Category: In The News

IT Midcaps Witness BFSI-led Growth as Larger Peers Take a Hit | In the News

November 22, 2023

At a time when large IT companies are seeing BFSI (banking, financial services, and insurance) vertical-led softness, the same is aiding the growth of some midcap companies. The reason is that smaller IT firms cannibalize larger companies’ BFSI revenue.

Peter Bendor-Samuel, CEO of Everest Group, said, “Midcaps are going after a different part of the market — the regional banks. In general, the large firms have huge estates in the large banks and BFSI clients.”

Read more in Financial Express.

IT Companies up Stakes on GenAI as Clients Demand Integrated Solutions | In the News

November 22, 2023

IT companies, globally and in India, are betting big on generative artificial intelligence (GenAI) as clients are increasingly realizing the value of it and demanding solutions that are integrated with it.

“We see clients of IT companies getting 1-3% of their technology budget as a one-time war chest to experiment in GenAI, so there’s an opportunity for IT service providers to tap into this pool. We have already seen paid POCs commissioned by some clients with providers, so the time to act is now. Clients are convinced of the early impact of GenAI,” says Nitish Mittal, Partner – Technology, Everest Group.

Read more in Business Standard.

6 Most Underhyped Technologies in IT — Plus One That’s Not Dead Yet | In the News

November 20, 2023

AI has sucked all the air out of the room of late, but the tech that makes AI possible keeps the business humming and advances the core mission of IT, and the business too often goes overlooked, unused, and underfunded.

One of these technologies is cloud migration tools. Yugal Joshi, a Partner at Everest Group, lists cloud assessment tools as another underhyped and underused tech.

Read more in CIO.

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

November 20, 2023

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

November 20, 2023

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

November 20, 2023

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

November 19, 2023

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

November 17, 2023

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

November 14, 2023

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

November 14, 2023

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.

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