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Could RPA and AI Save GDPR Laggards from Hefty Fines? | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

With just seven months to go to the General Data Protection Regulation (GDPR) compliance deadline, many companies still have wholly inadequate data management capabilities. Strict requirements for personal data security, privacy, and the right to erase, among other things, will cause severe headaches for many CIOs not only in the EU but in all regions, as organizations will have to know which data is and is not subject to the regulation, and where in the world it is stored.

Download our special complimentary report: EU GDPR: Is There a Silver Lining to the Disruption?

No doubt many complex and conflicting scenarios will arise out of GDPR. For example, consider the following data-related issues:

  • When a request to be forgotten comes in from a customer, how will the organization find all the occurrences of the same data across the vast enterprise IT estate?
  • Will public and private cloud and other infrastructure providers be able to handle the requirements in a timely manner?
  • What would be the knock-on effect of a customer asking for his/her data to be erased? What systems will be affected and how would that effect audit trails and other regulatory requirements, such as maintaining company-related data for audit purposes for several years?

These and a multitude of others will take many more years to understand, get guidance on, and resolve. In the meantime, companies must be compliant, or face fines that are the greater of €20 million or 4 percent of global annual turnover.

For those organizations that have not yet prepared for GDPR, the overheads of data management are increasing significantly. For example, they must figure out how to best obtain and maintain personal consent, handle access requests, process revocation of consent and requests to be forgotten, train personnel to know what they can and cannot do with data under GDPR, ensure outsourced services, cloud providers, other suppliers, e.g. in the supply chain, and partners are compliant, and run audits to check the readiness and effectiveness of the provider/supplier/partner ecosystem.

Enter RPA

This is where, with its rules-based bots, Robotic Process Automation (RPA) could prove to be God’s gift to the laggards. Scenarios where RPA could be ideal include, but are not limited to:

  • Running audits of data against consent and revocation databases for compliance
  • Checking a queue of in-coming consent or revocation requests, and acting upon them, e.g., setting the right flags in systems or actively deleting data while maintaining an audit trail
  • Producing audit reports
  • Propagating changes of personal data and related consent across all the systems that hold that data, by cutting and pasting updates and maintaining consent-related databases

The role of AI

As organizations collect more and more GDPR-related data, Artificial Intelligence (AI) solutions could come into their own by helping with risk and impact analysis and reporting:

  • How many systems will be affected by a GDPR consent and access related change?
  • What is the knock-on effect on workloads and audits trails? How do these affect other regulatory requirements of data retention?
  • How many systems will be affected, and what would be the impact on operations and other legal and regulatory requirements?
  • What is the data security threat level of the day? What is the likelihood of data breaches on a daily/hourly basis, and what preventative measures could be taken?
  • What security breach has happened and what actions have been taken? Who has been affected by it and must be notified?
    Additionally, good governance is an imperative for GDPR. RPA and AI can be used to embed governance in daily operations for enforcing and monitoring purposes.

A new era of data protection is upon us. It is coming at a time when, some would say, that companies have taken far too many liberties with their customers’ data. The full implications for businesses are yet to be understood. But we believe that all organizations that hold or process personal data will experience some disruption in service delivery as a direct result of GDPR. For more on Everest Group’s point of view, please see our latest free publication: “EU GDPR: Is There a Silver Lining to the Disruption?

Chatbots are Getting Smarter, and That’s Good News for Contact Centers | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

Enterprises and their contact center operations are increasingly adopting self-service technologies to improve the customer experience. Over the past several years, chatbots have become one of the most embraced. And it’s easy to see why.

chatbots in contact centers

Chatbots are evolving…

First generation chatbots were software programs that could hold a natural conversation on a text-based channel such as chat, email, or social media. Modern day chatbots’ capabilities – interchangeably called virtual agents – have leapfrogged ahead through use of Artificial Intelligence (AI), machine learning, and Natural Language Processing (NLP), which allow them to understand free flowing language and generate real-time responses. They are no longer bound to a single channel, but instead cover the entire ambit of services, including voice support. This helps them fit well with enterprises’ broader omnichannel strategy, as they can deliver a seamless experience across channels.

chatbots in contact centers 2

…and they know your preferences

Unlike earlier versions, today’s chatbots can even contextualize information in a conversation. Here’s an example:

