State of Global IT Services and Software Industry 2023

1. 1
SATE OF IT SERVICES AND SOFTWARE - 2023

2. 2
Agenda
Disclaimer: This presentation acknowledges and gives credit to the work of others. Necessary validation have been taken to
avoid copyright infringement. Any instances that violate terms can be removed when notified. All discussed thoughts &
opinions are my own & not that of my employer or other parties.
§ Global Challenges - 2023
§ GFC to GIC 2023
§ Why Inflation is Rising, Inflation Spectrum
§ Inflation Remediation - CIO Mantras, Ask, Priorities
§ IT Spend Profile
§ Verticals, Segments, Services View
§ IT Industry Performance - 2023
§ Software and Services Performance
§ B2B Tech Growth Drivers
§ Key Tech Trends
§ Cloud Evolution, App Modernisation
§ Why Cloud Demand is Rising
§ Digital Transformation – Spectrum, IT Services Landscape, Pathways
§ Summary
§ Appendix
§ Australia – IT Services Opportunity

3. 3
Attribution
Licensed Under
This work is Licensed Under
No Derivative 4.0 International

4. 4
Global Challenges - 2023
Macro Economic & Geopolitics
• Geopolitical View
• Credit Suisse strategist Zoltan Pozsar, who challenges investors to think
tensions between the US (and West) and China, Russia as part of an
economic war destabilising the low-inflation world.
• His view is that low inflation has simplistically been built on three things:
• Immigration keeping wages low in the US (and in the West);
• Cheap goods from China helping to raise living standards despite
stagnant wages;
• Cheap Russian gas powering Europe & Germany
Macro View
• Russia / Ukraine War
• Recalibrating Economic Growth and Activity
• Inflation, Interest Rates, and Exchange Rates
• Consumer Purchase Power Erosion
• Energy, Commodities and Stock Market
• Quantitative Tapering and Recession Fears
• The Shrinking Labor Force, Skill Scarcity and
Hiring
• Manufacturing and Supply Chains strained
• Ongoing Pandemic Concerns
• Elections, Government Policy, Regulation
• Digital Sovereignty and Falling Globalisation
Source: AFR, Mckinsey, Gartner, Forrester

5. 5
GFC to GIC
Economic Crisis Spectrum
2008 2019
GIC
2011
unable to meet the
Demand
and
are driving
The Price Rise
Bailed out by Govt.
GFC - 2
2022
Bailed out by Govt.
Govt. Rescued
COVID driven
and addressed the
GFC - 1
PIIGS
GFC: Global Financial Crisis, GIC: Global Inflation Crisis

6. 6
GIC - 2023
Why Inflation is Rising
GFC: Global Financial Crisis, GIC: Global Inflation Crisis
• Geopolitical View
• Credit Suisse strategist Zoltan Pozsar, who challenges investors to think tensions
between the US (and West) and China, Russia as part of an economic war
destabilising the low-inflation world.
• His view is that low inflation has simplistically been built on three things:
• Immigration keeping wages low in the US (and in the West);
• Cheap goods from China helping to raise living standards despite stagnant
wages;
• Cheap Russian gas powering Europe & Germany
Macro View
• Economic Downturn
• Conflict in Europe
• Energy Scarcity
• Cyber Attacks
• Material Shortage
Source: AFR, Mckinsey, Gartner Forrester
Risk is Stagflation and Prolonged Recession

7. 7
Inflation Spectrum
Current Inflation – Supply Side
Open
Inflation
Galloping
Inflation
Hyper
Inflation
Suppressed
Inflation
Creeping
Inflation
Demand Pull
Inflation
Cost Push
Inflation
Stagflation
Inflation Under the Hood
• Open Inflation - when the government
and the monetary authorities of a
country do not take any measure to
control the spending of the people and
let the prices rise.
• Galloping Inflation - when the price
level persistently rises over a period of
time at a mild rate
• Hyper Inflation - where the prices of all
goods and services rise uncontrollably
over a defined time period.
• Supressed Inflation - when the
government and the monetary
authorities do not allow the prices to rise
to a high level.
• Creeping Inflation - when prices rise by
3% or less per year.
• Demand Pull Inflation - the upward
pressure on prices that follows a
shortage in supply.
• Cost Push Inflation - when the supply
of goods and services decreases because
of an increase in production costs.
• Stagflation - when economic growth is
stagnant but there still is price inflation.
`
Today It is not the Demand that is rising and heating up the economy,
it's the Supply that is reduced and hence high price-driven
inflation, fix the supply issues and price inflation will come down.
The emerging Risk is of Stagflation – where economy is not growing
but price inflation is rising.

