Category: In The News

Where are Financial Services Jobs Moving to? | In the News

The global financial services sector faces a series of new challenges, from the rapid adoption of automation, increasing regulation and Brexit to protectionist rhetoric in the US. This changing landscape means that traditional outsourcing models are under scrutiny, some roles may disappear and others are shifting to new parts of the world.

Globally, banking and financial services sector (BFS) companies signed US$4.9bn worth of IT and business process outsourcing (IT-BPO) contracts between Q4 2016 and Q3 2017, according to KPMG’s Global IT BPO outsourcing deals analysis. Figures from Everest Group Research reveal that global revenue from the IT-BPO market in BFS is between US$100bn and US$150bn. And the three key low-cost countries of India, the Philippines and Poland employ a total of between 310,000 and 850,000 people in BFS BPO alone.

Read more in The Journal of the Chartered Institute for Securities & Investment

Tech Sector Upbeat as All-Round Growth on the Way: Study | In the News

The technology sector is on a high as buyer markets and US and European economies are expected to boom. An across-the-board high growth is on the way that would virtually cover all market segments, said an Everest Group study.

The Dallas-based consulting and research firm spoke to 32 large global tech players, including lead Indian IT firms, to prepare a report on the market outlook for 2019. While 2017 delivered mid-single-digit results for revenue growth, 72 per cent of service provider respondents are confident that revenue growth will be significantly higher in 2018 and 2019.

Michel Janssen, chief research guru at Everest Group, told FC: “The challenges ahead for Indian providers will clearly be to find ways to help their customers in locations where talent is not available. There is a tonne of noise out there with things like Trump, China, Brexit etc…but reality is that businesses are adapting and just doing what they need to do in a high-growth market.’’

Read more in mydigitalfc.com

7 Keys to Transformational Outsourcing Success | In the News

With digital transformation all but mandatory across industries today, that innovation imperative is impacting every part of IT, including its outsourcing engagements. However, many CIOs are struggling to integrate third-party IT services deals into their long-term business strategies. Indeed, a recent Everest Group survey found that 61 percent of enterprises pursuing digital transformation were dissatisfied with their service providers.

More than a quarter of revenues for the top 20 outsourcing providers are generated by digital services, according to Jimit Arora, partner in Everest Group’s IT Services practice, with those markets growing as the traditional services market is shrinking.

Analysts See Infosys’ Digital Deals Hovering around $35 Million | In the News

Infosys’ digital deals remain small at $20-35 million as large contracts such as those won by Tata Consultancy Services and Wipro remain elusive, say analysts, attributing this primarily to smaller gains from its new technology platforms.

The company won $1.1 billion worth of deals in the fiscal first quarter ended June, but a majority of these were to build and maintain applications for clients, an area in which Infosys has built expertise over three decades. Infosys has not disclosed the sizes of its digital deals. TCS won its first $50 millionplus digital deal in the October-December quarter. Overall, the company secured five long-term deals worth more than $5.5 billion early this year, with nearly half of the work involving digital-technology based services.

“What we are seeing, to a large extent, is that Infosys is focusing on digital implementation deals that tend to be in the $25-40 million range,” said Peter Bendor-Samuel, chief executive of Everest Group, a global IT research firm and advisory. “They do not seem to be landing the mega deals… they don’t have the (intellectual property) platforms that TCS has and they are not leveraging their balance sheets as HCL (Technologies) and Wipro do.”

Read more in The Economic Times

Using Blockchain to Address Interoperability Concerns in Healthcare | In the News

Government and public health authorities are undertaking several initiatives to boost the health IT system, which in turn is expected to enable high-quality and personalized care. The main goal is to empower and educate consumers by equipping them with a real-time digital picture of their health. Electronic health record (EHR) adoption, which is the first step in realising this goal, has already gained momentum. The next step is to ensure a seamless flow of health information across stakeholders that will make the information usable and enable better decision-making.

Read the full article by Nitish Mittal and Mayank Thakur published by the International Biopharmaceutical Industry.

See the full publication here

Former Staffer Files Lawsuit against Infosys | In the News

Bangalore-based tech major Infosys is embroiled in a fresh lawsuit in the US. Anuj Kapoor, a former Infosys employee of the company, who worked on a project for CVS Health Corporation, a retail pharmacy and healthcare company based in Rhode Island, filed a suit against Infosys in June, alleging the company made him work more than 1,000 hours of overtime without any remuneration.

As per Peter Bendor-Samuel CEO of Everest Group, “Overtime is paid for hourly workers, salaried workers do not get overtime. Most of the employees of lead IT firms would qualify as salaried and hence not qualify for overtime. The type of hours described here makes me think that this and the other roles were in programing or system integration. Typically these roles are seen as salaried. There has been some move by labour unions to characterise these as hourly, but to date it has achieved little traction. I would note that in this case the Indian firms are well inside generally accepted industry practices and any change by the courts to this would impact all US firms.’’

Read more in mydigitalfc.com

Did Infosys CFO Exit over Financial Strategy Differences? | In the News

Infosys CFO MD Ranganath’s recent resignation took almost all by surprise — employees, clients and investors. The impact was such that the stock fell by over 3 per cent on the first day of trading after the news broke.

This led to conjecture — some wild, some prosaic – on what could have triggered the exit. The man in question is not speaking and neither is the company. The official position is that it is an amicable separation with the CFO staying for three months to help with transition and with ‘Ranga’, as he’s popularly called, quitting to pursue other opportunities, having been with Infosys for 18 years.

Everest Group CEO Peter Bendor-Samuel said, Infosys is on the horns of a dilemma with market and internal expectations to maintain their extraordinary margins while leading the industry in growth.

Read more in The Times of India

 

IDC Lists 3 Stages of Intelligent Automation Value Chain | In the News

The Everest Group Banking BPO Annual Report 2018 noted that 85% of banks surveyed as part of the study said digital transformation is a priority in 2018. However, only 19% are optimizing or integrating their front-, middle-, and back-office for true digital transformation.

One innovation that is garnering attention in this digital race is robotic process automation (RPA) with its promise of automating certain processes to allow for improve customer experience, greater operational efficiency and a greater sense of accomplishment for employees.

Read more in Enterprise Innovation

Where is the RPO Industry Headed? | In the News

Are organizations backing away from the traditional three-year RPO format?

If you follow the world of RPO, you may have noticed an interesting trend. According to the Everest Group’s annual report on the industry, the average deal length has been dropping, and for the first time since Recruitment Process Outsourcing emerged as a tool in the talent acquisition leader’s tool belt, it’s approaching just two years. Today buyers seem to be heading away from the traditional three year format.

Read more in Recruiting Daily

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