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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, www.everestgrp.com, 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

VaultSeal_2017

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

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Vault.com – 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 Vault.com
Vault.com 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
life sciences digitalization

Everest Group Identifies Pharmaceutical Firms Leading the Way in Digital Effectiveness | Press Release

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Adoption of digital is creating a new pecking order of technology savvy life sciences firms led by Astra Zeneca, Johnson & Johnson, Novartis, Pfizer, Roche and Sanofi.

Fewer than 15 percent of all life sciences transactions signed in 2015 had an element of digital services in their scope; nevertheless, digital technologies are the pivotal driver for life sciences companies as they restructure to become leaner and pursue agility in operations to drive new product development, according to Everest Group, a consulting and research firm focused on strategic IT, business services and sourcing.

To illustrate this point, Everest Group profiled 15 global pharmaceutical companies regarding their digital functionality and business impact. In “Life Sciences IT Industry: An Assessment of the Market Opportunity and APEX MatrixAssessment,” Everest Group identifies Astra Zeneca, Johnson & Johnson, Novartis, Pfizer, Roche, and Sanofi as industry leaders.

This new research from Everest Group indicates that the key market trends driving digital adoption include the rising number of “born digital” healthcare consumers, the need for operational efficiencies and cost optimization, and the movement towards data-driven, personalized, evidence-based medicine.

The life sciences industry’s data-rich environment (including scientific, clinical and operational data) coupled with its many market challenges make analytics a key lever to provide real-time, actionable insights and improve operational efficiency. Analytics presents value in three key areas for life sciences organizations: cost reduction, top-line growth, and risk and compliance management.

Driven by the focus on analytics and infrastructure services, recent life sciences ITO deals focus on datacenter, end-user computing, and databases/middleware services, as well as application, development and maintenance (ADM) and enterprise resource planning (ERP).

“Most of the 2015 IT outsourcing contracts in the life sciences that did include digital services, did so as an add on to existing contracts, with a focus on remodeling existing ADM agreements,” said Jimit Arora, partner at Everest Group. “Digitally native contracts in life sciences are still a rarity, but we will see an increase in these contracts in the future. In fact, the adoption of digital is creating a new pecking order of technology savvy firms, with those that successfully use digital technology to both drive internal operations and customer-focused channels—i.e., digital for efficiency and digital for growth—leading the way.”

Other key findings:

  • Market imperatives to drive 12 percent CAGR growth till 2020. The life sciences industry is in a “recovery phase” as it grapples with a multitude of challenges that are stifling R&D efficiency, changing the portfolio mix and increasing M&A/restructuring. To address the challenges, market participants are adopting technology as a means to enable quicker product development, better consumer connections and significantly improved time-to-value.
  • Growth is a key driver of digital investment. While efficiency and enablement of digital are aspects gaining primacy, the life sciences industry is focused on driving growth via digital channels, consumer engagement, and healthcare ecosystem collaboration.
  • Analytics and cloud are aspects that will drive most digital investments in the short term. When it comes to enabling a cohesive digital strategy, organizations are going to extensively leverage hybrid cloud models and focus on analytics (both prescriptive and predictive) to get to outcomes quicker

*** 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 changing value proposition in life sciences global services
  • On- and nearshore delivery on the rise in life sciences IT
  • IT opportunity in the life sciences industry
  • Digitization in life sciences IT contracts
Everest Group BPS Top 50

Everest Group Unveils 2016 Global Top 50 Business Process Services Providers | Press Release

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Xerox, ADP repeat their No. 1 and No. 2 rankings, respectively, and Accenture edges out Teleperformance to claim No. 3 ranking among world’s largest third-party BPS providers

Everest Group, a consulting and research firm focused on strategic IT, business services, and sourcing, has released the second annual edition of “The Everest Group BPS Top 50™,” a ranking of the world’s largest third-party providers of business process services (BPS). The list was launched in 2015 as the first of its kind for the global industry, which is valued at more than US$150 billion. The Everest Group BPS Top 50 ranks the largest BPS service providers by revenue and reports their growth and coverage cutting across geography,
domain and buyer size.

Everest Group estimates there are more than 200 service providers with more than US$50 million in revenues offering BPS services around the globe.

“This industry is vitally important to the global economy, but no reference point of leadership existed until we launched The Everest Group BPS Top 50 last year,” said Rajesh Ranjan, partner at Everest Group. “This ranking, the only one of its kind in the industry, helps enterprises identify the largest providers and their functional coverage, and it helps service providers compare themselves against others in the industry.

“Starting this year, we are also looking at key year-to-year changes in the list and offering associated analyses to help stakeholders understand the broad dynamics of growth and success in this industry.”

***A complimentary copy of the Everest Group BPS 2016 list and analysis is available for download here.***

Topping the 2016 list of BPS providers are these 10 leaders:
1. Xerox
2. ADP
3. Accenture
4. Teleperformance
5. Capita
6. Convergys
7. Arvato Bertelsmann
8. Paychex
9. Aon Hewitt
10. IBM

Other highlights:

  • The cumulative revenue of the providers in BPS Top 50 list grew by 5 percent year-on-year.
  • North American service providers continue to dominate the list, representing 60 percent of the BPS Top 50
    (up from 58 percent on the 2015 list).
  • The number of broad-based service providers in the 2016 list (as compared to specialists) grew over the 2015
    list, from 46 percent to 50 percent.
  • Among the specialist providers, the following ranked highest in their respective specialty area:

Human Resource Outsourcing:
1. ADP
2. Paychex
3. Aon Hewitt

Contact Center Outsourcing:
1. Teleperformance
2. Convergys
3. Atento

Document Management:
1. Williams Lea
2. Iron Mountain
3. Pitney Bowes

***Video: Watch “The Everest Group BPS Top 50 2016” on YouTube.***

Everest Group On Point Summit Series

Enterprise Sourcing Executives, Everest Group to Gather July 21 in NYC to Share Insights on Unlocking Outsourcing Value | Press Release

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Second event in “On Point | Summit Series 2016” to feature Rod Bourgeois of DeepDive Equity Research; topics will include sourcing models, next-generation IT, and contracting for business outcomes.

