Share of Europe-Headquartered GICs Grows | Market Insights™
Share of Europe-headquartered GICs grows
Share of Europe-headquartered GICs grows
The consistent growth rate in number of GICs indicates that they are no longer viewed simply as low-cost in-house delivery centers, but are being leveraged as strategic units and value-add partners for the parent organizations
Global services market, 2010-15, and distribution of global services market by sourcing model, 2015
Wednesday, 27 July 2016 | 11:00 a.m. – 12:30 p.m. EST
Enterprises are looking for opportunities to optimize their global services delivery to reduce costs and enhance capabilities. Rebalancing sourcing models – Global In-house Centers (GICs) and third-party service providers – is one way to optimize service delivery. Many organizations are moving work in house in a bid to rebalance their sourcing model mix.
This session will provide an overview of market trends, followed by a group discussion around how enterprises are balancing outsourced and in-house service delivery to their best advantage.
Who Should Attend
Global services and enterprise outsourcing executives and GIC leaders wishing to learn more about the latest sourcing model trends and the evolving role of in-house models
What You Will Learn
This session will help participants calibrate their thinking on both outsourcing and in-house models and their roles going forward in a balanced sourcing portfolio.
According to research from the Everest Group and Avendus Capital, analysed by Kunal Jain, an IIT-B graduate and data scientist, India holds anywhere from 35-50% of the global analytics services market, an industry and in-house specialism regarded as fundamental to the growth of any business sector. Read more.
In my previous blog post, I discussed greenfield opportunities, an exciting area of demand for application services. Among the three factors in the demand profile for app services today, another factor is the desire to change the way services are delivered. For these “brownfield” opportunities, the approach to app demands is very different from the greenfield opportunities.
Services are already being delivered in the brownfield opportunities, but new technologies or approaches allow reshaping the way they’re delivered. Technologies and approaches in this space include agile, DevOps, automation and Artificial Intelligence (AI) or cognitive computing. They allow organizations to reconceive the existing way they do business and do it differently and better.
There are very significant app demand opportunities in the brownfield space, and the outcomes are potentially very significant. JP Morgan, for example, achieved a 700 percent improvement in software developer productivity, a 59-day reduction in time to market, and 45 percent savings in infrastructure cost.
However, unlike the greenfield demand, brownfield opportunities face an existing ecosystem and existing way of doing business. Changing the way a company does business is very difficult. There is a lot of entrenched behavior in organizations, plus incumbent vendors have to be dislodged. So the brownfield space includes moving people’s cheese and reallocating resources, which can be quite painful to do.
In my next post, I’ll discuss the third factor driving demand for application services today and how all three factors are changing organizations and app services in fundamental ways.
Tuesday, July 26, 2016 | 11:00 a.m. – 12:00 p.m. PT, 2:00 p.m. – 3:00 p.m. ET
Register for the webinar
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Abhishek Singh, Practice Director, Research, Everest Group will be a guest speaker during this Healthcare IT News-hosted webinar.
This one-hour webcast will explore the key success factors and challenges of enabling patient engagement in the digital age. Join Abhishek Singh of Everest Group, Stephanie Bartels, patient engagement solutions leader for Dell Services, and John DuBois, managing director of customer engagement for Dell Services for this insightful discussion.
Everest Group will share a key findings from a recent study on the current state of patient engagement maturity among providers. Dell Services will discuss how mobile, social, and customer relationship management tools can improve patient outcomes and where to look for ROI in strategic plans.
Speakers:
Abhishek Singh
Practice Director, Research
Everest Group
Stephanie Bartels
Patient Engagement Solutions Leader
Dell Services
John DuBois
Managing Director of Customer Engagement
Dell Services
As part of Everest Group’s digital services research, we discuss digital transformation initiatives with multiple enterprises. Of course, mobility is one of the cornerstones of such conversations. In a recent discussion with a retail company, I was told how they transformed their store operations by providing mobile-driven BI solutions to their managers.
Although the business case was strong and the results were highly evident, when pushed for the measurement of success, I received an intriguing reply that was in line with data captured in our earlier published research on moving beyond feel good ROI (Return on Investment). The enterprise said that more than 80% of its store managers and employees had downloaded and accessed the mobile app and that this was a great success.
Such discussions are not uncommon. Enterprise shops running mobile initiatives are typically benchmarking their success based on how many users install the app or how many actually use it rather than the business impact. Let’s be clear on three things:
Why do enterprises choose to do this?
The simple reason for tracking ROI based on usage or downloads and not business impact is that the latter is extremely difficult to measure and correlate. The fundamental attribution of business success to an app is difficult and, therefore, enterprises take the easy way out of collecting download and usage metrics. Business outcomes depend on a number of moving parts. An app can bring a horse to the pond but can’t make it drink water.
Is this scary?
