iteratec Blog

What does an IT service provider do in the age of AI?

Written by Stefan Rauch | Oct 8, 2026, 8:57:44 AM

If AI takes over the craft of software development, one question remains which, as Managing Director of iteratec, I consider to be the most important for our industry: What role will IT service providers then play?

 


Contents
  1. A Return to Business Value
  2. The business transformation partner comes from the world of technology
  3. Complex transformation requires strong partners
  4. Developing digital champions in the age of AI

A Return to Business Value

In recent years, the IT sector has placed its focus on craftsmanship: better methods, cleaner architectures, more sophisticated processes. The impact that technology is meant to achieve has been lost sight of. However, AI is fundamentally changing the very reason why companies still come to us in the first place. Because AI now understands the craft of software development, we are witnessing a return to business value.

This shift is clearly evident in the way our discussions with clients have changed. We used to talk about specific technological problems. Today, we discuss how a company needs to change in the age of AI; whether the company will even still exist in its current form in three years’ time. This is a massive paradigm shift that is also changing our understanding of our role as partners to our clients.

A client example from this year illustrates the shift very well. We are working with the Viessmann Generations Group on an AI-native operating model that is transforming the entire organisation’s processes. This is business transformation based on a deep understanding of technology.

The business transformation partner comes from the world of technology

AI is not just about becoming faster or more efficient. Rather, it now enables us to tap into new business areas, rethink business models and fundamentally restructure organisations. We are therefore witnessing a technology-driven transformation of the economy that is fundamentally changing the role of technology companies.

This represents a huge opportunity for our clients, for our industry and, above all, for us. Many developments are now coming together, building on our heritage and the investments made in recent years:

  • We have our roots in technology. Our clients have come to us when they needed technology that makes a real difference to their business. This has forced us to understand that there is always a business rationale behind every project. This understanding, combined with our in-depth technological expertise, remains crucial even in the age of AI. For whilst AI is good at translating well-defined technical requirements into code, it does not handle the fundamental architectural decisions that determine whether a system remains high-performing, stable and digitally independent in the long term. Anyone who sets a good context, defines the right parameters and understands what a system really needs to deliver still requires genuine technological expertise.
  • In recent years, we have invested in our understanding of the industry so that we can discuss our clients’ businesses with decision-makers on an equal footing. We work much more closely with our clients’ business challenges and are able to create value there.
  • We are undergoing the very transformation that we help others navigate. AI is also changing our own value creation – that is, how we work, how we deliver and how we think. This builds credibility.

Conversations naturally focus more on business, on transformation and on working together to identify where real value is created.

Complex transformation requires strong partners

Successful transformation requires an understanding of organisation, change management and the business, as well as in-depth technological expertise. This is also evident in the new projects we’re working on: How do I transform my workforce? How do I redesign workflows and processes? How do I rethink my entire organisation? These are very big questions, and the decisions that now need to be made are so complex and wide-ranging that we’re bringing in additional expertise to help.

That is why we have deliberately expanded and professionalised our partner network. We, too, seek out different perspectives and encourage openness, because that is what successful transformation requires. After all, no one has a monopoly on the truth.

Developing digital champions in the AI era

The current climate bears a strong resemblance to the founding of iteratec in 1996. Back then, software projects were going wrong left, right and centre. The industry’s instinct was to specify everything in even greater detail and to tie down every step in order to prevent failure through meticulous planning.

iteratec was founded as an alternative approach, because our founders believed in the iterative-incremental approach. Even back then, this approach required a clear focus on business value for the customer, as well as the courage and trust of our customers to break new ground. We are seeing this again today. Those who manage to rethink things will be the partners who guide companies through the greatest transformation in decades.

For iteratec, this means: we are not an IT service provider. For our clients, we are the business transformation partner who consistently puts technology at the service of business value.

Is your company ready for transformation in the age of AI?

We support companies in consistently translating technology into business value – from the initial assessment to implementation in day-to-day operations. Read more about this or get in touch with us now.