Peter Bendor-Samuel, CEO of Everest Group, said Infosys has had a lot of executive turnover and this fills the gaps that have been left. “Second, they may be handing out promotions in an attempt to stem the talent loss and the hope is that a promotion will keep key talent,” he said.
Overall, Argentina’s outsourcing, or “near-shoring” sector boasts 105,000-115,000 full-time equivalent positions (FTEs) in global services, according to industry tracker Everest Group. That makes it the leader in South America and only about 20,000 FTEs behind Latin America tech services leader Mexico.
Despite macroeconomic instability in recent years, Argentina continues to witness new center set-up activity,” said Salil Dani, Everest Group’s vice president of global sourcing.
In the last 24 months, 12 new outsourcing service providers have opened there, matching Mexico and more than doubling the pace in much larger Brazil, Everest data shows, although still well behind India.
As costs remain low and digital services continue to expand across the region, the Latin American IT services market is on track to grow at a steady rate. According to Prashray Kala, Practice Director at research firm Everest Group, the highest growth in the region is coming from the local, homegrown operations, while the second-highest is coming from global service providers, such as Accenture, HP, Infosys, and IBM. Global In-house Centers (GICs) are also seeing a little growth as they explore Latin America, but this is purely on a headcount basis. Read more.
Global in-house centers — wholly owned captive offshore operations that deliver offshore IT services to their parent companies — today provide a quarter of the offshore and nearshore digital services market, according to outsourcing research firm Everest Group. And that percentage is likely to grow as enterprise demand for digital transformation continues. “Global in-house centers (GICs) are typically more strongly integrated with the core business as they are perceived as an extended team of the parent or onshore organizations,” says Aditya Verma, co-director of Everest Group’s global sourcing practice. Read more.
The convergence of digital technology has enabled enterprises to use technology in new ways, moving beyond simply running the organization to creatively solving real business problems. In this environment, it is critical for enterprises to stay ahead of their competitors’ adoption curve, yielding efficiencies across the entire value chain, from back office to customer-facing. To understand the true nature of the adoption and use of these technologies within organizations in Europe, Everest Group undertook a survey with IT and business leaders in 100 European enterprises that have adopted or are considering adoption of three or more digital technology themes. Read more.
The latest report of analyst firm Everest Group shows that call service providers are adopting advanced technology solutions for local services in response to the needs of modern business and in order to save costs by targeting improving customer satisfaction. Read more.
Nearshoring is on the rise thanks to a number of reasons such as the affinity between British companies and their European peers and a pool of highly qualified workers. “With increasing digitalisation, we see nearshore locations being better equipped for some types of processes that require close cultural alignment with Western Europe”, says Sarah Burnett, vice president of research at the Everest Group. Read more.
Sarah Burnett, vice president of research at Everest Group, agreed that RPA can be less expensive than outsourcing. “We have estimates that show, in specific scenarios, if you deploy RPA in finance and accounting, you can save 60% to 67% on onshore costs and 20% on offshore costs,” she explained. Read more.
DevOps, which Wikipedia defines as “a culture, movement or practice that emphasizes the collaboration and communication of both software developers and other IT professionals while automating the process of software delivery and infrastructure changes,” will play a key role in digital transformation strategies for many companies, according to Everest Group’s annual report on application services.
Yugal Joshi, practice director at outsourcing consultancy Everest Group, expects most organizations to turn to service providers for help adopting SDE internally rather than use outsourced environments. Read more.