In The News Archives - Page 120 Of 213

Best of the Best: Everest Group Picks Top 5 Leading Vendors in the RPA Market | In the News

May 29, 2018

In a report identifying the top 18 top robotic process automation (RPA) vendors, Everest Group has named Automation Anywhere, Blue Prism, NICE, Thoughtonomy, and UiPath as the five market leaders.

The a Dallas-based consulting and research group’s highly respected “Product PEAK Matrix Assessment” for the industry noted that the standouts outperformed their peers in several key areas.

Time for a Locations Strategy Rethink | In the News

May 29, 2018

Multiple forces are driving unprecedented disruption in service delivery ecosystems, most notably market pressure, cost and margin tensions, and environment constraints. In the face of this upheaval, enterprises are increasingly leveraging their locations strategies to drive transformation and create differentiation. Everest Group digs deep into the research to offer five predictions on what all this means for locations strategy over the next few years.

Activist investor Elliott exits CTS | In the News

May 21, 2018

Activist investor Elliott Management has sold its entire stake in tech major Cognizant. According to the latest holdings information filed by the fund with the US SEC (Securities and Exchange Commission) on May 15, Cognizant does not figure in the list. Elliott Management held 1.12 million shares at the end of Q4 (October-December).

Peter Bendor Samuel, CEO, Everest Research group, says an Elliott exit would be welcomed by Cognizant. “Elliott’s demands to raise (profit) margins have created an unhelpful constraint on Cognizant at a time where margin flexibility is necessary to invest in the new digital business models. However, the damage is already done and Cognizant has already committed to the street that it will raise margins and so must follow through on the promise,” he said.

Genpact co may get Hexaware, Mphasis bids | In the News

May 18, 2018

Hexaware Technologies, Mphasis and L&T Infotech are among the potential suitors evaluating a bid to acquire IT services and consulting business Headstrong, put on the block by the NYSE-listed Genpact, people directly aware of the matter said.

US-based Everest Group’s CEO Peter Bendor-Samuel said the Headstrong acquisition has been problematic from the start as it did not have enough scale to succeed inside Genpact. It struggled with being a small IT fish in a large BPO pond. “It also had cultural differences and was focused in capital markets, which is not an area of strength for Genpact.”

Blockchain based professional network SpringRole raises $1.3 Mn | In the News

May 15, 2018

Blockchain based professional network SpringRole has raised $1.3 Mn in funding from AlphaBlock Investments, DNA (Brock Pierce and Scott Walker’s blockchain investment and consulting firm), Isaac Lee’s BlockWater and Wavemaker Genesis.

As per the Everest Group, the total Indian IT-BPO industry is valued at approximately $154 Bn annually and is expected to grow by up to 9% by 2019.

The year ahead for IT: Digital could separate the sheep from goats | In the News

May 2, 2018

The Indian software outsourcing industry is currently at an interesting crossroads. Later this week, there could actually be a reshuffle in the top slots, something that hasn’t happened in over five years.

This change comes even as these firms continue to grapple with the twin challenges posed by the maturing of digital technologies and increased pressure on margins.

“The large and scaled Indian base providers will continue to experience head winds as digital cannibalizes their legacy business and challenges their profit margins,” said Peter Bendor-Samuel, chief executive at research firm Everest Group.

Fresher-heavy talent pyramid of Infy heads to US | In the News

April 25, 2018

India’s second-largest software services exporter Infosys is taking its time-tested talent pyramid model — with a large base of freshers at the bottom — to the US where it plans to hire more than 10,000 people in two years.

Peter Bendor-Samuel, chief executive at Everest Group, however, expects the increased local hiring on-site to impact Infosys’ operating margin.

“I do not think that the hiring of US talent, which is replacing importing Indian talent, will better position Infosys or any other of the Indian firms in their ability to win business,” he said. “In fact the higher cost of this talent will negatively affect margins. We estimate that over time it is likely to cost Infosys up to 3 points of margin.”

TCS is now valued more than Accenture | In the News

April 25, 2018

Tata Consultancy Services (TCS) not only touched $100 billion in market capitalization on Monday, but it also in the process overtook the market cap of Accenture, a company whose revenue is almost twice that of TCS.

Rod Bourgeois, head of research in US-based DeepDive Equity Research, said that the root driver of TCS’s success is that it has built a position as the low-cost value player at scale – backed by the execution ability to maintain low costs while still delivering quality work. “This industry positioning by TCS supports good revenue growth, and this low-cost execution supports distinctive margins. Good growth plus distinctive margins over many years produces a huge market cap,” he said.

Peter Bendor-Samuel, CEO of IT consulting firm Everest Group, however, wonders if TCS’s valuation premium would persist over the next few years. Accenture, he said, is further along than TCS in its move into the new digital marketplace. “We anticipate that it will be difficult for TCS to maintain its traditional margins in digital as the business model as we understand it seems likely to demand lower margins. However, if TCS is able somehow to maintain the margin premium by some combination of IP ownership, and digital labour arbitrage, then it will be able to maintain its equity premium,” he said.

Infosys draws up a 4-pillar plan to meet clients’ needs | In the News

April 17, 2018

With its four-pillar strategy that pivots around “Digital”, Infosys is refocussing on its client’s needs and has chosen to shift away from products, which was Vishal Sikka’s legacy.

At its fourth-quarter results announcement, CEO Salil Parekh revealed the final contours of a four-pillar strategy, which to a lot of industry watchers had resembled predecessor Sikka’s gameplan.

So, what has changed? Jimit Arora, Partner, Everest Group, explained that as part of the strategy review, the leadership has been decisive in terms of what aligns with Agile Digital. In this regard, Skava and Panaya were not fitting in strategy and hence being divested. This clear articulation of what the company seeks going forward seems to have convinced industry watchers.

IoT finds a home in RPA technology | In the News

April 16, 2018

Robotic process automation, or RPA, is the use of software with artificial intelligence and machine learning capabilities to handle high-volume, repeatable tasks that previously required humans to perform. Simply put, RPA technology enables companies to automate manual processes across the enterprise using software robots, in turn reducing human error and saving money on labor. One key area where this sort of automation will make particular sense in the near term is configuring and managing disparate components of an IoT deployment.

Sarah Burnett, vice president of research at Everest Group, a consulting and research firm based in Dallas, said robotic process automation technology allows you to connect to systems through their user interface. That’s why it’s called robotic — it mimics what the human would do at the keyboard.

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Category: In The News