Press Releases

Press Releases

Future of Healthcare IT Outsourcing Market Hinges on US Election, Department of Justice Verdict | Press Release

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Healthcare payers choose wait-and-see strategy for mergers, health insurance exchanges; focus on security, integrated operations is full steam ahead

The outlook for the global healthcare IT outsourcing (ITO) market is hanging in the balance, with all eyes watching to see the outcome of the U.S. presidential election and the verdict of antitrust proceedings filed by the U.S. Department of Justice opposing the proposed Aetna-Humana and Anthem-Cigna mergers. Despite these uncertainties, Everest Group predicts that the global healthcare ITO market will exhibit a 12 percent compound annual growth rate during the period between 2014 and 2020, reaching US$68.3 billion in 2020.

“This growth, a bright spot in an otherwise bleak IT outsourcing marketplace, will be driven primarily by healthcare payers as they gear up for various movements in the market, such as payer-provider convergence, patient-centric care, evolving reimbursement models and value-chain digitization,” said Abhishek Singh, practice director with Everest Group and leader of Everest Group’s Healthcare & Life Sciences research practice. “Tactically, payers need to evolve on their sourcing maturity journey. The cost and efficiency mandate will be best served by sourcing the best quality services at the lowest possible costs. In this regard, the maturing technology service provider landscape is ripe for payers to explore outsourcing in a big bang manner.”

Everest Group has identified four trends that will shape healthcare IT outsourcing demand in the next 24 months:

  1. Large mergers are being pursued in the healthcare payer market. As noted above, two such mergers are being held at bay by the U.S. Department of Justice, with antitrust proceedings slated to begin on December 5, 2016. Should the mergers proceed, they will (after an initial lull in demand) increase the IT consulting spend for merger planning and integration projects. Subsequently, the mergers will lead to vendor consolidation as the surviving entity attempts to eliminate redundant IT systems and processes.
  2. Disillusionment with health insurance exchanges (HIXs) will impact spending in the near future. Already, several payers are seeking market exit options from the HIX business due to heavy losses sustained in the past financial year. The U.S. presidential election in November 2016 will shape the outcome. Democrats are promoting HIX; Republicans are opposing it. Many factors such as subsidies, premium rates and private participation hang in the balance. Everest Group believes HIX will survive; however, the shape and size of the program will be determined by the largest national plans and by the new US presidential administration. In the meantime, payers have adopted a wait-and-see approach with regards to expanding, withdrawing or investing in the HIX market.
  3. Security is a top priority for more than 90 percent of CIOs. This will drive the next wave of tech spending. Recent high-profile data breaches combined with a shift in the enterprise perception of threats have given renewed impetus to security and a stronger demand for ROI accountability.
  4. Integrated operations is the way forward for large healthcare IT outsourcing deals in the mid-market. Service providers who are able to guarantee financial outcomes and predictable spend for adoption of integrated applications, infrastructure and processes will win the favor of payers.

Each of these trends—how they came to be and the implications they hold for payers, service providers and consumers—are discussed in detail in “Healthcare Payer IT Services: Outsource (Offshore) or Perish.” In this annual report, Everest Group analyzes the current trends and future outlook of large, multi-year ITO relationships in the healthcare payer market. The report also provides specific insights into enabling a go-to-market strategy for healthcare IT.

Press Releases

High Growth of Property & Casualty Insurance BPO Market Spurs Investment in Value-Added Services | Press Release

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Healthy P&C Insurance BPO market has grown 17 percent since 2012 and is expected to grow 14 to 16 percent through 2017.

The global property and casualty (P&C) insurance business process outsourcing (BPO) market registered nearly 17 percent compound annual growth rate (CAGR) over the last few years to reach US$1.45 billion, according to new research from Everest Group. Amid political uncertainties in the United States (due to the presidential election) and the United Kingdom (due to Brexit), Everest Group expects the market to grow at 14 to 16 percent, reaching US$1.9 billion by 2017.

The growth potential of the P&C Insurance BPO market is highly attractive to service providers, but with over US$460 million up for renewals in the next three years, competition will become more intense. Everest Group advises service providers to differentiate themselves through specific value addition capabilities, particularly analytics, robotic process automation (RPA), and third-party administrator (TPA) capabilities.

