Category: In The News

With Europe Slowing, TCS Says North America to Drive Its Growth in FY23 | In the News

IT services major Tata Consultancy Services’ (TCS) Q1FY23 results were a mixed bag, with revenue beating estimates and margins disappointing. But the larger concern is that macroeconomic pressure is already pulling Europe down, and the company said that the US would be the growth driver in FY23.

“We think that the Industry is at the start of a mega trend, which will likely keep demand strong unless we hit a severe recession. That said, the European market is clearly weaker than North America, and so a heavy concentration in Europe will somewhat slow growth relative to North America. All in all, we see the market slowing from its torrid growth but demand remaining strong if not as strong,” said Peter Bendor-Samuel, CEO at Everest Group.

Read more in Business Standard

How to Spot the Early Signs of a Failing Business Transformation | In the News

Many unsuccessful transformations were derailed well before they were completed. Are there any early red flags that might save a project from failure if spotted and acted upon quickly enough?

Indeed, it’s widely agreed that one of the most significant early signs that a transformation is doomed is a lack of support from employees. Research conducted last year by the Everest Group found that just over two-thirds of firms that had attempted a digital transformation had failed to achieve their desired outcomes. Of these, 58% blamed internal resistance to change as a major cause.

Read more in Raconteur

To Tame Attrition, IT Players Have Hired 40% Of Workforce in One Year | In the News

Attrition is the biggest worry for the IT sector, and to tide over this, about 40% of the workforce has been hired by the leading firms in the last 12 months. This rapid hiring has been dubbed “the great reshuffle,” says global research firm ISG, and industry experts agree.

Yugal Joshi, Partner at Everest Group, argues that for large Indian service providers who are now 2-6 lakh people, 40% would mean 1-2.5 lakh hiring. Given that most service providers accelerated their graduate hiring, it is not surprising to see each hiring anywhere between 10,000 and 40,000; therefore, the numbers are indeed high. Indian service providers used to hire such numbers from graduate college, but now with high attrition, the proportion of hiring to the overall workforce is magnified, he said.

Read more in The Hindu Business Line

Near-term Critical Drivers of SCM Outsourcing | In the News

As supply chain issues hamper global economies, Everest Group predicts that the market for supply chain management (SCM) business process services (BPS) will expand at a 16-18% compound annual growth rate between 2021 and 2023, after achieving a sharp post-pandemic recovery in 2021 to reach US$2.4-2.6 billion.

“In the Everest Group 2022 Key Issues Survey, enterprises identified their top two business constraints going into 2022 as, No. 1, ‘cannot find enough talent to run the business’ and, No. 2, ‘logistics are bottlenecked,’” said Shirley Hung, Partner at Everest Group.

Read more in Future CIO

Attrition among IT Providers Is Troubling Their Clients Too | In the News

Customers of IT service providers are feeling the pinch as tech firms wrestle with the growing attrition rate in their industry due to the sudden surge in demand for digital transformation services stoked by the Covid-19 pandemic.

Climbing attrition potentially reduces the quality of service and delays software development projects, in addition to increasing the cost of IT services, according to a study by Everest Group.

Read more in Nearshore Americas

Talent Access Drives Nearshore Site Location | In the News

Location remains at the core of Nearshore operations. Nevertheless, in their search for the best points of delivery in a region, outsourcing companies are showing more and more interest in people over places.

“The more important thing right now, given the shortage, is to attract talent,” said Sakshi Garg, VP at research firm Everest Group, during the Nexus 2022 panel A Matter of Site: Finding Value Across a Shifting Geo-Location Landscape. “We’re seeing a lot of interest to make sure that the workforce strategy and the location strategy go hand in hand.”

Read More on Nearshore Americas

5 Intelligent Process Automation Trends to Watch | In the News

Financial services organizations are digitizing and automating more processes to keep up with competition, and intelligent process automation (IPA) — which has been growing in use about 20% across all fields — is now becoming ubiquitous. Market research firm Everest Group in a recent report ranked IPA technology vendors and looked at the market for process automation.

Read more in Bank Automation News

Hybrid Work: Closing the Gap Between Customer Expectations and Delivery | In the News

The Covid-19 pandemic accelerated the workplace forward by several years, giving employees a taste of remote working and proving to employers that work-from-anywhere can and does work. With Accenture finding that 83% of employees are opting for a hybrid remote office working model, businesses are heeding the call with 92% evaluating or planning to move to the hybrid model according to research finding from Everest Group.

Read more in The Customer

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