Tata Consultancy Services' (TCS) launch of its Co-Innovation Network signals a major shift in the innovation strategy of global IT service providers. Instead of relying exclusively on in-house R&D capabilities, IT consultants like TCS are striving to comprehensively meet their clients' domain-specific business innovation needs by forming global innovation ecosystems composed of academic labs, startups, venture capital firms, large independent software vendors (ISVs), and lead users. As ecosystem building becomes the competitive locus of the global IT services market, corporate strategists at TCS's rival firms must actively drive the formation and expansion of their own client-focused Innovation Networks.
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