In The News

NASSCOM Defers Giving Guidance for a Quarter | In the News

By | In The News

Peter Bendor-Samuel, CEO of Everest Group, said, “I wonder if the industry deceleration we have been forecasting is catching them by surprise and they are getting feedback from the market that their original forecast is badly off. They may also be looking for a way to tell a better story given these challenging times. Another contributing factor to the uncertainty could be the pause in globalisation that is occurring as signalled by the new administration in the US and Brexit and they need more time to watch how this plays out.”

Read more at the Times of India

Outsourcing Trend Faces Challenges | In the News

By | In The News

H. Karthik, a partner at management consulting company Everest Group and leader of its global sourcing practice, said Duterte’s comments about a separation from the United States altered risk perceptions.

“No companies have publicly stated any significant changes in their Philippines strategy, but many of them are adopting a wait-and-watch approach,” he said.
Karthik compared that wariness about the Philippines to developments in other outsourcing locations, such as the political unrest in the Ukraine, Egypt, and Tunisia, and recent widespread public protests in Romania.

Read more at Treasury and Risk

IT May Struggle to Maintain Higher Margins as Uncertainty Looms Large | In the News

By | In The News

The $108 billion Indian IT services industry is bracing for tough times ahead as potential visa restrictions add to their troubles such as a shift towards automation and pressure on margins in traditional services. Technological disruption and faster-than-expected adoption of technologies like artificial intelligence, robotics and the cloud platform are other major challenges for the industry.

Read more at the Business Standard

As Automation Deletes Jobs From Indian IT Sector, ‘Reskilling’ Becomes A Major Focus Area | In the News

By | In The News
Peter Bendor-Samuel of consulting firm Everest Group estimates that 80% of offshore IT jobs and 30%-40% of finance and accounting jobs in India will be eliminated by robotic process automation, which is the application of technology to process a transaction and carry out other tasks.
“Across almost every service, we see the impact as eliminating between 30% and 80% of the full time equivalent working in the Indian services industry. We believe that it will take at least 10 years for the industry to reach the upper bounds of this range, and this adoption will shrink existing legacy book of business 3% or more this year,” said Bendor-Samuel.

IT Service Providers Prepare for Potential H-1B Visa Changes | In the News

By | In The News

Given the continued lack of clarity on changes to the H-1B program, the muted response of India’s IT leaders makes sense. “Everyone wants to avoid the attention of the new administration, and their stance reflects this,” says Peter Bendor-Samuel, CEO of outsourcing consultancy and analyst firm Everest Group. “This includes companies like IBM and Accenture which stand to benefit from the changes, but the being seen to utilize this might cause reputational damage in their client base and also make them a target for the administration.

Read more at It World

Obamacare Repeal could Hurt Indian IT Industry | In the News

By | In The News

The US is the biggest outsourcing destination with companies like Tata Consultancy Service, Infosys, Cognizant Technology Solutions and Wipro dominating this space.

Two years ago, a report quoting research firm Everest Group said US healthcare related contracts were expected to more than double to about $68 billion in 2020, from nearly $31 billion two years ago, largely due to Obamacare.

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