8. 8
Key Message
CIOs new mantra in 2023 - Grow, be Green and provide
Cost Relief to the business.
CIOs Ask To Overcome Inflationary Pressure
• Short list and priorities items which have maximum
impact on growing the revenue and reducing cost
• Address the price rise by Software providers and
Service Vendors by accelerating the movement to
Cloud
• Business process and workflows to be refined and
automated for simplicity and agility
• Explore Cost Arbitrage levers for OPEX relief, Human
Capital and Innovation
• Accelerate digital investments to drive new digital
products and services and align them with business
benefits like reduced COGS and higher Revenue
• Increase the compensation of employees and reduce
spend on consultants
CIO Priority for OPEX Relief by Reducing Spend on
• Collaboration software
• Data centre build out
• Consulting, Infrastructure hardware , ERP applications
CIO Priority for Growth by Increasing Spend on
• Digital Transformation
• Cloud, AI, ML, RPA
• Cost Arbitrage levers like Outsourcing and Offshoring
• Data warehouse, Business intelligence, Analytics
• Security software
Inflation Impact - 2023
CIOs – Mantra, Ask, Priorities
Interest Rate
or
Cost of Capital
Inflation
Wages
Assets
Liability
Equity
Increase in
Current
Liability
Reduction
In
Net Working
Capital
Stressed Balance Sheet
COGS
OPEX
Reduced
Earnings
Pricing,
Market
Share,
Innovation
Human
Capital
Investors,
Share Price
Impacts
Source: Gartner, HBR, Sales Academy, Forrester, Mckinsey

9. 9
IT Trends - 2023
Spend Profile – Verticals
• Key Message - IT Services and Software Market
• Market Size: $2.3 Tn
• Growth: (8-10%)
• CAGR Average Spend: 7%
• Technology Change: High
• Life Cycle: Matured
• Regulation: Medium - Low
• Business Environment: High Risk
• Online Entertainment & Gaming, Healthcare Insurance, and Hospitals are attracting
top dollars for IT and Digitisation.
• Air, Agriculture, Rail and Telecom are on the lower end of the spending profile.
Source: Gartner, Forrester

10. 10
IT Trends - 2023
Spend Profile - Segments
• Key Message - IT Services and Software Market
• Market Size: $2.3 Tn
• Growth: (8-10%)
• CAGR Average Spend: 7%
• Technology Change: High
• Life Cycle: Matured
• Regulation: Medium - Low
• Business Environment: High Risk
• IAAS spend is rising by > 35% with a rise in Cloud and Digitisation .
• Cloud juggernaut is heading for more growth.
Source: Gartner, Forrester

11. 11
IT Trends - 2023
Spend Profile - Services
• Key Message - IT Services and Software Market
• Market Size: $2.3 Tn
• Growth: (8-10%)
• CAGR Average Spend: 7%
• Technology Change: High
• Life Cycle: Matured
• Regulation: Medium - Low
• Business Environment: High Risk
• Design (incl. consulting) and Build are part of a healthy increase in IT spending.
• Support Services spend is declining.
• IT is moving from a cost centre to revenue generation.
• Digitisation is forcing enterprises' infrastructure to be resilient, driven by AI
Augmented testing, Auto remediation, and Apps Security to mitigate Op risks
and enhance CX. Key Deliverables are Security, Scalability, and Stability for
Revenue Generation.
Source: Gartner, Forrester

