Category: Press Releases

Asia Pacific is the Region to Watch in Multi-process Human Resource Outsourcing | Press Release

In 2014, HR analytics moves beyond hype, Business-Process-as-a-Service gains traction in MPHRO 

DALLAS, OCTOBER 2, 2015 — The Multi-Process Human Resources Outsourcing (MPHRO) market continued its steady growth at the rate of about 4 percent to reach US$3.42 billion in annualized revenue in 2014. The biggest contributor to this growth was new deals, and, in this respect, the Asia Pacific region became the region to watch. More than half of the new deals had Asia Pacific in scope and more than a third got signed there, indicating increasing importance of this region in the MPHRO market.

From a technology perspective, Business Process as a Service (BPaaS) continued to be adopted aggressively by MPHRO buyers in 2014, due to increasing confidence in the model and the popularity of Software as a Service (SaaS) platforms such as Workday and SuccessFactors. HR analytics became mainstream, with many major players coming out with basic as well as advanced analytics-based tools.

“Adoption of third-party BPaaS solutions have been on the rise over the last few years, with Workday and SuccessFactors emerging as the key vendors,” said Rajesh Ranjan, partner at Everest Group. “In fact some MPHRO providers now have almost a third of their clients on one platform or the other. Mid- and large-size companies lead the way in adoption of Workday and SuccessFactors, with 70 percent of such deals in the developed markets of North America and Europe.

“Also, analytics isn’t hype in the MPHRO market. Organizations are demanding and major service providers are providing both basic and advanced HR analytics solutions across the HR value chain, encompassing such areas as performance management, employee satisfaction, retention and more,” Ranjan continued.

These results and other findings are explored in a recently published Everest Group report: Multi-Process Human Resources Outsourcing (MPHRO) Annual Report – Transition to Changing Realities.

This report provides a comprehensive coverage of the MPHRO market and analyzes it across various dimensions such as market overview & key regional trends, buyer adoption & solution trends, and service provider landscape. 

Other key findings in the report:

• New deals, mid-tenure scope expansions, and renewals emerged as the major drivers of growth in the market
• HR analytics became mainstream with many major players coming out with basic
• The top five MPHRO providers continue to dominate the market, both in terms of revenue and number of active deals
• However, Indian-heritage providers have been steadily increasing their share of new deals signed in the market
• Strong implementation capability, change management support, and relationship management besides SMAC, act as differentiators in the market

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• Multi-process HRO goes global
• BPaaS in Multi-process HRO
• Multi-process HRO ACV grew by 4 percent, but…
• Multi-process HRO market share
• Key HRO service provider differentiators

North American Enterprises Spend 2x as Much on Efficiency-Focused Tech Than on Marketing-Focused Digital Solutions | Press Release

NA enterprises embrace digital adoption far beyond enabling customer-facing functions.

DALLAS, September 30, 2015 — Although “digital customer interaction” is all the rage in business IT conversations today, new research from Everest Group—a consulting and research firm focused on strategic IT, business services, and sourcing—indicates that North American enterprises are applying digital technologies to solve business problems across all enterprise functions, not just sales, marketing and customer support.

“Most of the hype around digital services and solutions appears to be pivoted around the CMO suite and marketing-oriented applications; however, in reality, digital adoption is much more inclusive and pervasive in nature,” said Chirajeet Sengupta, vice president at Everest Group. “Enterprises look at an array of technologies to support and augment digital functionality across the entire scope of business processes.”

In fact, North American enterprises spend twice as much on digital technology to improve the efficiency of back-office and mid-office processes than they spend on technology that supports market-facing, front-office processes. Everest Group identifies the former as “Digital for Efficiency” or “DfE” and the latter as “Digital for Growth” or “DfG.” On average, North American enterprises spend 47 percent on DfE as opposed to 24 percent on DfG.

“So, digital transformation is not only about digital marketing or changing the business model from brick and mortar to online,” continued Sengupta. “Digital transformation also applies to global procurement and supply chains across retail, manufacturing, and oil and gas companies around the world; to professional service companies that are transforming the way they engage, hire, reward, and retain talent; and to call centers using analytics to predict staff attrition, to name just a few examples.”

These findings and more are discussed in Everest Group’s recently released report, North American Digital Adoption Survey—How Pervasive is Your Digital Strategy?

