the amount of IT spending. </li></ul>Source : Kennedy Information ,Annual Report : IT consulting Market Place 2006
  36. 36. Demographics (cont…) <ul><li>Technology use and propensity </li></ul><ul><ul><li>The more common the technology, the easier it is to identify, and the more common it will be that data vendors will be keeping track of it. </li></ul></ul>
  37. 37. Regulatory Environment <ul><li>Policies for IT Industry: Deptt. Of Information Technology </li></ul><ul><ul><li>Information Technology Act dealing with Cyber Security, Cyber Crime and other information security related legal aspects is in place. </li></ul></ul>
  38. 38. Regulatory Environment (cont…) <ul><li>Industrial Approval Policy </li></ul><ul><ul><li>Industrial Licensing has been virtually abolished in the Information Technology sector </li></ul></ul><ul><ul><li>There is no reservation for public sector enterprises in the Information Technology industry and private sector investment is welcome in every area. </li></ul></ul><ul><ul><li>Electronics and Information Technology industry can be set up anywhere in the country. </li></ul></ul>
  39. 39. <ul><li>Foreign Investment Policy </li></ul><ul><ul><li>India welcomes investors in IT sector. Government of India is striving to bring greater transparency in policies and procedures to provide an investor friendly platform. </li></ul></ul><ul><ul><li>A foreign company can start operations in India by registration of its company under the Indian Companies Act 1956. Foreign equity in such Indian companies can be upto 100%. </li></ul></ul>Regulatory Environment (cont…)
  40. 40. <ul><li>Fiscal Policy </li></ul><ul><ul><li>The salient features of the Fiscal Policy as applicable to the IT Sector are as follows: </li></ul></ul><ul><ul><li>Peak rate of customs duty has been reduced to 12.5%. </li></ul></ul><ul><ul><li>Export Oriented Units (EOU)/Electronics Hardware Technology Park (EHTP) Units/ Software Technology Park (STP) Units are eligible for Income Tax exemption on export profits, upto 2009-10, in terms of Sections 10A and 10B of the Income Tax Act. </li></ul></ul><ul><ul><li>Excise duty on computers is 12%. Microprocessors, Hard Disc Drives, Floppy Disc Drives, CD ROM Drives, DVD Drives, USB Flash Memory and Combo-Drives have been exempted from excise duty. </li></ul></ul>Regulatory Environment (cont…)
  41. 41. <ul><li>SEZ Scheme </li></ul><ul><ul><li>Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. Goods and services going into the SEZ area from DTA shall be treated as exports and goods and services coming from the SEZ area into DTA shall be treated as if these are being imported. SEZ units may be set up for manufacture of goods and rendering of services. </li></ul></ul>Regulatory Environment (cont…)
  42. 42. Economic factors influencing IT Consulting Industry <ul><li>The economic factors such as national income, GDP, individual income, industry growth also affects the services offer and marketing. As the disposable income of consumer increases they are ready to spend more money on these services thus helps in the industry and services development. </li></ul>
  43. 43. <ul><li>Growth of industrial sector </li></ul><ul><ul><li>With the liberalization in the Indian economy, industrial sector has seen unprecedented growth in the last decade. And moreover to gain competitive advantage, these companies are investing heavily in their IT initiatives. IT consulting industry provides them services and support. So the growth in the industrial sector is reflected symmetrically in IT consulting industry too. </li></ul></ul>Economic factors influencing IT Consulting Industry
  44. 44. <ul><li>Transformation of service sector </li></ul><ul><ul><li>Nearly all the services are nowadays being procured and delivered online. This change has led to most of the service sector have their own IT branches to automate the process of delivery and consumption. </li></ul></ul>Economic factors influencing IT Consulting Industry
  45. 45. Technologies in action <ul><li>A short survey on the technologies experts are using in information technology consulting and outsourcing activities was done. The intent of the survey was to discover how technology can be used to effectively support IT consulting and outsourcing activities. </li></ul><ul><li>Following results were obtained. </li></ul>
  46. 46. <ul><li>Range of business on which the consulting services are usually hired are the following. </li></ul><ul><ul><li>Applications development </li></ul></ul><ul><ul><li>Network development/implementation </li></ul></ul><ul><ul><li>Network operation </li></ul></ul><ul><ul><li>Help desk operation </li></ul></ul><ul><ul><li>Value added reseller </li></ul></ul>Technologies in action
