Automation Bites Cognizant, TCS As Marriott, IHG Reduce Outsourcing Business Due To Automated Bots, Processes

Another downfall of the virus spread as major hotel chains like Marriot Internationals and Intercontinental hotels(IHG) are planning to minimize outsourcing to IT firms as the hospitality business suffered the most during this pandemic.

Hospitality Industry Worst Hit

Prior to this most of the hospitality businesses were planning to automate the tasks which currently required many resources.

The tasks such as if a person is trying to check-in in a hotel then earlier it required assistance from the hotel staff to check-in using credit cards.

But the same process could be automated and no more required any assistance from the hotel stall and also save cost for them to hire many resources.

For this kind of automation, the major hotel chains were outsourcing to IT companies like TCS and Cognizant,  but now they are thinking against it, according to the analysts.

Avid IT Service Providers 

In the current situation, the IT service providers are eager to have these kinds of technology-focused projects and on the other hand, the hospitality industry is also looking for niche service providers having digital technology capabilities.

While service providers are trying to provide many services and exploring other options like holograms at reception, robotics for food delivery, voice interfaces to provide contact-less services, even providing automation of software and support.

Sources from Teaneck, New Jersy, cognizant said, “We have seen ramp downs on both the accounts – IHG and Marriott – due to the pandemic led slowdown. This is however an industry-wide impact and Cognizant’s peers were also hit,”.

In past months, the hotel industry is citing a drastic decrease in bookings due to lockdown and pandemic.

As a result, hotels are looking to move applications to the cloud instead of the traditional way of maintenance.

The IT services providers like Cognizant, TCS and Mindtree are the firms which have got major exposure in the hospitality industry and now with the reduction of outsourcing by the major players will impact their business too.

So far, no statement released from the TCS, Cognizant and Marriot.

What Do The Analysts Say?

“Hotels are canceling and reducing the volumes in their contracts in many areas,” said Peter Bendor-Samuel, the chief executive of IT advisory and research firm Everest Group.   

According to him, there will be increased automation and further, the hotels will not depend on IT services vendors for cutting costs.

The CEO of Silicon Valley-based self-healing software startup Appnomic, Nitin Kumar said, the IT industry will recognize a clear distinction between technology, which is selling a subscription, license, transactions and IT service as monetizing headcount, hours and support windows.