This report analyzes digital adoption among 120 North American enterprises and provides insight on their adoption maturity and allocation of digital spend. The research identifies four distinct market segments and maps their adoption behavior. It also highlights key implications for North American enterprises and service providers serving this market. 

***Download Complimentary 12-page Preview Report Here*** 

Key findings from the report include the following:

• North American enterprises display a high degree of adoption maturity for digital services. Enabling technologies such as cyber security and infrastructure as a service (IaaS) have witnessed the most adoption. Nearly three-fourths of the enterprises have adopted core digital themes such as analytics and mobility related initiatives.
• Enterprises focus their digital investments on Digital Enablement (i.e., optimizing existing IT environments), Digital for Efficiency (DfE) and Digital for Growth (DfG).
• Based on their DfE and DfG orientations, North American enterprises are divided into four distinct segments, which differ significantly in maturity and allocation of digital spend across business imperatives.
• After an initial “honeymoon period” when enterprises start their digital journey, many experience a “digital trough” when optimism, management buy-in and budget availability dips. Among North American enterprises seeking to adopt digital meaningfully, 43 percent are currently facing these challenges.

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• Digital investment strategies in North American enterprises
• Digital adoption: a definitional framework
• Digital investment imperatives: efficiency or growth?
• The digital adoption journey
• Dispelling digital myths
• Digital investments: perception versus reality
• Digital investment priorities in North American enterprises

Everest Group’s Inaugural PEAK Matrix™ Report on Big Data and Analytics Innovation in Life Sciences IT Outsourcing Published | Press Release

Accenture, Cognizant, Deloitte and IBM identified as Leaders in the report; Analytics enablement still an aspiration for most life sciences firms

DALLAS, September 23, 2015 — Big data and analytics in life sciences is moving beyond traditional data management and reporting to insights-driven decision making with tools for predictive and prescriptive analytics—but it is a slow evolution.

One in every four life sciences IT outsourcing (ITO) transactions in 2014 had an element of big data and analytics in scope, primarily as an add-on service with traditional IT services. The scope predominantly revolved around conventional analytics services such as data warehousing and basic reporting. Only one in five life sciences ITO deals comprised advanced analytics services such as predictive analytics, reflective of the fact that true analytics enablement is still an aspiration for most life sciences firms.

“Evolving consumer engagement models and rising business complexities have led the life sciences industry to make advances in data-driven business decision making,” said Abhishek Singh, practice director at Everest Group. “However, stakeholders are still a long way from realizing the true value of data, as the focus remains largely on sales and marketing analytics. In this situation, engaging ‘non-CIO’ buying centers, such as COO, CMO, CPO and CDO, will be key for service providers to demonstrate the enterprise-wide value of big data and analytics.”

Everest Group—a consulting and research firm focused on strategic IT, business services, and sourcing—reports that pharmaceuticals firms accounted for over half of the big data and analytics transactions in 2014, with increasing traction for services around data mining, warehousing and curative reporting. Medical device and biotechnology firms are catching up with analytics adoption, primarily exploring these tools for the optimization of manufacturing and supply chain processes. 

These findings and more are discussed in Everest Group’s recently released report, Life Sciences Big Data and Analytics IT Services – Service Provider Landscape with PEAK Matrix™ Assessment 2015.

***Download Complimentary 4-page Preview Here***

This inaugural report provides a comprehensive assessment of the service provider landscape for big data and analytics IT services in the life sciences industry. It maps 18 leading service providers on the Everest Group PEAK Matrix, which is a composite index of a range of distinct metrics related to a service provider’s capability and market success. The report also provides an overview of the extent of big data / analytics adoption across the life sciences value chain, drivers of adoption, deal trends, evolving definitions, and focus of investments. Moreover, based on its research findings, Everest Group includes in this report business strategy recommendations for buyers and service providers to consider.

In the market for big data and analytics IT services for life sciences, Everest Group identified four Leaders: Accenture, Cognizant, Deloitte and IBM. Leaders are at the leading edge of big data and analytics innovation. They combine consulting expertise with cutting-edge solutions to enable insights-driven decision making among life sciences stakeholders.

Major Contenders comprise Capgemini, CGI, CSC, Dell Services, HCL, HP ES, Infosys, NTT Data, TCS, Teradata and Wipro. Major Contenders have robust ongoing investments in ramping up capabilities along the life sciences value chain, with a distinct focus on “run the business.”

