Digital services providers outperform their peers by 18 to 27% in the last 5 years: Report

Companies providing digital engineering, artificial intelligence, digital platform engineering services have emerged as disruptors in the information technology-enabled services (ITeS) sector registering three to four times faster revenue growth from 2018 to 2023 against other industry players. They have outperformed their peers by 18 to 27 percentage points, a report by Boston Consulting Group (BCG) has unveiled.
 
The report titled “Tech Services: Movers and Shakers of Today and Future Bets” highlighted key strategies that are driving the IT services industry towards unprecedented innovation and growth.  

Companies like Globant, EPAM, Endava, and Persistent Systems heavily invest in Engineering R&D, giving them a competitive edge in the high-value areas of the product lifecycle. By offering end-to-end solutions, these companies foster deep client relationships and ensure seamless integration of services. By focusing on deep, marquee relationships with top-tier clients, these firms build strong reputations for delivering targeted, innovative solutions, the report said.
 
The transition from the early 2000s digital revolution, which introduced process automation, to the 2010s focus on cloud-native platforms laid the groundwork for today’s innovators, who are integrating generative artificial intelligence (GenAI) to transform service delivery. With over 250 firms valued at more than $1 billion each, the industry is a hotbed of innovation and competition, the report said.
 
Rajiv Gupta, Managing Director and Senior Partner at BCG, remarked on the findings, said, “The IT services industry, once defined by predictable growth, is now on the brink of transformation. Agile disruptors are rewriting the traditional playbooks, leveraging new technologies.”
 
Rajesh Gopinathan, former TCS CEO and a Senior Advisor to BCG, said, “Today's leaders aren’t just adopting emerging technologies like GenAI. They are embedding these innovations into their core strategies.”
 
“The companies we’ve identified aren’t merely reacting to change—they’re setting new benchmarks, turning challenges into opportunities, driving the industry forward with a clear vision for the future.”