IT services providers (ITSP) are well-positioned to assist enterprises in generative artificial intelligence (GenAI) experimentation and implementation. Different technology firms focus on solving problems such as the AI models, hardware, infrastructure, and products and applications, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, “Generative AI Watch: IT Services Providers Invest to Help Customers Implement GenAI, 2024 Update,” reveals that AI/GenAI is disrupting the IT services market and the ability to harness the technology will enhance competitiveness for services providers.
Rena Bhattacharyya, Chief Analyst and Practice Lead for Enterprise Technology and Services at GlobalData, comments: “IT services providers need to stay on top of the evolving GenAI landscape to offer customer options. An influx of new language models, including small language models and specialized models, over the past year means that customers need help with model selection; many worry about vendor lock-in.”
The development of AI and GenAI has a major impact on ITSPs. It is a field they cannot afford to miss out on. On the one hand, it offers opportunities for ITSPs to develop differentiation and build new solutions with customers. On the other hand, it enables ITSPs to achieve greater productivity and potentially shift their business models enabling them to scale their service delivery without increasing human resources proportionately.
Siow Meng Soh, Research Director for Asia Pacific at GlobalData, notes: “ITSPs have developed out-of-the-box solutions, frameworks, and platforms to help enterprises deploy AI and to ensure responsible use of GenAI, as well as industry-specific solutions. Applying AI to workflows and industry solutions means ITSPs become more embedded in their clients’ business, hence the relationships become more strategic.”
Looking ahead, enterprises should expect to maintain a multi-model GenAI environment. Organizations should expect to reevaluate their cloud strategies to support working with multiple models and cloud vendors. Additionally, efficient and effective data management strategies are critical to successful AI deployments. The same holds true for generative AI.
Bhattacharyya concludes: “Many organizations have not paid enough attention to data management, which is hindering their GenAI project deployments and inhibits deployment of AI at scale. In addition to helping with GenAI projects, ITSPs are well placed to assist customers with foundational elements, such as development and deploying effective data management initiatives.”
