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The #ChangingMarketplace
1.
© 2014 Information
Services Group, Inc. All Rights Reserved © 2014 Information Services Group, Inc. All Rights Reserved
2.
© 2014 Information
Services Group, Inc. All Rights Reserved The material conditions of life will continue to get better for most people, in most countries, most of the time, indefinitely. Julian Simon
3.
© 2014 Information
Services Group, Inc. All Rights Reserved Every generation has under- estimated the potential for finding new ideas. We consistently fail to grasp how many ideas remain to be discovered. Possibilities do not merely add up; they multiply. Paul Romer
4.
© 2014 Information
Services Group, Inc. All Rights Reserved Productivity growth Cloud & disruptive technology Wages & wealth creation Jobs & skills Automation & analytics IT is the great enabler
5.
© 2014 Information
Services Group, Inc. All Rights Reserved Index of GDP growth vs. median household income decades A look at 5 But is IT creating prosperity? 1980 1990 2000 2010 1970 GDP growth Household income
6.
© 2014 Information
Services Group, Inc. All Rights Reserved U.S. job growth by decade 1940 1950 37.7% 31.1% 27.6% 24.7% 1960 1970 20.2% 1980 19.8% 1990 -1.1% 2000
7.
© 2014 Information
Services Group, Inc. All Rights Reserved Median Mean 2000 2010 1980 1990 1970 Median & mean duration of unemployment
8.
© 2014 Information
Services Group, Inc. All Rights Reserved U.S. real corporate profits after tax in 1990’s as high as $1.5T $600B $1.1T in 2010+ as high as in 2000’s as high as
9.
© 2014 Information
Services Group, Inc. All Rights Reserved Left behind? Digital technologies change rapidly, but organizations and skills aren’t keeping pace. As a result, millions of people are being left behind. Their incomes and jobs are being destroyed, leaving them worse off the before the digital revolution. Erik Brynjolfsson Andrew McAfee Race Against the Machine
10.
© 2014 Information
Services Group, Inc. All Rights Reserved 1 Will we be left behind? Is technology irreversibly altering our industry and perhaps leading to its demise
11.
© 2014 Information
Services Group, Inc. All Rights Reserved Market at all-time highs Record high ACV in 2Q14 $6.4B 2Q14 New Scope and Restructuring ACV are up significantly Y/Y 17% 2Q14 BPO ACV is up 1H14 Mfg surpassed 4 half y/y average ITO contracts 250 2Q14 ITO 100%
12.
© 2014 Information
Services Group, Inc. All Rights Reserved Are we in a downward spiral? Are we disrupting ourselves? Is the Great Stagnation setting in? 2 Does it add up?
13.
© 2014 Information
Services Group, Inc. All Rights Reserved Skill disparities Grad school College grad Some college HS grad HS drop out 1960’s Now the weekly wages $0.0 $0.6 Grad school College grad Some college HS grad HS drop out
14.
© 2014 Information
Services Group, Inc. All Rights Reserved The rich getting richer top 1% At highest level since 1920’s 0 10 20 30 40 50 60 70 1920's 1960's 1970's 1980's 1990's 2000's bottom 90% top 1% © 2014 Information Services Group, Inc. All Rights Reserved
15.
© 2014 Information
Services Group, Inc. All Rights Reserved Will technological progress continue to drive the downward spiral in jobs? Will it eventually create new ones? 3 Where’s the payoff?
16.
© 2014 Information
Services Group, Inc. All Rights Reserved New labor? Computers are now doing many things that used to be the domain of people only. The pace and scale of this encroachment ... has profound economic implications … leaving some people, or even a lot of them, worse off. Frank Levy Richard J. Murnane The New Division of Labor
17.
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Services Group, Inc. All Rights Reserved 1958 US BEA starts tracking IT + Moore’s Law computing power doubles every two years 32 * 1.5 Have we entered second half of the technology chessboard? Are we being automated to death?
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Services Group, Inc. All Rights Reserved The age of automation autonomous driving Online translations
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Services Group, Inc. All Rights Reserved Are machines replacing the need for humans? Will automation eventually make our industry irrelevant? 4 Automation as category killer
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Services Group, Inc. All Rights Reserved Leveraging IT to reduce OpEx? Using IT to drive revenue growth? 5 Where are you?
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Services Group, Inc. All Rights Reserved When we think about our future, we hope for a future of progress. That progress can take one of two forms. Horizontal or extensive progress means copying things that work – going from 1 to n. Horizontal progress is easy to imagine because we already know what it looks like. Vertical or intensive progress means doing new things – going from 0 to 1. Peter Thiel Zero to One
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Services Group, Inc. All Rights Reserved © 2014 Information Services Group, Inc. All Rights Reserved
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