Category: In The News

Q4 Results: The End of the Euphoric Pandemic Years for IT Industry | In the News

April 30, 2023

The sales projections for the current financial year for the IT industry are more reminiscent of the single-digit revenue growth registered in the pre-pandemic years.

“Overall, we see the industry slowing but not contracting. The larger cost-saving deals will go some way to offset the decline in discretionary spending but will not be able to completely counter-balance it. We see a future of slower growth and increased pricing pressure, with more legacy (business) moving offshore, and an increase in nearshoring. A  few less profitable and slower growth quarters are on the anvil, which will accelerate the shift into the new mature digital market,” said Peter Bendor- Samuel, CEO of Everest Group.

Read more in Deccan Herald.

Big CX News from AWS, Bandwidth, Concentrix | In the News

April 24, 2023

AWS has joined the generative AI march, recruiting third parties to host models on its cloud. Also, Bandwidth has released its Maestro platform, positioning it as the connectivity fabric that allows businesses to bridge the gap between best-of-breed CCaaS and UCaaS tools. And recently, Concentrix announced its plans to roll up fellow BPO Webhelp. Everest Group estimates that the Webhelp acquisition will result in Concentrix enjoying a market share of between 6-8%.

Read more in CX Today.

Project Ramp-downs Hit Top Line of IT Cos | In the News

April 18, 2023

Large deals may be the mainstay for revenue acceleration, but delay in project ramp-ups in these contracts are adding to the woes of tier-1 IT firms during the fourth quarter and beyond. Sources in the know said despite a healthy deal pipeline, companies like TCS, Infosys, HCL Tech, and Wipro are going to witness subdued revenue growth as these pipelines are not translating into revenues.

“We expect to see a further but modest deterioration in demand, larger transaction sizes as the market moves to more focus on cost savings with vendor consolidation in key accounts creating more losers than winners. We also expect to see a rise in large or mega deals as the market tries to couple future cost savings and business value with the need to further modernize,” said Peter Bendor- Samuel, CEO of Everest Group.

Read more in Bizz Buzz.

Infosys’ Growth Prospects Getting Dimmer | In the News

April 16, 2023

Infosys is facing a darker cloud in terms of growth prospects as compared to larger peer Tata Consultancy Services (TCS) owing to higher exposure to digital work coupled with more business concentration in North American territory.

“Infosys’ deceleration is more significant than TCS’ as they have a higher mix of discretionary as well as more concentration in North America. Infosys is also dealing with some one-time issues in their existing book of business,” said Peter Bendor-Samuel, CEO of Everest Group.

Read more in Bizz Buzz.

HSBC Hires 40 Former SVB Bankers to Create a US Startup Practice | In the News

April 13, 2023

HSBC has hired more than 40 former Silicon Valley Bank (SVB) employees to create its own practice focused on healthcare startups and venture capital funds in the US, hitting the gas on its entrance to a sector that experts say is challenging for banks.

Ronak Doshi, Partner at Everest Group specializing in digital transformation and banking, said in an interview in mid-March that startups want to bank with institutions that focus on specific industries, such as life sciences and healthcare.

Read more in American Banker.

Oracle Adds Free Confidential Computing Option to Cloud Service | In the News

April 13, 2023

Oracle today added a confidential computing capability to its Oracle Cloud Infrastructure service at no extra cost. The service is based on AMD Secure Encrypted Virtualization (SEV) or AMD Secure Memory Encryption (SME) processors.

It’s not clear whether confidential computing will ever become the default option for deploying application workloads in the cloud, but a recent report by Everest Group forecasts the total addressable market for confidential computing could grow to US$54 billion by 2026, up from roughly US$2 billion last year.

Read more in Security Boulevard.

IT Cos Likely to See Fall in Margins despite Weak Rs | In the News

April 8, 2023

Rupee fall, falling attrition, and higher employee utilization may not be able to push up operating margin of Indian IT companies as most of them are likely to report a fall in margins during the fourth quarter of FY23.

“Attrition is significantly down and almost back to pre-pandemic levels. This is very good news and will relieve some pressure on margins. That said the move to cost-cutting may further put pressure on margins but even that is likely to be mitigated as it looks like we are going to see more work go offshore which is more profitable to the service providers. All said, it’s a mixed bag with likely a modest downward pressure on margins,” said Peter Bendor-Samuel, CEO of Everest Group.

Read more in Bizz Buzz.

Banks Expected to Increase Risk Technology Budgets after March Crisis | In the News

April 6, 2023

Regional banks are likely to upgrade their risk management technology as the recent problems in the industry raise concerns about all elements of their risk positions, experts say.

Most regional and super-regional banks previously sought to spend as little as possible on risk management technology to meet minimum regulatory and compliance requirements, said Ronak Doshi, Partner at Everest Group. However, over the past six weeks, banks have felt pressure from their boards, employees, and other stakeholders to prioritize risk assessment.

“Banks are suddenly saying, ‘Risk management is a key component of who we are as a bank,'” Doshi said. “It’s not just the cost of doing business. That’s business.”

Read more in AMERICAN BANKER.

Everest Group: How This Firm Helps Clients Address Market Challenges And Strengthen Strategies | In the News

April 5, 2023

Recently, Pulse 2.0 interviewed Udit Singh, Practice Director of Information Technology Services at Everest Group. During the interview, Singh discussed his prime responsibilities with the firm and the company’s core products, including guiding clients through today’s market challenges and strengthening their strategies by applying contextualized problem-solving to their unique situations.

Udit also discussed Everest Group’s prominent product, the PEAK Matrix® assessment, its biggest milestones, customer success stories, and more.

Get the full coverage on Pulse 2.0.

IT Firms Seen Bracing Themselves for Spending Cuts by Clients | In the News

April 3, 2023

Indian IT firms are expected to submit lackluster report cards for the fourth quarter and warn about demand in the year ahead as their clients curtail spending amid global economic uncertainties, inflationary pressures, and a banking crisis.

“There is definitely a slowdown from the torrid post-pandemic levels. Discretionary spending has come down and the market is in a pause waiting to see what will happen regarding the recession,” said Peter Bendor-Samuel, CEO at Everest Group.

Read more in Deccan Herald.

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