Category: Blog

Generative AI’s Impact on the Talent Market: Unraveling its Effects on Training and Recruitment Versus the Environment and Society | Blog

September 8, 2023

The emergence of Generative Artificial Intelligence (GAI) has sparked a complex debate in the global talent market. The acindustry faces a paradox in balancing the transformative advances the technology brings to training and recruitment with its potential negative societal and environmental implications. To successfully navigate this intricate landscape, organizations need to address concerns about ethics, data privacy and security, energy efficiency, and monitoring. Delve into the dual nature of Generative AI’s impact in this blog. 

First, let’s look at the aspects of Generative AI’s impact that can be viewed as detrimental.

Generative AI’s impact on the environment

Developing talent recruitment and training GAI models requires the use of massive volumes of historical hiring data, training resources, and regulatory policies, which leads to considerable power and energy consumption during the training process. With the development of more powerful models, energy consumption will rise significantly, presenting a pressing concern. Using nonrenewable resources like fossil fuels as energy sources can have dire environmental consequences.

While the carbon footprint of AI models is well known, its water footprint is often overlooked and poses additional risks that can ultimately contribute to water scarcity. For instance, training GPT-3 at Microsoft’s data centers requires almost 700,000 gallons of fresh water, according to Cornell University research. Consequently, the large-scale adoption of GAI should prioritize methods to reduce both energy and clean water usage. Contact us to learn more about a sustainable approach to GAI.

Disruptive influence on the job market

In addition to environmental worries, GAI’s disruptive influence on the job market has ignited controversy. Goldman Sach research predicted GAI could replace millions of jobs globally. The potential for job loss has particularly become a major concern in the business process outsourcing (BPO) industry.

With capabilities such as data entry, content generation, and customer support, GAI minimizes repetitive and rule-based tasks reducing the need for human involvement. GAI-driven data analysis can make forecasts based on past trends, reducing the reliance on human intervention, and diminishing the need for data analysts.

While the full extent of what positions GAI can replace in the coming years is not fully known, it conceivably can replace various roles in customer service, sales and marketing, operations, finance, and HR over time. The skills that can be affected as GAI’s use increases are illustrated below:

Picture1 2

Ethical dilemmas and bias challenges in AI-driven recruitment

As we delve deeper into GAI’s implications, privacy concerns and unintended biases in AI models emerge. To create effective models, AI algorithms require large datasets, which can include sensitive and/or personal information. If not handled properly, any content generated by AI models can potentially expose an employee’s private information. These models can unknowingly learn sensitive information, making private details vulnerable in an attack.

AI systems also can reflect biases that are inherent in the data they are trained on. For example, if historical hiring data exhibits biases toward certain genders, ethnicities, or educational backgrounds in recruitment AI engines, AI may inadvertently favor these demographics in its recommendations, perpetuating inequitable disparities.

Furthermore, linguistic patterns or keywords within job descriptions could introduce biases related to gender or age, impacting how the AI appraises and prioritizes candidates. Consequently, employers who incorporate such systems into their hiring processes may inadvertently amplify the inherent biases encoded within these models, potentially placing specific groups of individuals at a disadvantage.

Exploring the upside of GAI

Despite the hurdles and reservations, GAI can bring substantial advantages to both the environment and the talent market. Its capacity to automate and optimize various processes can significantly save energy and resources, thus reducing the overall environmental impact.

Although GAI’s energy consumption poses immediate concerns, its potential for long-term sustainability is encouraging. The technology promotes adopting renewable energy sources to power AI infrastructure, reducing dependency on fossil fuels.

Promoting sustainable practices in AI development and deployment can ensure a greener future for the talent market. Additionally, GAI can enhance workforce productivity and job satisfaction by effectively matching candidates with appropriate job opportunities and offering personalized training programs.

Job creation and upskilling

GAI’s potential for automating routine tasks has raised concerns about job displacement. However, the impact is more nuanced and can offer opportunities for job creation and upskilling. As GAI takes over repetitive tasks, the workforce must adapt through upskilling and reskilling to complement AI technologies. This shift in job roles necessitates a proficient workforce leveraging GAI to enhance productivity and creativity. Moreover, GAI creates demand for specialized roles like AI specialists, data scientists, and AI ethicists. Embracing GAI and investing in workforce development will prepare organizations for an AI-powered future, fostering a collaborative and innovative talent market.

Facilitating a more accessible talent market

GAI, when properly trained, has the potential to democratize the recruitment process by making it more accessible and inclusive. It can provide equal opportunities for candidates from diverse backgrounds, leveling the playing field and diminishing bias in the recruitment process. Moreover, with tailored training programs generated by GAI, individuals can develop their skills and competencies at their own pace, empowering them to access better job prospects and career growth.

The way forward

To ensure the sustainable and responsible integration of GAI in the global talent recruitment and training market, stakeholders must address the following four aspects:

  • Ethical framework: Developing and adhering to a robust ethical framework is essential to prevent biases and discrimination in AI-driven recruitment processes. Regular audits and transparent reporting can help identify and rectify any inadvertent bias in the algorithms
  • Data privacy and security: Strict data privacy regulations and security protocols must be implemented to safeguard personal information and prevent data breaches. Consent-based data usage should be a priority, and stringent measures must be in place to ensure secure storage and handling of data
  • Energy efficiency: Researchers and developers must focus on creating more energy-efficient AI training methods to reduce the carbon footprint associated with GAI. Exploring renewable energy sources and optimizing hardware can contribute to making AI technologies greener
  • Continuous monitoring: Regular monitoring and assessment of AI algorithms is vital to detect and correct any potential issues or biases that may arise during real-world application. Continuous improvement and adaptation are crucial for responsible AI deployment

GAI offers many opportunities in the global talent recruitment and training market. While it has the potential to streamline processes, increase accessibility, and benefit the environment, ethical concerns, bias challenges, data privacy issues, and environmental and social/societal implications must be addressed.