  • Analytics: P&C Insurance BPO buyers are looking for a wide range of analytical capabilities, ranging from basic reporting-focused offerings to highly sophisticated predictive and prescriptive analytics solutions. Analytics solutions are particularly desired to address fraud identification and prevention. Fraudulent disclosures and claims amounted to 6 percent of total premiums in the United States in 2015.
  • RPA: P&C insurers are expecting service providers to offer RPA solutions that can automate rule-based processes. Automation solutions are being highly leveraged in claims processing as well as policy servicing and reporting, resulting in improved efficiency, faster processing, and higher accuracy. RPA can yield incremental cost reduction anywhere from 15 percent for offshore operations to as high as 45 percent for onshore operations.
  • TPA: Certain processes such as premium collection, claims adjustment and claims disbursement, particularly in the United States, require service providers to possess a TPA license for each of the states to be operational in. Service providers with TPA capabilities and relevant BPO experience will be able to offer end-to-end process coverage, including the complex pieces and therefore have a competitive advantage.

“Digitalization is another key driver that will impact this market,” said Skand Bhargava, practice director, Business Process Services, at Everest Group. “P&C insurers need to respond to the strong and growing consumer preference for digital channels, and most will turn to service providers to help them build multi-channel capability and improve time to market with these digital products and services. Digitalization is one more example of how service providers are progressively managing a larger part of the P&C value chain, far beyond claims processing.”

These results and other findings are explored in a recently published Everest Group report: “Property and Casualty Insurance BPO – Annual Report 2016: The Dawn of Transformational Era – Adapt and Evolve to Succeed.” This research examines the global non-voice, third-party, industry-specific P&C Insurance BPO. It provides detailed analysis of market size and growth, solution characteristics, emerging trends and the service provider landscape for the market.

Press Releases

Top Two Procurement Outsourcing Drivers: Cost Reduction, Analytics | Press Release

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Procurement outsourcing market matures, with buyers seeking more value, more innovation, broader scope from service providers.

The global multi-process Procurement Outsourcing (PO) market witnessed decent growth of 10 percent in 2015, reaching US$2.3 billion in size, led by strong adoption by North American manufacturing, consumer packaged goods (CPG) and retail segments, according to new research from Everest Group.

PO buyers cite cost reduction and analytics support as their two most crucial needs. In response, service providers are increasingly adopting robotic process automation (RPA) to usher in a new round of cost savings in such areas as administering purchase orders, invoice processing, fraud/duplicate payment detection, claims processing, and conducting arrears review. Similarly, buyers are increasingly asking for analytics solutions because they enable savings and minimize financial and operational risks. Typically, buyers lack in-house analytics capabilities, tools and expertise, so they are increasingly looking to service providers to plug this gap. Buyers list analytics expertise as one of the top three service areas in which they would like to see improvement by their outsourcing partner.

Growth in the PO market can also be attributed to an emerging trend of buyers seeking more end-to-end coverage. PO contracts are moving towards multi-tower scope, with an increasing inclusion of finance and accounting, supply chain management and human resources outsourcing processes in addition to traditional procurement processes. 

“Organizations are seeking to transition to a cost+value model of procurement outsourcing, where the entire procurement function shifts from an operational role to a business enabler role,” said Megan Weis, vice president, Business Process Services, at Everest Group. “Service providers play a key role in this transformation effort by providing best-in-class process efficiencies, technology solutions, and supplier relationship management that collectively contribute value far beyond cost arbitrage to the organization. Value-added contributions include risk mitigation, market intelligence, supplier-led innovation and faster speed-to-market of finished products.”