Jim: I would like to know the status of my flight. It’s booking # PNR AZ12356.
Chatbot: Hi Jim, checking into it. It appears that your flight’s departure will be delayed by 4 hours, due to scheduling changes.
Jim: Can you cancel it and check for an earlier flight in the morning?
Chatbot: Confirming…
As per your request, I have cancelled your flight American Airlines 235 from Boston to New York. Based on your past bookings, I have three suggestions for alternative flights on the same day:

  • Delta 2897: Departs from BOS at 0430 hours and arrives at JFK at 0550 hours
  • Delta 2471: Departs from BOS at 0600 hours and arrives at JFK at 0720 hours
  • Delta 3167: Departs from BOS at 0640 hours and arrives at JFK at 0800 hours

Jim: Book one ticket in the second option.
Chatbot: Confirming availability. Based on your preferences, would you like me to book an aisle seat, and select a bruschetta omelet with coffee for breakfast?
Jim: Yes, that will be great.
Chatbot: Excellent. Your flight Delta 2471 from BOS to JFK will depart at 0600 hours on October 30, 2017. Your seat number is 4C. I have sent a copy of the ticket to your personal email id. Have a safe flight.

Notice how the chatbot contextualized the information based on unstructured and more natural language flow, and offered recommendations based on the user’s past preferences. These degrees of evolution have made chatbots much more self-service capable, and are significantly enhancing the experience that contact centers deliver to their client’s customers.

As with all technologies, chatbots come with risks

The end goal for today’s enterprises is to deliver the best possible omnichannel customer experience. Chatbots can help customers solve problems on their preferred channel of communication (voice and non-voice). However, the technology does have shortcomings. The well-known example of Microsoft’s Tay – a Twitter-based intelligent bot that had to be pulled down within 16 hours of deployment due to offensive tweets – highlights one technology gap that needs to be addressed.

Everest Group’s just released viewpoint entitled, “Chatbots Delivering Enhanced Customer Experience: It’s Easy to Get It Wrong” details how chatbots can fit in enterprises’ omnichannel strategy, the risks they need to be aware of, and how they can mitigate them.

Video: Why a Digital Project Isn’t Digital Transformation | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

In this video, Partner Cecilia Edwards explains how many organizations are confusing digital projects with digital transformation and explains the differences between each.

Trascript:

Digital is all the conversation these days. And in particular, we hear a lot of people talking about digital transformation. But when you peal back the onion and see what they’re really talking about, not everybody’s talking about the same thing when they say “transformation.”

Many people are talking about what we’d call digital projects. When you look at things like social and mobility and analytics, even Internet of Thing, cognitive, and artificial intelligence. All of those things are digital technologies. But just because you’re using a digital technology doesn’t mean you’re in the process of a digital transformation.

A digital project is one that really takes those digital technologies and applies them to the same business model, to do things like reduce cost, improve quality, or improve efficiency. All of those things are projects.

Now, when you get to transformation, that’s a whole other story. Those same technologies can be applied in new ways. They can be applied to improvements in the customer experience, the employee experience, or business transformations. And when we talk about digital transformation here at Everest Group, what we’re talking about is the use of those digital technologies to drive a change in your business model.

Everybody’s familiar with all the disruptors. Uber disrupting the taxi business. AirBnB disrupting hotels. What they did was not just make incremental improvements in how those things were done, they changed the business model.

Now, we’re not suggesting in any way that all businesses need to completely disrupt their industries. But what we are suggesting is that those digital technologies have the opportunity to drive so much change that existing companies, mature companies, need to reevaluate their business models in a way that’s going to allow them to take advantage of the capabilities that those technologies bring to the table in a way that causes them to challenge the status quo assumptions of how you do your business and how you deliver value. That is what we call digital transformation.

SMBs Turning To Finance and Accounting Outsourcing Because Of The Cloud | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

An interesting phenomenon is happening because of digital transformation. As enterprises collapse their technology and functional stacks through digital, it disrupts their talent model and leads to a new organizational risk. At the same time, it’s starting to drive a new market for service providers. Let’s take a closer look at this developing trend where it’s currently most evident – in the Finance and Accounting (F&A) processes in small and mid-sized enterprises.

In collapsing the technology stack, companies move from running financial management software on their servers with a license update to cloud-based SaaS systems (such as Intacct or NetSuite) that provide the software and a more flexible set of reporting functions. The standardization and functionality benefits are great.

