Category: Press Releases

Over 70 Percent of Enterprises Say Security Is Major Concern, Hurdle to Digital Adoption | Press Release

This creates significant opportunity for service providers; however, only those providers who can architect a security ecosystem for the modern digital enterprise will succeed 

DALLAS, JULY 22, 2015 — Over 70 percent of enterprises cite security as a major concern when adopting digital technologies such as social media, mobility, cloud, and analytics, and yet over 40 percent of those enterprises have not sufficiently invested in security services for digital adoption.

Enterprises lack full confidence in IT service providers’ ability to assist them in the difficult journey of digital adoption without causing security compromises.

These results and other findings are explored in a recently published Everest Group report: Infrastructure Services – Annual Report 2015: “Digital Businesses: Mind Your Security.

“Enterprises realize that digital adoption is a vital business strategy for being agile and nimble in the marketplace,” said Yugal Joshi, practice director at Everest Group. “Though enterprises have aggressively expanded the mandate of cybersecurity in light of digital adoption, they are still not giving it the attention that is due. We believe this creates significant opportunities for service providers to demonstrate differentiated capabilities across digital and security services.” 

Other key findings:

• The infrastructure services market grew by approximately 0.6 percent in 2014, lagging behind the overall IT services market growth of 3.4 percent.
• Stand-alone infrastructure services deals accounted for 33 percent of the new signings in the market. Bundling of IT towers with Business Process Services remains muted with only 4 percent of deals witnessing such a trend.
• Every one in two IS deals included consulting services, and four in five IS deals had an element of output-based pricing.
• North America led the overall global activity, contributing to 47 percent of the IS engagements; European clients signed deals of larger value (approximately 17 percent higher) than global peers; and the Asia Pacific region witnessed significant demand contraction, with deal sizes 8 percent lower than the global average. 

***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.

The full report analyzes the infrastructure services market, focusing on:

• Major trends in IS adoption
• Key factors shaping the market, including buyer expectations
• The outlook for 2016
• Market share of 30 leading IT service providers, including large multi-national providers with headquarters in Europe, North America, India, Asia Pacific, and other regions.

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“Data Security Concerns Are Hampering Digital Adoption,” a high-resolution graphic illustrating key takeaways from this report, can be included in news coverage, with attribution to Everest Group.

Few Enterprises Looking at Agile and DevOps as Part of Application Services Deals | Press Release

Less Than 10 Percent of Application Services Agreements in 2014 Required DevOps-Based Delivery 

DALLAS, JULY 21, 2015 — Fewer than 10 percent of application services agreements in 2014 required DevOps-based delivery, suggesting that enterprises do not yet believe that service providers can play a meaningful role in their Agile to DevOps journey.

Everest Group research suggests that moving from an Agile model to DevOps is the single most important trend in application services. Though even today enterprises may only be experimenting with Agile, this is not stopping them from exploring the DevOps model for faster application delivery. However, most enterprises are focusing on adopting the DevOps model using internal resources rather than leveraging service providers.

“The onus is on service providers to ensure the trust deficit is bridged and they are aligned to this overarching trend of DevOps disrupting the application services market,” said Yugal Joshi, practice director at Everest Group. “Enterprises and service providers need to collaborate together and undergo an internal reorganization if they aspire to leverage the concepts of the DevOps model.”

Technology disruption is driving demand for application services consulting, as evidenced by the fact that two out of three application services deals inked in 2014 included consulting services. The market for applications services grew by 4 percent in 2014, outpacing the 3.4 percent overall growth of the IT services market.

These results and other findings are explored in a recently published Everest Group report: Application Services—Annual Report 2015: “Agile to DevOps? Not So Fast” 

Other key findings:

• Stand-alone application services deals dominated the market with 59 percent share in new signings. Bundling of IT towers with Business Process Services remained muted with only 4 percent of deals witnessing it.
• Enterprises focused on output and business outcomes from application services, with 58 percent of engagements based on the “non-labor” model.
• The Banking, Financial Services and Insurance (BFSI) industry led the application services deal activity (30 percent share).
• North America continued to witness a decline in average deal size; European clients signed contracts of larger value than global peers; and clients across the Asia Pacific (APAC) region witnessed significant demand contraction, with contract sizes approximately 35 percent lower than the global average. 