Aspirants include EPAM, IGATE and Tech Mahindra. Aspirants are attempting to evolve a life sciences-specific value proposition, choosing either to extend broad-based offerings or carve out a niche in particular opportunity areas.

About the PEAK Matrix™

The Everest Group PEAK Matrix is a proprietary framework for assessing the relative market success and overall capability of service providers based on Performance, Experiences, Ability and Knowledge. Each service provider is comparatively assessed on two dimensions: market success and delivery capabilities. The resulting matrix categorizes service providers as Leaders, Major Contenders, and Aspirants. Companies that demonstrate strong upward movement in successive reports are recognized as Star Performers. Everest Group recently announced a recalibrated methodology, in which innovation, intellectual property and technology take center stage.

Everest Group Expands Latin America Presence via Agreement with MVD Consulting | Press Release

Latin America gains access to world-class ITO and BPO sourcing research that helps improve competitive decisions 

DALLAS and MONTEVIDEO, Uruguay, SEPTEMBER 15, 2015 —Everest Group will expand its Latin American presence via a joint agreement announced today with MVD Consulting. The agreement provides regional consumers and providers of sourcing services with access to sourcing research content and insight from Everest Group.

Everest Group is a US-based global consulting and research firm, focused on strategic IT, business services, and sourcing. MVD Consulting is a leading regional business consulting firm with a focus on globalization and operational optimization for companies in the Latin American market. The agreement comes as firms operating in the region—both global and those based in Latin America—increasingly seek to boost reach and efficiencies.

Reports and other joint consulting services are available immediately by contacting either Everest Group or MVD Consulting.

The partnership will bring research offerings from Everest Group—including Market Insights™, PEAK Matrix™, Market Vista™, and customized reports—to the region via the local touch and reach of MVD Consulting. Local service providers will be able to access and consult on a variety of research topics and global data, including pricing, which will enable them to better compete in the marketplace. In turn, enterprise buyers will have access to the powerful combination of leading research insights and local advisory services to better manage their sourcing needs and current contracts.

“We are excited about our partnership with MVD Consulting, an established firm with an excellent reputation in Latin America. We believe our research can help providers and enterprises make high-impact decisions and support the continued growth of the Latin American global services market—and MVD Consulting is the right partner to deliver our insights to the region,” said Eric Simonson, managing partner of Everest Group.

“Hundreds of outsourcing providers from Latin America will be able to plan better with Everest Group’s research and MVD Consulting’s local best-in-class advisory services. Our clients will be pleased to have an additional source of information for fact-based, smart planning, as well as customized information, at a reasonable price. And those who consume sourcing services now will have stronger information to enhance their processes, costs, and forward planning,” said Martin Bouza, MVD Consulting co-founder and lead of the Operational Optimization practice.

About MVD Consulting
MVD Consulting helps companies of all sizes and their management teams achieve an agile growth, understanding and maximizing the benefits that come with globalization by working together with them in main areas like Globalization Strategies and Operational Implementation. Our team has extensive seniority and regional knowledge on both sides of the equation, helping vendors as well as consumers with a Spark of Change. We base our process on high quality research and data, add strong experience from our diverse industry practices and provide advisory actions that are real and possible to implement. We also support Government organizations and multilateral agencies that require strategic advisory to foster services industries in Latin America. More can be found at http://www.mvdconsulting.com.

Recruitment Process Outsourcing Market Growth Steady at 13 Percent in 2014 | Press Release

With 70 percent of total active RPO deals reaching end of term within three years, intense competition requires focus on deepening capabilities and greater innovation 

DALLAS, SEPTEMBER 9, 2015 — Recruitment Process Outsourcing (RPO) continued its momentum and grew at 13 percent in 2014 to cross the US$2 billion mark in annualized spend. This relatively modest overall growth rate reflects a sluggish 6 percent growth in North America, the largest RPO market segment, buoyed by the Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC) markets, which grew at 21 percent and 31 percent respectively.

“As the RPO market matures, it is becoming more broad-based,” said Rajesh Ranjan, partner at Everest Group. “We are seeing significant deal activity in emerging RPO markets of Continental Europe and Asia-Pacific beyond traditional markets of U.S. and UK. Also, we’re seeing greater RPO adoption in some of the non-traditional industries, such as travel and hospitality.”

