July 14, 2015

Two Thirds of Enterprises Not Prepared for “As-a-Service Economy,” According to Accenture and HfS Research Study

Yet more than half of senior operations leaders view As-a-Service as critical for business value

NEW YORK and BOSTON; July 14, 2015 – The ways enterprises buy and receive services to augment their operations are undergoing unprecedented change, according to a new research study sponsored by Accenture (NYSE: ACN) and published by industry analyst firm HfS Research. The report finds that while cost effective business services will always be important, achieving the next threshold of value creation is dependent upon transitioning to the emerging “As-a-Service Economy.” In this model, value is delivered via on-demand, highly scalable plug-and-play services that impact business outcomes. Simplification is king – eliminating complexity, poor processes and manual intervention in favor of working smarter through simplified, but intelligent operations.

According to the report, “Beware of the Smoke, Your Platform is Burning,” which is based on a survey of 716 enterprise service buyers, advisors and service provider executives, 53 percent of senior executives view As-a-Service as critical for their organization, yet 68 percent of enterprises report that their core enterprise processes will not be delivered As-a-Service for five or more years.

“Enterprises are facing enormous challenges from the digital business evolution and other competitive forces to increase revenue and decrease costs while improving the client experience but our research shows that there’s still not enough of a burning platform – or capability – to drive change in the near term,” said Michael Corcoran, senior managing director, Global Growth and Strategy, Accenture Operations. “As outsourcing moves beyond labor arbitrage, process efficiency and transaction processing and into a new era of service delivery, both buyers and providers need to make a concerted effort to transition to an As-a-Service model to remain competitive. By applying technology, data and analytics, and talent smartly – what we call Intelligent Operations – buyers are in a better position to innovate faster, create new services and exploit new business opportunities to drive material business outcomes.”

The report identifies the following eight ideals for moving from legacy operations to the As-a-Service Economy:

Key research findings based on the As-a-Service ideals include:

“The way outsourcing services are delivered and managed is changing before our very eyes, and many enterprise operations executives and service providers must make intrinsic changes to how they operate to stay relevant in an uncertain and challenging future,” said Phil Fersht, CEO and founder, HfS Research. “It’s the forward-thinking service buyers and providers who set out their vision and path forward for sourcing with defined business outcomes aligned to the As-a-Service Ideals, that will achieve success. The conservative among us who refuse to accept these times of unprecedented, disruptive transition will be competitively challenged.”

Key Recommendations
Evolving to the As-a-Service Economy will require the following:

The full report can be accessed here.

About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with more than 336,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com.

About HfS Research
HfS Research is the leading independent global analyst authority and knowledge community for the business and IT services industry. HfS serves the research and strategy needs of business and IT operations leaders across finance, supply chain, human resources, marketing, customer management, and core industry functions. HfS provides detailed and thoughtful analyst coverage of the various areas that impact successful business outcomes, namely, process automation and outsourcing, global business services frameworks, mobility, analytics, and social collaboration. HfS also focuses heavily on talent acquisition, development, and motivation strategies. HfS applies its acclaimed crowdsourced Blueprint Methodology TM to evaluate the performance of service providers in terms of innovating and then executing against those business outcomes.

Now in its seventh year of publication, HfS Research’s acclaimed blog “Horses for Sources” is widely recognized as the leading destination for unfettered collective insight, research, and open debate about sourcing industry issues and developments. Its home page is www.hfsresearch.com.

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Hannah Unkefer
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