The global outsourcing industry has matured into a slower growth pattern, but strategic outsourcing solutions can still add dramatically more and different value to organizations. Discovering the keys to unlocking this outsourcing value will be the focus of the day as enterprise sourcing executives and senior leaders gather in New York City on July 21 at the On Point Summit to network and share insights on optimizing their global sourcing strategies.

The half-day summit—hosted by Everest Group and themed “Succeeding in Outsourcing 4.0: Imperatives for Strategic Sourcing Executives”—is a forum designed for enterprise attendees to learn from each other and featured industry experts and leading practitioners.

Special guest speaker, Rod Bourgeois, head of research and consulting at DeepDive Equity Research, will present, “What are the Winning Models? An Investor’s View.”

“We launched the ‘On Point | Summit Series 2016’ because our clients and others in the industry wanted a safe forum where they could exchange ideas with peers and engage with us in person,” said Eric Simonson, managing partner – research at Everest Group. “Based on feedback from our first event, our format of intimate interaction with peers, an opportunity to hear provocative thought leaders, and a chance to have detailed discussions with us on key issues is exactly what these business leaders are looking for. The takeaways from the event offer an excellent ROI on the time invested.”

The July 21 agenda will feature a panel of leading outsourcing practitioners who will engage participants in a lively discussion about incorporating next-generation capabilities into outsourcing solutions. Other highlights will include “Bring Your Own Topic” (BYOT) roundtable discussions and insights on contracting for business outcomes, offered by Everest Group.

Everest Group hosts for the event include Simonson; Jimit Arora, partner and leader of IT services – research; and Sarthak Brahma, vice president, pricing assurance – research.

This is the second installment of Everest Group’s by-invitation-only “On Point | Summit Series 2016.”  The first event, held in May, focused on emerging technology and talent trends in the banking, financial services and insurance industry. Guests enjoyed active dialogue with peers, insights from Everest Group research analysts, and a presentation by guest speaker, Chitra Dorai, IBM fellow and CTO of cognitive services, who shared her thoughts on “Cognitive Computing for Process Re-imagination in Financial Services.”

The third event in the “On Point | Summit Series 2016” will be held in October. Everest Group recently announced that, due to popular demand, the “On Point | Summit Series” will be extended with a full slate of events in 2017.

***Learn more and request to attend the July 21 event in the “On Point | Summit Series 2016” here. (Enterprise companies only; no service providers.)

Digital srvcs delivery global FTEs (004)

Everest Group Identifies Digital Sourcing Hot Spots | Press Release

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As the search for digital talent intensifies, Everest Group offers a “MAP” of the world’s top locations for digital service delivery

Where in the world is the best location for digital services? Enterprises need to know, says Everest Group—a consulting and research firm focused on strategic IT, business services, and sourcing—which is today releasing key insights from its recent research on top locations for digital services delivery, “Global Hotspots for Digital Services.”

“Global delivery has become talent-centric as enterprises, thinking beyond arbitrage and efficiency, intensify their search for digital talent to support digital business initiatives such as social and interactive, mobility, analytics, cloud, Internet of Things (IoT), robotic process automation (RPA), digital cybersecurity and more,” said H. Karthik, partner, Global Sourcing, at Everest Group. “As a result, the choice of locations for digital service delivery has become a key strategic decision and will become even more critical as the delivery of digital services witnesses robust adoption in the next two to three years.”

Everest Group estimates that the global digital services market is currently 300,000 to 350,000 FTEs strong and accounts for 5 to 7 percent of the global information technology / business process (IT-BP) industry. Going forward, Everest Group expects this share to increase owing to the faster annual rate of growth of the digital services market (14 to 18 percent) as compared to the overall IT-BP industry (7 to 9 percent) during the past four to five years.

Digital srvcs delivery global FTEs (004)

Key Findings:

– India is the largest destination for delivery digital services (accounting for approximately 55 percent of the market in terms of FTEs), driven by the availability of high-quality talent, synergies with existing sourcing operations in the area, and low operating costs.

– Onshore tier-two North America and tier-two Europe constitute approximately 24 percent of global digital FTEs and are important geographies for real-time innovation and speed-to-market for existing and next-generation digital technologies.

– Nearshore Europe constitutes approximately 14 percent of the global digital FTEs, attractive to buyers due to multilingual service delivery for social media, analytics and mobility services.

– Asia-Pacific (excluding India) accounts for approximately 7 percent of global digital FTEs, with selective evidence of high-end digital services delivery in cities such as Singapore, Beijing and Malaysia.

– Latin America is relatively less mature for digital services delivery as compared to India and Nearshore Europe; however, it is witnessing traction in supporting regional demand and also in providing medium-to-low complexity digital services to North America.

Everest Group also assessed the leading digital services delivery locations on the dimensions of talent and cost, and grouped them in its proprietary MAP Matrix™ according to maturity, arbitrage, and potential.

MAP Matrix (003)

– The cities of Bangalore, Mumbai and Hyderabad are clear Leaders.

– Major contenders include Manila, Prague, Sao Paulo and Dublin, which have sizable digital IT talent driven by cloud services.

– Aspirants are typified by Beijing, Buenos Aires, Kuala Lumpur and Krakow.