12. 12
Source: Google Finance
• Key Message - IT Services Market
• Market Size: $1.4 Tn
• Growth: (6-8%)
• Technology Change: High
• Life Cycle: Matured
• Regulation: Medium - Low
• Business Environment - High Risk hence all of them have a cash surplus on
their books and give insight into their sales and organisation culture
(loyalty based instead of talent-based like Apple)
• Capgemini and Cognizant brand has no equity in them and both have
strayed from their original positioning. Capgemini in particular has lost its
mojo. TCS is the shining light when it comes to brand equity, growth
potential and margin among all IT services players.
• From India's IT services sector perspective, TCS and Infosys are premium
players. HCL and Tech M are low cost (price taker) players.
• Accenture is the flag bearer of premium tier 1 IT consulting services
organisation.
• IBM is trying to compete with Accenture and other IT players to get its
premium position in the market. The balance sheet is leveraged and they
are getting aggressive in the market and are taking more
IT Industry
Services Performance - 2023
Low
Low
P/E
P/B
High
Falling Stars
Dogs
Rising Stars
Recovering Firms
Accenture
Infosys
TCS
Cognizant
Microsoft
Dividend
High
Undervalued
Amdocs
Salesforce
IBM
Capgemini
Tech Mahindra
ServiceNow
HCL
CISCO
Oracle
SAP
-20.0
0.0
20.0
40.0
60.0
80.0
100.0
-20.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
Accenture IBM TCS Infosys HCL Capgemini Tech Mahindra Cognizant
IBL- Cash (Bn.) Market Cap (Bn.) Rev (Bn.) Brand Value in (Bn.)
IT Services - Enterprise Value vs Brand Value
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13. 13
• Key Message - IT Services and Software Market
• Market Size: $2.3 Tn
• Growth: (8-10%)
• Technology Change: High
• Life Cycle: Matured
• Regulation: Medium - Low
• Business Environment - High Risk
• Avg P/E > 15 (growth), Industry is doing extremely well and
ROCE > WACC.
EBITDA Margin and Beta
• TCS has the highest EBITDA Margin whereas Capgemini
has the least. HCL being a price taker is a surprise with >20%
EBITDA Margin (from operations)
• Players with the least margin and with struggling operations
like Capgemini is finding it challenging to compete and has lost
most of the Tier -1 Brand Equity
• Accenture is facing stiff completion with IT players from India
and the market is acknowledging that it's not the same stock that
it used to be 5-7 years ago.
• Indian IT Players like TCS, Mahindra, and Infosys are finding
market conditions conducive to their growth.
IT Industry
Services Performance - 2023
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
TCS
Infosys
HCL
IBM
Cognizant
Accenture
Tech Mahindra
Capgemini
EBITDA Margin
0.60 0.80 1.00 1.20
Capgemini
Accenture
Cognizant
IBM
HCL
Infosys
Tech Mahindra
TCS
Beta

14. 14
Source: Google Finance
IT Industry
Software Performance - 2023
Low
Low
P/E
P/B
High
Falling Stars
Dogs
Rising Stars
Recovering Firms
Accenture
Infosys
TCS
Cognizant
Microsoft
Dividend
High
Undervalued
Amdocs
Salesforce
IBM
Capgemini
Tech Mahindra
ServiceNow
HCL
CISCO
Oracle
SAP
-300.0
0.0
300.0
600.0
900.0
1200.0
-500.0
0.0
500.0
1000.0
1500.0
2000.0
MSFT Oracle Amdocs Facebook Salesforce Servicenow SAP Cisco
IBL- Cash (Bn.) Market Cap (Bn.) Rev (Bn.) Brand Value in (Bn.)
Source: Google Finance
IT Software - Enterprise Value vs Brand Value
• Key Message - IT Services and Software Market
• Market Size: $2.3 Tn
• Growth: (8-10%)
• Technology Change: High
• Life Cycle: Matured
• Regulation: Medium - Low
• Business Environment - High Risk
• ServiceNow is leading the pack of cloud based ITSM providers with EBITDA
Margin of nearly 500%. This is reflected in its PE ratio.
• Cisco is struggling with the decline in MPLS (SD WAN) and IP Telephony
(Teams) and facing heat from HPS and cloud providers.
• Oracle is finding it hard to compete with Salesforce and SAP in CRM and
Cloud driven business apps respectively.
• Salesforce is undervalued and is leading the CRM and BSS domain.
• MSFT has completely turned around under Satya Nadella. Its 365 and Cloud
portfolio is leading the transformation