***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.

The full report analyzes the application services market, focusing on:

• Major trends in application services adoption
• Key factors shaping the market, including buyer expectations
• The outlook for 2015-2016
• Market share of 30 leading service providers, including large multi-national providers with headquarters in Europe, North America, India, Asia Pacific, and other regions.

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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:

• Help wanted: Technology disruption drives increased demand for consulting support in application services
• DevOps: Brave New World
• Saying no to bundling: Despite a meaningful push from service providers, enterprises remain reluctant to leverage the bundled services model

Buyers Look Beyond Cost and Seek New Sources of Value in Procurement Outsourcing | Press Release

Specialists and India IT+BPO service providers drive growth; technology remains top investment priority. 

DALLAS, JULY 20, 2015 — The global multi-process Procurement Outsourcing (PO) market maintained its robust momentum and recorded a sturdy growth of 12 percent in 2014, reaching US$2.2 billion in size.

The value proposition of PO evolved in 2014: While cost and spend reduction are still important, buyers are increasingly seeking new value metrics, such as operational excellence, market intelligence, and supplier relationship management. As a result, the solution characteristics of PO contracts are shifting to a cost+value model.

These results and other findings are explored in a recently published Everest Group report: Procurement Outsourcing (PO) Annual Report — The Dawn of a Transformational Era.

The PO market is highly consolidated with the top five players commanding nearly 75 percent share of market. Nevertheless, as the PO market expands, competition among service providers is intensifying.

“Procurement specialists and India IT+BPO players have rapidly increased their share at the expense of global majors and will be the drivers of future growth, which we estimate will be between 10 and 12 percent in 2015,” said Swapnil Bhatnagar, practice director at Everest Group. “We also predict that service providers will continue to invest more in technology, particularly in three areas: end-to-end platforms, analytics, and automation.” 

Other key findings:

• Average deal size dropped in 2014 due to a high number of small-value deals signed.
• Geography-wise, adoption was led by North America (primarily the United States) in 2014.
• The scope of new PO engagements is increasingly becoming end-to-end (i.e., Source-to-Pay focused) as buyers look to maximize savings.
• The role of technology is growing in PO, with an increasing adoption of end-to-end platform-based offerings, mirroring the expansion of process scope. Key drivers include As-a-Service models, advanced analytics, mobile-enabled technologies, and process automation.
• Offshoring continues to rise in PO contracts, rising faster in Procure-to-Pay focused contracts than in Source-to-Contract focused contracts.
• Pricing structures of PO contracts are turning predominantly hybrid, with significant inclusion of incentive-based mechanisms. 

***Download Complimentary 13-page Preview Report Here*** (Registration required.) This preview summarizes the report methodology, contents and key findings and offers additional resources for further study.

The full report analyzes the procurement outsourcing market, focusing on:

• Market size and growth
• Buyer adoption trends
• Value proposition
• Solution characteristics
• The outlook for 2016
• Service provider landscape

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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:

• Unlocking strategic value in procurement: Empower suppliers
• The PO Value Proposition: Transitioning from Cost to Cost+Value

Finance and Accounting Outsourcing Market is Maturing, Contract Landscape is Changing | Press Release

FAO buyers seek value beyond labor arbitrage, look to technology and automation for cost savings 

DALLAS, JULY 15, 2015 — The FAO market is approaching maturity, with growth rates tapering to approximately 6 percent in 2014 from double-digit growth in 2012. Market maturation is also evident from the increasing share of contract renewals among a slightly declining number of total contracts in 2014.

With market maturity, buyer expectations have become more value-centric instead of pure labor arbitrage driven. As a result, the FAO contractual characteristics are evolving to include technologies such as Robotics Process Automation (RPA), predictive and prescriptive analytics, judgment-oriented processes, and hybrid pricing models.

These results and other findings are explored in a recently published Everest Group report: Finance and Accounting Outsourcing (FAO) Annual Report 2015 – Generating Value through Innovation. 

