The "glamour" in projecting Generative AI (GenAI) services for IT service companies isn't just about the technology itself; it's about fundamentally recasting their role from a simple implementer to an indispensable strategic partner.
This new narrative allows them to sell a "corporate fantasy"—a complete, top-to-bottom redesign of the client's business. This is a much more "glamorous" and lucrative position than just managing IT infrastructure.
These are built on four key projections:
Selling a New Business Paradigm: The pitch is no longer an "IT upgrade"; it's the "largest organizational paradigm shift since the industrial and digital revolutions". Service firms are selling the concept of the "Agentic Organization", a future where AI-first workflows operate at "near-zero marginal cost" and AI agents become a core part of the workforce.
Elevating Their Role to "Reinvention Partner": This narrative shifts the service firm from a commoditized vendor to a "reinvention partner of choice". As noted in the analysis of the consulting industry, this allows them to capture the 60% of GenAI budgets allocated to high-margin "consulting and planning" rather than just development. Accenture, for example, now frames its business as "Reinvention Services" and splits its revenue almost equally between "consulting and managed services".
Owning the "Master Blueprint": GenAI is a "general-purpose technology" that impacts the entire enterprise value chain. This gives service firms a "master blueprint" to sell services into every function, from "Order to Cash" and "Supply Chain" to "Human Capital". They can sell the complete transformation, including upskilling the client's new "Agentic Workforce" with roles like "M-Shaped Supervisors" and "T-Shaped Experts".
Selling Proprietary "Magic" (Not Just COTS): Instead of just implementing someone else's Commercial Off-the-Shelf (COTS) software, the new glamour comes from selling their own proprietary platforms. HCLTech does this with its "AI Force" platform, and Accenture has its "AI Refinery". This "Custom Off-the-Shelf" model makes them a product company, not just a service provider, which is far more glamorous and creates strong client lock-in.
GenAI Revenue Classification System for Consulting & IT Services
This system classifies GenAI revenue into three primary pillars, reflecting the models used by firms like Accenture and HCLTech. It is designed to capture revenue at every stage of the client's journey, from initial strategy to long-term operations
Pillar 1: GenAI Strategy & Advisory (The "Consulting" Pillar)
Focus: High-margin, C-suite advisory to define the "why" and "what." This maps to Accenture's "Strategy and Consulting" and HCLTech's "AI Labs" and GRC services.
L2: Service Category
L3: Example Service Offerings (as sold to clients)
AI Strategy & Value
• GenAI Use Case Prioritization: Identifying high-value, feasible GenAI opportunities (e.g., "Slam Dunks" vs. "Maybes").
• AI-Led "Reinvention" Roadmap: A "future-back" design for an "Agentic Organization," moving from legacy to AI-first models.
• AI ROI & Funding Model: Building the business case, ROI framework (e.g., "Cost Savings," "Productivity"), and funding models.
AI Governance & Responsible AI
• Responsible AI Framework: Designing and implementing "Responsible AI by Design" principles and governance structures.
• AI Governance, Risk & Compliance (GRC) Service: Establishing policies and audit frameworks for "agents controlling agents" to meet standards like the EU AI Act or NIST.
• AI Model & Bias Assessment: "Red teaming" and auditing models for bias, fairness, and hallucinations.
AI Talent & Workforce
• AI Upskilling Programs: Enterprise-wide training for "AI Builders," "Executives," and "AI Power Users".
• Agentic Workforce (Re)Design: Designing new operating models and talent profiles like "M-Shaped Supervisors" and "T-Shaped Experts".
• AI-Led Change Management: Managing the cultural shift and "building trust between humans and AI agents".
Pillar 2: GenAI Implementation & Co-Creation (The "Technology" Pillar)
Focus: The core "build" and "professional services" revenue. This involves building the platforms, models, and AI-first workflows.
L2: Service Category
L3: Example Service Offerings (as sold to clients)
Platform & Data Foundation
• Data & Cloud Modernization: Building the "modern data foundation" required to "fuel" AI models.
• AI Platform Implementation: Deploying and customizing platforms like "HCLTech AI Foundry" or "Accenture AI Refinery".
• "Custom Off-the-Shelf" Platform Dev: Building modular, "Al-assisted, easily customizable" applications that avoid COTS "feature bloat".
Application & Process Transformation
• GenAI for SDLC: Using "AI Force - Software" to accelerate the software lifecycle (e.g., code generation, automated testing).
• Legacy Modernization: Using "AI Force - Software Mod" to "reverse-engineer" and modernize legacy systems.
• Agentic Process Automation: Deploying "AI Force - BizOps" to automate and redesign core value streams (e.g., "Order to Cash," "Supply Chain").
Custom Model & Agent Development
• Custom LLM/SLM Development: Fine-tuning and "refin[ing] LLMs" with proprietary client data for specific business contexts.
• "AI Agent Builder" Service: Creating "squads" of specialized AI agents ("Critic Agents," "Compliance Agents") to automate complex tasks.
• Physical AI & Robotics: "AI Engineering" services for designing AI-enabled hardware and robotics.
Pillar 3: GenAI Managed Services & Operations (The "Operations" Pillar)
Focus: Recurring revenue from running, managing, and optimizing GenAI solutions. This maps to Accenture's "Operations" and HCLTech's "Managed Services".
L2: Service Category
L3: Example Service Offerings (as sold to clients)
AI/ML Operations
• Model Monitoring & Tuning (MLOps): Ongoing "AI/ML Operations, Model Management, & Value Realization".
• "AI Force - ITOps": A managed service for "proactive, self-healing IT environments" and "autonomous remediation".
• GenAI FinOps: A managed service to monitor and optimize "tokens consumed and dollars spent" on LLM consumption.
AI-Enabled Business Process Ops
• AI-Augmented BPO: Operating entire business functions (e.g., customer service, finance, procurement) on behalf of a client, using an "AI-augmented frontline" workforce.
• Agentic AI as a Service: Managing a client's "agent factory" and automated workflows as a recurring service.
Platform & Governance as a Service
• Managed AI Platform: Hosting and managing a customized "AI Force" or "AI Refinery" platform for a client.
• Managed AI GRC Service: Providing "real-time" compliance and governance monitoring as an ongoing service.
This video provides an overview of how HCLTech is using its AI Force platform to transform the software development lifecycle, a key part of the "Implementation" pillar.
Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld "All views expressed are my personal views are not related in any way to my employer"