The competitive landscape for RPO service providers remains intense, with 70 percent of total active deals expected to witness end of term in the next three years. Competitors are predominantly segmented by geography. While service providers are making significant advancements in multi-country capabilities, there are still very few “truly global” players. Fierce competition is compelling market evolution: advanced pricing constructs and value-added services, including analytics, are coming into play, and service providers are expanding their capabilities across all types of hires to increase their market share.

These results and other findings are explored in a recently published Everest Group report: Recruitment Process Outsourcing (RPO) Annual Report 2015 – Broader adoption, Deeper execution, Greater innovation.

This report provides comprehensive coverage of the RPO market across dimensions such as market overview, key business drivers, buyer adoption trends, solution and transaction trends, recruitment technology trends, and service provider landscape. 

Other key findings in the report:

• There is a steady increase in the offshore play in RPO. With increasing maturity, global sourcing in RPO will move towards an “ideal” model that balances cost with quality of service
• With growing maturity of the RPO market, numerous add-on / peripheral recruitment tools (especially analytics solutions) are being introduced in the market that enhance the recruitment value chain
• In addition to that, value-added recruitments services, such as employer branding and talent communities, are increasingly becoming table stakes and play an especially important role during renewals
• The market is also evolving in terms of more advanced and outcome-oriented pricing constructs and SLAs, wherein the buyers exercise greater control and the providers’ interests align with those of the buyers
• The competitive landscape continues to remain intense, forcing the service providers to continually bring in greater innovation in their solution elements so as to remain relevant

***Download Complimentary 10-page Preview Report Here*** (Registration required.) This preview summarizes the report methodology, contents and key findings and offers additional resources for further study.

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

• RPO: A market in flux
• RPO market geography
• RPO gaining traction in emerging markets

Investment Banks Turning to Technology and Analytics to Manage Risk and Compliance via Capital Markets BPO Deals | Press Release

Strong growth of 20 percent driven by need to minimize costs of regulatory compliance. 

DALLAS, SEPTEMBER 8, 2015 — Third-party business process outsourcing (BPO) in the capital markets industry reached the US$1.7 billion mark in 2014, growing at a compound annual growth rate of 18 to 20 percent over last four years. This high growth rate was driven by the investment banking segment. Propelled by regulatory compliance initiatives, these financial institutions are increasingly turning to third-party providers as they seek to manage risk at the lowest possible cost.

Geographically, North America and the United Kingdom are the major growth drivers in the capital markets BPO industry, both characterized by substantial size and above-average growth rates.

“As for the future outlook for capital markets BPO, we highlight two trends likely to have significant impact,” said Rajesh Ranjan, partner at Everest Group. “The first pertains to effective leverage of technology. As the cost to maintain legacy systems rises and the associated benefits dwindle, buyers will more actively look towards replacements and platform-oriented solutions. However, the transition cycle is likely to follow a varied timeline for different segments – wealth management and brokerage are likely to lead.

“Secondly, the evolving regulatory landscape, especially in Europe—as most U.S. regulations are already in effect—also will have a significant impact on how financial institutions define their outsourcing strategies and capitalize on third-party relationships.”

These results and other findings are explored in a recently published Everest Group report: Capital Markets BPO Annual Report 2015 – Technology and analytics helping banks manage risk and compliance.

This report provides an overview of the capital markets BPO space, with a focus on market size and growth, buyer adoption trends, solution characteristics, and the service provider landscape. 

Other key findings in the report:

• Investment banking continues to be the largest segment within capital markets BPO and is also growing the fastest
• The leveraging of technology solutions, including platforms, is experiencing an uptick, especially from small-sized buyers
• Only a handful of service providers have a well-diversified scope, indicating a higher demand for specialists in this industry
• In terms of market share by revenue, Avaloq, Cognizant, Syntel, TCS, and Xchanging are proximate leaders in the industry, but each has unique areas of focus and strengths 

***Download Complimentary 10-page Preview Report Here*** (Registration required.) This preview summarizes the report methodology, contents and key findings and offers additional resources for further study.