Other key findings:

  • Both organic and inorganic factors contributed to the growth in 2015; however, the organic activity (renewals, scope expansion) was subdued while inorganic activity (new deals) remained strong.
  • Strong evidence of service provider switching was observed, with growing termination rates and a fall in contract renewals.
  • Contractual activity rebounded in traditional industries such as manufacturing, consumer packaged goods (CPG) and retail.
  • In 2015, market activity picked up in the Small and Medium Business (SMB) segment and the mid-market buyer segment.
  • Adoption remained strong in North America.
  • Increasing investment by service providers to enhance category expertise has resulted in buyers becoming more comfortable with outsourcing additional categories.
  • The top five players (Accenture, Capgemini, GEP, IBM and Infosys) together account for more than 70 percent of the PO market.
  • Accenture and IBM continue to lead the market in all geographies and in all major industry segments except healthcare and pharmaceuticals, where GEP commands the top position.

These results and other findings are explored in a recently published Everest Group report: “Procurement Outsourcing (PO) Annual Report – 2016 – Analytics and Beyond.” This report assists key stakeholders (buyers, service providers, and technology providers) in understanding the changing dynamics of the PO market and helps them identify the trends and outlook for 2016-2017. The report provides comprehensive coverage of the global PO market including detailed analysis of market size and growth, buyer adoption trends, PO value proposition, solution characteristics and service provider landscape.

Press Releases

Everest Group Names Top 25 Healthcare Start-Ups of 2016 | Press Release

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Hot healthcare start-ups are driving disruption in a market craving innovation, witnessing a resurgence of investment activity.

From more than 200 healthcare start-ups, Everest Group has identified the Top 25 Healthcare Start-ups of 2016, based on criteria such as technology disruption, business disruption and market buzz.

“Although the investment climate has become more moderate in general, healthcare is witnessing a resurgence in investment activity, especially in the area of innovative care delivery,” said Abhishek Singh, practice director with Everest Group and leader of Everest Group’s Healthcare & Life Sciences research practice. “The healthcare market, particularly in the United States, suffers from issues of cost, access and quality. Stakeholders are trying to tackle those issues with technology solutions, which makes healthcare a fertile field for start-ups with fresh approaches, disruptive technologies and sufficient sources of start-up funding.”

From an initial long list of more than 200 companies, Everest Group identified a short list of 50 companies based in North America that were able to raise sufficient funds from the market. These 50 were assessed on the following evaluation criteria:

  • To what extent has the start-up addressed existing challenges through technology?
  • To what extent has the start-up created new channels via technology?
  • To what extent has the start-up transformed existing business functionality?
  • To what extend has the start-up created a new market or a new ecosystem?
  • How much trust have the investors shown in the start-up?
  • What kind of market recognition has the start-up received?

The “leader board” of the Everest Group list of hot healthcare start-ups comprises five highest-ranking companies in each of five focus-area segments:

Care financing:

  • Clover Health
  • HealthEdge
  • Oscar
  • Remedy Partners
  • Zipari

Care management:

  • Apixio
  • NantHealth
  • RedBrick Health
  • Sharecare
  • Welltok

Electronic health records:

  • CareCloud
  • Flatiron
  • Health Catalyst
  • PracticeFusion
  • Redox

Practice management:

  • Augmedix
  • Cureatr
  • Doximity
  • Vitals
  • ZocDoc


  • American Well
  • Doctor on Demand
  • HealthTap
  • Teladoc

Three new Market Insights™ published by Everest Group graphically depict these findings:


These high-resolution graphics are available for complimentary download and may be included in news coverage, with attribution to Everest Group.


A more detailed discussion about the ranking is available in “Hot Healthcare Start-ups: Dawn of a New World Order.” This report provides a detailed analysis of each of the 25 hot healthcare start-ups, including a business overview, leadership details, funding trail, disruptions across technology and business, and market buzz. The report also focuses on opportunity in the healthcare value chain, implications for enterprises and service providers, and an assessment of key investment markets.

Everest Group

Everest Group Celebrates 25 Years by Launching Improved Digital Client Experience | Press Release

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In celebration of its 25th anniversary, Everest Group announced today the relaunch of its digital platform, featuring enhancements to aid clients in moving from insight to action. The new website,, provides an improved user experience and additional thought leadership and insights for clients, prospects and other stakeholders such as media who would like to take advantage of the treasury of original research, thought leadership and case studies that Everest Group offers.