Read More Here

Driving Success in Your Automation Center of Excellence | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

Use of Service Delivery Automation (SDA) – which refers to various types of technologies that can automate inputs to a process, the process itself, or the outputs from a process – is surging in the global services industry. When scaling beyond proof of concept, organizations are finding it’s important to bring together the SDA skills and knowledge into an automation Center of Excellence (CoE). Doing so enables the business to develop its SDA capabilities and competencies in a controlled and centralized manner, in turn helping ensure maximum success from the SDA initiative.

Through our research into automation Centers of Excellence, we’ve identified several areas in which organizations struggle.

The right Center of Excellence structure

While there are numerous possible structures for a SDA CoE, we’ve found that a pyramid structure is ideal, as it helps bring the CoE governance in-line with its customers. The pyramid should have three distinct layers, each with its unique set of responsibilities and clearly defined line of communication with the client organization. Clarity around roles and responsibilities across different layers in the pyramid is critical, not only to avoid miscommunications and missteps, but also to help maximize operational efficiency.

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The Service Delivery Automation skills demand-supply gap

Demand for SDA skills has far outpaced the talent supply. Some are filling the gap by locating the Center of Excellence in locations with mature, trainable talent. Others are partnering with specialist firms, e.g., technology vendors and service providers, to leverage their domain experience and access to skilled talent, collaborating with startups, and seeking talent from technology groups and professional communities.

Multiple leading global companies are also training their existing employees on SDA. They typically engage technology vendors and/or external consultants to conduct extensive training programs for three to six months. Further, they encourage employees to join and participate in professional networks /communities and other events to learn from other SDA professionals’ experiences. This approach not only helps build internal skills for automation and reduces dependency on hiring from external sources, but also provides FTEs impacted by automation with alternative career paths.

Conventional location strategies don’t work

The traditional offshore-centric sourcing model based on labour arbitrage has limited relevance for SDA. Because of SDA’s unique requirements, organizations are investing in a diversified location portfolio for SDA in order to leverage the best propositions of each. For example, mature talent markets such as India offer a relatively larger talent pool, are suitable for a large-scale centre, and can deliver quick ramp-up pace. Onshore and nearshore locations offer greater depth and breadth of skills, enable greater interaction with business stakeholders, and provide accelerated time-to-market. And co-locating the SDA CoE with existing global services/digital technology centres can help the organization benefit from greater collaboration and economies of scale.

 

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To learn more about various aspects of the talent model, delivery landscape, and global location hotspots for SDA CoEs, please read our recently published report, “Talent Model and Location Hotspots for Service Delivery Automation (SDA) Center of Excellence (CoE),” which we developed based on deep-dive discussions with leading GICs, service providers, and automation technology vendors. And if you’ve established an automation Center of Excellence, we’d love to hear your story. Please contact us directly at [email protected] or [email protected].

Office Depot Acquires CompuCom in an Amazon–Driven Pivot | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

The adage, “Disruption does not discriminate,” rang true again with Office Depot’s acquisition of CompuCom last week.

The beleaguered office supplies retailer bought the IT infrastructure firm for US$ 1 billion, illustrating yet again the disruptive impact of Amazon and the digital economy. With this deal, Office Depot expects to add US$1.1 billion in revenue, and achieve cost synergies to the tune of US$40 million in two years. As part of the transaction, Thomas H. Lee Partners LP, the PE firm that owns CompuCom, will assume an 8 percent ownership in Office Depot.

The why

The deal comes at a time when Office Depot’s business is in the doldrums due to diminishing demand for traditional office supplies as offices go digital and online retailers eat into brick and mortar sales. CompuCom had its own share of problems, with four CEOs in the past four years, declining revenue, and diminishing investor confidence.

As the proposed takeover by Staples fell at the antitrust altar last year, Office Depot had been looking for ways to strengthen sales that had continued to slacken for several quarters. Its hiring of a slew of tech executives indicated that a drastic change was in the cards.

