In order to provide complete functionality, this web site needs your explicit consent to store browser cookies. If you don't allow cookies, you may not be able to use certain features of the web site including but not limited to: log in, buy products, see personalized content, switch between site cultures. It is recommended that you allow all cookies.

This content is currently only available to TSIA members.

If you believe you are seeing this message in error,
please let us know.

Research Report

Primer on Services Convergence

TSIA defines "services convergence" as:


The merging of previously independent service capabilities into organizational structures that improve the customer experience and reduce the cost to deliver. 


As TSIA benchmarking substantiates, it has been the common industry practice to establish independent P&Ls for each one of these service lines. This approach forces each service line to optimize their cost structure within the revenue and profit objectives set by the company. Yes, some companies expect to make money on all of these service lines. Other companies are willing to provide services at cost to pull product revenues. Regardless the profit expectations, establishing distinct P&Ls for each service line forces a certain level of fiscal discipline. In multiple articles, TSIA has expanded on the virtues of defining a clear financial business model for a service line and managing to that target model. In general, the approach of establish Independent service P&Ls that align to well defined financial models has served the industry well. Until now. 


This article provides the following insights:

  • What are the drivers for services convergence?
  • What are the potential benefits of services convergence?
  • What are tactics to migrate toward services convergence?
  • What are some industry examples of services convergence?
  • What does a highly converged services organization look like?

Authored By:

Thomas E. Lah

Executive Director, TSIA

Publish Date: July 26, 2022

TSIA is well worth the investment. This is the one place where you can come and get a fusion of ideas that you can then marry up to the goals and objectives of your organization and boil that down into several actionable plans that you can implement over the next 6 months to a year.

Peg Rodarmel, SVP, Subscription Services, Infor

Experience Our Community

Our thriving community of 40,000 technology and services leaders rely on TSIA insights every day.