IT service companies no longer operate in commoditized market. As most of the organisations are undergoing digital transformation, IT service providers tend to offer end-to-end solutions through cloud-based and SaaS-based platforms. Traditionally platform refers to a package and-or point solutions. It has been broadened to make it end-to-end in scope.

The platforms are offered across several domains such as banking, financial services and insurance (BFSI), telecom and AI.

Platforms still contribute just a small part of the overall business. These are not sold on license but are deployed for the clients to get service opportunities. Some companies create productised offerings that are licensed out, but most companies offer services in a managed services platform.

A banking product Finacle (Infosys) can be sold as an independent product as well as bundled with a larger service offering. AI too is offered as a part of larger managed service contract.

Platforms provide scalability and higher and higher margins. A combination of products and platforms offer solutions to customers quickly. A SaaS model can easily incorporate new features and functionalities. It can be riveted on an existing platform.

Customers have moved or are moving from one-time license fee to a SaaS-based consumption model. Service companies realise that Cloud and SaaS are causing disruption.