With this acquisition, Office Depot aims to pivot towards a business services and technology play in order to achieve:

  • Superior value proposition: Provide a stronger story to customers around the “workplace ecosystem” for enterprises
  • Cross-sell opportunities
    • Leverage its “Last Mile” footprint to provide Tech-Zone help desks in Office Depot’s 1,400 retail locations, thus increasing CompuCom’s service-based opportunities
    • Use the Tech-Zone help desks to increase on-premise traffic, thus driving traditional sales
  • Topline growth from recurring revenue streams
  • Synergies around the SMB market: Both companies target this highly fragmented market, with Office Depot’s omni-channel strategy offering access to nearly 6 million SMBs.

So, all ends well…right?

While the CompuCom acquisition is in line with the “Software Eats Everything” theme, meaningful questions exist:

  • Uninspiring investor confidence: Office Depot’s share price dropped by 15 percent following the announcement. Although this can be considered a short-term consequence, both firms have struggled as secular market trends reshape their core industries. Will the combined entity realize its promised value?office depot acquisition of compucom blog
  • Digital innovation: There is little clarity on the combined entity’s innovation strategy around the digital workplace construct. The onus is on it, especially CompuCom, to deliver a value proposition centered on seamless customer experience
  • The Amazon conundrum: With Amazon disrupting traditional business models – via e-channels and innovation across physical channels through concepts such as Amazon Go – the combined entity must chalk out a strategy to counter Amazon’s onslaught from both the retail and technology perspectives
  • Change management: The combined entity needs to guard itself against organizational inertia, as the pivot from a brick and mortar model to a services play will require considerable structural changes and incentive restructuring
  • Customer education: The combined entity must educate customers about its new value proposition and what it means for their business and their business as usual to assuage any concerns that lead to customer flight.

The way forward

There have been previous instances of retailers acquiring Managed Service Providers (MSPs) to enhance their value proposition and margins. This includes Staples’ acquisition of Thrive Networks in 2007, and Best Buy’s acquisition of mindSHIFT in 2011. Although worthy pursuits, these acquisitions failed due to executional fallacies, lack of a clear-cut strategy, and their erroneous belief that SMBs would choose them to outsource their IT in a managed services model.

On the other hand, most of CompuCom’s revenue comes from conventional project-based and procurement engagements. The customer experience point is important here. If Office Depot can make this model a de facto choice for customers looking for a better customer experience, this might just work.

That said, the continuous disruption by players such as Amazon and the proliferation of digital users who demand a personalized user experience across all channels will play a key role in determining the success of this acquisition.

Creating a definitive digital value proposition aligned to customer expectations and chalking out a clear, dynamic execution strategy are the key tenets Office Depot must embrace for the CompuCom acquisition to succeed. Indeed, they are our words to the wise for any service-related organizations considering M&A activity in today’s digitally-disrupted environment.

What is your take on Office Depot’s pivot? We would love to hear from you at [email protected] and [email protected]

The Equifax Data Theft: What if GDPR were in Force? | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

The high entropy data protection space has once again gained headlines after Equifax, the U.S- based consumer credit reporting agency, revealed that a July 2017 theft compromised more than 143 million American, British, and Canadian consumers’ personal data. The data breach incident, one of the worst cyber-attacks in history, was conducted by hackers who exploited a vulnerability in the company’s U.S. website and stole information such as social security numbers, birth dates, addresses, and driver’s license numbers. (Equifax maintains and develops its database by purchasing data records from banks, credit unions, credit card companies, retailers, mortgage lenders, and public record providers.)

Much about the situation would have been considerably different had this breach happened after May 2018, at which time the General Data Protection Regulation (GDPR) – a regulation by which the European Parliament, the Council of the European Union, and the European Commission intend to strengthen and unify data protection for all individuals within the European Union (EU) – goes into effect. Even though it is not headquartered in the EU region, Equifax would have come under the purview of GDPR, because it maintains and reports the data of British citizens. And the stringency of requirements and degree of implications would have been significantly higher for the credit rating agency.

GDPR and Equifax

Although not directly related to GDPR, another significant business impact is the sudden “retirement” of Equifax’s CEO less than three weeks after the breach was announced.

This massive cyber-attack is a wake-up call for the services industry. Starting today, operations and businesses must regard data protection regulations with the utmost importance. Non-compliance will not only harm firms financially, but also expose them to brand dilution and business continuity risks.

