Category: Press Releases

Everest Group Market Insights™ Explain Complex Global Sourcing Trends Visually, Clearly and Without a Subscription | Press Release

DALLAS, JULY 30, 2014 — Although the adage “a picture is worth a thousand words” dates to the early 1900s or before, Everest Group finds the phrase more applicable than ever in 2014 as the company’s Market Insights gain fans in social and traditional media venues.

In a world exploding with content, decision makers need tools for consuming the most important information in less time. Therefore, Everest Group, an advisory and research firm on global services, developed Market Insights–high-resolution graphics representing key insights from its research—as an innovative way to express content succinctly and powerfully and thus provide more value to clients. The skillfully developed illustrations break through the clutter of information overload and draw the attention of decision-makers to crucial information and content of specific value to them.

Market Insights’ publication-quality graphics are posted on the Everest Group website (www.everestgrp.com/category/market-insights) and distributed with Everest Group’s research reports. The graphics are available for free use by clients, media, and others with appropriate source attribution.

“Market Insights were designed to help the global sourcing ecosystem more quickly grasp and share the complex trends driving our industry,” says Elizabeth Boudrie, vice president, Market Insights at Everest Group. “With Market Insights, journalists, bloggers and clients can understand the facts and move on to the strategic implications of trends, and that’s where the value is.”

Since launching Market Insights in January 2014, Everest Group has published more than 200 thought-provoking infographics on a wide range of topics in the categories of business process services, information technology services, and market tracking and trends.

IT Outsourcing in Banking Reaches Five-Year High in Transaction Volume in 2013 | Press Release

Total Value of IT Outsourcing Contracts in Banking, Financial Services and Insurance (BFSI) Industry Increases 80 Percent

DALLAS, JULY 16, 2014 — The banking, financial services and insurance (BFSI) market—estimated at US$105-130 billion—still reigns as the largest adopter of information technology outsourcing (ITO) services. In fact, driven by a resurgence of demand, the BFSI market in 2013 logged a 25 percent increase in number of transactions signed (marking a five-year high in transaction volume) and an 80 percent increase in total contract value.

The resurgence of discretionary spending by global BFSI firms in 2013 was focused on development of specific applications for regulatory compliance, risk management, channel-specific initiatives (social, mobile, etc.) and customer analytics.

These findings and more are discussed in a new Everest Group report,IT Outsourcing in Banking – Annual Report 2014: The Return of the King.

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Webinar Replay Available

A replay of the Everest Group webinar, “Banking and Capital Markets ITO – Trends, Regulations, Technology,” is available for viewing on demand.

“In 2013, banks and financial services firms battled against low interest rates, strained revenue growth, the growing pressures of regulatory compliance, and the rise of the digital consumer,” said Jimit Arora, vice president at Everest Group. “This translated into a resurgence of IT outsourcing in BFSI, as buyers reinvented their business models, redefined their technical priorities, and reallocated their IT spend. The clearly emerging priorities of buyers include risk management and compliance, industrialization of solutions, IT transformation, data management, and customer analytics.”

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Click here for high-resolution graphics illustrating the report’s key takeaways. Include in news coverage with attribution to Everest Group. Graphics include:

• Global IT outsourcing market by service type
• Surge of activity in BFSI ITO in 2013 (25 percent transaction growth)
• Global adoption of BFSI ITO
• Banking ITO trends: Sourcing implications for buyers and providers.

IT Outsourcing in Life Sciences Industry Records 35 Percent Growth in 2013 | Press Release

Analytics & Infrastructure Services in High Demand as Life Sciences Firms Seek Leverage in Challenging Market

DALLAS, JULY 9, 2014 — The data-rich life sciences industry—plagued with multi-faceted challenges such as stifled R&D efficiency, a changing portfolio mix, and a rise in merger, acquisition and restructuring activity—is increasingly looking to analytics and technology initiatives to provide competitive leverage. Accordingly, 2013 saw a 35 percent growth in information technology outsourcing (ITO) among pharmaceutical, medical device and biotechnology firms.

These findings and more are discussed in a new Everest Group report, IT Outsourcing (ITO) in the Life Sciences Industry – Annual Report 2014: Analytics Driving the Innovation Engine.