“As the FAO market matures, many buyers are looking to technology as a source for added value and cost savings,” said Swapnil Bhatnagar, practice director at Everest Group. “One example is robotic process automation, which can yield a cost reduction ranging from 15 percent to as much as 60 percent. We also see other contractual trends in a maturing market, such as increased emphasis on analytics, expansion of process and geographic scope, and more advanced pricing models.” 

Other key findings:

• Growth is coming from new buyer segments, including emerging markets (such as Asia Pacific and Middle East & Africa), smaller organizations, and industries such as healthcare, retail and hi-tech and telecom.
• The top five service providers comprise nearly two-thirds of the FAO market.
• With increasing pricing pressure from buyers, global sourcing is on the rise.
• The contractual scope is increasing, both in terms of processes and geographies.
• Service providers are increasingly investing in technology solutions and process expertise in order to meet the evolved expectations of buyers. 

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

The full report analyzes the global FAO market, focusing on:

• Market overview and buyer adoption trends
• Impact of changes in the FAO value proposition on contract characteristics
• Outlook for the FAO market
• Service provider landscape, covering 20+ service providers with multi-process capability, including Accenture, Capgemini, Cognizant, Datamatics, Dell, EXL, Genpact, HCL, HP, IBM, IGATE, Infosys, IQ BackOffice, Minacs, Quatrro, Serco, Sutherland Global Services, Tech Mahindra, TCS, Wipro, WNS, Xchanging and Xerox.

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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:

• Market maturation is changing the FAO landscape
• Six ways FAO’s changing value proposition is impacting contracting structure
• By the Numbers: Robotic Process Automation in FAO

Buyers of Life Sciences IT Outsourcing Demand Innovation, Call for End to Silo-based Delivery of Services | Press Release

PEAK Matrix™ report identifies Accenture, Cognizant, HCL Technologies, IBM, Infosys, TCS and Wipro as Leaders in the Life Sciences ITO industry 

DALLAS, JULY 8, 2015 — Competition has intensified in the Life Sciences IT outsourcing (ITO) market as the technology needs of buyers continue to evolve. These new expectations are driven by the need of life sciences firms to control costs and improve R&D productivity while simultaneously expanding omnichannel services to patients.

“Technology investments for life sciences buyers will be dictated by the dual mandate of leaner operations and patient-centricity, given the focus on core competence and consumerization of healthcare, respectively,” said Abhishek Singh, practice director at Everest Group. “Service providers need to present a value chain solutions approach and embrace creative deal constructs to succeed in this new normal.”

Everest Group—a consulting and research firm focused on strategic IT, business services, and sourcing—reports that ITO buyers in the life sciences industry now expect service providers to assume greater ownership of technology engagements and bring innovation to the fore to deliver tangible value. In addition, life sciences firms increasingly expect service providers to deliver integrated services for attainment of specific business outcomes, irrespective of the service silos (e.g., infrastructure, applications or business processes) specified in the contractual agreement.  

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

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This Everest Group research provides a comprehensive assessment of the service delivery capabilities of 20 leading IT service providers serving the life sciences industry (including pharmaceuticals, biotechnology, medical devices, healthcare data and information services, and medical products distribution).

Everest Group identified as Leaders in the Life Sciences ITO market Accenture, Cognizant, HCL Technologies, IBM, Infosys, TCS and Wipro. Major Contenders comprise Capgemini, CGI, CSC, Dell Services, HP, IGATE, L&T Infotech, Tech Mahindra, and Wipro. Aspirants include EPAM, Fujitsu, Hexaware, Unisys and Virtusa. Two service providers—CGI and Cognizant—were recognized as Star Performers, based on significant year-over-year movement on the PEAK Matrix.

Implications for Buyers and Service Providers

Based on its assessment of the Life Sciences ITO market, Everest Group includes in this report six business strategy implications for buyers and six implications for service providers. For example, Everest Group recommends that buyers implement metrics-driven service level agreements (SLAs), shore up productivity levels and deploy next-generation technologies. Service providers are advised to adapt to newer deal constructs (e.g., as-a-service, integrated services, gain share) to exhibit more skin in the game.

