Multinationals have already begun to think more expansively about what tasks can be done offshore, notes Jimit Arora, Partner at Everest Group. American multinationals’ spending on research and development (R&D) in low-cost countries roughly doubled between 2010 and 2020.
The dust has mostly settled on the job cuts that kicked off 2023. With workers in the tech sector taking the biggest hits, the long-term effects on IT talent are still playing out.
“In some ways, what was happening in most of 2022 was companies outside of technology were being starved of talent because tech was throwing a lot of money at the labor pool,” said Jimit Arora, partner at Everest Group.
Back-office outsourcing to the Philippines has become a growing trend for companies looking to improve efficiency and reduce costs. However, the challenges of managing complex and repetitive tasks can still be significant.
The advantages and benefits of the technology in back-office operations are numerous. According to a report from Everest Group, the RPA market in the Philippines is expected to grow at a CAGR of 30%.
The property and casualty insurance industry has become a significant adopter of Software as a Solution (SaaS) technology and continues to see a massive influx of SaaS applications embedded across organizations’ business operations.
“If you stack all of these SaaS solutions together, the spend becomes quite sizable. And what we’re starting to see is it’s not just the spend that is becoming sizable. We are also seeing duplication of solutions because these solutions, over a period of time, have evolved to do more.” says Ronak Doshi, Partner at Everest Group.
Rohitashwa Aggarwal, Partner at Everest Group, shared his insight in Cross Connect Forum and gave an overview of the business services sector.
“Globally, the industry has grown by leaps and bounds over the past 30 years, reaching US$300 billion. And even in 2023, with all the macroeconomic challenges, the series of layoffs that we are seeing, there is a huge demand for talent, technology, need to outsource more from a customer experience standpoint, from operations. The growth projection looks small compared to the last few years but if compared to the last decade, it stays on point,” said Rohitashwa.
In an IT marketplace marked by turbulence, inflation, and economic uncertainty, the process of contracting with vendors for technology products and services has gotten significantly more challenging for CIOs.
IT leaders may find that prices are going up without an accompanying increase in benefits, with technology providers — less dependent on any one industry or geography — taking a harder line on deals, says Achint Arora, Partner at Everest Group.
Data analytics and automation are becoming an integral part of business process management (BPM) offerings. BPM firms are bagging more cost-saving deals as clients prioritize on cost-cutting and beating inflation.
Budgets in most industrial sectors are up slightly over 2022, but many firms have been unable to spend their full budgets last year. “Hence, we expect to see a growth of 5-7% for the industry over last year. This is down from the 12% of 2022 but still healthy,” said Peter Bendor-Samuel, CEO of research firm Everest Group.
Despite a year under siege, the Ukrainian IT services sector remains a growing industry due to remarkable efforts and global goodwill.
In the weeks leading up to the invasion, IT companies with operations in Ukraine, read the writing on the wall and put their business continuity efforts into effect. “This has been a combination of setting up delivery centers elsewhere in Europe, expanding delivery centers in India and other alternative non-European countries, and, finally, leveraging remote work using Starlink for employees who could not leave Ukraine and were not drafted,” says Peter Bendor-Samuel, CEO of IT and business services research firm Everest Group.
Business process outsourcing (BPO) companies in the Philippines are implementing robotic process automation (RPA) and revolutionizing the way they handle customer service. The BPO industry in the country has been a major contributor to the country’s economy, with a large portion of it dedicated to providing customer service to companies and their customers around the world. With their latest technological investments, outsourcing providers are now turning to RPA to further enhance the customer experience (CX).
According to the Everest Group, a leading management consulting firm, the RPA market in the Philippines will grow at a CAGR of 30%, driven by the increasing adoption of advanced technologies in the BPO industry. Companies are recognizing the benefits of using RPA to improve efficiency and provide a better customer experience. This solidly reinforces the positive impact of RPA in BPOs.
The ‘Great Resignation’, the ‘Big Quit’, the ‘Great Reshuffle’ – whatever you call it, this phenomenon describing the surge in people quitting their jobs during the pandemic has caused havoc at organizations. Although the tech industry is now facing a wave of job cuts as profits and revenue fall, businesses are nonetheless still grappling with a high attrition rate. In India, that rate is between 23% and 28%. A study by the Everest Group, indicates that India is experiencing an acute talent crunch of 39% in IT and engineering, while the US is at 45%, and Western Europe (including the UK and Ireland) at 43%.
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