Monthly Archives

October 2018

Digital Transformation: Are Your People Just Paying Lip Service? | Sherpas in Blue Shirts

By | Blog, Digital Transformation

The biggest mistake a company can make in digital transformation is starting the transformation journey without first getting the necessary commitment and support. Senior leaders and business stakeholders must commit to rethink and change organizational boundaries, policies, processes, talent and organizational structure as necessary to achieve the strategic intent or vision.

If they’re not committed to doing that, the digital transformation effort will fail.

Unfortunately, many companies get only lip service from leaders rather than long-term commitment to change. Company leaders can have a great meeting and talk about the need for change and a digital environment to create new competitive positioning, but not get real commitment to change.

Read more in my blog on The Enterprisers Project

UiPath Forward EMEA — October 30 | Event

By | Events

Research EVP and distinguished analyst Sarah Burnett will be a key speaker at the 2018 UiPath Forward EMEA event held on October 30 in London. Sarah will discuss the latest trends in automation and introduce an exciting new RPA resource from Everest Group.

About the Event

The era of Robotic Process Automation (RPA) has arrived, and it’s accelerating the pace of digital transformation in every aspect of your business. From Finance, HR and Legal to Customer Service and Contact Centres, RPA is creating a digital workforce that helps businesses scale quickly and achieve rapid results. To thrive, you need to accelerate your RPA journey, accelerate AI implementation, accelerate customer experience and accelerate your business outcomes.

No matter where you are on your RPA journey, you will not want to miss this event.


October 30, 2018


Royal Lancaster London
Lancaster Terrace


Sarah Burnett, Executive Vice President and Distinguished Analyst, Everest Group

Learn more about the event

Acquisition Of Red Hat Repositions IBM For Digital IT Modernization | Sherpas in Blue Shirts

By | Blog, Cloud & Infrastructure, Digital Transformation, Mergers & Acquisitions

IBM’s $34 billion cash acquisition of Red Hat announced early this week has far-reaching implications for the IT services world. IT is modernizing, moving from a legacy world with data centers, proprietary operating systems and proprietary technologies to a digital environment with cloud, open-source software, a high degree of automation, DevOps and integration among these components. IBM’s legacy assets and capabilities are formidable, but the firm was not well positioned for IT modernization and struggled with digital operating models. The Red Hat acquisition is significant as it repositions IBM as a vital, must-have partner for enterprise customers in IT modernization and evolving digital operating models. This is a very intriguing acquisition for IBM. Let’s look at the implications for IBM and enterprise customers.

Read more in my blog on Forbes

Multi-Country Payroll Outsourcing Set to Continue Riding a 20% Growth Wave According to Everest Group | Press Release

By | Press Releases

Providers invest in AI, RPA and other next-gen digital solutions to improve employee experience with payroll systems.

The Multi-Country Payroll Outsourcing (MCPO) market —one of the fastest growing markets in the human resources (HR) outsourcing space— is set to continue riding a multi-year growth wave of 20 percent, according to Everest Group. This momentum is fueled by the rising appreciation enterprises have for the MCPO value proposition as well as increasing provider maturity.

Although MCPO service providers have performed well with respect to the traditional drivers (cost reduction, process standardization and compliance), buyers expect more in terms of next-generation technologies and strategic support. In fact, drivers for MCPO adoption are slowly shifting from the traditional to next-generation ones, which include factors such as better employee experience, better insights through analytics, and access to next-generation digital solutions such as artificial intelligence (AI) and robotic process automation (RPA).

“The shift we’re seeing in MCPO adoption is from an arbitrage-first to a digital-first play,” said Anil Vijayan, practice director at Everest Group. “This is creating a significant challenge for providers, because although most buyers express fairly high satisfaction levels with the ability of their providers to deliver on the traditional metrics, buyers are expressing a fairly low satisfaction level with providers with respect to next-generation metrics. Providers need to address this gap between expectations and perceived performance.”

The leading players in the MCPO landscape—namely ADP, NGA Human Resources, and TMF Group—have done just that; they have constantly innovated and invested in developing technological capabilities to differentiate themselves from others in the market.

One growing area of technology investment is employee experience solutions, where next-generation technologies are being used to enhance both employee empowerment and employee engagement. For example, greater empowerment  can be achieved through advanced employee self-service portals, omnichannel experiences, and investments that enable rapid response and accuracy. Employee engagement  can be enhanced through HR systems that are easy to use, provide a consistent experience across sub-processes, have an intuitive look and feel, and offer employees a personalized experience, including multi-lingual support.