15. 15
• Key Message - IT Services and Software Market
• Market Size: $2.3 Tn
• Growth: (8-10%)
• Technology Change: High
• Life Cycle: Matured
• Regulation: Medium - Low
• Business Environment - High Risk
• Avg P/E > 15 (growth), Industry is doing extremely well and
ROCE > WACC.
EBITDA Margin
• NBN has the highest EBITDA Margin whereas NTT has the
least.
• Operators with the least margin and with struggling
operations will have declining OPEX dollars and will free up
Cash for Digital Transformation. Hence vendors will target
them.
Volatility and Safe Heaven Stocks.
• Verizon and Telstra are the safe heaven stocks whereas NTT
and CISCO are showing challenging market conditions with
high volatility.
• Stocks with less volatility are good candidates for dividend
earning and have stable market conditions, where long-term
initiatives can be executed.
IT Industry
Software Performance - 2023
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
MSFT
Oracle
Apple
Google
Cisco
Amdocs
SAP
Salesforce
EBITDA Margin
0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30
Apple
Google
Oracle
Servicenow
SAP
Cisco
Salesforce
MSFT
Amdocs
Beta

16. 16
Existing New
Existing
Customers
New
Revenue
Milking
Pre COVID
Revenue
Expansion
Post COVID
Products
Revenue
Acceleration
&
Diversification
Post COVID
Revenue
Protection
During COVID
§ Ongoing pandemic has created challenges
for B2B Technology Growth across
industry verticals
§ By analysing customers vs products or
service offerings, technology demand
drivers can be identifies for – pre, post and
during COVID scenarios
Post COVID
B2B Tech Growth Drivers
• Primarily business driven
• Chasing sales revenue and CX enhancements
• Business owners controlled spending
• Business centric or CX centric assets transformed
with no major change in back end assets
• Cloud delivered on promise, CX partial success,
others RPA, ML, AI yet to deliver on ROI
• Primarily resilience driven
• Chasing mixture of sales & need driven revenue
• CX is non negotiable
• Fulfil pent up demand for vertical & bespoke
solutions
• Transform back end assets as need for information
manageability & flexibility grows
• New Tech Normal - Cloud becomes platform of
choice and RPA, ML, AI are revived to cater for
change in demand profile
• Primarily tactical driven
• Chasing need driven sales revenue and CX
• Controlled Cost & Cash Conserved
• Not sure to be innovative or pay the bills
• Building pent up demand for vertical &
bespoke solutions
• Information harness is required
• RPA, ML, AI on backburner for next half
Source: Gartner, HBR, Sales Academy, Forrester, Mckinsey, Ansoff Matrix
Pre
COVID
During
COVID
Post
COVID

17. 17
Cloud 1.0
Cloud Evolution
Adoption - 2008 to 2022
2008 - 2013 2020 - To date
Cloud 3.0
2014 - 2019
OPEX Reduction
Fulfilment Centric
Scale and Agility
Revenue Protection
Fulfilment and Demand Centric
Resiliency and CX
Revenue
Protection & Generation
Demand Centric
Key Message
• Sales Trigger has evolved with the Evolution of Cloud Adoption Curve
from late 2000 to Post Covid.
• Spectrum of Primary Sales Trigger are highlighted below.
Cloud 2.0
Public
Business Function Centric
Public and Private
Primarily Business and Operational Functions
Distributed and Hybrid
Across all the Functions
(Platform of choice)

