Innovations in professional services firms engaged in outsourcing of IT services

The objective of this thesis is to understand the unique features of Professional Services Firms and the challenges associated with effective knowledge management in these firms. A framework is developed to analyze innovations in this industry, based on: type and process of innovation, readiness of the firm for the innovation, alignment criteria, and the effect of the marketplace. Many firms are attempting to implement a Web 2.0-based knowledge management tool to institutionalize the knowledge of their employees. Cognizant is one of the very few who, at this writing, have rolled out a firm-wide Web 2.0-based tool. This innovation is analyzed through the framework, and recommendations are made for Cognizant and other firms in the industry seeking to harness the elusive-yet critical-tacit knowledge carried by employees, for competitive advantage.