In addition, Everest Group’s new research report portal within the site provides 24/7 access to powerful search for all users and collaboration tools for clients with paid subscription access. Both will save users time and enhance their productivity by making relevant data easily accessible and actionable in just a few clicks.

Specifically, the new design includes these features:

  • An easily understood value proposition of Everest Group’s consulting, decision support and report offerings.
  • Specialized insights on sourcing strategies, locations, and models; on how to achieve complex business transformation, adopt emerging technologies; and, how to use disruptive business models as new sources of growth and competitive differentiation.
  • A wealth of resources, including blogs, Market Insight™ infographics, executive viewpoints, case studies and research reports.
  • A research report portal that allows users to search for reports on a granular level by topic, document type, analyst/author, geography, industry, and recently published. Much content is available on a complementary basis and also easily scanned with an improved PDF viewer. Clients with paid subscription access to Everest Group’s larger library of content can collaborate with their fellow team members, sharing content, ideas, and custom reading lists.

In addition, because the strength of a professional services firm is its people, Everest Group’s new digital platform features its consultants and analysts front and center on the site, with easy access to their biographies, photographs, videos and thought leadership.

“For 25 years, Everest Group has been helping our clients make well-informed decisions that that deliver high-impact results and achieve sustained value,” said Peter Bendor-Samuel, Everest Group founder and CEO. “The launch of our new digital platform reflects our continued commitment to that mission.”

Healthcare outsourcing BPO RPA

Robotic Process Automation Yields Cost Savings as High as 47 Percent | Press Release

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Healthcare Payers Turn to Robotic Process Automation to Control Costs

Robotic Process Automation (RPA) can yield incremental cost reduction in healthcare payer business process outsourcing (BPO) ranging from a low of 15 percent for offshore operations to a high of 47 percent for onshore operations, according to new research from Everest Group.

The cost reduction achieved through RPA depends on the existing state of healthcare payer BPO operations and can be 10 to 19 percent for balanced shoring operations. These are savings beyond labor arbitrage.

This boost in cost efficiency is one of the primary reasons healthcare payer BPO buyers are increasingly seeking automation solutions. Processes particularly ripe for the cost-saving potential of RPA include policy servicing and management, network management and claims management.

Driven by this demand, service providers are building capabilities in RPA, and adoption of RPA is rising, as an increasing proportion of new contracts signed have RPA in their scope. Specifically, the percentage of new, signed contracts that include RPA in their scope has increased from 7 percent in 2012-2013 to 14 percent in 2014-2015.

“The global healthcare payer BPO market is growing at a healthy pace of 15 percent and reached US$5.5 billion in 2015,” said Anupam Jain, practice director at Everest Group. “However, payers’ margins are getting squeezed, and they are looking for newer ways to boost profitability. Robotic Process Automation is making a notable impact on the industry in this regard, because it is a new lever to further reduce the cost of operations. We expect RPA to play an significant role in the future.”

Two new Market Insights™ published by Everest Group graphically depict these findings:
• Impact of RPA on healthcare payer BPO cost
• Inclusion of RPA in new contract scope is rising

These high-resolution graphics are available for complimentary download and may be included in news coverage, with attribution to Everest Group.

A more detailed discussion about the healthcare payer BPO market is available in “Healthcare Payer BPO—Annual Report: From Cost Reduction to Value-driven Outsourcing—Moving on Up.” This report provides a detailed analysis of the market size and growth, key drivers and challenges, solution characteristics, and the service provider landscape.

Additional complimentary Market Insight graphics stemming from this report are available for download here and include:
• Global healthcare spend
• Analytics on the rise in healthcare BPO in an effort to combat fraud
• Healthcare payer BPO market growth: past and future


Everest Group Ranked as a Top Consulting Firm to Work for by 2017 Rankings | Press Release

By | Press Releases | No Comments – a market research firm providing career intelligence and company rankings across multiple industries – has ranked Everest Group among its annual signature list of the top 50 consulting firms to work for. In its survey, currently employed consultants at reputable firms were asked to rate their firms on metrics that include satisfaction, culture, ability to challenge, compensation and overall business outlook.

The survey included both large and boutique firms. Everest Group, a boutique consulting firm, is ranked #44 on the list of top-rated performers.