18. 18
App Strategy
1. Retain
2. Rehost (lift & shift)
3. Revise (refactor)
4. Rearch.(C. Optimised)
5. Rebuild (new build)
6. Replace (SaaS)
Cloud 1.0
Cloud Impact
Application Modernisaton
2008 - 2013 2020 - To date
Cloud 3.0
2014 - 2019
OPEX Reduction
Fulfilment Centric
Scale and Agility
Revenue Protection
Fulfilment and Demand Centric
Resiliency and CX
Revenue
Protection & Generation
Demand Centric
Public
Business Function Centric
Public and Private
Primarily Business and Operational Functions
Distributed and Hybrid
Across all the Functions
(Platform of choice)
Cloud 2.0
Key Message
• Business and IT Application Migration Strategy has evolved with
cloud adoption curve from 2008 to this date
Headless,
Composable
API Driven
Cloud
Native

19. 19
Software
Assets
Infrastructure
Assets
Virtual
Physical
Demand Centric
Fulfillment Centric
Security
Overlay
IT
Assets
Setup
Digital 1.0
Digital 1.0
Digital 2.0
Digital 2.0
Pre COVID
Digital 1.0
Digital 2.0
Digital 2.0
• Primarily business driven, business owners controlled spending
• Demand centric or CX centric assets transformed with no major
change in Fulfilment assets
• Cloud delivered on promise, CX with partial success, others like
RPA, ML, AI yet to deliver on ROI
• Overall IT spend is in decline by 5-7% FY20 & 1H FY21, however
digital and cloud spend is on the rise, driven primarily by Resilience,
ex. JIT supply chain is adapting to Resilience during pandemic
• Standardised Demand Centric Assets consulting and rollout is
growing underpinned by the rise in digital channels for revenue
generation
• Transformation for Fulfilment Assets are on the rise as the need for
information harnessing, manageability & flexibility grows
• New Tech Normal - Cloud becomes a platform of choice,
Optimisation of business process and hybrid workloads on the rise
via automation for OPEX relief, RPA, ML, AI are revived to fulfil the
change in demand profile
• Infrastructure and services outsourcing on the decline
• Concern for Remote Working & IT Assets security driving the rise in
ringfencing
• Fulfil the tactical demand during pandemic and the pent up demand
Post COVID for vertical & bespoke (expensive) solutions
During &
Post COVID
Digital 2.0
Source: Gartner, BCG, HBR, Sales Academy, Forrester, Mckinsey
Post COVID
Digital and Cloud is on Fire
• Digitisation and Personalisation is driving the
Consumerisation of IT (app, services on demand),
which is driving cloud adoption Post-COVID.
• Since Cloud is an enabler of consumerisation, hence
IT spending on the Cloud is in demand.

20. 20
Low High
Low
Digital
Operations
High
Growth
New Rev,
Existing Model
Digital Value
Transformation
New Rev,
New Model
Post COVID Key Drivers for Digital Acceleration
• Efficiency
• Staff Performance and Employee Engagement
• Liquidity
• Costs aligned to growth
Key Digital Trends
• Process Mining
• Discovery, Conformance, Enhancement
• RPA
• From Efficiency Compliance, Productivity Cost Reduction
• Moving to Hyper automation, OCR, ML
• Artificial Intelligence
• Analytics
• Digital Acceleration is about transforming the business not just
restructuring and opening some new channels for revenue growth
and customer retention and acquisition
• Example
• Restructuring could be about account receivable in finance
where late payments can be predicted using ML
• Transformation could be about transforming sales activity by
predicting which prospects will pay on time
Source: Gartner, Sales Academy, Forrester, HBR, BCG
§ Ongoing pandemic has created a challenge for
organisations to fast track their digital
transformation journey as the demand profile
has changed rapidly in last 12 months.
§ Digital transformation is about moving from
demand fulfilment to demand generation of
customers
BAU
Existing Rev,
Existing Model
Restructure
Existing Rev,
New Model
Post COVID
Digital Acceleration Trend