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In addition, a free Everest Group webinar on “What’s Driving the Surge in Life Sciences IT Outsourcing?” is available for viewing on demand.

“Analytics has entrenched itself as a key lever to provide real-time, actionable insights and improve operational efficiency,” said Jimit Arora, vice president at Everest Group. “Analytics will be a primary tool for life sciences firms driving key strategic initiatives, particularly with respect to cost reduction, top-line growth, and risk and compliance management.”

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

• Twelve percent CAGR anticipated in healthcare ITO market 2013-20
• Increasing demand for infrastructure services expected in healthcare IT outsourcing
• Analytics present triple value in healthcare ITO
• New demands are driving changes in location maturity for life sciences ITO

Contact Center Outsourcing (CCO) Market Gets Better with Age | Press Release

Buyer maturation drives evolution of CCO services and doubling of deal size

DALLAS, JUNE 30, 2014 — With buyers maturing in sophistication, the value proposition of CCO has moved beyond labor arbitrage; service providers are increasingly focused on process improvement and business outcomes to deliver cost savings and revenue growth.

The global Contact Center Outsourcing (CCO) market grew at 7 percent in 2013, reaching US$70-75 billion. Along with a higher number of new deals, 2013 also witnessed a high number of terminations, highlighting buyers’ intentions to consolidate their portfolio and drive more value from current engagements.

These findings and more are discussed in a new Everest Group report, Contact Center Outsourcing – Annual Report 2014: Changing Times, Evolving Value Proposition.

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The following trends exemplify the evolution of CCO services:

• The last three years have seen significant investments (approximately 70 percent of all technology-related investments) in enabler technologies such as analytics, social media and workflow management.
• The inclusion of value-added services has almost doubled in 2013 (81 percent) from 2008 (48 percent).
• As buyers focus on improving customer experience, service providers are investing in onshore capabilities. In fact, almost 60 percent of contracts signed in 2013 have significant onshore delivery components.

“As the CCO market matures, enterprise buyers are seeking ever more value from their outsourcing contracts,” said Katrina Menzigian, vice president of research relations at Everest Group. “We see this borne out on the buy side by a rationalization and consolidation of service provider relationships. But, more importantly, on the service provider side this maturation drives a significant evolution toward more sophisticated, value-added services. Interestingly, we witnessed a doubling of annual contract value in 2013, which can be attributed in large part to the increased inclusion of value-added services in new CCO deals.”

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

• CCO Annual Contract Value doubled in one year
• CCO buyers seeking additional value
• non-voice channel growth has led to increased adoption of multi-channel solutions.
• value-added services in CCO gaining quickly

Procurement Outsourcing Market Growing at 12 Percent, Continuing String of Recent Double-Digit Growth Years | Press Release

Number and scope of deals, geographic footprint, FTE – all on the rise in PO industry

DALLAS, JUNE 26, 2014 — The global multi-process Procurement Outsourcing (PO) market registered strong growth of 12 percent in 2013 with record number of new deal signings. End-to-end procurement process outsourcing tripled in share in the last three years, and PO is strengthening its foothold in the emerging markets of Asia Pacific, Middle East and Africa, and Latin America.

While the value proposition of PO remains primarily driven by cost and spend reductions, new themes such as category expertise, access to technology, and integrated governance are emerging and positively shaping the market. Collaboration between procurement and other enterprise functions is also driving growth. For example, nearly 75 percent of procurement contracts had human resource-related categories in 2013, compared to 67 percent previously.

These findings and more are discussed in a new Everest Group report, Procurement Outsourcing – Annual Report 2014: Expanding New Horizons.

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“The lion’s share of trends we see in the Procurement Outsourcing market are strongly positive,” said Abhishek Menon, practice director at Everest Group. “The industry’s compounded annual growth rate is about 18 percent from 2006 to 2013, and the number of new deals signed each year has more than doubled in that same timeframe. Contract extensions and renewals are running at a strong clip, and we’re seeing exploding populations in PO delivery centers, with FTE increases in some regions of 75 to 95 percent. Procurement outsourcing makes an attractive business case for both buyers and service providers who have remained disciplined, vigilant and progressive.”