By adopting responsible AI practices, emphasizing inclusivity, and prioritizing the environment and sustainability, we can ensure that GAI serves as a powerful and ethical tool, transforming the talent market for the better and contributing to a brighter and more promising future.

For more information about Generative AI’s impact on talent and recruitment, and strategies for responsible AI practices, contact [email protected].

So, You Want to be Promoted to GBS Leader | Blog

September 5, 2023

A man looks up at a series of ladders that lead him to the next level, eventually reaching the top.

Ever notice how few folks within a global business services (GBS) operation are promoted to leader when the top dog goes onto other pastures? Wonder why there’s a glass or concrete ceiling for incumbents who know the business, have mastered GBS management concepts, and have proved their loyalty to the cause? The recent promotion of a second-level incumbent executive to the top role got me thinking: with the increasing operational complexity of this thing we call global business services, a greater appreciation for the value of understanding business context and what we call stakeholder engagement and the dearth of really good talent, why aren’t more number 2s being asked to take over the GBS helm?

Look around you: the top GBS jobs are either going to the few experts who move from GBS to GBS, or to what I call “loyalists” —controllers/general managers in the business who are being asked to take on the role. It’s a puzzlement—with so much capability now being built up in the GBS leadership ranks, why are so few promoted to the captain of the GBS ship? Can you name leaders you’ve seen dance on industry podiums whose resumes include long careers climbing the GBS ladder in one company? To be fair, perhaps there are a few, but it’s a bit of a headscratcher to produce more than a handful of names.

After pondering the question over several sleepless nights, I came up with a few blockers:

  • GBS is a model, not a function with defined hierarchies that are based on mastery of certain types of work. Defined career paths with expected time in grade do not exist as they do in finance, procurement, or even operations. Therefore, when looking for new leadership, the enterprise is unable to evaluate what it needs and the talent it has in its own GBS. As a result, it often looks to the market, saying, “I want one of those,” usually a leader in the same sector because their track record is easier to understand.
  • When an enterprise wants change and chucks out a leader, GBS incumbents are naturally tarred with the same brush. Taking out a broom for a GBS clean sweep is the lazy enterprise’s way out. Why do they believe that the only talent is in the top seat, and if that talent leaves or is deposed, no one else can step effectively into their shoes?
  • Top GBS posts are increasingly seen as an attractive development rotation for high-potential management talent in the business. When there is an opening at the top, it’s convenient to appoint someone who knows the business and has a strong reputation. Where else in the enterprise can a leader gain a purview across the business, manage globally, and harness the power of existing relationships to move the dial? And there are usually few slots for such talent; the GBS leader role is one of very few.
  • The enterprise doesn’t know what capabilities make a good GBS leader. Dare I say it, but few enterprises—or indeed the industry—have decoded what it takes to be a great GBS leader. It’s hard to recognize GBS leadership capability when you’ve never defined it.
  • Bought-in leaders are less likely to care about legacy. With a fair number of dare-i-say-it “itinerant” leaders who flit in and out of GBS roles on three-to-six-year rotations, building a talent legacy is often not front and center. All of their energy is focused on making fast, visible change; building bench strength is rarely a top goal.
  • Succession planning is not a priority. Shame on GBS organizations and their HR departments; GBS organizations are, in the main, terrible at thoughtful succession planning. Because GBS organizations do not have an institutionalized hierarchy (think finance supervisor/manager/director and so forth) and its career paths can be wild and wonderful, it takes some focus to create succession plans that deliver for both the enterprise and GBS professional.
  • Internal GBS talent is buried under a rock. Mature leaders know that it’s all about the team. Yet, all too often, bought-in leaders have savior syndrome; only he or she, riding in on a white horse, can salvage or move GBS to the next level. This “career narcissism” hurts talent that only needs a bit of sunlight to shine. But they aren’t allowed it when the ego of the leader gets in the way.
  • Career pathing is often inadequate. We tend to create fairly orthodox, siloed career pathways, even in GBS models. Operators are usually tracked into larger, more global operating roles. Transition managers go from leading projects to managing teams. Change managers might get a bigger role. But all too often in the GBS world, we don’t take the opportunity to help our talent build the capabilities that usher them into roles that help them attain the top job through cross-training and challenge roles.
  • The enterprise brings in a search or HR consultant who “benchmarks” internal team members against market experts, ignoring the power of context. Since GBS models are highly contextual—each enterprise’s challenges are different—assuming that there is such thing as a market concept candidate is naïve. These search and HR folks don’t live and breathe GBS, so when they categorically declare that a background such as Mr. X is the profile to aspire to, internal talent can be given short shrift in the evaluation process.
  • Global operating experience is usually table stakes. Transformation and strategy roles are critical to success, but enterprises look for operating track records with P&L responsibility in their GBS leaders—“run the business.” That’s not to say a transformer cannot attain the top role; it just throws up another barrier for leaders who are good at “changing the business.”

However, some markers suggest that there is some route for internal talent to attain the top job. Looking around, I found that there are a few instances where enterprises are more likely to promote from within its GBS ranks:

  • When there is a recognized succession plan with an underlying development program: When the organization plans for GBS leader retirement or has programs to promote them into other enterprise roles, succession planning tends to be more formal. Likely, there is a conscientious effort to groom high-performing GBS leaders into position to take the top role.
  • If there is a crisis and someone senior in the team needs to step in quickly: If an internal GBS leader gets a field promotion to lead upon the sudden departure of the head, or some other change in the business, and they are well-prepared, odds increase that a temporary role might become permanent.
  • When the head aggressively positions their key team members as leaders and deploys them as their proxy in the business: When a leader has full confidence in their team, it’s easy to create opportunities for the exposure necessary to position their leaders as successors. And there is an added advantage; leadership becomes interoperable, so the GBS brand extends beyond the top role.