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

• Regulatory changes around the globe are driving high growth in capital markets BPO
• Four key factors affecting capital markets BPO

Significant Increase in Outsourcing Volume from North America in Q2 Reversing Previous Trends | Press Release

Although global outsourcing market remains sluggish, enterprises, GICs and service providers increase investment in digital

DALLAS, September 1, 2015 — North America witnessed significant increase in both volume and relative share of global outsourcing contracts in Q2, driven by growing demand from public sector, healthcare, and mid-sized banking and financial services organizations. The global outsourcing industry in Q2 witnessed multiple instances of M&A, restructuring, and partnerships, as service providers looked to revamp their business model.

New GIC set-ups continued to grow—particularly in manufacturing, technology and telecom—with GICs playing a key role in enterprise digital transformation efforts. GICs and service providers alike are increasing leverage of start-ups to drive disruptive innovation in data integration, mobility solutions, big data analytics, and cyber security, as well as customer service improvement initiatives, marketing solutions, and efficiency improvement measures.

These results and other findings are explored in a recently published Everest Group report: “Market Vista™ Q2 2015.”

The report includes data, analysis and insights on transaction trends, major outsourcing deals, global in-house center market dynamics, trends in emerging offshore destinations, and service provider developments. The report also includes Standard Locations Database, which tracks 23 leading offshore locations

Other Key Findings:

• Despite significant increase in deal volume from North America, overall outsourcing market growth continued to remain sluggish due to weak activity in Europe.
• There is growing leverage of the GIC model to drive the digital transformation agenda for the enterprise.
• Europe continues to lead Asia in terms of new center set-ups for the second consecutive quarter given increasing preference for nearshoring by European enterprises.
• New center set-ups are shifting towards tier-1 cities across regions, driven by the profile of companies setting up new GICs and the nature of functions (i.e., engineering services / R&D, analytics).
• Most providers reported sequential fall in revenue, impacted by significant currency fluctuations; however, a few offshore players reported revenue growth.
• All major providers continued to face pressure on operating margins; the margins are expected to be impacted by currency fluctuations in the near future.

“Amid overall sluggish growth in the outsourcing market, we see some interesting shifts in the industry, particularly with respect to locations,” said Salil Dani, vice president at Everest Group. “New center set-ups are shifting towards tier-1 cities, Europe has overtaken Asia in set-up activity, and North America’s share of outsourcing transactions is growing, reversing a previous downward trend.

Among key trends to watch in the second half of the year are increasing investments in digital by all industry players and a surge in onshore locations for voice services. Among GICs, we’ll see an increasing emphasizing on top-line growth initiatives and the exploration of partnerships with start-ups to drive innovation.”

***Download the Complimentary 12-page Select Findings Here*** (Registration required.) This summary highlights key findings through text and graphics, with details provided on focus topics and selective themes.

***Webinar Replay***

Sign up here to download the presentation or listen to a recording of the Everest Group webinar “Global Services Development in H1 2015 and Key Trends to Watch: Market Vista Briefing.” The webinar features Everest Group experts discussing key market developments in H1 2015 and four key trends to watch.

***Additional Resources*** (Registration required to download complimentary content.)

• Market Vista™ Q1 2015
• Webinar: “Domestic Sourcing: Good to be Home! Plus Market Vista Q1 2015 Global Services Updates”
• Webinar: “GIC-Service Provider Collaboration: Does it Take Two To Tango?”

About Everest Group

Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at www.evererstgrp.com and research.everestgrp.com.

Value of IT Outsourcing Deals in Capital Markets Drops 28 percent in 2014 | Press Release

High cost pressures, market uncertainty drive number and value of large application outsourcing deals in capital markets to five-year lows. 

DALLAS, AUGUST 25, 2015 — In 2014, key indicators in the capital markets IT outsourcing segment reached five-year lows as firms struggled with high cost pressures, regulatory burden, and market uncertainty. Everest Group—a consulting and research firm focused on strategic IT, business services, and sourcing—reports that the number of new, large application outsourcing (AO) deals in capital markets dropped 58 percent, while the average total contract value (TCV) dropped 28 percent.

Within the Banking, Financial Services and Insurance (BFSI) sector—which continues to be the leading adopter of IT outsourcing—the share of capital markets deals declined significantly in 2014 (from 32 percent share to 14 percent share) and average Annual Contract Value and average TCV of capital markets deals lagged that of banking and insurance.