Download Publication-Quality Graphics High-resolution graphics illustrating the report’s key takeaways can be included in news coverage, with attribution to Everest Group. Graphics include:

• Procurement Outsourcing’s growth path
• Procurement Outsourcing: good news/bad news
• Population explosion: Global PO delivery center FTE count grows 35 percent in one year
• Accenture and IBM continue to dominate the PO market.

Unprecedented Disruption Shakes Infrastructure Outsourcing Market | Press Release

Service Providers, Enterprises Scramble for Footing as Cloud and Software-Defined Models Unsettle IO Industry

DALLAS, JUNE 23, 2014 — The global Infrastructure Outsourcing (IO) market—measured at ~US$165 billion in 2013—is experiencing unprecedented disruption as new information technology models leave enterprises and service providers alike searching for solid strategic direction.

Though cloud services tend to capture the majority of the headlines, a real disruption is brewing due to the still nascent concept of software-defined infrastructure. Enterprise buyers and service providers will need to rethink their infrastructure consumption models, which, in turn, will impact people, processes, and technology. An interesting challenge will be the “deskilling” and “upskilling” of people. A third major shift in the industry is the rise of Service Integration and Management (SIAM) services as buyers seek partners to manage and mitigate the delivery risks of employing multiple service providers within the infrastructure portfolio.

These findings and more are discussed in a new Everest Group report, Infrastructure Outsourcing – Annual Report 2014: “The Future is Software.”

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“Cloud services and software-defined infrastructure models are rapidly changing the playing field in the Infrastructure Outsourcing market,” said Yugal Joshi, practice director at Everest Group. “Not many providers or enterprises yet understand the impact, nor do they yet have a solid game plan for aligning to these trends. As a result, we’re seeing significant pressure on deal size, duration and pricing on the one hand, and on the other hand a growth in outsourcing and expanded scopes of services.”

Download Publication-Quality Graphics High-resolution graphics illustrating the report’s key takeaways can be included in news coverage, with attribution to Everest Group. Graphics include:

• IO deal sizes declining rapidly
• Consulting in IO contracts rises
• Anti-incumbency is sweeping IO
• Software-defined infrastructure: A revolution for the infrastructure landscape
• Why service integration and management (SIAM) is taking hold.

Everest Group Analysis Shows Asia Pacific Becomes Hub of New Multi-Process HRO Activity | Press Release

Slow but steady growth up to 5 percent expected in a market undergoing significant changes  

DALLAS, JUNE 5, 2014 — The Multi-process Human Resources Outsourcing (MPHRO) market showed a marginal 3 percent compound annual growth rate (CAGR) in 2013 compared to 2012, reaching US$3.3 billion, according to Everest Group. The Asia Pacific (APAC) region has become the hub of new activity in the segment.

Although 2013 saw the lowest number of deal signings in four years, the average annualized contract value (ACV) per deal was the highest in four years.

In a just-released report, Everest Group predicts that the MPHRO market will continue to grow at 2 to 5 percent CAGR during 2014 to 2016. From a geography perspective, North America continues to hold more than 50 percent market share; however, APAC continued to be the fastest growing MPHRO market, with over a third of the new deals being signed in that region. Within APAC, activity traversed beyond the traditional markets such as Australia to include countries such as China, India, Indonesia, and Japan.

These findings and more are discussed in “Multi-Process Human Resources Outsourcing (MPHRO) – Annual Report 2014: The Times Are Changing.”A complimentary preview is available to download.

Other Key Findings from the Report

• In addition to the traditional Business-Process-as-a-Service (BPaaS) solutions offered by the likes of ADP, NGA, and TCS, new-age BPaaS solutions (based on Workday and SuccessFactors), which had made a strong mark in the wider HR market, made their entry into the HRO arena.
• Analytics emerged beyond the “theory of text-books” with real-world examples. Descriptive analytics with operational impact is leading currently, with more advanced usage on the anvil.
• Indian-heritage players have broken the tag of “new players,” as they start to get recognized by both buyers and competitors.
• Faced with a slow-growth MPHRO market, providers are investing in enhanced offerings around high-value services (such as analytics), which are gaining interest and can command higher margins.

