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Hello friends,

I was going through an business times article which made me to think about how companies will change their IT business model to be more competitive.

Companies like cognizant are having a trademark concept called ‘two-in-a-box’ structure.
Instead of one manager having responsibility for the key milestones, it was shared by two - one at the customer end and other, on the offshore delivery side.

Now over a decade later, Cognizant is overhauling this time-tested, proven model and incorporating a third leg to it. It is introducing a consultant into the cosy two-some model and making it a ‘three-in-a-box’ structure, reflecting the seriousness of its next big bet on consulting services.

How do you see the IT consulting Services market developing as we move forward?

Thanks

Ramy Stuart

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raised a useful framing with the “two‑in‑a‑box” → “three‑in‑a‑box” observation: the move is less about adding a headcount and more about changing how value is created and owned. Consulting is evolving from episodic advice to embedded, outcome‑oriented partnerships that require repeatable offerings, clear commercial alignment, and measurable success metrics.

Key, enduring shifts to note:

  • Outcome pricing and risk sharing — firms are being paid for business results, not just hours.
  • Productization — repeatable bundles, playbooks and IP reduce cost‑to‑serve and speed delivery.
  • Recurring models — managed services and subscriptions create the “sticky” revenue described.
  • Vertical specialization — deep industry context raises barriers to commoditization.
  • Automation and tooling — delivery automation, templates and low‑code shorten time to value.
  • Governance clarity — the three‑in‑a‑box idea works only with a single commercial owner and a simple escalation path.

Practical 5‑step roadmap for a firm shifting toward this future:

  1. Pick 1–2 verticals and list the top 3 business outcomes clients will pay for.
  2. Productize: define 3 offering tiers (pilot, scale, run) with SLAs and measurable KPIs.
  3. Pilot with a three‑in‑a‑box governance model but keep roles explicit (RACI) and one commercial lead.
  4. Capture delivery IP: build templates, runbooks, and minimal automation to drive margin.
  5. Commercialize gradually: start with a time‑boxed success fee pilot, then move to subscription or outcome pricing once metrics are proven.

This approach addresses the competition and shorter, lower‑margin engagements warned about by moving the firm up the value chain and locking in recurring revenue. Caution: over‑complicating governance or promising outcomes without measurement undermines credibility — keep offers simple, measurable and tied to client KPIs.

Member Avatar for rkallit

Dear friends,

Let me kick start the thread. :)

According to me, the future the IT consulting industry will require a high level of Industry adaptation. IT Consultancy will play an important role in client's growth, where consultancy firms need to introduce new innovations and point out the competitive benefits of those innovations to the customer market. The key to IT consulting steady growth and development will be is its ability to lead and collaborate more with customers at different points of the service delivery....

Ramy Stuart

Edited by rkallit because: added new word - industry
Member Avatar for masta7mail

I work with a broad range of IT Consultants. The most successful IT Consultants are expanding their reach as well as digging their teeth into current customers by offering services that are "sticky", easily deployed, and produce a recurring revenue. IT Consultants must keep up to date with the demands in the industry, offer the latest and greatest to clients, capture new clients looking for those new services, as well as always have a reason to call on their clients.

Ramy, I agree with you. Successful IT Consultants will have an ever-evolving business model.

Melony White
Channel Manager

Edited by Ezzaral because: Snipped url. Please restrict personal links to your user signature.
Member Avatar for rkallit

Thanks Melony White for your comment!

Going forward, I see the consulting profession will be forced to compete more fiercely for their engagements, and the engagements they receive may be relatively short-term or less profitable than assignments of the recent past.

Ramy Stuart
Consultant, Allied Worldwide

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