Some would argue that if business impact is hard to measure, then enterprises should not use it to define ROI of digital initiatives such as, enterprise mobility. But isn’t it scary that enterprises are making such investments simply because of access to a cool new channel through which they can share information with their external or internal customers? Is the “hope” that enterprise mobility will eventually have a business impact a good enough reason to invest? This nicely ties to our earlier published research on digital investments.
The road ahead?
Are there other KPIs to measure the effectiveness of enterprise mobility initiatives? If yes, how do they link to the business impact? Enterprises need to think through three fundamental aspects:
While there are only two things of importance in business, revenue and cost, there are multiple levers that drive these fundamental outcomes. Enterprise mobility can impact these levers as long as the right KPIs are defined. Impressive metrics around downloads or usage do not really serve a meaningful purpose. Enterprises are not digital start-ups whose valuation is driven by usage rather than real money. Therefore, if enterprises want to really extract value from their mobility initiatives, they have to develop measurable KPIs linked to business impact instead of easy-to-measure feel good factors.
How are you measuring your enterprise mobility initiatives?
Second event in “On Point | Summit Series 2016” to feature Rod Bourgeois of DeepDive Equity Research; topics will include sourcing models, next-generation IT, and contracting for business outcomes.
The global outsourcing industry has matured into a slower growth pattern, but strategic outsourcing solutions can still add dramatically more and different value to organizations. Discovering the keys to unlocking this outsourcing value will be the focus of the day as enterprise sourcing executives and senior leaders gather in New York City on July 21 at the On Point Summit to network and share insights on optimizing their global sourcing strategies.
The half-day summit—hosted by Everest Group and themed “Succeeding in Outsourcing 4.0: Imperatives for Strategic Sourcing Executives”—is a forum designed for enterprise attendees to learn from each other and featured industry experts and leading practitioners.
Special guest speaker, Rod Bourgeois, head of research and consulting at DeepDive Equity Research, will present, “What are the Winning Models? An Investor’s View.”
“We launched the ‘On Point | Summit Series 2016’ because our clients and others in the industry wanted a safe forum where they could exchange ideas with peers and engage with us in person,” said Eric Simonson, managing partner – research at Everest Group. “Based on feedback from our first event, our format of intimate interaction with peers, an opportunity to hear provocative thought leaders, and a chance to have detailed discussions with us on key issues is exactly what these business leaders are looking for. The takeaways from the event offer an excellent ROI on the time invested.”
The July 21 agenda will feature a panel of leading outsourcing practitioners who will engage participants in a lively discussion about incorporating next-generation capabilities into outsourcing solutions. Other highlights will include “Bring Your Own Topic” (BYOT) roundtable discussions and insights on contracting for business outcomes, offered by Everest Group.
Everest Group hosts for the event include Simonson; Jimit Arora, partner and leader of IT services – research; and Sarthak Brahma, vice president, pricing assurance – research.
This is the second installment of Everest Group’s by-invitation-only “On Point | Summit Series 2016.” The first event, held in May, focused on emerging technology and talent trends in the banking, financial services and insurance industry. Guests enjoyed active dialogue with peers, insights from Everest Group research analysts, and a presentation by guest speaker, Chitra Dorai, IBM fellow and CTO of cognitive services, who shared her thoughts on “Cognitive Computing for Process Re-imagination in Financial Services.”
The third event in the “On Point | Summit Series 2016” will be held in October. Everest Group recently announced that, due to popular demand, the “On Point | Summit Series” will be extended with a full slate of events in 2017.
***Learn more and request to attend the July 21 event in the “On Point | Summit Series 2016” here. (Enterprise companies only; no service providers.)
Three factors are reshaping the demand profile for application services, changing the services in fundamental ways. The first factor is best exemplified by digital technologies. Basically these are new technologies that create new business opportunities in enterprises. Inside of this would be cloud, mobility, social, big data and the IoT. They are made possible because of the innovations and disruptive technologies that are coming into the marketplace. There is an important aspect to these opportunities, which significantly impacts the services industry.
We can refer to this first factor of demand for application services as “greenfield” opportunities. In this space, is there is no provider incumbency and there no ecosystem is in place. Because these demand areas (cloud, mobility, big data, social and IoT) are new and never been done before, they are closely linked to a client’s business agenda driving growth. These greenfield app services are often funded and driven by the business and new money, and the sponsors are very senior-level executives within the organization.
Business units are highly involved in these app initiatives because they hold potential for market share gains or competitiveness shifts. And they’re new and exciting. It’s always more fun to work on initiatives for growth, and it’s much easier to spend greenfield money than it is to take money away from the brownfield existing ecosystem.
This source of app demand services is really exciting for CIOs and service providers because it’s using technology for what they want technology to do. In my next blog posts, I’ll discuss the other two factors in the profile demand for application services.
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