21. 21
Digital Transformation
Spectrum - 2011 to 2023
Digital
Transformation
1.0
2011 - 2015 2020 - To date
2015 - 2019
Revenue Generation
OPEX Reduction
Fulfilment & Demand Centric
SMAC as Enabler
CX, Scale and Agility
Revenue Protection & Generation
OPEX Optimisation
Fulfilment & Demand Centric
SMAC + IoT, AI, ML, RPA, Sec as Enabler
Resiliency, CX, Scale and Agility
Revenue Protection & Generation
OPEX Optimisation & Inflation Relief
Demand Centric
SMAC + IoT, AI, ML, RPA, Sec. as Enabler
Transformation Type
Sell Metered Revenue, Shared Risk Outcome
Analog + Digital Revenue + Digital Commerce
Create Multisided Business Platform
Business, IT and other Support Functions Led
Digital
Transformation
2.0
Next Gen
of
Digital
Transformation
3.0
Transformation Type
Digitise Product or Service
Analog + Digital Revenue
Sell Existing Digital Assets
Business and IT Led
Transformation Type
Move into New and Adjacent Industries
Digital Revenue + Digital Commerce
Run Platform as a Business
End to End Business Transformed
Key Message
• Sales Trigger has evolved with the Evolution of Digital Transformation
Journey from early 2011 to to Post Covid.
• Spectrum of Primary Sales and Transformation Trigger are highlighted
below.

22. 22
Digital Transformation
Comp.
Internal
Services
Focus
External
Traditional IT
Technical Capability
• Mapping of IT Capabilities and IT Services Focus
provides a good spectacle of how IT services have
evolved from Traditional IT to Digital IT (not
shadow IT)
IT Services Landscape - 2023
IT Services Landscape for enabling Digital Transformation
• Composability and Agility driven by API and Orchestration
• Microservice Architecture enabled by containers for Portability)
• Cloud Native Apps and Migration to Cloud (Agility and Savings)
• ML, AI and Robotics enabled automation for S/W and H/W
• Agile Delivery - Devops, CI/CD (Agility, MVP)
• Ex - from Data, API and Development Management to Campaign,
Distribution Management, from Hosting, Security to after Sales Support,
Personalised Customer Advice, Ride Sharing, and Business Led
Products
Digital IT
Data, API, Dev
Mgmt
Hosting, Security
Campaign , Distrib
Mgmt.
Ride Sharing
“The changing landscape of IT services is
underpinned by Digital Transformation where
services are defined by consumption not by how
they are fabricated”.

23. 23
Multiple Pathways for Digital Transformation
• In Business value can be created by generating more revenue or reducing
the cost envelope. In either case, this can be achieved through by
transforming the business operations. Composing and deploying new
services with compelling CX is key to driving growth in a digitally enabled
business world. Besides enhancing operational efficiency dividend is key
to improving the bottom line of the business.
• Following pathways are available to achieve this goal:
• 1st transform CX and then Operations - Move from Silos to Integrated
Experience and then to Future Ready.
• 1st transform Operations and then CX - Move from Silos to Industrialised
Experience and then to Future Ready.
• Move from Silos to Future Ready State directly that is do both
transformations in parallel, CX and Operations.
• This is the most challenging pathway as it requires aligning
Business and IT resources in parallel for a desired outcome.
• In practice either path can be followed deepening upon the maturity of
digital transformation and how much information can flow without
boundaries
In Practice either path can be followed
deepening upon the maturity of digital
transformation and how much information can
flow without boundaries.
Digital Transformation
Transformed
Analog
Customer
Exp
Digital
Silos
Legacy Ops Efficiency
• Mapping of Customer Experience and Operational
Efficiency provides a good spectacle of how
multiple pathways are available for enabling
Digital Transformation.
Where to Begin - Pathways
Future Ready
Integrated
Experience
Industrialised

24. 24
Summary
Services and Software - 2023
• IT Services and Software industry with a market size of $2.3 Tn has grown (CAGR) by 8-10%
across the globe.
• Business environment is a mixed bag for growth with increasing consumer demand, but
inflationary pressure is creating some headwinds.
• Online Entertainment & Gaming, Healthcare Insurance, and Hospitals are attracting top dollars for
IT and Digitisation.
• Key Ares for growth are in Designing and Building Applications and Solutions across Cloud,
AI/ML, Analytics and Digital Transformation.
• Accenture and IBM are lagging in comparison to Indian IT services providers.
• MSFT has got its mojo back, and Oracle is grappling with competition from Salesforce and
Hyperscalers.