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.

Total Contract Value of IT Outsourcing in Banking Plunges 43 Percent in 2014 | Press Release

Number of large application outsourcing contracts also plummets as buyers experiment with digital technologies through smaller AO transactions

DALLAS, JULY 6, 2015 — IT outsourcing (ITO) in the banking, financial services and insurance (BFSI) industry witnessed a decline of 5 percent in number of transactions and a decline of 43 percent in total value of contracts in 2014, as buyers reduced spend due to high cost pressures from regulatory burdens.

Likewise, the demand for large banking application outsourcing (AO) contracts declined for the third consecutive year, and total contract value fell by 24 percent as buyers experimented with digital technologies through smaller AO transactions.

“In 2014, we saw three different but equally important priorities emerge for banking ITO buyers,” said Jimit Arora, vice president at Everest Group. “Banks are focusing on a triple mandate of ‘run the bank’ (focus on efficiency for cost savings), ‘manage the bank’ (focus on risk and regulatory compliance for penalty avoidance) and ‘change the bank’ (focus on transformation for growth). Accordingly, the banking ITO industry witnessed an increased demand for AO services supporting digital channel enablement, data management, and risk and compliance monitoring.”

These findings and more are discussed in a new Everest Group report, IT Outsourcing in Banking – Annual Report 2015: Riding the Digital Wave.

This report analyzes the current trends and future outlook for large, multi-year application outsourcing relationships for the global banking sector, which includes retail banking, commercial banking, credit cards, loans and mortgages (and excludes capital markets and insurance).

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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:

• Banks’ emerging priorities have implications for IT service providers
• The number of large AO contracts plummets
• No easy choices among banks’ key initiatives

Everest Group Says Future of Banking BPO is Heavy on Technology, Low on People | Press Release

Genpact, TCS, Xerox maintain dominance in the banking BPO space, as industry exceeds US$3.5 billion with revitalized growth rate of 8-10 percent. 

DALLAS, JULY 1, 2015 — From 2011 to 2014, the inclusion of robotic process automation in banking BPO contracts rose 63 percent while revenue grew 30 percent and full-time equivalents (FTEs) grew only 14 percent.

As the role of digital banking increases, service providers are looking to automate transactional processes and shift focus to more judgment-intensive offerings. However, increased digital adoption and maturity of automation solutions is leading to lower FTE requirements for the industry, prompting service providers to look for other avenues of growth.

These results and other findings are explored in a recently published Everest Group report: Banking BPO Annual Report 2015 – Heavy on Technology, Low on People – Future of Banking BPO. 

“Increasing use of automation and digital channels across all banking lines of business reduces FTEs needed for transaction-based activities,” said Anupam Jain, practice director at Everest Group. “Service providers are capitalizing on those opportunities to move up the value chain to deliver more complex services, such as risk management, regulatory reporting and analytics.” 

Other key findings:

• The market for third-party BPO in banking crossed the US$3.5 billion mark in 2014, growing at a compound annual growth rate of 8 to 10 percent over a period of four years.
• Recovery in growth rates was driven primarily by reduced mortgage rates and higher outsourcing in the commercial banking segment.
• New contract signings is the major driver for BPO adoption, while renewals continue to remain strong as buyers prefer to continue with their existing providers.
• Regulatory pressures and risk management concerns continue to be a driver of growth of BPO services.
• Genpact, TCS and Xerox maintain their dominance in the banking BPO space. 

