IT Services: A Force Multiplier?

The following is the opening segment from our most recent study - "IT Services and Strategic Impacts for Global Banks: The Force Multiplier" -  published via our partner, Aite Group. Learn more about how to access the full report here. Today, outsourced IT services are firmly embedded in all industries and most large corporations. Alphacution’s message to financial sector clients and other buyers of IT services is both blessing and curse: The global IT services sector continues to be dominated by lowest-cost, predominantly India-based human capital, and the motivation to engage with these services continues to be, as it seems to have been all along, about labor arbitrage, or the savings harvested from the reduction of high-cost, U.S.- or U.K.-based in-house human capital in favor of lowest-cost, leased human capital. Although the expectation to improve performance—via higher-quality output, more efficient output, or some other cocktail of innovation—is rarely made explicit, we believe that the potential for enhanced process efficiencies adds value to the equation. This is the blessing part. The potential [...]

By | 2017-06-12T22:07:35+00:00 June 13th, 2017|Alphacution Feed|

Deconstructing Hewlett Packard: More Clues to Indigenous Productivity

Remember the game show, Name That Tune? (Look it up...) What if I told you that the basic rubric from that game show - naming a song in fewer notes than your opponent - was useful for predicting all kinds facts about trading and other financial businesses. Tell me your trading strategy and AUM, I can tell you how many employees you have. You are an investment bank with 30,000 employees, I can guess your total technology budget. The list of triangulations like this are actually quite long... Seem strange? Here's some insight: As many of you know, Alphacution is studying the engines of productivity for the full spectrum of financial services firms - and many of their supply chain counterparts - by measuring, modeling and analyzing technology spending patterns and other operational data. Though still relatively early in the game, this research mission has already given birth to a standardized benchmarking framework - "T-Greeks" - that allows us to quantify consensus behaviors within a community of similar entities and determine who is leading or [...]

By | 2017-05-24T21:28:30+00:00 May 16th, 2017|Alphacution Feed|

The Source of #AI Hype

Apple doesn't mention it... Amazon doesn't mention it... Alphabet (aka - Google) does mention it - but doesn't link it specifically to financial performance... IBM? You betcha. More than 155 times... In case you have been living under a rock - which, now that I think of it, has some increasing allure - artificial intelligence (and its slightly less sexy twin, machine learning) has succeeded 2016's marketing darling, blockchain, to become the blinking-neon-sign-outside-your-hotel-room term for 2017. Sorry, folks. The budgets have already been allocated. Go find predictive analytics (2014) and digital transformation (2015) in the dust bin of over-exposed marketing terms if you are not yet hip to how this game is played. Now, let's take a quick step back for a second: This is NOT an anti-AI hit piece. Nor is this an IBM-gotcha piece. I am a fan of both. But, this is simply a commentary based on the convergence of connect-the-dots exercises that have come out of our modeling and research. Yes, AI has an incredibly promising - if not, slightly scary [...]

By | 2017-04-28T10:17:09+00:00 April 27th, 2017|Alphacution Feed|