Granted, there are challenges to internal promotion into top GBS  roles. But, as in any career progression, responsibility also falls to the aspiring leader. What can talented number 2s do to position themselves for GBS leadership?

  • Take charge of your career. Don’t expect that a rising tide will raise all ships. Ultimately, you—and only you—must take responsibility for career orchestration. Actively recognize and seek opportunities for development and exposure, and position yourself for promotion. And, if it’s not in the cards, be brave enough to seek advancement elsewhere at the right time.
  • Develop a strong personal internal brand. From experience, most internal appointments accrue to those who understand and can actively navigate the culture and its values. Make sure that when someone hears your name or meets you, your (good) reputation precedes you.
  • Demand job rotations outside of GBS. Not only do rotations give the aspiring leader exposure to more stakeholders, but they also provide an opportunity to learn the business. You will not only become more valuable to the GBS, but you will also be seen as a leader with a more versatile skillset.
  • Get close to key stakeholders. Read the tea leaves, identify stakeholders who are staunch supporters of GBS and likely to influence its future. Reach out to them for advice, for mentoring, and seek to understand their challenges.
  • Take on GBS stretch roles. Move out of your comfort zone into GBS roles that will require you to attain new skills and build new capabilities. If you are a transformer, take on an operator role. If you are an operator, assume some strategic responsibility. Enterprises need well-rounded leaders, especially those who know how to manage a P&L and lead people. Make sure your resume reflects that of a top leader, not an expert in process, transformation, or solutioning.

Last, here’s a sobering thought for our GBS leaders and the bosses they serve to think about. Too many leaders think they—and they alone—are the brand of GBS. They don’t have building a legacy on their agendas, or building a sustainable organization by nurturing viable internal successors. And the enterprise is guilty of not making the development of internal successors a priority. When they approach leadership by going out to the market every 3-6 years, are they throwing up GBS strategy to see what sticks rather than promulgating a sustainable business model?

From Sci-Fi to Reality: Unraveling the Risks of Superintelligence | Blog

September 1, 2023

Superintelligence promises incredible advancements and solutions to the world’s biggest challenges, yet it also presents an ominous threat to society. As the lines between innovation and catastrophe blur, understanding the risks of AI is crucial. Read on for recommendations for moving forward in this uncharted territory.

Generative Artificial Intelligence’s emergence has led enterprises, tech vendors, and entrepreneurs to explore many different use cases for this disruptive technology while regulators seek to comprehend its wide-ranging implications and ensure its responsible use. Learn how enterprises can leverage GAI in our webinar, Welcoming the AI Summer: How Generative AI is Transforming Experiences.

Concerns persist as tech visionaries warn that AI might surpass human intelligence by the end of the decade. Humans are still far from fully grasping its potential ramifications and understanding how to collaborate with the technology and effectively mitigate its risks.

In a groundbreaking announcement in July, OpenAI unveiled that it has tasked a dedicated team with creating technologies and frameworks to control AI that surpasses human intelligence. It also committed to dedicating 20% of its computing resources to address this critical issue.

While initially exciting, the prospect of superintelligence also brings numerous challenges and risks. As we venture into this uncharted territory, understanding AI’s evolution and its potential implications on society becomes essential. Let’s explore this further.

Types of AI

AI can be broadly categorized into the following three types:

  • Narrow AI

Narrow AI systems are designed to excel at specific tasks, such as language translation, playing chess, or driving autonomous vehicles. Operating within well-defined boundaries, they cannot transfer knowledge or skills to other domains. Common examples include virtual assistants like Siri and Alexa, recommendation algorithms on streaming platforms, and image recognition software.

  • General AI

General AI possesses human-like cognitive abilities and can perform various intellectual tasks across various domains. Unlike narrow AI, general AI has the potential to learn from experiences and apply knowledge to different scenarios.

  • Super AI (Superintelligence):

Super AI represents a hypothetical AI that surpasses human cognitive abilities in all domains. It holds the promise to solve complex global challenges, such as climate change and disease eradication.

Tech thinkers across the globe have raised an alarm

Amidst growing concerns about the risks of superintelligence, the departure of Geoffrey Hinton, known as “the Godfather of AI,” from Google was one of the most significant developments in the AI realm. Hinton is not alone in his concern about AI risks. More than 1,000 tech leaders and researchers have signed an open letter urging a pause in AI development to give the world a chance to adapt and understand the current developments.

These leaders emphasized that development should not be done until we are certain that the outcomes will be beneficial and when the AI risks are fully known and can be managed.

In the letter, they highlighted the following five key AI risks:

  1. Machines surpassing human intelligence: The prospect of machines becoming more intelligent than humans raises ethical questions and fears of losing control over these systems. Ensuring that superintelligence remains beneficial and aligned with human values becomes crucial
  2. Risks of “bad actors” exploiting AI chatbots: As AI technologies evolve, malicious actors can potentially exploit AI chatbots to disseminate misinformation, conduct social engineering attacks, or perpetrate scams
  3. Few-shot learning capabilities: Superintelligent AI might possess the ability to learn and adapt rapidly, presenting challenges for security and containment. Ensuring safe and controlled learning environments becomes essential
  4. Existential risk posed by AI systems: A significant concern is that superintelligent AI could have unintended consequences or make decisions that could jeopardize humanity’s existence
  5. Impact on job markets: AI’s rapid advancement, especially superintelligence, might disrupt job markets and lead to widespread unemployment in certain sectors, necessitating measures to address this societal shift

As we already have seen some risks associated with this technology materialize, cautiously approaching the advancement of its progress is necessary.