Graphics Available for Publication

Graphics illustrating the report’s key takeaways can be included in news coverage of the report with source attribution to Everest Group and a link to the graphic source page on the Everest Group website. Graphics include:

• Higher ACV per deal drives MHPRO growth
• Impact of third-party BPaaS solutions
• Strategic approach: Europe and APAC compared to North America
• MPHRO goes big (rise of global and regional deals).

“The MPHRO market continues to evolve across multiple dimensions,” said Rajesh Ranjan, vice president at Everest Group. “Increasing maturity of Asia Pacific as a demand geography, continued global sourcing maturation, traction of BPaaS models based on third-party software-as-a-service solutions, real-world play of analytics, and emergence of robotics automation are creating new value creation opportunities. Both existing and prospective buyers would do well to better understand and leverage some of these to create a more efficient and effective HR service delivery model.”

Everest Group’s MPHRO Annual Report 2014 report provides comprehensive coverage of the 2013 global MPHRO market and analyzes it across various dimensions such as market overview and key regional trends, buyer adoption and solution trends, and service provider landscape. For this study, MPHRO deals include those in which a minimum of three HR processes are included and the buyer employee size is 3,000 or more.

Application Outsourcing Industry Shaken by Hyper-rationalization, Unprecedented Pricing Pressure | Press Release

In search of agility and reduced costs, enterprises seek reductions in application portfolios, deployment time, and pricing.

DALLAS, June 3, 2014 — Two significant trends—hyper-rationalization and unprecedented pricing pressure on providers—are rocking the world of Application Outsourcing (AO), according to Everest Group.

In its just-released report, Everest Group describes how enterprises are seeking to reduce application portfolios by as much as 60 percent through hyper-rationalization initiatives. For ages, enterprises have adopted application rationalization strategies; hyper-rationalization is the next stage of this journey. Hyper-rationalization not only encompasses the “mass” peripheral applications but also focuses on the core applications landscape.

Simultaneously, enterprises are demanding of providers complete pricing transparency and cost reductions, driving average pricing of AO engagements down for the third straight year. Buyers believe that service providers are unable to offer incremental value through application services and, therefore, demand price reduction. Cutthroat competition among providers assures that most providers agree to these price reduction demands.

These findings and more are discussed in “Application Outsourcing – Annual Report 2014: Rationalization Goes Hyper.”

Key Findings from the Report

• Discretionary spending on custom development saw an increase in 2013, while investments in application maintenance remained unchanged.
• Consulting services as part of AO are on the rise as enterprises seek assistance in adopting Software as a Service (SaaS) and cloud computing models and face challenges in effectively leveraging these models to derive meaningful business value.
• Input-based pricing continues to be the preferred pricing model due to ease of negotiations. Enterprises with significant outsourcing experience are looking to push their service providers to take up more complex pricing models, such as output-based pricing.
• The European market continues to witness an increase in AO activity, with increased penetration in verticals beyond key outsourcing industries such as Banking, Financial Services and Insurance (BFSI) and manufacturing.

Graphics Available for Publication

Graphics illustrating the report’s key takeaways can be included in news coverage of the report with source attribution to Everest Group and a link to the graphic source page on the Everest Group website. Graphics include:

• Application hyper-rationalization
• AO contracts with consulting in scope
• Unprecedented pricing pressure in Application Outsourcing
• AO annualized contract value
• AO adoption by buyer industries

Jimit Arora, vice president at Everest Group, observed,“Traditional rationalization initiatives have peaked, and so enterprises must now move beyond these and embrace hyper-rationalization to further derive value from their applications landscape. It is a worthy exercise for enterprises aspiring to achieve greater business agility and reduce management costs, and it is an exercise made timely by cloud services, SaaS models, automation, and other digital disruptions. Enterprises save costs in traditional application services to invest in these newer initiatives. This is further pushing down the prices for traditional application services.”

Everest Group’s AO Annual Report 2014 analyzes major trends that are shaping the applications market and the outlook for the next year. The report provides fact-based perspectives on buyer adoption by geography, industry, and revenue size. It also sizes the IT services market in terms of application outsourcing and consulting services.

Everest Group Analysis Pinpoints Looming Disruption in F&A Outsourcing Market | Press Release

Advancements in FAO solutions empower buyers to switch providers in search of greater value creation, improved customer experiences, and organizational transformation.

