Thanks for sharing such a thoughtful perspective, Jay! Your point about deciding what to own, operate, and outsource when implementing AI perfectly resonates with what we’ve been seeing in the manufacturing sector—especially for mid-market companies. Many of these long-established factories now face a more urgent challenge because AI is redefining not just software solutions, but also core R&D and physical product development. I’ve noticed how those who leverage flexible, no-code platforms can move faster while preserving their unique brands and crafted solutions. Meanwhile, the more “traditional” players risk being outpaced by nimble startups. It’s great to see your insights line up with these real-world observations, and I look forward to reading more of your work!
Your observations on own operate and outsource are spot on. However, for the CRM industry outsource is a 50Bn+ industry where Teleperformance, Majorel and Telus kind of companies fall in and still it follows a Barbell curve.
Thanks, Sai. Would say the sales and marketing "operate" tech stack still surpasses that today... have seen figures like $150B of martech spending last year. Would expect similar magnitude for sales tech. Higher margins for these companies than outsource as well which gives higher multiples/valuations.
The article is very insightful but the "Operate" term threw me off a bit. I understand what you are trying to say is that companies which make products that optimize or simply improve (in the short term) certain aspects of what "Own" platforms already provide or can provide soon, will not be where value is created in the future. That makes complete sense. "Operate" threw me off because it sounded like a term where someone just runs the platform. Would something like "Own", "Solution" and "Outsource" work a bit better here? Or am I reading it wrong?
The nomenclature is more about who is responsible for the outcome of the process facilitated by the platform. If a customer "owns" the outcome or if the customer "outsources" it.
Thanks for sharing such a thoughtful perspective, Jay! Your point about deciding what to own, operate, and outsource when implementing AI perfectly resonates with what we’ve been seeing in the manufacturing sector—especially for mid-market companies. Many of these long-established factories now face a more urgent challenge because AI is redefining not just software solutions, but also core R&D and physical product development. I’ve noticed how those who leverage flexible, no-code platforms can move faster while preserving their unique brands and crafted solutions. Meanwhile, the more “traditional” players risk being outpaced by nimble startups. It’s great to see your insights line up with these real-world observations, and I look forward to reading more of your work!
Thanks, Rafayel. Great to hear you're seeing this in practice too!
Your observations on own operate and outsource are spot on. However, for the CRM industry outsource is a 50Bn+ industry where Teleperformance, Majorel and Telus kind of companies fall in and still it follows a Barbell curve.
Thanks, Sai. Would say the sales and marketing "operate" tech stack still surpasses that today... have seen figures like $150B of martech spending last year. Would expect similar magnitude for sales tech. Higher margins for these companies than outsource as well which gives higher multiples/valuations.
The article is very insightful but the "Operate" term threw me off a bit. I understand what you are trying to say is that companies which make products that optimize or simply improve (in the short term) certain aspects of what "Own" platforms already provide or can provide soon, will not be where value is created in the future. That makes complete sense. "Operate" threw me off because it sounded like a term where someone just runs the platform. Would something like "Own", "Solution" and "Outsource" work a bit better here? Or am I reading it wrong?
A better alternative would be "hybrid."
The nomenclature is more about who is responsible for the outcome of the process facilitated by the platform. If a customer "owns" the outcome or if the customer "outsources" it.