Everest Group explores these findings and others in a recently published report: “Multi-Country Payroll Outsourcing (MCPO) – Annual Report 2019 – Persistent Growth Amidst Evolving Propositions.” This research provides a comprehensive analysis of the global MCPO market across various dimensions such as market overview and key market trends, buyer adoption and solution trends, and service provider landscape.

Additional key findings in this report include:

  • Buyers headquartered in North America and Europe, the two most mature markets, are the leading adopters of MCPO globally. Rising adoption is seen from the emerging markets of Asia Pacific and Latin America.
  • The market has witnessed strong adoption by small-sized multinational corporations (MNCs), which are spread across two to five countries. The large market segment also has witnessed a resurgence of activity, with many large enterprises venturing into large multi-continent deals.
  • The small market segment witnessed a dip in the average deal size, while the mid- to large-sized segments witnessed a significant increase due to a rise in large multi-country deals.
  • ADP, NGA Human Resources and TMF Group dominate the MCPO market in terms of market revenue. The three companies cumulatively constitute over 50 percent of the total market revenue.

Set Your New Year’s Resolutions for Successful Automation Program in 2019 | Webinar

By | Webinars

Thursday, October 25, 2018 | 2 p.m. EST | Hosted by IBM with featured speaker, Sarah Burnett, EVP and Distinguished Analyst, Everest Group

Register Now

Automation is on every enterprise’s agenda but many are struggling to make their vision a reality. Others are challenged keeping that vision up to date in a rapidly changing technological landscape. Sound familiar? Join this webinar to find out how to avoid an automation horror story and get a jump start on your 2019 New Year’s Resolutions for an accelerated automation journey.

Two leading automation experts have teamed up: Elli Hurst from IBM Automation’s Global Services team and Everest Group’s Sarah Burnett, a leading automation technology analyst, will discuss the challenges facing clients who are seeking enterprise-wide, intelligent automation, and provide some practical guidance on tackling those challenges.

Guest Speaker

Sarah Burnett, EVP and Distinguished Analyst, Everest Group

Register to attend

Infosys Confluence — October 23-24 | Event

By | Events

Research EVP and distinguished analyst Sarah Burnett will chair a panel at the 2018 Infosys EMEA Confluence held on October 23-24 in Rome, Italy. The panel will focus the impact of digital transformation on business process management and customer experience.

Digital transformation with deep domain, process and the latest technology, can create robust and innovative solutions to provide the ultimate customer experience. How can the next generation BPM get amplified in this new era of digital revolution? You’ll hear perspectives from some of the very best in the business.

About the Event

Confluence is all about helping enterprises navigate from where they are to where they aspire to be. The digital revolution, cascading across every industry, is redefining our expectations as consumers, and enabling disruptive market offerings. And by extension, traditional business models are giving way to digital business models. Enterprises need new and intelligent systems to be built with next-generation technologies. And they need the right talent, the right partner to help them through that journey.


October 24, 2018


Rome Cavalieri
Rome, Italy


Sarah Burnett, Executive Vice President and Distinguished Analyst, Everest Group

Learn more about the event

Services Prediction: More Mega Deals Coming | Sherpas in Blue Shirts

By | Blog, Digital Transformation, Mergers & Acquisitions, Outsourcing

An interesting trend is developing in the services industry, reversing the trend we’ve seen for the past five years. I predict that this year, and for the next few years, we will see a modest rise in mega deals – deals with $500,000,000 or more in Total Contract Value (TCV). Where are those deals coming from?

At Everest Group, we watch services transactions closely. Over the last five years, the industry experienced a big move away from mega deals, preferring smaller and smaller transactions. This was then exacerbated by digital rotation where customers were interested in digital pilots – which are small deals. But this year we note a renewal of interest – in some specific situations – for large deals.

Here’s my take on three forces driving mega deals now.

Force #1: IP-Plus-Services Model

One force driving mega deals is where the service provider wraps services around the intellectual property (IP) platform the provider owns. TCS’s book of business of large deals is a good example of this. TCS has an IP platform around insurance and mega deals tied to that platform. The $2 billion-plus TCS transaction with Transamerica earlier this year is a good example. What makes the deal so large? The customer is modernizing its IT by jettisoning its legacy technology and transferring it to TCS for modernization through the TCS platform.

