What’s the difference between PwC Digital and PwC Labs in terms of work they perform for P&T? Is one of them supposed to be more external/client facing? Or are they more like competitors?

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My understanding is Digital typically focuses on our commercial products that are sold externally (or potentially can be in the future - e.g. maybe Concourse fits in this category?) and Labs typically focuses on internal-use technologies, low-code tools (Alteryx, MS Power Platform, etc), and other internal-use specialty tech teams (AI, emerging tech, etc). Digital is closer to revenue generation (typically partnering with consulting or segment), where Labs is more cost-saving through internal tech/automation.

Emphasis on “typically” - this split doesn’t hold true 100% of the time so I’m interested to read others’ thoughts on it. I’m expecting a few more small shuffles within P&T over the next year or two to get everyone aligned to pillars that make sense, but we will see.

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Generally agree with p1. Digital is focused on building revenue-driving Products. The key metrics for each Product is the P&L. Labs is focused on innovation without revenue expectations. Think of it as a…lab

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Predictions; Not much changes in FY24, good revenue growth but still many people doubting Digital / P&T. FY25, products start really hitting their stride in the market, Digital blows up to $1B and P&T dissolves/reorganizes to have Digital be its own distinct separate business unit with the other pillars funneling back into Business Services.

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I don’t even know if $1B is needed. I think the products need $300m of actual product enabled delivery. Not just tagged bs. But finding efficiencies enough that consulting partners realize they can get projects done quicker/more efficient or they can get recurring managed services. I don’t believe we will sell pure Saas for another 4-5 years. That is the point where the hockey stick profit curve will kick in.

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Thank you both for your answers! Follow up question. Is there any meaningful collaboration between the two? As far as I know there doesn’t seem to be a lot of joint ventures happening.

I haven’t seen much in my role. I’ve only seen collaboration between Labs and Digital in P&T-wide “non-day-job” things like women in tech or recruiting events.

Labs will be gone in a year. No meaningful progress from that group and it’s very top heavy and internally focused but most of the internal IT teams don’t partner with them either. Digital has some promise if they partner with Consulting and some of the products sell. Lean into Digital or get out of P&T like most of us are trying to do.

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