  47. 47. <ul><li>The technologies used in the IT Consulting Industry are listed below: </li></ul><ul><ul><li>ISDN/ADSL/cable modems </li></ul></ul><ul><ul><li>Video conferencing Wireless data networks (e.g. CDPD) </li></ul></ul><ul><ul><li>Personal digital assistance </li></ul></ul><ul><ul><li>Groupware (e.g. Lotus Notes) </li></ul></ul><ul><ul><li>Intranet </li></ul></ul><ul><ul><li>Telephony over Internet </li></ul></ul><ul><ul><li>Virtual private networks </li></ul></ul><ul><ul><li>Software agents </li></ul></ul><ul><ul><li>Asynchronous transfer mode network </li></ul></ul><ul><ul><li>Web-based collaboration systems </li></ul></ul>Technologies in action
  48. 48. Asymmetric Digital Subscriber Line ( ADSL ) <ul><li>Asymmetric Digital Subscriber Line ( ADSL ) is a form of DSL, a data communications technology that enables faster data transmission over copper telephone lines than a conventional modem can provide. </li></ul><ul><li>It does this by utilizing frequencies that are normally not used by a voice telephone call, in particular, frequencies higher than normal human hearing. This signal will not travel very far over normal telephone cables, so ADSL can only be used over short distances, typically less than 5 km. </li></ul>
  49. 49. Integrated Services Digital Network ( ISDN ) <ul><li>Integrated Services Digital Network ( ISDN ) is a circuit-switched telephone network system, designed to allow digital transmission of voice and data over ordinary telephone copper wires, resulting in better quality and higher speeds than available with analog systems. More broadly, ISDN is a set of protocols for establishing and breaking circuit switched connections, and for advanced call features for the user. </li></ul>
  50. 50. Video conferencing <ul><li>Video conferencing : Videoconference (also known as a videoteleconference ) is a set of interactive telecommunication technologies which allow two or more locations to interact via two-way video and audio transmissions simultaneously. It has also been called visual collaboration and is a type of groupware. </li></ul>
  51. 51. Groupware <ul><li>Groupware: Groupware or Collaborative software is software designed to help people involved in a common task achieve their goals. Collaborative software is the basis for computer supported cooperative work. </li></ul><ul><li>Such software systems as mail, calendaring, chat, wiki belong in this category. It has been suggested that Metcalfe's law -- the more people who use something, the more valuable it becomes -- applies to such software. </li></ul>
  52. 52. Personal Digital Assistants (PDAs) <ul><li>Personal Digital Assistants (PDAs) are handheld devices that were originally designed as personal organizers, but became much more versatile over the years. PDAs have many uses: calculating, use as a clock and calendar, playing computer games, accessing the Internet, sending and receiving e-mail, use as a radio or stereo, video recording, recording notes, use as an address book, GPS and use as a spreadsheet. Newer PDAs also have both color screens and audio capabilities, enabling them to be used as mobile phones (smartphone), web browsers or media players. </li></ul>
  53. 53. Intranet <ul><li>Intranet: An intranet is a private computer network that uses Internet protocols, network connectivity, and possibly the public telecommunication system to securely share part of an organization's information or operations with its employees. Sometimes the term refers only to the most visible service, the internal website. The same concepts and technologies of the Internet such as clients and servers running on the Internet protocol suite are used to build an intranet. </li></ul>
  54. 54. Virtual Private Network (VPN) <ul><li>Virtual Private Network ( VPN ) : A virtual private network ( VPN ) is a private communications network often used within a company, or by several companies or organizations, to communicate confidentially over a publicly accessible network. VPN message traffic can be carried over a public networking infrastructure (e.g. the Internet) on top of standard protocols, or over a service provider's private network with a defined Service Level Agreement (SLA) between the VPN customer and the VPN service provider. </li></ul>
  55. 55. Software Agent <ul><li>Software Agent : In computer science, a software agent is an abstraction, a logical model that describes software that acts for a user or other program in a relationship of agency. Such &quot;action on behalf of&quot; implies the authority to decide when (and if) action is appropriate. The idea is that agents are not strictly invoked for a task, but activate themselves. </li></ul>