Review the complete list and profiles of top-ranked companies.

About the Rankings
The Vault Consulting 50 for 2017 is based on a weighted formula that includes the following: prestige, satisfaction, compensation, firm culture, work-life balance, overall business outlook, promotion policies, and ability to challenge. The survey is only open to consultants who are currently employed at reputable firms in the industry. When rating quality of life issues, consultants are only permitted to rate their own firm. For prestige and practice area rankings, consultants are only allowed to rate competitors, and not their own firms.

About provides in-depth intelligence on what it’s really like to work in an industry, company or profession—and how to position yourself to land that job. Vault’s influential company rankings, ratings and reviews are sourced and verified through ongoing directed surveys of active employees and enrolled students. Vault also welcomes current and previous employees and students who were unable to participate in the surveys, to submit reviews on their experiences, salaries, interviews and more.

Digital GICs

Global In-house Centers Account for 25 Percent of Offshore/Nearshore Digital Services Market | Press Release

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Research reveals why GICs are well poised to support the enterprise with digital services

The criticality of digital services to the future of the enterprise is one of the reasons Global In-house Centers (GICs) are well positioned to provide those services. According to new research from Everest Group, enterprises tend to view GICs as more strongly integrated with the core business than other offshoring or nearshoring options. This explains in part why GICs represent 25 percent of the offshore/nearshore digital services market, and why that percentage is likely to grow.

Currently, analytics, cloud and mobility services are the predominant digital capabilities being provided by GICs. The banking, financial services and insurance (BFSI) sector leads in driving digital service adoption, followed by the technology and retail industries.

One of the biggest challenges faced by GICs in delivering digital services is acquiring digital talent. Everest Group suggests that GICs expand their acquisition of talent beyond traditional sources, improve talent retention endeavors, and enhance efforts to reskill and upskill talent to encourage progression along defined career paths.

Everest Group described these results and recommendations in detail in a one-hour, live webinar on August 10. The webinar, “GICs Drive Digital Transformation, Plus Market Vista™Q2 2015 Update,” also featured Everest Group experts sharing highlights of the global services market in Q2 2016.

***Download the complimentary presentation and attend the webinar on demand.***  (Note: download requires free registration on Everest Group’s research site or log-in using an existing account.)

“GICs are uniquely positioned to support their parent enterprises in their strategic digital journeys,” said H. Karthik, partner at Everest Group. “GICs typically have an established foundation with and an endorsement from their parent; they possess a significant pool of talent; they are tightly integrated with the core business; and they are highly focused and motivated to build internal innovation capabilities.

“One of the key challenges for GICs, however, is maintaining the talent pool,” Karthik continued. “We see best-in-class GICs going beyond traditional recruitment channels and leveraging alternate ecosystem routes to hire digital talent.”

Other Takeaways

  • Q2 2016 saw a stagnation of overall ITO demand, with the market being characterized by a shift from traditional services to digital technologies, DevOps, and as-a-service models.
  • Business process outsourcing (BPO) demand increased significantly in Q2, led by analytics and industry-specific business processes.
  • GIC activity was strong, with an increasing share of mid-sized buyers in new setups.
  • Location activity continues to grow in Asia Pacific and Nearshore Europe, with new center setups reaching an all-time high.
  • Brexit is likely to significantly impact the global services market in the UK and EU.
enterprise devops infrastructure

More Than 70 Percent of Enterprises Lack Infrastructure Designed to Support Agile, DevOps | Press Release

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Infrastructure as Code (IAC) offers DevOps a lifeline, but new research reveals that IAC is misunderstood by enterprises, resulting in underwhelming returns on IT infrastructure investments.

Despite extensive enterprise adoption of next-generation IT infrastructure concepts such as hybrid cloud, software defined infrastructure (SDI) and automation, 70 percent of enterprises still lack adequate processes to help developers self-provision IT infrastructure. Moreover, more than 70 percent of enterprises do not have an IT infrastructure designed to support Agile and DevOps methodologies, according to new research published by Everest Group.

This is an unfortunate trend in the infrastructures services market, which grew by only 0.6 percent in 2015, significantly lagging the overall IT services market growth of 3 percent.

