The great IT pivot: Navigating the shift from commodity to strategic value
Oktober 15, 2024 / Mike Thomson
Short on time? Read the key takeaways
- The technology solutions industry is experiencing significant disruption, shifting from a cost-centered, commoditized model to one focused on strategic value, client experience and business outcomes.
- Digital transformation, technological advancements, and increasing complexity are driving businesses to seek technology partners who can provide innovative solutions and strategic guidance, in a cost-effective manner.
- The most successful partnerships blend services, from automation and user experience management to end-to-end outsourcing, creating synergies that drive greater business value.
- As solutions and services evolve, both providers and clients are adopting a long-term, partnership-oriented approach, focusing on comprehensive solutions that enable innovation, growth, and sustainable competitive advantage.
Disruption reshapes industries, challenges norms and creates new opportunities. It's a force that can turn established practices on their head, transforming perceived weaknesses into strengths. When it comes to technology solutions, we're witnessing a prime example of this change.
For years, market trends pushed technology solutions toward commoditization. Margins tightened, and the industry seemed locked in a race to the bottom. And while the organizations we're working with are still very cost-conscious, a significant disruption is reversing this trend. They're increasingly viewing technology solutions through the lens of strategic impact.
We're observing this transformation across our full portfolio of solutions. From full end-to-end IT outsourcing and automation to user experience management, service desk operations, and front-line worker support, organizations are viewing the value of these offerings more readily through the lens of strategic impact and employee productivity.
Moving beyond the bottom line
Cost has always been, and will continue to be, a critical factor in technology decisions. However, the way businesses evaluate and balance costs against other strategic considerations is evolving. While companies still seek efficient solutions, they're increasingly looking at how technology investments can drive broader business value, innovation and competitive advantage.
Several key factors are propelling this transformation in the technology solutions industry:
- Digital transformation imperatives: Companies across all sectors are under pressure to digitize their operations and customer experiences. This has elevated the strategic importance of technology solutions, making them critical to business success rather than just a back-office function.
- Rapid technological advancements: The pace of innovation in areas like artificial intelligence, cloud computing and the Internet of Things has accelerated. Businesses need partners who can help them navigate and leverage these technologies effectively.
- Increased competition: As markets become more competitive, companies are seeking every possible advantage. Strategic technology solutions can provide differentiation and improved operational efficiency.
- Rising complexity: IT environments are becoming increasingly complex, with hybrid multi-cloud setups, intricate security requirements, and the need for seamless integration across systems. This complexity demands more sophisticated, value-added services.
- Talent scarcity: With the growing demand for tech skills, many companies struggle to attract and retain top technology talent. Strategic partnerships with service providers offer access to specialized expertise without the overhead of full-time hires.
- Focus on core competencies: Many businesses are recognizing the value of focusing on their core competencies, and outsourcing technology functions to specialized providers who can innovate while effectively managing their environments.
These factors combined are pushing both providers and clients to reframe their relationships, moving away from transactional, cost-focused interactions towards strategic partnerships focused on driving business value.
The value proposition reimagined
To illustrate how this shift is playing out, let's examine how we're meeting our clients' expectations across a cross-section of Unisys technology solutions:
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End-to-end IT outsourcing: We're going beyond managing IT infrastructures to proactively drive our client's digital transformation. This includes leveraging advanced technologies, optimizing cloud strategies, and aligning IT initiatives with their long-term business goals to create measurable competitive advantages.
- Automation: We're implementing AI-driven process optimization that not only enhances efficiency but also uncovers new opportunities for our clients. Our automation solutions enable predictive decision-making across their operations, acting as a catalyst for business reinvention and efficiency.
- User experience management: We're revolutionizing employee digital experiences by proactively identifying and resolving IT issues before they impact users. Our approach combines experience monitoring, AI-driven analytics and automated remediation to boost workforce engagement and productivity. We're also redefining success metrics, moving beyond traditional service-level agreements to measure both technology performance and user satisfaction.
- Service desk operations: We're transforming service desks from problem-solving centers to experience-driven support hubs. Our approach leverages AI, machine learning and proactive self-healing technologies to anticipate and resolve issues swiftly. We provide omnichannel support accessible from any device, offering personalized technology services that enhance employee productivity with minimal interruption.
- Front-line work: We're reimagining field services to align with today's experience-driven digital workplace needs. Our approach combines remote diagnostics, augmented reality tools and AI-powered insights for timely issue resolution. We support a wide range of devices beyond traditional PCs, including IoT systems and biometric devices. To enhance accessibility, we're implementing innovative solutions like IT vending machines and tech cafés, revolutionizing how distributed workforces access the equipment they need.
The future of technology partnerships
The most effective technology engagements blend multiple services, creating synergies that amplify value. For example, combining automation with user experience management can enhance self-service capabilities, simultaneously reducing service desk load and improving user satisfaction.
As these collaborations deepen, what begins as a targeted solution often evolves into a comprehensive partnership. This evolution allows service providers to gain a nuanced understanding of their clients' businesses, enabling them to deliver more tailored, innovative solutions across multiple areas.
Coming up in our series on disruption
In our next post, we'll explore market disruption in technology services. We'll discuss how buyers have become more sophisticated, recognizing that a trusted technology partner can help them optimize costs while simultaneously advancing their strategic objectives. We’ll explore how companies can thrive in this evolving environment.