Category: In The News

Chaos at OpenAI Raises Questions about Enterprise Reliance on ChatGPT | In the News

With OpenAI’s leaders ousted and staff in revolt, the volatility could cause enterprises to shift where they procure generative AI.

OpenAI’s services are a major pull for enterprises, with 9 in 10 Fortune 500 companies using its products, the company announced in November. The company also tops the list of leading AI-first technology providers, according to research firm Everest Group, which ranked vendors based on overall AI revenue, total funding received, growth in funding during the last two years, and market valuation.

Read more in CIO Dive.

Sam Altman’s Ouster Unlikely to Impact OpenAI’s Partnerships with IT Companies: Experts | In the News

The ouster of Sam Altman, OpenAI’s CEO and the face of the AI boom, is unlikely to have a long-term impact on the company’s existing business partnerships with Indian IT services companies and the pace of generative AI innovations, said industry experts.

In the short run, said Peter Bendor-Samuel, founder of research firm Everest Group, Altman’s exit is unlikely to affect OpenAI’s partnerships and commercial agreements. But in the long run, it may affect the company’s ability to raise capital, which could make it a less attractive partner, he told Moneycontrol.

Read more in MoneyControl.

IT Firms Bank on Sales Staff in Tough Market | In the News

At a time when top IT companies are seeing a reduction in their net headcount, there is a divergence between tech workers and their sales counterparts when it comes to the rate of headcount drop. Macro uncertainties have made sales cycles elongated, with increased scrutiny on project approvals by clients. Therefore, the importance of sales work has increased significantly of late.

Peter Bendor-Samuel, CEO of Everest Group, said, “It is important to remember that all these firms went into a hiring spree (software professionals) last year. They ended up building excess capacity, hoping for a continued accelerated growth of the industry they were seeing then. As the macro challenges started impacting services industry demand – discretionary pullbacks, delays in project ramp-ups, pricing pressures – they got left with an overstaffed situation.”

Read more in Financial Express.

Ex-meta Staffers See Booming Business Targeting Online Disinformation after Two Wars Break Out | In the News

Today, social media is dealing with a swarm of content related to two simultaneous wars, one in the Middle East and another between Russia and Ukraine.

Manu Aggarwal, Partner at Everest Group, said trust and safety is among the fastest-growing segments of the business process services market. By 2024, Everest Group projects trust and safety will represent about $11 billion of the overall $300 billion business process services. Everest Group’s Practice Director Abhijnan Dasgupta estimates that spending on trust and safety tools could be between $750 million and $1 billion by the end of 2024, up from $500 million in 2023.

Read more in CNBC.

 

Indian IT Firms Stare at Bleak Holiday Quarter on Grim Outlook | In the News

Migration to cloud has been at the vanguard of growth the past three years, but its pace has slowed considerably and is unlikely to return at the level it was post pandemic. Microsoft, Alphabet, Amazon and even Meta, Apple and Tesla have indicated a weakening demand environment that could last at least two quarters.

Peter Bendor Samuel says, “Much of the growth the industry has experienced over the last three years has been the migration to cloud and this modernization phenomena has slowed considerably and is unlikely to return at the level it was post-covid.”

Read more in The Economic Times.

9 Cloud Strategy Questions Every It Leader Must Answer | In the News

Whether you’re starting out or deep into your cloud journey, assessing — and reassessing — there are some key questions vital to ensuring a business-aligned approach free of cost overruns that can arise rapidly at any time.

Mukesh Ranjan, Vice President at Everest Group shares his views on some of the key points. He suggests it’s critical that all stakeholders and impacted functions should be aligned on the business value of moving to the cloud. He also talks about how quantifiable, dynamic, and outcome-oriented metrics are essential to track progress and measure the business value of the cloud.

Read more in CIO.

As Perimeter Defenses Fall, the Identify-First Approach Steps into the Breach | In the News

By nearly all accounts, security leaders are increasingly shifting their focus from perimeter defenses such as the long-relied-upon firewall in favor of embracing a zero-trust approach.

Everest Group, estimates that 65% of its clients opt for an identity-based zero-trust implementation approach (versus 35% opting for the overlay network approach). “Identity is becoming the default perimeter; it’s becoming the first line of defense,” says Kumar Avijit, Practice Director in Everest Group’s Information Technology Services team.

Read more in CSO.

The Digital Claims Processing Imperative in P&C Insurance | In the News

Digital transformation in claims processing is becoming increasingly mission-critical for P&C insurers — so much so, in fact, that it may no longer be optional. By digitizing the claims process, insurers can offer a superior customer experience that allows them to stay competitive in today’s digital-first world.

Research from Everest Group shows that approximately 35% of P&C insurers’ priorities across claims management are focused on enhancing the customer experience. Read what Vanshika Notani, Senior Analyst, Insurance Technology Services, and Aaditya Jain, VP, BFSI Technology Services say about the increasing customer demean and the need to create a better customer experience through digital tools.

Read more in Fintech Wire.

Future-Proof Your Workforce Strategy: Trends to Watch in 2024 | In the News

As 2023 draws to a close, business analysts across the board are all rolling out their predictions of workforce and staffing trends to watch for 2024. There seems to be a growing consensus around several topics that HR and talent acquisition professionals must address in the coming year.

Everest Group‘s reports on workforce management, improving time to hire will be a crucial differentiator for business success in 2024. We predict that businesses will use contingent workers in 2024 to speed up the acquisition of essential skills and bypass hiring freezes. We also anticipate that generative AI will reduce the time required to identify, source, and engage talent.

Read more in Beeline.

Wipro Contemplates Skipping Hikes for Top Performers in Largest Business amid Industry Challenges | In the News

Initially benefiting from a pandemic-induced digital services boom, India’s $245 billion information technology industry has been facing challenges in recent quarters as clients cut spending on discretionary projects amid inflationary pressures and global economic uncertainty. Salary expenses constitute the largest contributor to costs for IT companies, typically accounting for over 60 percent.

Wipro is reportedly considering skipping salary hikes for “top performers with higher compensation” in its largest business line during the upcoming round of salary revisions scheduled for December. The decision comes as the company grapples with various challenges, including weak client spending and fierce competition from larger rivals.

Peter Bendor-Samuel, CEO of Everest Group, notes that the additional attrition could help rebalance benches to meet demand and bring costs back into balance with demand.

Read more in InfoTechLead.

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