25. 25
Australia
IT Opportunity - 2023
Opportunity for IT Services
• COVID has created the pent up demand for vertical & bespoke solutions
because of a change in working culture.
• Data growth and the need for boundary less information means back end
assets need to be transformed for information manageability & flexibility.
• Rollout of 5G for next gen services will increase the software spend by around
38% by 2026 (AI and Cloud are focus areas for new deployment & use cases).
• BSS like Payroll, HR & BI are driving the digital transformation as the
solutions from Workday, Twilio, Salesforce (Slack) and others are hosted in
Cloud, providing agility and scale on demand. These systems are an easy sell
(shorter sales cycle) because they have minimal dependency on core IT systems.
• OSS’s are primarily on premise COTS or hosted in a private cloud. These
systems are not an easy sell (longer sales cycle) as they have a lot of linkages
and dependencies, including legacy integration in some cases. Ex Amdocs
core operational support systems (leader) are still lagging in Cloud 3.0
(composable) adoption. Their 1st billing system in a cloud (private) was recently
rolled out in North America.
IT Spend Profile
• Customer Centric BSS – Increase by 5-7%
• Omnichannel sales & ordering (salesforce), CRM - (salesforce)
• Revenue Management (billing, rating, charging)
• OSS Service Fulfilment – Increase by 5-6%
• OM (Amdocs), Service Orchestration,
• Prod/Service Asset Catalog, Planning and Optimisation,
• Activation and Management
• OSS Service Assurance - Increase by 5-6%
• Assurance Data Analytics
• Performance Management, Fault and Alarm Monitoring
Key Focus Areas in IT
• API and Orchestration (for Composability and Agility)
• Microservice Architecture (containers for Portability)
• ML and AI enabled S/W and H/W
• Agile - Devops, CI/CD (Agility, MVP)
• Data Analytics focused closed loops (Intelligence)
• Cloud Native Apps and Migration to Cloud (Agility and Savings)
• Mapping of Tech Spend and Technology gives
a good view of IT spend in 2022
New
OPEX
Spend
CAPEX
CX, AI
Automation,
B2B Platforms
Regulatory &
Compliance,
Cyber Security
BPM/O
Existing Technology
Collaboration
Digitisation of CX
New B2B & B2C
Services
Streamline IT
Cloud Migration
App Upgrades
Agile Delivery,
Devops, CI/CD
SD WAN, NAAS,
5G, IoT, Edge,
Cloud Native
Source: Tmforum, Gartner, Mckinsey, BCG, Forrester NBN Co, AFR,

26. 26
B2B Sales
• Enable Remote and Virtual Sales
• from 10% to > 35% virtual engagement on the rise
• field sales sentiment dropped to 42% from 63%
• Enable Sales Analytical Capabilities
• focus on quality than volume of pipeline
• historical analysis is of little help
• Buyers need more help
• because they are struggling with new engagement
• need discovery and dialog from sellers
• Buyers are revising the buyers map
• catering for change in engagement model
• Buyers risk appetite has jumped from 20% to 33%
• trying new revenue generation channels
• resilience and continuity of operations driving the rollout
• ex digital workplace or securing remote working
• Marketing team is in a state of flux on how to position
• because engagement model has changed
• Sellers need to prepare demand profile and validate it with buyers
• because future is uncertain and no one knows what is ahead
• collectively walkthrough short, mid and long term needs
• get commitment to ongoing initiatives
• Domain Skills in Demand
• automation, cloud, agile delivery via Scrum and DevOps
Source: HBR, Gartner, Sales Academy, Forrester, Mckinsey, Forbes, BCG
Pre COVID
During &
Post COVID
Virtual Sales
Engagement
10%
35%
Buyers
Risk Appetite
20%
33%
Post COVID
Dynamic Demand Profile

27. 27
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