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

The full report analyzes the global banking BPO market, focusing on:

• Market size and buyer adoption
• Banking BPO solution characteristics across line of business adoption, technology model, automation leverage, pricing structures and global sourcing
• Banking BPO service provider landscape, covering service providers’ market share and presence in various geographies. The research scope comprises 16 service providers: Avaloq, Cognizant, EXL, Genpact, HCL, IGATE, Infosys, Mphasis, Serco, Sutherland Global Services, Syntel, TCS, Tech Mahindra, Wipro, WNS, and Xerox

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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:

• Banking BPO growth spurt: Banking BPO growth has been revitalized, driven by a wide variety of factors
• Banking BPO global market distribution: North America spends the most on BPO, but the bulk of future growth is expected to come from Continental Europe and APAC
• The impact of automation on banking BPO
• Judgment-intensive services rising in banking BPO

Service Provider Consolidation Trend in CCO Fueled by High Demand for Value-Added Services, High-Impact Partnerships | Sherpas in Blue Shirts

Large CCO specialist service providers continue to lead the market, but BPO pure-plays show the fastest growth rates and innovative value 

DALLAS, JUNE 30, 2015 — The Contact Center Outsourcing (CCO) market grew at 5 percent in 2014 to reach US$70-75 billion, which still represents only 20 to 25 percent of the total global contact center spend of US$300 to $350 billion.

Service provider consolidation is noticeably taking shape. Over a two year period from 2012-2014 the number of CCO contract terminations increased from 69 a year to 120 a year, for the first time outpacing the number of renewals. However, renewals and new contract signings continued at an active pace, growing by 16 percent and 8 percent respectively. As further evidence of this trend, the inclusion of value-added services jumped from 64 percent to 75 percent of renewing engagements. This indicates that buyers are not abandoning CCO but rather switching providers and/or consolidating spend with fewer providers.

These results and other findings are explored in a recently published Everest Group report: Contact Center Outsourcing Annual Report 2015: Incumbents Beware—There’s No Place for Complacency. 

“Buyers are looking beyond service performance, expecting service providers to successfully address multiple aspects of their changing business needs and thus leaving no room for complacency amongst incumbents,” said Katrina Menzigian, vice president of research relations at Everest Group. “Providers are reacting to this changing landscape of buyer requirements by adapting their offerings, particularly in the areas of onshore delivery, multi-channel solutions, value-added services, technology, service delivery metrics and pricing models.” 

Other key findings:

• CCO growth in markets such as the United States and United Kingdom flattened out, and new demand is being driven by Continental Europe, Middle East & Africa (CEMEA) and Asia Pacific.
• While telecom and banking, financial services and insurance (BFSI) are the leading adopters of CCO, industries such as healthcare, retail, and travel and hospitality are exhibiting high growth.
• Depth and breadth of inclusion of value-added services have continued to increase, with renewals witnessing higher inclusion.
• Share of non-voice channel continues to increase, driven by increased adoption of multi-channel solutions, especially chat and social media.
• North America and CEMEA witnessed the highest adoption of multi-channel contracts across all geographies.
• CCO specialists dominate the market but have recorded moderate growth. Business process outsourcing (BPO) pure-plays have witnessed higher growth based on their focus on innovation, analytics and multi-channel services.
• Atento, Xerox, Convergys and Teleperformance, are the top service providers in the space in terms of revenue. The leading service providers (in terms of market share) vary across geographies and industries.  

***Download Complimentary 11-page Preview Report Here*** (Registration required.) This preview summarizes report methodology, contents and key findings and offers additional resources.

The full report analyzes the global CCO market, focusing on:

• Market size and buyer adoption
• Value proposition and solution characteristics
• CCO service provider landscape, comprising 20 CCO service providers: Aegis, Alorica, CGI, Concentrix, Dell, Firstsource, Genpact, HCL, HGS, HP, Infosys, Minacs, Serco, Sitel, Sutherland, Sykes, TCS, Tech Mahindra, Teleperformance, Transcom Worldwide, Wipro, Webhelp Group, and WNS

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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:

• Signs of emerging anti-incumbency in Contact Center Outsourcing
• Contact Center Outsourcing contract TCV is both shrinking and growing
• Long live e-mail … in CCO!
• Three indicators of the increasing preference for onshoring in Contact Center Outsourcing

Everest Group Releases PEAK Matrix Report on Workplace Services | Press Release

Atos, CSC, Dell, HCL Technologies, HP, IBM and Wipro identified as Leaders in the Industry 

DALLAS, JUNE 22, 2015 — Service providers in the workplace services industry face a grueling dual mandate—enhance user experiences and optimize costs. Providers who most successfully address this challenge are distinguished not only by experience and capability building but also by continued investments in technology, intellectual property and partnerships.