One of the reasons enterprises are struggling with achieving IT infrastructure agility is the lack of understanding about Infrastructure as Code (IAC) or programmable infrastructure.

IAC offers DevOps a lifeline by providing a comprehensive approach for automating the end-to-end provisioning and management of IT infrastructure through code, which is built and maintained based on software development principle

However, the IAC concept and its true benefits are still not well understood by enterprises. In fact, many enterprises still equate IAC with traditional IT infrastructure automation, failing to realize that IAC takes a more holistic approach to provisioning and management of hybrid IT infrastructure and requires a careful revamp of tools, processes, and people.

“As enterprises increasingly leverage Agile and DevOps principles to launch products and services faster than their competition, the need for delivering a highly agile and consistent IT infrastructure has become the need of the hour,” said Yugal Joshi, practice director at Everest Group. “An IAC approach can help enterprises realize the true potential of DevOps, but because of misconceptions about what IAC is and what it entails, many enterprises are experience underwhelming returns on their infrastructure investments.”

A new Market Insight published by Everest Group—“Infrastructure as Code (IAC) – What It Is, and Why It Is Gaining Traction”— summarizes the objectives, benefits and business implications of IAC and dispels common misconceptions about the approach. This high-resolution graphic is available for complimentary download and may be included in news coverage, with attribution to Everest Group.

A more detailed discussion about IAC is available in “Infrastructure Services – Annual Report 2016: Infrastructure As Code – It’s Not Automation!” In addition to addressing IAC, this research deep dives into the IS landscape. It provides data-driven facts and perspectives on the overall market, covering IS adoption trends, demand drivers, buyer expectations and challenges, and trends shaping the market, and also provides an outlook for 2017.

Additional complimentary Market Insight graphics stemming from this report are available for download here and include:
• Global IT services market – Key geographies 2016
• Output-based pricing is now the norm in IT infrastructure services engagements
• IT infrastructure investments not reaping expected rewards
• Anti-incumbency high in IT infrastructure services deals

contact center outsourcing automation

Technology Investments, Onshoring On the Rise in Contact Center Outsourcing | Press Release

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CCO investments in technology and staffing are centered on the growing customer need for an integrated digital experience.

Technology is the leading investment theme in the contact center outsourcing (CCO) industry, followed by scale. Enabler technologies accounted for about three-fourths of the reported investments in 2014-2015, with analytics, automation, and multi-channel tools being the major areas of investments, according to new research from Everest Group, a consulting and research firm focused on strategic IT, business services, and sourcing.

“Contact centers across the world are moving into the digital era with a focus on enhanced customer experience in a multi-channel environment,” said Katrina Menzigian, vice president at Everest Group. “Service providers are responding by shifting their value proposition from the traditional, FTE-based focus on cost containment and implementation to an emphasis on providing insights and innovation to enhance the customer experience.”

Another aspect of the CCO market marking a notable increase in 2015 was onshoring activity, as buyers increased their focus on improving service quality and demonstrated a preference for agents located close to customers. In 2015, the percentage of CCO contracts with significant onshore delivery rose to 53 percent, as compared to 35 percent in 2010 and 49 percent in 2013. This trend also has led to the growth in adoption of a work-at-home agents model, which incurs lower operational costs than onshore full-time-equivalents (FTEs).

Otherwise, movements in the market were modest in scale. Experiencing a period of transition, the global CCO market grew at a rate of 4 percent in 2015 to reach US$75-78 billion. The global contact center spend stands at US$300-320 billion, of which third-party outsourcing accounts for approximately 25 percent.

These findings and more are discussed in “Contact Center Outsourcing Annual Report 2016: The Rise of Digital Contact Centers – Clear Evidence that Real Change is Underway.”

*** Download Complimentary, Publication-Quality Graphics Here ***

High-resolution graphics illustrating key takeaways from this research can be included in news coverage, with attribution to Everest Group.  Graphics include:

  • The benefits of automation in CCO
  • Digital initiatives changing CCO fundamentals
  • Why the CCO market continues to grow, but at a slower pace
  • CCO and the rise of onshore delivery