Recommendation for moving forward

To mitigate AI risks and the risk of superintelligence while promoting its development for positive societal outcomes, we recommend enterprises take the following actions:

  • Create dedicated teams to monitor the development – The government needs to appoint relevant stakeholders in regulatory positions to monitor and control these developments, particularly to protect the large population that does not understand the technology from its potential consequences
  • Limit the current development – As the letter suggested, the government should implement an immediate moratorium on developing and using certain types of AI. This pause would give everyone enough time to understand the technology and associated risks better. While Italy has used its legal architecture to temporarily ban ChatGPT, efforts like this will not have a significant impact if carried out individually
  • Define policies – Regulatory agencies should start working on developing policies that direct researchers on how to develop the technology and define key levels for alerting regulatory agencies and others
  • Promote public awareness and engagement – Promoting awareness about AI and superintelligence is crucial to facilitate informed debates and ensure the technology aligns with societal values
  • Form international collaborations – Isolated initiatives won’t help the world. Larger collaboration among governments to define regulations and share knowledge is needed

While new technologies have always brought changes to the existing norms, disrupted established industries, and transformed societal dynamics, ensuring these advancements are beneficial to a larger audience is essential.

To discuss the risks of Generative AI, its use cases, and its implications across different industries, contact Niraj Agarwal, Priya Bhalla, and Vishal Gupta.

BigTechs’ Play in Generative AI in Healthcare | Blog

September 1, 2023

The healthcare sector is increasingly interested in harnessing generative AI capabilities to drive operational and cost efficiencies. Leading technology players are heavily investing in this space and partnering with healthcare enterprises to take advantage of its potential. Discover the latest developments, challenges, and outlook for generative AI in healthcare in this blog.  

The adoption of generative artificial Intelligence (GAI) by the healthcare industry has gained momentum in recent months with technological advances such as ChatGPT and Dall-E 2.

To tap into this growing demand for generative AI in healthcare, BigTechs (Amazon, Google, Microsoft, and Oracle) are leaving no stone unturned as they pivot toward developing capabilities at the intersection of healthcare and GAI. Let’s explore this further.

Recent healthcare-specific GAI announcements by BigTechs

Picture1

The frequency of recent investments by these tech giants signals that more funding will follow in the GAI-healthcare space.

BigTechs’ partner ecosystem – a key differentiator in developing industry-specific generative AI capabilities

As BigTechs make huge strides in ramping up their healthcare-specific generative AI capabilities, accessing large volumes of healthcare data is a major obstacle. To address this challenge, BigTechs are forging strategic partnerships with niche health tech firms or third-party data providers to obtain healthcare data for training Large Language Models (LLMs).

BigTechs also are leveraging partnerships to foster co-innovation and adopt a joint go-to-market strategy for healthcare-specific GAI solutions. For example, Oracle partnered with AI specialist firm Cohere to develop GAI solutions. Through the partnership, Cohere will train, build, and deploy its generative AI models on Oracle’s cloud infrastructure. Oracle plans to deploy new models for healthcare and embed GAI throughout its industry-specific applications.

BigTechs’ GAI capabilities are predominantly provider-focused  

Most investments by BigTechs in generative AI in healthcare are focused specifically on enhancing administrative processes for providers and physicians. Some of the prominent use cases are centered around streamlining clinical documentation and drafting automatic message responses to patients, as illustrated below:

Picture2

Seeing how the technology giants develop capabilities in care coordination and delivery will be interesting. Providing health and lifestyle recommendations, reminders for medications and appointments, and other proactive communications could significantly transform the way patient care is delivered.

When developing care coordination and delivery capabilities, BigTechs and other technology players must ensure the GAI models are built on huge volumes of patient data. This will significantly reduce the margin for error and help improve patient care outcomes.

Adoption of generative AI in healthcare is currently limited but will surge before long

While investments by suppliers are rising, GAI adoption in healthcare is still in its nascent stages. However, we have observed a few mid-to-large-sized hospitals and providers taking the leap of faith and becoming early adopters. For example, UC San Diego Health and UW Health in Madison, Wisconsin, are adopting GAI solutions developed by Microsoft and Epic to automatically draft message responses to patient queries.

To increase GAI adoption in healthcare, technology players and enterprises will have to jointly address these key considerations:

  • People – determining and acquiring the right skills
  • Process – change management and identifying the business functions
  • Technology – ensuring security and maintaining infrastructure

Most importantly, successfully navigating security challenges will be key to increasing adoption, as enterprises are skeptical about sharing sensitive patient data to train GAI models. Technology players will have to proactively alleviate this concern by ensuring patient data is protected and that the development of GAI models adheres to data privacy and state and federal government security mandates.

Moving forward, what will BigTechs focus on?

While most current use cases revolve around administrative and operational provider functions such as clinical documentation and medical coding, BigTechs are expected to invest in other provider-related functions shortly. Some provider-specific functions that are ripe for GAI investments are:

  • Billing and payments – Analyzing patient billing data, payment history, and due dates to generate personalized payment reminders for patients
  • Post-discharge follow-ups – Generating personalized care instructions and sending tailored health reminders to individuals, including medication adherence and lifestyle recommendations

Pre-care and post-care services, such as providing appointment reminders and billing options, could be near-term investment areas for BigTechs. By working together, BigTechs and enterprises can potentially leverage GAI to analyze patient data and proactively recommend care interventions – an exciting concept to keep an eye on.

Surprisingly, we have not seen much traction or activity in the payer segment on the supply or demand side. Considering payers are generally more inclined to embrace technology than providers, we anticipate demand and supply to grow in the short term.

It will be intriguing to watch the types of applications BigTechs create for payers when they dive deeply into this segment. Streamlining contact centers and automating benefit verification are low-hanging fruits BigTechs may target.

We will continue to closely follow how BigTechs’ GAI play evolves in the payer market. To discuss generative AI in healthcare, contact [email protected] and [email protected].

Learn more about technology in healthcare in our LinkedIn Live session, How Technology is Reshaping the Delivery of Care in the Healthcare Industry.