  56. 56. New limbs of IT consulting services <ul><ul><ul><li>With advances in related fields, new limbs of the IT services tree emerge: IT+genomics, IT+biotechnology (bioinformatics), IT+automobiles (telematics). </li></ul></ul></ul><ul><ul><ul><li>A “two-way” impact exists. IT enables biotechnology, which, in turn, reshapes IT by illuminating biological models of information processing. This suggests that a convergence of IT as a larger development exists within certain fields so that it becomes increasingly difficult to draw a boundary between them. </li></ul></ul></ul>
  57. 57. Segmentation <ul><li>The concept of market segmentation came about when companies realized that markets are heterogeneous. Customers are not alike, so products should not be alike either. Companies then recognized that they could increase their overall level of sales by formulating different marketing strategies for subsets of the market. </li></ul><ul><li>A market segment is a group of customers and potential customers with similar needs and similar buying patterns. A market segment is also characterized by the fact that its needs and buying patterns differ from those of the general universe of buyers. </li></ul>
  58. 58. <ul><li>Building Blocks Of Effective Segmentation </li></ul><ul><ul><li>There are three building blocks of effective segmentation of the customers: </li></ul></ul><ul><ul><ul><li>Segmentation characteristics </li></ul></ul></ul><ul><ul><ul><li>Time </li></ul></ul></ul><ul><ul><ul><li>Profitability </li></ul></ul></ul>Segmentation
  59. 59. Segmentation
  60. 60. Segmentation Strategy <ul><li>Segmentation strategy mainly involves following four steps: </li></ul><ul><ul><li>Driving core business strategy </li></ul></ul><ul><ul><li>Improving strategic initiatives </li></ul></ul><ul><ul><li>Optimizing organizational structure </li></ul></ul><ul><ul><li>Focusing marketplace action </li></ul></ul>
  61. 61. Segmentation Strategy
  62. 62. <ul><li>Driving core business strategy </li></ul><ul><ul><li>Customer segmentation is becoming an ever-increasing part of corporate strategy development. The majority of survey respondents use segmentation either in the beginning of their strategy development process or throughout the process to help ensure that the company is headed in a direction appealing to customers and one to which they will gravitate. </li></ul></ul>Segmentation Strategy
  63. 63. <ul><li>2. Improving strategic initiatives </li></ul><ul><ul><li>Results of segmentation studies are disseminated to strategic planning committees and used to determine on which current and new market segments to focus in the future. </li></ul></ul><ul><ul><li>Product development group uses segmentation results to develop special targeted offerings only available to a select few of the highest-value [most profitable] customers. </li></ul></ul>Segmentation Strategy
  64. 64. <ul><li>3. Optimizing organizational structure </li></ul><ul><ul><li>Segmentation can be used to create entirely new organizational structure. Different divisions can be implied to address needs of different market segments. In IT consultancy sector the various divisions like banking, infrastructure, insurance etc are formed just as to deal with different types of the clients. </li></ul></ul>Segmentation Strategy
  65. 65. Targeting <ul><li>The segmentation study assists the operators in targeting the most profitable and viable segment that they can serve. The most valuable outcome of market segmentation is the ability to develop and package differentiated services that meet the specific needs of an identified market segment. </li></ul>
  66. 66. Basis of Targeting <ul><li>The basis of differentiation can be: </li></ul><ul><ul><li>The nature of the product itself i.e. whether the service provided is a technical advice or the development and deployment of software. </li></ul></ul><ul><ul><li>Pricing has traditionally served as a common means of differentiation and probably will continue to do so. Business and residential pricing for essentially the same product was historically disproportionate to the cost of providing service. </li></ul></ul>
  67. 67. Positioning <ul><li>Positioning markets often implies new advertising campaigns, distribution tactics, or promotions. Such efforts require development, administration, and measurement of their effectiveness. </li></ul><ul><ul><li>To establish the brand value in mind of customers as best service provider IBM launched the “IBM CAMPUS INITIATIVE” campaign which was a huge success? </li></ul></ul><ul><ul><li>While launching their services TATA Consultancy Services promoted themselves as the cheapest service provider by aggressively promoting the concept of Lifetime Support for the software they develop. </li></ul></ul>
