Chetan Dube, CEO, IPsoft, came to the ISG Sourcing Industry Conference to discuss what technology management will look like tomorrow and how automation is changing the world.

1. The technology management of
tomorrow will be nothing like today
September 10, 2013

2. Market History
• 5000 years focus on subsistence
• 1800: arrival of technology. Automation
revolution begins:
 Physical jobs
 Transactional jobs
 Knowledge engineering 200m
Infrastructure Management  AaaS
• 77B  140b curve
Are We In the Midst of an IT Revolution?

3. How is the Market Shifting?
• Galvanizing factor: Technological innovation
• Defending yesterday is far more risky than adopting tomorrow
IT
Outsourcing
System
Integration
Labor
arbitrage
Saturated me-too
market
Declining rates of
growth
Margin
Erosion
Existential threat
SMAC
Autonomic
Cognitive

4. What Technologies Are Driving The Inflection?
• SMAC: Social, Mobile, Analytics, Cloud
o Delivery platforms shift: mobility, social, cloud
o Collaboration models: social, web
o Connectivity: exponential growth- Internet of things
o Data: exploding
o Analytics: germinating
• Autonomics
• Cognitive technologies

5. Automation: A Tectonic Market Shift?
The Promise of Automation
Labor Arbitrage
 15%-30% cost take out
 Scales linearly with labor
 Custom/complex, legacy :“Your mess for
less”
 Revenue/Profit correlated to People
Labor Automation
 60%-80% cost take out
 Scalable, largely independent of labor
growth
 Transformative – New way of doing
business
 Revenue/Profit NOT correlated to
People

6. How To Realize Gains in Automation Market
Leading To
Move over manual automation.
Here comes Autonomics
Can classic (script based manual)
automation keep pace?

7. Deloitte study
56% of Exceptions in 1 in
Every 25 Fortune 1000
Companies Remediated
Autonomically
How Real Is Autonomics?
Empirical data
• Largest investment bank: 91%
• Second largest credit card
processor: 68%
• Largest banking institution: DB
management: 43%
• Largest network management
company: 87%
• Largest media company in US: DSC

8. Can Machines Think?
I propose to ask the question:
― Alan Turing, 1912-1954
What’s The Next Big Wave?
Market Impact
• Can one truly clone human brain?
• Market: majority of revenue of services industries
• Pareto principle of 6sigma: 80% tasks relate to
20% root causes
• Androids are coming!!

9. Cognitive Engines: Are Androids Coming?
Power of Cognitive Engines
As compared to administrative or search engines
• Fixed Income/Derivative Desks of One of Largest Investment
Bank
• Digital Service Desk of Largest Media Company
Machines take me by surprise
with great frequency.
Turing

10. What Will Happen to Us?
What Happened to the Horse & Carriage Driver?
• Dystopian  Utopian: constructive destruction
• Prepare for tomorrow: proactively
• ITO/BPO  expert systems’ engineers
• Ultimate liberator