Market View
Navigating the AI transformation journey: How global service providers are reimagining value creation
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Produced by:
Satheesh Neelam
Global Client Partner
About Satheesh Neelam
Satheesh Neelam is a Global Client Partner at Cognizant, focusing on Energy, Utilities, Manufacturing & Logistics sectors. With over 29 years of IT industry experience, he serves as a senior business leader and digital transformation expert. His role encompasses overseeing end-to-end solutions & services, i.e. Digital Experience & Engineering, AI & Analytics, IoT, all ERP systems, and Cloud Enablement & Infrastructure Services. Previously, Satheesh has worked with multiple global consulting and systems integrators , maintaining long-term client relationships throughout his career transitions. Satheesh can be reached at linkedin.com/in/satheeshneelam
How do you see the service provider landscape evolving as AI capabilities mature?
The service provider landscape is undergoing a fundamental transformation. Currently, most customers operate in a hybrid state with legacy systems coexisting alongside modern cloud-based applications. However, AI capabilities are now dramatically changing this paradigm.
What's truly revolutionary is that we're moving towards a future where traditional applications may become obsolete. Instead of needing specific software applications, organisations will primarily need well-structured metadata to feed Large Language Models (LLMs). We're creating a new architecture where you establish department-specific LLMs with a middle layer for each function, and then build AI agents on top. This approach eliminates the need for conventional applications and licences, though you'll still invest in computing power and specialised skills.
This shift is substantially disrupting service delivery operations. Historically, teams comprised enterprise architects, application specialists, infrastructure experts, and so on. Now, the focus is shifting towards data expertise, with cloud and AI capabilities increasingly converging. We're seeing new roles emerge, such as AI architects who evaluate every element of the enterprise architecture to determine where traditional components can be replaced with AI capabilities.
The fundamental operating model is changing, but this transition will take several years. At Cognizant, we're helping clients navigate this journey by developing tools like Neuro IT operations, Skygrade, and Flow Source that add intelligence layers on top of existing operations. These tools give support engineers an end-to-end view and allow them to implement solutions much more rapidly than before.
What's truly revolutionary is that we're moving towards a future where traditional applications may become obsolete. Instead of needing specific software applications, organisations will primarily need well-structured metadata to feed Large Language Models.
During this 2-3 year transition period, orchestration represents perhaps the single greatest opportunity for organisations to move beyond quick wins and establish a proper foundation for AI adoption.
What role does orchestration play in this AI transformation journey?
During this 2-3 year transition period, orchestration represents perhaps the single greatest opportunity for organisations to move beyond quick wins and establish a proper foundation for AI adoption. The reality is that most companies cannot immediately reorganise their data or replace their systems, yet they still need to derive benefits from AI technologies.
Orchestration serves as the crucial bridge, connecting different systems, data sources, people, and processes. For example, even today, no single system delivers a comprehensive view of customer engagement across marketing, service resolution, feedback, and sales functions. Effective orchestration can enable these business functions without requiring organisations to completely overhaul their underlying systems.
The key is identifying areas where minimal effort yields maximum benefit and systematically expanding across each business function. There's a tremendous opportunity to develop industry-specific orchestration solutions that address the unique requirements of sectors like public services, banking, or manufacturing. Even small adjustments tailored to specific industries can make an enormous impact.
This is where large consulting firms traditionally added value through their deep industry knowledge. However, this expertise ultimately comes from customers themselves. By understanding the specific needs of particular sectors and acknowledging their unique requirements, you can accelerate adoption and build stronger relationships.
How are you currently identifying where AI can add the most value in service delivery?
We're identifying value in both current operations and future opportunities. The most significant value comes from three core areas:
1. accelerating speed to market 2. reducing total cost of ownership, and 3. improving customer satisfaction by providing smarter solutions more quickly.
Once we demonstrate these benefits, clients are typically ready to invest in transitioning to AI-based approaches.
We source quick wins through three distinct channels. First, our "Bluebolt" initiative collects creative ideas from teams across the organisation, which are validated and tested within weeks. Second, we identify opportunities that emerge within our ongoing service delivery engagements and live implementations. Third, we directly ask our clients what specific challenges they most want to solve or areas where they want to differentiate themselves.
For longer-term, scalable solutions, we focus on outcome-based deals. While such arrangements have existed for some time, they were previously structured around cost benefits and delivery locations. Now, they increasingly centre on how we can deploy AI and integrated tools to deliver end-to-end value for the customer.
The most transformative impact relates to market competitiveness. Traditionally, we would warn clients that failing to adopt new technologies might allow competitors to catch up within 2-3 years. Now, the timeline has compressed dramatically – businesses can lose their competitive advantage within six months.
What measurable benefits have you seen from AI initiatives so far?
We've observed substantial benefits across various domains. For example, with tools like Microsoft Copilot, we've seen significant productivity gains in corporate roles – from project managers to senior leaders – through automated email summarisation, context-driven meeting insights, and streamlined document creation.
In development environments, solutions like GitHub Copilot have dramatically increased productivity, delivering acceleration of 60-80% depending on the software context. Clients are using these examples as proof points and are now testing similar capabilities within specific boundaries, whether it's managing Salesforce code or leveraging tools from hyperscalers and specialised GenAI providers.
The most transformative impact relates to market competitiveness. Traditionally, we would warn clients that failing to adopt new technologies might allow competitors to catch up within 2-3 years. Now, that timeline has compressed dramatically – businesses can lose their competitive advantage within six months if they don't embrace AI capabilities. Most organisations derive their value from the data they possess and how they serve their clients, but if a competitor develops a superior approach using AI, the traditional provider may struggle to survive in this accelerated landscape.
About Cognizant
Cognizant is a global professional services company founded in 1994 and headquartered in Teaneck, New Jersey. As one of the world's leading technology and consulting organisations, they provide digital, technology, consulting, and operations services to help businesses transform their operations for the digital age. With over 300,000 employees worldwide, Cognizant works with clients across various industries including healthcare, banking, retail, manufacturing, and technology, and is recognised for its expertise in artificial intelligence, cloud computing, digital engineering, and Internet of Things (IoT).
About Enate
Enate is the leading SaaS solution for business services. Enate orchestrates work from start to finish, giving clients the visibility and control needed to deliver better services. From email management and data analysis to intelligent document processing, Enate also offers a host of touch-button AI features designed to slash the time spent on manual work. Trusted by global service teams, Enate ensures smooth, consistent operations that help clients perform at their best.