DALLAS, May 28, 2014 — A moderate growth rate of approximately 8 percent in the Finance and Accounting Outsourcing (FAO) market belies a significant disruption taking place below the surface.

In a just-released report, Everest Group attributes a variety of factors to rising turbulence in the market, such as deal switching, competitive bidding, hybrid pricing models, analytics, onshore delivery, and robotic automation. Findings and analysis are discussed in “Finance and Accounting Outsourcing (FAO) Annual Report 2014 – Transformational Agenda to Combat Reducing Stickiness.”

Key Findings from the Report

• The multi-process FAO market remained buoyant and reached US$4.6 billion in actual contract value.
• Large market organizations in the United States continue to be the principal adopters of FAO; however, growth is being driven by the Asia Pacific region, primarily led by India and Australia.
• The scope of services definition is evolving along three broad themes: end-to-end process approach, industry specificity, and expansion into adjacent functions such as supply chain.
• Service provider investments in 2013 were primarily focused on technology tools/platforms, analytics, and robotic automation.

Graphics Available for Publication

Graphics illustrating the report’s key takeaways can be included in news coverage of the report with source attribution to Everest Group and a link to the graphic source page on the Everest Group website. Graphics include:

• Evolving FAO definition
• Multi-process FAO 2014 trends including adoption patterns
• Emerging FAO delivery perspectives
• Emerging FAO value proposition and role of robotic automation
• FAO growth drivers

“We witnessed a surge in deal switching in 2013 as buyer organizations sought providers who would better cater to their transformational agendas,” said Saurabh Gupta, vice president at Everest Group. “Buyers are searching for world-class performance and solutions with strategic impact; this is borne out on the supply side by increasing adoption of embedded analytics and technology-led solutions—which are moving beyond theory to successful, high-impact examples.”

The FAO Annual Report 2014 provides insight into the changing dynamics of the FAO market and identifies trends for 2014. The report provides comprehensive coverage of the global FAO market, including detailed analysis on market size and growth, buyer adoption trends, FAO value proposition, solution characteristics and service provider landscape.

Global In-House Centers Deliver Nearly 80 Percent Cost Savings | Press Release

Details in Q1 Market Vista Report to be Presented in May 28 Webinar

DALLAS, May 22, 2014 — Global In-house Centers (GICs) are delivering as much as 80 percent cost savings over source markets, according to recently published research conducted jointly by Everest Group, an advisory and research firm on global services, and NASSCOM. These findings as well as those from Everest Group’s new research report — Market Vista™: Q1 2014— will be presented in a free May 28 webinar focused on strategies for sustaining the cost-effectiveness of GICs.

Guest panelists who are slated to share their real-life experiences include:

• Sundeep Bedi, General Manager, Shell Business Service Center
• Aveek Mukherjee, Managing Director, Wells Fargo India Solutions
• Chris Rogers, Global Head of Management Services, HSBC Global Technology

The webinar will begin Wednesday, May 28, at 9 a.m. CDT. A replay will be available at the same link.

Everest Group has produced graphics illustrating the key takeaways from the Market Vista: Q1 2014 report. These address the following topics and can be included in news coverage of the report with source attribution to Everest Group:

• Global service trends Q1 2014
• GIC market trends
• Global services operating costs: focus on Central and Eastern Europe
• Share of renewals/restructured deal activity decreased for both ITO and BPO over the past 5 quarters
• Outsourcing transaction deal term trends
• In the past 5 quarters, BPO share of outsourcing transactions has declined while ITO share has increased
• In Q4 2013, traditional global service providers registered a higher revenue growth rate than offshore-centric service providers for the first time in a year

“The swirling speculation about the fading cost competitiveness of GICs simply is not based in fact,” said Salil Dani, practice director in the Global Sourcing team at Everest Group. “To the contrary, our research points to a steadily growing market that is not only diversifying geographically well beyond its roots in India but also expanding across industry verticals and functions. Our analysis of market data also makes evident the key strategies that companies will want to embrace to remain cost competitive in the future.”

Market Vista is a subscription service with four reports published annually, complemented by buyer geography and industry trend reports. Visit research.everestgrp.com or call +1-214-451-3110 for more information.