Why legacy IT service providers aren’t built for modern engineering platform development
By Pramod Murthy, SVP of Engineering Cloud & Security, Xoriant
Look around – the platform economy has seamlessly woven itself into every aspect of our daily lives. From streaming our favourite shows at home to collaborating with colleagues at work, tech platforms have become the backbone of how we live, work, and thrive. These modern-day tools are no longer just conveniences—they are essential to reshape our routines and realising possibilities once confined to imagination.
The pace of technology evolution, coupled with changing customer expectations, has ushered in a platform-first world. As of 2024, the global streaming market was valued at $28 billion, and 75% of project-centric organisations were expected to adopt cloud-based project management platforms.
These statistics highlight not only the central role of technology platforms in our lives but also a global shift towards modern engineering, accelerating demand for seamless, scalable, and innovative platforms. A demand that is fundamentally redefining customer expectations from technology partners.
Today’s enterprises seek collaborators who can build forward-looking, adaptable platforms that drive growth and agility – not just IT service providers specialised solely on delivering and maintaining software.
The Gap: Why Legacy Models Fall Short
For decades, legacy IT service providers have built their success on a model that prioritises application lifecycle management. According to recent research reports, managed services continue to dominate the IT services market, with managed security services alone accounting for over 40% of the market revenue in recent years. While these services ensure stability and operational reliability, they often fall short of addressing the rapidly evolving demands of today’s dynamic business landscape.
Modern engineering platform development requires more than prescriptive, static methods. It demands an ecosystem approach – a framework with horizontal capabilities, industry expertise, and advisory services – that fosters adaptability, collaboration, and innovation. Furthermore, successful platforms align seamlessly with broader business goals, becoming the enablers of enterprise-wide transformation.
Digital engineering service providers, particularly those embracing agile methodologies and modern technologies, are well-positioned to meet these needs. By forming highly effective, cross-functional teams with deep expertise in areas like Generative AI, DevOps, cloud architecture, and data engineering, these niche teams, operating in the deep engineering zone, function more as creators than mere executors. Their advanced technical knowledge drives transformative change and innovation. According to Gartner (2022), 68% businesses valued deep expertise and industry-specific knowledge in their engineering services partners, while 59% prioritise their partner’s ability to innovate as a crucial factor.
Transitioning to Platform Engineering
While technology platforms have seamlessly integrated into our business and personal lives, the next evolution—AI-native platforms—is already underway. These platforms are purpose-built to embed AI capabilities at their core, enabling autonomous workflows, real-time decision-making, and self-learning systems. Industries like finance, healthcare, hi-tech, and manufacturing are leading this adoption curve. AI-native platforms are transforming fraud detection, patient care, and predictive maintenance, realising new frontiers of value and innovation.
For businesses aiming to stay competitive, transitioning from traditional IT services to AI-native platform engineering is no longer optional—it is a necessity. This transformation isn’t just about switching vendors or upgrading tools and processes; it’s about embracing a platform-first mindset that prioritises scalability, innovation, and long-term growth. It’s about imagining what’s possible and realising it through collaboration with modern digital engineering service companies.
These companies adopt a consultative approach to platform development, ensuring technology investments align with strategic goals. They redefine priorities, favoring agility, innovation, and specialised expertise over size. By doing so, they meet the dynamic demands of modern engineering and ensure businesses stay ahead of the curve.
In a world where adaptability and forward-thinking are the keys to success, platform engineering stands as the cornerstone of sustainable progress and the builders of these platforms are the architects realising our digital future.