As the services industry pivots to digital models, IP ownership plays an increasingly important role. Automating work diminishes the importance of labor arbitrage, and the profit pool reconfigures around IP owners. The nature of the IP-plus-services model allows mega deals to happen. I expect more of this kind of deal to happen at TCS as well as at providers like Cognizant, which has a similar platform in the pharmaceutical healthcare space with TriZetto. Both TCS and Cognizant are using their investments in IP platforms to differentiate their offerings and capture large contracts.

Where service providers own important IP platforms, I see those as the basis for some very large deals.

Force #2: Leveraging the Balance Sheet

Another source for large deals is providers leveraging their balance sheet to finance a customer’s large-scale IT modernization. HCL and Wipro are good examples of providers using this approach to create very large deals. They use their balance sheets to fund expensive IT modernization deals, including taking over a customer’s legacy assets. This strategy accelerates a service provider’s growth, and I expect to see more mega deals using this strategy.

Force #3: Digital Transformation Programs

This year, we’ve seen digital transformation move out of the pilot phase into full-blown transformation programs. The amount of money customers spend on these transformations is staggering, often hundreds of millions of dollars. The large availability of enterprise funding for transformation is likely to encourage larger deals.

The net result of these three forces? I believe we will see a modest increase in mega deals, and in certain areas, larger deals for the remainder of this year and next year.

I’m not claiming the entire services market is moving to mega deals. In fact, two size-diminishing secular trends that were well underway continue: (1) decomposing the legacy, multi-tower deals to single towers and bidding those out (2) the move from managed services to systems integration and digital work. These trends will continue to create a fabric of smaller transactions.

However, some large deals are emerging. I believe the three forces I described are working against the well-established trends for smaller deals we saw during the last five years.

How To Purchase Services For Digital Transformation | Sherpas in Blue Shirts

By | Blog, Digital Transformation, Outsourcing

Disruptive technologies enable dramatic new ways of doing work and delivering value to customers. Understandably, companies are rushing to implement disruptive technologies to change their business so that they can better serve their customers, employees, partners with new value and lower their total cost of ownership. Achieving this goal necessitates assembling a digital platform. However, few companies have the resources to build and maintain a platform alone, so they need to contract with third-party service providers. Here’s the problem: the classic procurement approach for third-party services doesn’t work with digital transformation.

Read more in my blog on Forbes

What Is The Future Of The Customer Journey? | In the News

By | In The News

Intelligent Sourcing magazine recently hosted a dinner in collaboration with Teleperformance in London where Mike Havard, CEO of Ember Group, and Julian Herbert from Everest Group discussed the future of the customer journey. The team from Teleperformance was also there to give feedback on the role of the customer experience (CX) supplier in managing modern customer journeys.

Read more in CustomerThink


Is Your Shared Services Center / GIC Driving the Digital Agenda? | Webinar

By | Webinars

Complimentary 60-minute webinar held on Tuesday, October 16, 2018 | 9 a.m. CDT, 10 a.m. EDT, 3 p.m. BST, 7:30 p.m. IST


Questions we’ll address:

  • For what kinds of digital initiatives are enterprises leveraging the shared services / GIC model?
  • How are shared services / Global In-house Centers (GICs), and corporate digital teams working together?
  • What supporting programs should you implement to develop and retain top digital talent?
  • How much are organizations investing in digital initiatives, and are they satisfied with their investments?

Businesses around the globe are exploring and adopting digital services at a record pace, driven by changing consumer demands, emerging disruptive technologies, evolving regulations, and increasing cost/margin pressures. Many organizations are finding that their shared services centers / GICs are ideally positioned to orchestrate their digital services management and development, enabling tight integration between the delivery center(s) and the core business while also ensuring optimal growth.

Who should attend, and why?
This webinar will offer real-world insights into how organizations can effectively leverage their delivery centers for digital enablement.

The content is geared to senior enterprise executives – CIOs, CTOs, Chief Digital Officers, Heads of the Global In-house Center (GIC) / Shared Services Center (SSC) / Global Business Service (GBS), Senior Strategy Executives, and Global Sourcing Managers.

Michel Jannsen
Chief Research Guru
Everest Group

Rohitashwa Aggarwal
Practice Director
Everest Group

Parul Jain
Senior Analyst
Everest Group

Alan Wolfe
Senior Vice President
Everest Group