Unlocking Success: The Rising Importance of Service Providers in the SAP Mid-Market Growth Strategy | Blog

August 31, 2023

Service providers are expected to play a vital role in meeting the unique needs of customers in the strategic SAP mid-market. To help the software company achieve its growth targets, partnerships will be crucial. Discover the five customer priority areas where service providers can make a difference in this blog.       

SAP expects the mid-market to be a large contributor to meet its revised growth forecast of 8.3% over the next three years. To effectively attract clients in this segment, the company recognizes it will need to invest in extensive industry application development and form substantial agile partnerships with service providers.

To better evaluate this market, Everest Group’s Enterprise Platform Services (EPS) practice is launching a new PEAK Matrix® assessment. Learn more to participate

SAP mid-market customers have distinct priorities compared to large clients. Service providers who can tailor solutions to meet the following five key priorities will be valuable partners:

  1. Flexibility: SAP mid-market customers need providers that offer flexible services to adapt to their changing business requirements
  2. Responsiveness: Since SAP is typically a new platform for mid-market customers, providers need to proactively educate them on its capabilities and have responsive services teams available to address queries and concerns
  3. Regional support: Mid-market enterprises demand a higher regional presence for services because they want to establish robust communication and agile collaboration
  4. Cost attractiveness: Mid-market customers seek service providers that offer the most value for their SAP and services investments, aligning with their budget needs
  5. Customized services: These enterprises want service providers that invest in understanding their business processes and deliver SAP services tailored to specific requirements

While providers of SAP services focused on this segment may lack the scale or global footprint, they are laser-focused on addressing these key priorities of mid-market SAP customers. Beyond implementation, data migration, and customization, they also offer the benefits of training and support services.

SAP’s mid-market services have already made a significant impact, contributing an impressive US$ 13 billion with a staggering year-over-year growth rate of approximately 20%. With the introduction of the RISE with SAP and GROW with SAP programs, momentum is growing for small and medium-sized businesses to adopt the SAP suite for modernization and consolidation initiatives.

SAP services market divided by buyer segmentsSource: Everest Group (2023)
SAP services market divided by buyer segments | Source: Everest Group (2023)

Based on our analysis of the service provider landscape, the below exhibit shows the prominent providers in the mid-market segment across key regions:

Prominent mid-market-focused service providers strategically located across key regions | Source: Everest Group (2023)
Prominent mid-market-focused service providers strategically located across key regions | Source: Everest Group (2023)

To better evaluate this market and assist enterprises in key sourcing decisions, Everest Group’s Enterprise Platform Services (EPS) practice is launching a new PEAK Matrix® assessment, SAP Business Applications Services PEAK Matrix® Assessment 2023 for Mid-market Enterprises.   

Providers that derive at least 40% of SAP services revenue from mid-market clients with annual revenue below US$5 billion can participate in this assessment. To participate, reach out to EPS ([email protected]) or complete the form: SAP Business Applications Services PEAK Matrix® Assessment 2023 for Mid-market Enterprises.

For information on the SAP mid-market and service providers in SAP, contact [email protected], [email protected], and [email protected].

Change Involved in Moving to the Platform Operations Model | Blog

August 28, 2023

Many companies are now 5-10 years into their digital transformation journey. I have blogged for two years (here for instance) about how the journey drives companies to forge a more intimate relationship between their technology and their business operations, where they operate as one integrated team. At Everest Group, we refer to this convergence as “platform operations.” Companies over time find that the platform operations model accelerates their progress toward achieving their business objectives and key results (OKRs) while often decreasing their cost to serve.

Read more in my blog on Forbes

The Shifting Landscape of Tech Talent: Challenges and Prospects in Ireland | Blog

August 25, 2023

Ireland’s allure as a top destination for tech talent is fading. This mature delivery hub for nearshore IT services still has much to offer but will have to overcome key obstacles to regain its appeal among international technology professionals. Gain market insights and forecasts for Ireland’s tech talent in this blog. To discuss this topic further, contact us.

In recent years, Ireland has been a magnet for job seekers worldwide, luring talent from diverse nations such as England, India, Brazil, the United Arab Emirates, Turkey, Sri Lanka, and Bangladesh. The country’s appeal as a destination has been fueled by abundant job opportunities, excellent quality of life, simplified work permit processes, and enticing government initiatives such as the Critical Skills Employment Permit and the Start-up Entrepreneur Programme (STEP). However, against the backdrop of a tech sector slump and a demand-supply disparity, Ireland is gradually losing its allure for foreign technology professionals.

Ireland has been a popular location for global companies looking to offer IT service delivery to nearshore Europe. Ireland’s diverse offerings encompass application development, infrastructure management, and other digital services. The nation’s strong talent proposition is underscored by 52,000 tertiary graduates and a thriving information technology and business processes (IT-BP) workforce, totaling 157,000 employees. The cities of Dublin, Cork, and Galway serve as prominent IT-BP hubs, contributing about 80% of the nation’s center setups, with global business services (GBS) making up the majority share at 75% of the total center setups.

While Ireland has been a preferred choice for job seekers, its appeal is waning among overseas technology talent due to various reasons. A surge in remote work options, prompted by the post-COVID era, has opened up alternate global work setups. Concurrently, factors like high living costs, housing constraints, a technology workforce demand-supply gap, and muted global tech sector growth contribute to this trend’s acceleration. Additionally, metro areas like Dublin confront issues with a dearth of international schools and high-income tax rates. Government efforts to alleviate these concerns are geared towards improving living standards through sustainable pay increases.

While programs such as Ireland’s Critical Skills Employment Permit and STEP are designed to attract and retain foreign talent. However, the acceptance and success of remote work have reshaped the scenario, making local talent shortages a thing of the past. Technology companies are tapping into the global talent pool through remote hiring, sidestepping relocation challenges.