Nevertheless, capital markets AO revenue for 24 leading service providers grew strongly at 14 percent over the last three years, as clients rationalized spend among fewer providers. The key drivers for future growth will be investments in risk and regulatory compliance management solutions, automation, legacy modernizations, big data (especially for risk and collateral management), and utility services for reconciliation and trade processing.

“The capital markets industry is grappling with high regulatory pressures, intense competition and an uncertain economy, and these pressures are changing the profile of the IT investments in the sector and driving a more focused sourcing agenda for capital markets firms,” said Jimit Arora, vice president at Everest Group. “Therefore, the implications for service providers are to tailor their offerings with next-generation technologies and offer utility-based services. They should also look to collaborate with clients to invest in innovation and form alliances with leading platform providers.”

These results and other findings are explored in a recently published Everest Group report: IT Outsourcing in Capital Markets—Annual Report 2015: Steering Through the Chaos.

This report provides an overview of the AO market for the capital markets industry, through an in-depth analysis of large-sized AO contracts. The report analyzes key trends in market size and growth, demand drivers, adoption and scope trends, emerging priorities for buyers, key investment themes, and future outlook for 2015-16. 

Other key findings in the report:

• The BFSI sector continues to be the leading adopter of IT outsourcing. Banking remains the largest subsector, followed by insurance and then by capital markets.
• The total number of BFSI IT deals announced in 2014 declined by 5 percent as compared to 2013; the total value of publicly announced BFSI IT contracts declined by as much as 43 percent during the year.
• Strong decline in cumulative TCV of BFSI ITO contracts was primarily driven by reduced IT spending by capital markets and insurance buyers.
• Regulatory compliance and analytics/data management continued to be the top investment priorities for capital markets firms. Adoption of mobility in wealth management and shifts toward cloud also factored into investment priorities.
• Fixed-price engagements continue to be the most popular, as capital markets buyers preferred predictability in an uncertain regulatory environment. Demand for output-based pricing models remained flat at 4 percent, as both buyers and service providers were uncertain on the output of their experimentation with next-generation technologies.
• More than 75 large AO capital markets deals with TCV of US$8.3 billion are coming up for renewal in the next five years. 

***Download Complimentary 15-page Preview Report Here*** (Registration required.) This preview summarizes the report methodology, contents and key findings and offers additional resources for further study.

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

• Capital markets ITO buyers favor the fixed-price model
• Key investment themes in capital markets AO
• Capital markets ITO buyers trends and implications for service providers

40 Percent Growth in Life Sciences IT Outsourcing Masks Underlying Barriers to Digital Transformation | Press Release

Life sciences stakeholders must adopt integrated services strategy and transform their entire stack of services so that full sourcing portfolio works in tandem. 

DALLAS, AUGUST 18, 2015 — Having recovered from a sharp dip in 2013, the life sciences industry witnessed robust growth in ITO deals in 2014—with over 40 percent year-on-year growth in number of transactions—as business challenges triggered the demand for services such as analytics, data management and infrastructure services.

This impressive growth of digital initiatives in the life sciences industry has been heavily weighted towards overhauling the fundamental consumer engagement model, as companies pursue digital solutions for educating, engaging and monitoring healthcare consumers.

Meanwhile, however, digital transformation of internal operations remains a nascent domain. Stakeholders are yet to realize the cost-savings potential of applying digital technology to internal operations, particularly in areas such as sales enablement, clinical trials automation and internal analytics.

In the long run, successful digital adoption in the life sciences industry will require stakeholders to transform their entire stack of services and adopt an integrated services strategy.

These results and other findings are explored in a recently published Everest Group report: IT Outsourcing in the Life Sciences Industry—Annual Report 2015: Integrated Services Strategy in the Age of Digital.

“Life sciences firms tend to struggle with digital enablement due to factors such as a fragmented service provider landscape and non-standard internal structures,” said Jimit Arora, vice president at Everest Group. “In this situation, leaders need to chalk out a digital strategy that lays down clear guidelines for standardization, outcome tracking and accountability, while ensuring seamless coherence between internal teams and service providers. Digital enablement of the life sciences value chain will require operationalizing an integrated view of the entire stack of services—processes, infrastructure and applications.”