  68. 68. <ul><li>Drivers of IT Consulting </li></ul><ul><li>The drivers of an IT Consulting growth can be summarized as: </li></ul><ul><ul><li>Business Context in which the organization is operating. </li></ul></ul><ul><ul><li>Competitive pressure for adoption </li></ul></ul><ul><ul><li>Life Cycle of adoption </li></ul></ul><ul><ul><li>Degree of Process/Culture/Behavior required. </li></ul></ul><ul><ul><li>Adoptee Change Management Capabilities. </li></ul></ul><ul><ul><li>Degree of IT Architecture/Infrastructure change required. </li></ul></ul><ul><ul><li>IT capabilities of the adoptee. </li></ul></ul>Forces shaping IT Consulting
  69. 69. <ul><li>Enablers of IT Consulting </li></ul><ul><li>The enablers of an IT Consulting growth can be summarized as </li></ul><ul><ul><li>Extent of new initiatives </li></ul></ul><ul><ul><li>Structural position for current providers </li></ul></ul><ul><ul><li>Role of scale </li></ul></ul><ul><ul><li>Role of speed </li></ul></ul><ul><ul><li>Role of cost </li></ul></ul><ul><ul><li>Role of proprietary knowledge </li></ul></ul>Forces shaping IT Consulting
  70. 70. Forces shaping IT Consulting
  71. 71. Lifecycle <ul><li>Growth among the IT consulting segments shows a pattern of demand that follows a process of emergence, growth, maturation and decline. </li></ul><ul><ul><ul><li>Emergence: A hyper growth market </li></ul></ul></ul><ul><ul><ul><li>Growth: A strong growth market </li></ul></ul></ul><ul><ul><ul><li>Maturation: A low growth commoditizing market </li></ul></ul></ul><ul><ul><ul><li>Decline: A zero or negative growth market </li></ul></ul></ul>
  72. 72. Lifecycle
  73. 73. Choosing an IT Consulting Firm <ul><li>After making the decision to bring in a consulting firm, the next step in the process is to select the criteria to choose consulting firm. </li></ul>
  74. 74. Practical Criteria to Consider when choosing an IT Consulting Firm: <ul><li>Type of Firm </li></ul><ul><ul><li>Choosing the right style of consulting firm is crucial for the success of the project. Choose the type of firm to match customer’s need or challenge. </li></ul></ul><ul><ul><ul><li>Pure IT consulting </li></ul></ul></ul><ul><ul><ul><li>IT Consulting along with software development & deployment </li></ul></ul></ul>
  75. 75. Practical Criteria to Consider when choosing an IT Consulting Firm: <ul><li>Price/Value </li></ul><ul><ul><li>Customers should finalize their budget before going for an IT Consulting firm. </li></ul></ul><ul><ul><ul><li>Premium priced consulting </li></ul></ul></ul><ul><ul><ul><li>High value consulting </li></ul></ul></ul><ul><ul><ul><li>Entry-level priced consulting </li></ul></ul></ul>
  76. 76. Practical Criteria to Consider when choosing an IT Consulting Firm: <ul><li>People </li></ul><ul><ul><li>Consultants are people, not systems. People customers have to work with. Customers should find the people willing to take the time to understand their situation. </li></ul></ul><ul><ul><ul><li>Listen more than they speak </li></ul></ul></ul><ul><ul><ul><li>Approachable and flexible </li></ul></ul></ul><ul><ul><ul><li>Solution recyclers </li></ul></ul></ul>
  77. 77. Practical Criteria to Consider when choosing an IT Consulting Firm: <ul><li>Reputation </li></ul><ul><ul><li>It is important to find a firm with a track record of success. </li></ul></ul><ul><ul><ul><li>Evidence of repeat business </li></ul></ul></ul><ul><ul><ul><li>Testimonials or references </li></ul></ul></ul>
  78. 78. Grounds to reconsider hiring an IT consultant:
  79. 79. Growth Forecast <ul><li>The global IT consulting marketplace rebounded in 2005 and entered a period of significant growth starting in 2006. This period is characterized by fierce competition among more established full-service vendors and up-and-coming offshore firms that are better positioned to take advantage of low-cost delivery of IT consulting services. Overall, the market is operating in a “more-for-less” environment where IT clients wish for more value in engagements with IT consulting firms. </li></ul>
  80. 80. Growth Forecast
  81. 81. References <ul><li>“ Information Technology Consulting”- R. Nolan and L. Bennigson </li></ul><ul><li>Website of Ministry of IT India- www.mit.gov.in </li></ul><ul><li>Nasscom- www.nasscom.org </li></ul><ul><li>www.wikipedia.org </li></ul><ul><li>“ IT Consulting Market Place 2006” – Annual Report by Kennedy Information. </li></ul><ul><li>IBM Institute for Business Value analysis, 2005 </li></ul><ul><li>Kotler Philip, Keller Kevin Lane, “ Marketing Management”. Pearson Education Inc, 2006 </li></ul><ul><li>www.tcs.com </li></ul><ul><li>www.ibm.com </li></ul><ul><li>http://marketingteacher.com/Lessons/lesson_promotion.htm </li></ul>
  82. 82. Thank You

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