These growth-related challenges are reflected in our ongoing tracking of IT job demand in Ireland through Talent Genius™, an interactive platform for insights into IT and business process services decisions. The talent demand for IT services has seen a relative reduction since January 2022, as illustrated below. This decline was most pronounced in the last quarter of 2022, driven by tech sector contraction, economic uncertainty, and job cuts. Although some signs of recovery appeared mid-year, the market dynamics have shifted from employee-led to employer-driven, reflecting cautious hiring practices.

Monthly tech talent demand (job postings) for IT services (indexed to January 2022)

January 2022 = 100

Picture1 4

Ireland boasts an operating cost advantage of 20-25% over London for IT application development and maintenance (IT-ADM) services. Nonetheless, tech salaries have remained steady in the first quarter of 2023 compared to the fourth quarter of 2022, reflecting a competitive yet inflexible market due to talent oversupply. Layoffs and conservative hiring practices have suppressed salary competitiveness. But as the market stabilizes, salary stickiness is expected to improve.

As global dynamics shift, Ireland’s position as a tech talent magnet has encountered new hurdles, and the inflow of international tech talent to Ireland is likely to decline in the short term. Nevertheless, with an upward trend in job numbers and signs of a tech sector revival, the second half of 2023 will hold pivotal insights into the future of Ireland’s technology workforce. Addressing challenges related to remote work, housing, taxation, and competitiveness is crucial to regain its appeal as a tech employment destination.

Be on the lookout for more talent information on other nations by clicking on our interactive platform, Talent Genius™. Connect with Sakshi Garg or Aarushi Raj to discuss the latest trends in tech talent.

Unleashing the Power of Generative AI in Procurement | Blog

August 25, 2023

Integrating Generative Artificial Intelligence (GAI) into Source-to-Pay (S2P) processes can reshape procurement operations. Our survey of procurement professionals found the technology holds great potential to transform spend analytics and cost optimization while increasing efficiency and saving time. To delve into the research findings and understand the potential benefits of Generative AI in procurement along with its challenges, read on.

In today’s dynamic landscape, leveraging cutting-edge GAI technology holds the promise to revolutionize procurement processes and enable organizations to stay ahead of the competition. By seamlessly integrating advanced algorithms and machine learning, GAI has the power to transform Source-to-Pay (S2P) processes, taking procurement to unprecedented heights of efficiency, accuracy, and innovation.

To understand how procurement professionals view the usage of GAI in procurement, we surveyed a diverse group of procurement experts, including Chief Procurement Officers (CPOs), category/sourcing managers, contract managers, supplier relationship managers, and various other executives.

Our research aimed to comprehensively assess GAI’s potential impact on procurement. In this blog, we examine the implications of GAI within the S2P framework based on the survey results and our expert insights from diligently monitoring this evolving landscape.

Potential for generative AI in procurement

GAI’s capabilities offer tremendous potential across multiple facets of S2P activities, leading procurement professionals toward elevated levels of efficiency and productivity.

The survey revealed that the majority of respondents believe that GAI will have the greatest impact on spend analytics and cost optimization. Additionally, a considerable number of procurement professionals recognized GAI’s potential for supplier identification and qualification. Contract management also emerged as a noteworthy area for GAI adoption.

Source: Everest Group quick poll on Generative AI in procurement
Source: Everest Group quick poll on Generative AI in procurement

Let’s explore the potential implications in these areas:

  • Spend analytics and cost optimization – GAI can help procurement professionals crunch through colossal datasets at an unparalleled pace, unveiling patterns and insights that would be unattainable through traditional means. By analyzing historical spending trends and market fluctuations, GAI can enable organizations to make data-driven decisions, optimize budgets, and identify opportunities for cost reduction
  • Supplier identification and qualification – Supplier identification can be a daunting task, with a myriad of variables to consider. GAI can swiftly scan through vast supplier databases, evaluating factors such as financial stability, performance history, regulatory compliance, and other important aspects for the organization. This not only expedites the supplier selection process but also enhances overall supply chain resiliency
  • Contract management – Manually managing contracts is prone to errors and inefficiencies. GAI can aid in drafting, reviewing, and updating contracts by extracting relevant clauses, identifying potential risks, and ensuring alignment with regulatory requirements. This level of automation can significantly reduce administrative overhead and enhance contract accuracy

Benefits of Generative AI in procurement

Integrating GAI into S2P activities can deliver many advantages that can reshape procurement operations. In the short term, GAI can provide immediate benefits by accelerating decision-making, reducing manual labor, and enhancing data-driven insights. Over the long term, GAI’s continuous learning capabilities enable it to refine its processes, adapt to evolving market dynamics, and become an indispensable partner in strategic procurement planning.

Almost all the procurement professionals surveyed stated that increased efficiency of procurement processes is seen as the major benefit of using GAI in procurement. GAI also is touted to play a key role in improving decision-making accuracy.

Source: Everest Group Quick poll on Generative AI in procurement
Source: Everest Group Quick poll on Generative AI in procurement

The survey found respondents believe GAI will deliver the following five key benefits:

  • Increased efficiency and time savings – Automating routine tasks with the help of GAI can free up procurement professionals’ time to focus on strategic activities, leading to faster cycle times and improved productivity
  • Improved accuracy in decision-making – GAI’s ability to analyze complex data and generate insights can help in making more accurate decisions, minimizing human biases and errors
  • Better risk management and compliance – Data analysis enabled by GAI can highlight potential risks posed by suppliers, enabling proactive risk mitigation strategies to be put in place and ensuring compliance with regulations
  • Cost reduction and savings – By helping procurement professionals optimize spending patterns and negotiate better contracts, GAI can contribute to significant cost reductions and overall savings for the organization
  • Enhanced supplier collaboration and relationship management – GAI can enable proactive scenario planning, data-driven insights into supplier behavior, and customized contract generation. It can streamline negotiations and nurture long-term partnerships

Challenges of using Generative AI in procurement

Despite its transformative potential, integrating GAI into procurement presents several challenges. Next, we explore the multifaceted issues that procurement professionals might encounter when harnessing GAI’s capabilities within the intricate procurement landscape.