Everest Group identified Leaders in the workplace services market—Atos, CSC, Dell, HCL Technologies, HP, IBM and Wipro—in its recently released report, Workplace Services – PEAK Matrix™ Assessment and Profiles Compendium.

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This Everest Group research provides a comprehensive assessment of workplace service delivery capabilities of IT service providers and system integrators. The full report maps 23 leading service providers on the Everest Group PEAK Matrix and provides detailed profiles of each, including their workplace services vision, services suite, scale of operations, domain investments, and innovation.

The Workplace Services market includes those companies that offer design and implementation services, management/run services and consulting/assessment services for such enterprise functions as service desk, deskside support, unified communications, asset management, infrastructure applications, desktop management and virtualization, mobility/bring your own device (BYOD), and workspace as a service.

“There is increasing focus by enterprises on enhancing user experience and offering on-demand access to applications and data across devices of choice,” said Chirajeet Sengupta, vice president at Everest Group. “This is creating strong impetus for service providers to invest in building a strong technology/service partnership network, as well as IP and tools to remain relevant and competitive.”

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.

Innovation, IP and Technology Take Center Stage in Updated Methodology for Everest Group PEAK Matrix | Press Release

FTE headcount dropped from PEAK Matrix assessment of outsourcing service providers 

DALLAS, JUNE 10, 2015 —Everest Group announced today that it is significantly increasing the weighting assigned to assessing intellectual property (IP) and innovation in its proprietary PEAK Matrix™ assessment of outsourcing service providers, as those service dimensions have taken center stage in the value perceptions of enterprise buyers. Conversely, it is dropping the use of FTE headcount as a metric, as the size of a provider’s delivery talent pool has become irrelevant with advances in technology.

Although Everest Group regularly fine-tunes its hallmark assessment tool, the three key modifications announced today are intended to align the company’s PEAK Matrix assessment methodology with evolutions within the global services market:

1. IP and innovation: The weighting assigned to IP and innovation has been increased markedly to reflect their rising significance in the global services market.

2. FTE count: FTE count has been dropped as an assessment dimension. As technology increasingly fills the roles FTEs had managed in the past–at lower cost and often better outcomes–the size of a provider’s delivery talent pool is increasingly irrelevant.

3. Scale: The provider’s overall scale (a combination of financial strength and focus on the service area being assessed) will remain as part of the assessment, but will decline in importance in the evaluation, making room for innovation to take on a larger role.

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:

1. Market success, including factors such as revenue or annual contract value, number of clients and growth; and
2. Delivery capabilities, including factors such as financial strength, scope of services, delivery footprint, investments in domain, technology and innovation, and buyer satisfaction.

The resulting matrix categorizes service providers as Leaders, Major Contenders, and Aspirants, a new name that more accurately reflects the characteristics of category members than the former Emerging Players. Companies that demonstrate strong upward movement in successive reports are recognized as Star Performers.

The recalibrated methodology announced today offers benefits to both service providers and enterprise buyers of outsourcing services.

• Providers receive recognition for bringing innovation to clients and the market, and they suffer less negative impact for being comparatively “sub-scale,” provided they are demonstrating innovation and business outcomes.
• Enterprise buyers receive an enhanced perspective on service providers in terms of their innovation and outcome-oriented approaches. They also gain increased insights on how service providers’ capabilities align to their future objectives.

Quotes

“Our fundamental principle of using a fact-based assessment methodology to evaluate the players in the outsourcing market remains, said Rajesh Ranjan, partner at Everest Group. “These changes ensure that our assessment framework continues to be aligned with the emerging and future direction of the global services market, particularly as innovation, intellectual property, digital, and technology-driven solutions become dominant forces.”

Our new methodology aligns our assessment approach to three ‘new realities’ of the global services market,” said Jimit Arora, vice president at Everest Group. “First, IT and business process services are rapidly evolving. Second, innovation, IP, and technology-driven solutions are taking center stage.  And third, enterprises are placing less emphasis on service provider FTE count given rapid advancements in service delivery automation.”