Some of the key imperatives for enterprises operating in the ever-so-stringent data protection space include:

  • Know and understand the data security laws under which your enterprise falls, especially those such as GDPR that have far reaching impacts
  • Redesign your business processes to incorporate privacy impact assessments to identify high risk processes
  • Implement necessary changes in the contracts with third parties to incorporate the stricter requirements of consent
  • Achieve process transformation to inculcate privacy by design; this includes risk exposure reduction by technological changes such as data minimization
  • Appoint a Data Protection Officer to align the business goals with data protection requirements
  • Make suitable changes in contracting and governance practices to ensure adequate emphasis on data protection

To learn more about the strategic impact of the EU GDPR on the global services industry, please read our recently released viewpoint on GDPR: “EU GDPR: Is There a Silver Lining to the Disruption.”

CX and the Philippines: An Evolving Value Proposition | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

For the last several years, the Philippines’ value proposition as the leading contact center delivery location has been availability of a large workforce with good language skills and high empathy, at very competitive costs. But to remain the top contact center destination, it will need to evolve its value proposition from customer service delivery to CX delivery.

This is because CX has emerged as a top priority for firms to build a loyal customer base in today’s digital age in which end-consumers are seeking a seamless, quality, personalized experience across channels. To support clients in this quest to deliver a superior customer experience, the contact center industry is transforming from an arbitrage-first to experience-first model. Everest Group research shows that the key to delivering the CX of the future is optimizing a blend of talent and technology.

The primary technology enablers

  • Fortify analytics solutions – Contact centers are blessed with access to a wealth of high-quality data. Customer analytics can help them provide personalized services and real-time support for query resolutions. Operational analytics will allow them to monitor processes, predict future demand, and optimize service elements to achieve the best outcomes.
  • Embrace automation solutions – The first step is using self-service offerings to manage simple queries, followed by leveraging rule-based chatbots and smart IVRs to manage high-volume transactional tasks for maximum automation impact on contact center operations.
  • Focus on delivering omni-channel experience – Delivering a consistent, seamless customer experience requires an integrated view of the customer across all channels. With a more case-driven approach, each interaction that the customer has with the organization feels like part of an ongoing conversation and relationship.

The key talent enablers

While technology advancement will help prepare the groundwork for CX delivery, talent enablers are equally important to ensure a smooth transition:

  • Build the right talent strategy – As contact centers adopt technology on a wider scale, the role their agents play will evolve to focus more on domain and technology expertise. Thus, recruitment and training programs must align to identifying new talent with the right skills, and strengthening existing agent capabilities and knowledge.
  • Rationalize KPIs/metrics – To measure agent performance, contact centers will have to establish metrics and KPIs that focus on digital enablement, business outcomes, and impact on the customer experience.

If you’re currently associated with a contact center in the Philippines, or are considering outsourcing contact center operations to the Philippines, we invite you to join us at the Contact Center Association of the Philippines’ annual conference at Shangri-la’s Boracay Resort & Spa, Boracay Island, Philippines on October 11 and 12. The Contact Islands conference, at which my colleagues Karthik H and Katrina Menzigian will be featured speakers, will focus on the evolving nature of CX, and how the Philippines is matching the pace of the global industry-wide disruption.

Digital Transformation: Is Design Thinking Failing us? No, We Are Failing It | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

In addition to Everest Group’s work with enterprises on design thinking, I have recently participated in more than a dozen design thinking-focused discussions and analyst events with digital service providers, including as design companies, system integrators, and consultancies.

All the providers talk about the great work they have been doing with clients leveraging design thinking. But it is very clear that they are missing the larger context of design thinking. This, in turn, is impacting the value they can generate for their clients. And unless they embrace a different approach, they will not be able to help their clients become world-class digital adopters.

Three issues with the way design thinking principles are leveraged in client work

  1. Obsessed with persona: Most digital service providers focus on solving the problems of one specific persona in an enterprise – e.g., doctors, sales agents, pilots, or shop floor managers – and largely ignore the ecosystem around that persona. Realizing the solution they designed for that persona, creates complexities for others in the ecosystem, they design solutions for each of those personas. This becomes a never-ending loop that not only frustrates the client but also fails to create the intended value. In the worse cases, the digital solution designed is impractical, and cannot be deployed by the enterprise. This defeats the entire design thinking initiative, and wastes considerable time and money investments.
  2. Over-focused on the “known”: Most design thinking workshops focus on users’ evident, current problems, but fail to address unarticulated needs. There are three reasons for this. First, because the workshops typically carry a crunched timeline. Second, because the digital service providers believe it can be difficult to explain and get funding for unarticulated needs. Third, because the users themselves are more focused on their tangible challenges than issues they cannot visualize. But this sole focus on the known limits the impact a truly successful design thinking initiative can create for an enterprise.
  3. Driven in closed rooms: Only 20% of design thinking workshops are carried out in users’ real working environments. As the rest are conducted in closed conference rooms, user input based on memory and perception, rather than real time observation of their day-to-day activities. Thus, the resulting solution cannot help but fall short of expectations and address only part of the problem, when it is implemented in the real world.