Most survey participants viewed the difficulty of integrating GAI with the current procurement systems and processes as a major obstacle to adopting GAI in procurement operations. Data input quality and availability followed as the next major impediment. Furthermore, the precision and reliability of responses generated by GAI is a concern, suggesting this also could pose a substantial barrier to successful adoption in procurement.

Source: Everest Group Quick poll on Generative AI in procurement
Source: Everest Group Quick poll on Generative AI in procurement
  • Integration with existing systems and processes – Adapting GAI to fit seamlessly within an organization’s existing procurement systems and processes can be complex and requires significant technological integration
  • Data input quality and availability – The accuracy of GAI’s insights heavily depends on input data quality and quantity. Inaccurate or incomplete data can lead to unreliable outcomes
  • Accuracy of GAI responses – While GAI is highly advanced, it may still generate inaccurate or irrelevant responses, particularly when faced with complex and nuanced queries

Along with these challenges, navigating legal and regulatory frameworks, especially in industries with stringent compliance requirements, presents additional barriers to deploying GAI in procurement.

GAI’s potential in procurement is vast and transformative. By leveraging its capabilities across spend analytics, supplier management, contract optimization, and other S2P activities, organizations can reap numerous benefits. However, challenges about integration, data quality, accuracy, and regulatory compliance must be addressed for successful implementation.

As the procurement landscape evolves, its future lies at the intersection of the expertise of procurement professionals and effectively utilizing AI’s capabilities. Augmented procurement, where AI assists procurement professionals in decision-making, strikes a balance between harnessing AI’s efficiency and preserving human judgment, creativity, and intuition.

Everest Group will continue to follow the evolution in this space. To discuss the potential of Generative AI in procurement and S2P processes, please reach out to [email protected].

Storytelling in GCC Organizations – Mastering the Art of Compelling Narratives | Blog

August 25, 2023

Storytelling is a powerful tool for establishing meaningful connections, fostering collaboration, and conveying brand essence. Global Capability Centers (GCCs) can use storytelling to transcend geographic and cultural barriers to effectively communicate their vision and value to diverse audiences. Discover the benefits, key factors for effective storytelling, and pitfalls to avoid in this blog.

In the realm of GCC organizations, they aimed high,
chasing growth, influence, and visibility in the sky.

Driven by ambition and relentless pursuit,
they found themselves caught in a different route.

Day-by-day operations took the lead,
communication, alas, began to recede.

Lost in the web of tasks and demands,
the art of connection slipped from their hands.

A challenging phase started to unfold,
as silence replaced the stories once told.

In this void, misunderstandings grew,
and collaboration became few.

But fear not, for there is hope yet,
to break free from this entangled net.

Let us reclaim the power of words,
and reignite the stories waiting to be heard.

So let us weave narratives, both bold and true,
reviving the art that brings us through.

In the symphony of voices, let us find,
the harmony that unites and binds.

Challenges GCCs face

In today’s rapidly evolving landscape, the imperative for GCCs to tell their stories effectively has become more crucial than ever. While most GCCs have successfully delivered upon their initial mandates for growth, concerns are mounting that they are increasingly viewed as mere offshore role aggregators as opposed to value generators. And that’s the case – values such as customer churn reduction and product differentiation are being created in several GCCs, harnessing the power of digital and improved business context.

Unfortunately, amidst the demands of day-to-day operations, the art of storytelling and celebrating great stories has taken a backseat, overshadowed by immediate-term priorities such as delivery management. However, by prioritizing storytelling GCCs can reap many benefits and drive meaningful outcomes.

  1.Why should GCC organizations learn to tell their stories effectively?

A significant number of GCCs today lack a comprehensive approach to measuring the value they generate and struggling to articulate it to their global counterparts. This challenge was highlighted during the 2023 nasscom GCC conclave, where many leaders raised the question of value articulation. While the majority of organizations track metrics such as cost per full-time equivalent (FTE) and operational benchmarks such as service level agreement (SLA) attainment and retention, measuring value beyond arbitrage remains challenging. Organizations often lack robust mechanisms to quantify contributions made through new scope and initiatives that are unique to the GCC.

  2. Build a stronger business case for new opportunities – scale operations across the enterprise

Successful GCCs have articulated the value they bring to the business by presenting their ability to take up new scope and engagement models through in-depth analysis of in-house capabilities and effective pitching. Pitches addressing multiple dimensions, including the business impact for the global enterprise, the cost of delivering desired outcomes, the impact on talent and operating models, and the scalability of proposed initiatives, often resonate better than solely highlighting business metrics.

Let’s consider the example of a GCC of a leading life sciences firm that proved the GCC’s ability to build effective teams across multiple therapeutic areas by centralizing capabilities such as market research, analytics, and generating insights. The GCC also is now engaging in multiple chargeback models as well, such as FTE-based fees for some processes and transaction-based for others. Effective storytelling has been a critical success factor for the GCC in its evolution journey.

  3. Support broader change management initiatives – Move communications beyond just another email!

Change management has become a crucial capability for GCCs, particularly as they drive organization-wide initiatives. While Change Management and communication are not necessarily synonymous, communication forms an integral underlying element. Many organizations overlook the significance of crafting compelling narratives that highlight the rationale behind the change, its benefits, and its relevance to individuals and the overall organization. Building change enablers requires a strong foundation in effective storytelling that communicates why this change is important for the organization and its employees. It ensures that everyone is taken along on this journey – fully presenting the good, the bad, and the ugly.

The state of GBS change management is a conundrum
The state of GBS change management is a conundrum

  4. Create a compelling employer brand

Do your employees and target talent pool understand your employee value proposition (EVP)? It’s time to tell them.