This report focuses specifically on how digital transformation is panning out in the life sciences industry and the need for an integrated services strategy for true digital enablement. The report also provides an overview of the ITO market for the life sciences industry. Analysis includes market size & growth, forecasts (up to 2020), demand drivers, adoption & scope trends, key areas of investment, and implications for key stakeholders. 

Other key findings:

• The global life sciences ITO market specifically is expected to grow 9.6 percent from US$11.4 billion in 2014 to US$21 billion in 2020.
• Small transactions (total contract value less than US$25 million) continued to account for the major share of contracts, as smaller life sciences firms held sway.
• The ever-evolving regulatory environment kept life sciences firms from committing to large technology engagements and drove down deal values.
• North America and Europe dominated the transaction landscape in 2014. Also, mid-sized pharmaceutical and medical devices firms (revenue US$10-50 billion) accounted for majority of the transaction activity.
• 2014 witnessed a record number of new drug approvals, attributable to revised FDA policies and increasing focus by life sciences firms on innovation. 

***Download Complimentary 12-page Preview Report Here*** (Registration required.) This preview summarizes the report methodology, contents and key findings and offers additional resources for further study.

*** Download Publication-Quality Graphics ***

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

• Healthcare ITO buyers show affinity for shorter duration contracts
• Life sciences ITO service providers looking near and far to optimize delivery
• The digitization of the life sciences industry

Everest Group Identifies Digital Banking Leaders with New APEX Matrix™ | Press Release

Bank of America, Citibank and Wells Fargo lead US Market in Digital Effectiveness; Barclays, HSBC, Lloyds Bank, and Santander UK lead UK Market

DALLAS, AUGUST 11, 2015 —Everest Group announced today that it has released two reports featuring the firm’s new Ability | Performance | Experience (APEX) Matrix. The APEX Matrix provides an enterprise-centric assessment of companies’ customer-facing digital functionalities and their resultant business impact.

“The APEX Matrix enables us to assess the extent to which the investments in digital functionality by enterprises are yielding business results,” said Jimit Arora, vice president at Everest Group. “This assessment is particularly vital to the retail banking industry today, as competitors in a mature industry seek to differentiate themselves among the consumer base by leveraging digital technology. The APEX Matrix reveals what the leading banks are doing from a digital perspective, and what’s paying off.”

“Increasing competition in retail banking means that established banks have to become more agile and innovative,” added Sarah Burnett, vice president at Everest Group. “They have to start thinking and acting like startups to come up with new solutions to appeal to digital natives. Laggards will simply be left behind.”

Everest Group’s proprietary APEX Matrix methodology is unveiled in two recently released Everest Group reports about the leading revenue-earning retail banks: one highlights the top 14 banks in the United States, and the other features the nine leading banks in the United Kingdom.

• Digital Effectiveness in U.S. Retail Banking – Introducing the APEX Matrix™ to Identify the Digital Banking Leaders
• Digital Effectiveness in UK Retail Banking – Introducing the APEX Matrix™ to Identify the Digital Banking Leaders

These reports also capture the attributes of best-in-class banks on each of the digital themes that were evaluated.

The APEX Matrix is a first of its kind “open-source” evaluation of the digital effectiveness of the largest retail banking operations. The research methodology for the APEX Matrix—designed to spotlight consumer engagement and experience—relies solely on publicly available information and takes into account only those aspects of digital functionality that a customer could evaluate.

The X-axis of the APEX Matrix measures digital functionality across mobility, social, online and branch/ATMs from the vantage point of a consumer. The Y-axis measures the business impact of these investments and assesses adoption levels, customer experience scores, brand perception and financial impact. Across the two axes, Everest Group evaluates more than 70 parameters to identify the leaders, innovators, optimizers and the aspirants for digital banking capabilities.

Subsequent APEX reports will focus on additional industry segments beyond financial services.

“Like our well-known PEAK Matrix™, the APEX Matrix is a fact-based assessment of players in the technology market, but the APEX tool evaluates enterprises rather than service providers and focuses very specifically on the digital business strategies and digital ROI of those companies,” explained Arora. “We believe the service provider community will be very interested in the APEX Matrix reports as well, because this insight into their customers and potential customers will help them adjust their business models to the new digital environment.”

Additional Resources

• “Enabling digital effectiveness in banking,” Professional Outsourcing Special Report, Summer 2015