Aspiring world-class digital enterprises must make design thinking the epicenter of their transformation initiatives. To gain all the benefits and value of design thinking, I strongly recommend enterprises:

  • Have a broad perspective of the problems they are trying to address, rather than obsessing on specific user requirements
  • Require their service providers observe their users in in their real working environment, and draw a map to the other stakeholders with which they frequently engage
  • Tie the digital service providers’ financial incentives to the outcomes of their digital initiative

Have you run or attended a design thinking workshop? Experienced a highly successful, or miserably failed, design thinking initiative? Please share with me at [email protected].

Contingent Labor Service Providers: The Winning Capabilities in 2017 | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

There’s no denying that the contingent workforce market is being disrupted by multiple forces – the emergence of statements of work (SoW) and independent contractors (IC) as significant new spend categories, the rapid evolution of analytics and supporting technologies, and rising buyer demand for total talent acquisition, to name just a few. Navigating through the maze of disruptions to rise to the top of the market is no easy feat for service providers in the space, but several have done so in 2017.

Following are the differentiating qualities and capabilities that earned a handful of providers their rightful spot as  Leaders in Everest Group’s Managed Service Provider (MSP) PEAK Matrix™ in 2017.

  • Fast, proactive responses to market trends: With SoW and IC emerging as new spend categories, the Leaders have differentiated themselves by taking early action in acquiring the capabilities needed to manage them. After starting out with the low hanging fruits such as payments, compliance, etc., these Leaders are now moving on to strategic areas of the value chain such as sourcing, category expertise, and negotiation. The Leaders are also making considerable headway in the emerging area of Total Talent Acquisition (TTA) by developing the requisite capabilities and leveraging their existing expertise in RPO and/or as an Managed Service Provider.
  • Technology ecosystem versus discrete technologies: The Leaders understand the need for and benefits of a talent ecosystem, which means offering an integrated set of tools that can help provide visibility and control over the entire talent acquisition function. These service providers have either developed or are in the final stages of developing a holistic technology architecture to serve the entire talent acquisition landscape. A prime example of this is the addition of SoW and IC management capabilities to the existing Vendor Management System (VMS) itself.
  • Next-gen analytics capabilities: While reporting and descriptive analytics have been around for a while, the true business potential of analytics technology can only be unleashed through predictive and prescriptive analytics. When you couple these with natural language programming (NLP) and artificial intelligence (AI)/machine learning (ML), you create an easy-to-use, intuitive system that can greatly reduce the costs and spend associated with contingent labor. While the technology is still in nascent stages, the Leaders have started taking a few tentative steps down the road to acquiring these capabilities.
  • Capability to serve the entire market: the Managed Service Provider market is no longer restricted to certain geographies or large enterprises. Buyers from developing markets and mid-sized firms are starting to embrace and realize the benefits of an outsourced contingent workforce management program. The Leaders have introduced specialized offerings, such as evaluating the need for a contingent workforce management program and advising in the technology implementation stage, that make it practical for these first generation buyers to outsource their contingent workforce management.
  • Value-added services and customized solutions for experienced buyers: With a significant portion of their portfolio now consisting of second-and third-generation buyers, the Leaders have begun offering value-added services such as contingent talent branding and talent community management, which helps improve the candidate experience and results in better fill rates and acceptance ratios. They are also offering innovative payment models such as gainsharing or risk sharing programs, such as indemnification of contingent workforce management services.

While the Leaders in our 2017 Managed Service Provider PEAK Matrix™ have taken considerable steps to gain the title, the market is still wide open for innovative and proactive providers. Investing in new technologies and capabilities, and quickly addressing market trends will help other providers emerge victorious.