Maintaining a positive brand image remains critical for attracting and retaining high-quality talent. Employees with specialized functional and behavioral skills are becoming ever more critical to sustained organizational success as the market gets more competitive. The biggest gap we see is companies investing in building and offering a differentiated strong EVP but doing little to ensure their employees and prospective candidates understand it. This creates a problem because people cannot appreciate what they do not know. Consequently, perception becomes reality and significantly impacts decisions, mostly unfavorably for employees.

Storytelling forms an essential component of maintaining and strengthening branding. In several GCC organizations today, a significant disparity exists between internal pulse ratings and external perceptions observed via third-party platforms. To bridge the gap and foster a more cohesive work environment, organizations must enhance internal communication about initiatives and efforts undertaken for employees alongside structural EVP upgrades.

Everest Group recently published the second edition of the Top GBS Employers™ report, revealing the following important insights:

  • The employer initiatives initiated by India GBS in 2022 have had a significant impact on brand perception
  • While approximately 60% of the top GBS employers from 2022 have maintained their positions, about 40% have slipped down
  • At the same time, many GBS employers have positively improved brand perception n year-over-year, driven by initiatives that created a superior employee experience
  • Implementing employee initiatives often takes time to have a noticeable impact on brand perception
  • Market sensitivity revalidates the conviction that GBS employers need consistent efforts to maintain their brand perception, as complacency can result in a negative impact on the GBS brand
Everest Group Top GBS Employers™ 2023 – India
Everest Group Top GBS Employers™ 2023 – India

  5. Focus on the X-factor to better serve the enterprise – prioritize employee experience

Managing experience can benefit three distinct stakeholder groups – employees in the GCC, the internal customer experience, and the end customer experience. While established metrics and approaches exist for managing end customer experience, the same level of focus is often lacking within the organization. Increasingly, many GCC organizations are building dedicated groups responsible for managing internal stakeholder experience. These teams act as liaisons between GCC and their global counterparts to identify pain points, investigate factors leading to multiple hand-offs and iterations, and find effective solutions.

What have you adopted to drive customer and internal network/employee experience from your GBS? 

Built a dedicated experience team focusing on enhancing experience across all stakeholder groups

25%
Role limited to managing experience for internal network, i.e., different entities/BUs/GBS, and employees

29%
Limited support currently, but area prioritized for 2023

18%
Still in exploratory phase, with focus currently prioritized on BAU and other value-addition initiatives

18%
Currently not on agenda

11%

Source: Sustaining Momentum: Key Priorities for GBS Leaders Amid Economic Uncertainty

Pitfalls to avoid in storytelling

To ensure effective storytelling, organizations need to be aware of common stumbling blocks such as:

  • Lacking clarity of the priorities of audiences they are targeting
  • Waiting for big-bang events to amplify success or exaggerating one-time events (for example, highlighting new automation that only led to a 10% productivity improvement)
  • Relying too heavily on specific groups of individuals to drive communication, without balancing the need for a storytelling philosophy in the organization’s DNA versus channeling it all through dedicated groups
  • Not having a coordinated communication strategy across the organization

Enablers for effective storytelling

Several factors can contribute to successfully using this communication approach, including:

  • Providing soft-skills training for first-line managers to improve communication
  • Implementing robust systems to capture and communicate the value-add contributions across businesses
  • Having a communications team with dedicated social media strategy and guidelines to ensure consistency in communication across businesses
  • Striking a balance in styles that doesn’t overcommunicate or dilute the message

As GCC organizations mature and move closer to the end customer, they must recognize the immense value of a strong storytelling capability. Whether embedded in their culture or embraced as a guiding philosophy, storytelling becomes a powerful tool to forge meaningful connections, inspire collaboration, and convey the essence of their brand.

We strongly believe that by crafting compelling narratives, GCCs can transcend geographical barriers and cultural differences, effectively communicating their vision and values to diverse audiences. By embracing storytelling as a strategic lever, GCC organizations can amplify their impact, cultivate meaningful connections, and strengthen their position in an ever-evolving landscape.

Check out Everest Group’s recently published report, State of Play in GBS Change Management, to learn more about change management in GBS.

Check out Everest Group’s recently published report to know more about employer branding in GBS.

A Message from Everest Group’s CEO and Founder on the Positive Opportunities Within Sustainability | Blog

August 11, 2023

There’s no question that global services are increasingly important to all types of private and public sector organizations worldwide. Our passion, focus, and vision at Everest Group are helping our clients and the industry at large understand the potential of ever-changing services capabilities and how to most effectively shape and utilize services to drive and consistently improve stakeholder value for optimum impact.

Today there is no more urgent need than to understand how to achieve sustainability goals for our clients. We see an abundance of talent, ingenuity, and innovation across all global services. We are eager to bring this insight to our clients and help them make the most of the sustainability opportunity.

Discover more of Everest Group’s insights on sustainability.

And keep an eye on our new sustainability-focused LinkedIn page, where we deliver valuable sustainability insights that businesses can leverage for their sustainability goals.

EG with tagline Neg
Linkedin-in Facebook-f Play Instagram
Better Decisions Powered by Tenacious Research    

Contact Us

Who We Are

About Us

Newsroom

Office Locations

Partners & Affiliations

What We Offer

Memberships

Custom Decision Support

Published Research

Careers

Why Everest Group

Explore Openings

Equal Opportunity Employer

Resources

Access Reports

Citation Policy

Everest Group Market Intelligence (EGMI)

Legal

Using the Reports Portal

©2023 Everest Global, Inc.         Privacy Notice          Terms of Use        Do Not Sell My Information

How can we engage?

Please let us know how we can help you on your journey.

Contact Us

"*" indicates required fields

Please review our Privacy Notice and check the box below to consent to the use of Personal Data that you provide.
Consent*