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Sleepy Global Services Market Sees Emerging Delivery Hot Spots on the Horizon, According to Research from Everest Group | Press Release

By | Press Releases

Everest Group spotlights market-shaping trends and fastest growing delivery locations for global services.

In the modestly growing global services industry, the location strategies of enterprises and service providers are being reshaped by two key trends—reshoring and a strong demand for engineering/R&D and digital services—according to Everest Group, which recently published its annual report on global services delivery locations.

Key Findings and Predictions:

  • The global services market continues to grow overall, but modestly. The global services landscape sustained 6 to 8% revenue growth in 2018 (the same pace as 2017). New center setups witnessed a significant increase in 2018 (12.5%), driven by a focus on digital and R&D/engineering services; however, headcount growth in 2018 (6-8%) was slower than in 2017 (7-9%). Everest Group predicts that the market will continue to grow for the next three to five years, but at a slower growth rate in 2019.
  • Global services delivery is increasingly being characterized by nearshoring. A marginal shift in growth from offshore to nearshore locations in 2018 was primarily driven by enterprise and service provider initiatives to rebalance and optimize their existing locations portfolios and to comply with data protection mandates. In particular, Nearshore Europe witnessed a significant increase in headcount and new center setups in 2018, benefitting from availability of complex skills, proximity to customers in Western Europe, increased regulatory oversight and demand for multi-lingual support. Everest Group predicts that Nearshore Europe will continue to expand its share of the global services market, with Poland becoming the third-largest market for global services delivery behind India and the Philippines.
  • Enterprises are adopting insourcing to a greater extent than outsourcing for digital services. Using the GIC model, enterprises are focusing more on building skills in and delivery of IT-related services. Between 2017 and 2018, GICs led service providers (62% to 38% respectively) in the setup of new centers for digital services such as analytics, mobility, artificial intelligence and cybersecurity. Everest Group predicts that enterprises will continue to rebalance portfolios to bring more critical pieces of work in-house, but we will also see growth in the outsourcing market as enterprises outsource non-core activities.
  • Engineering/R&D and digital services continue to dominate the industry. An increased focus on R&D/engineering services delivery (especially in India, Singapore and China) contributed to APAC’s growth. Nearshore Europe had the second highest increase in new center setups, growing significantly in digital services delivery in Ireland, Lithuania, and Poland. Everest Group predicts that APAC will continue to be the leading geography of choice, and Nearshore Europe will grow faster as the market sees increased demand for R&D and innovation hubs to support development of digital products and services.

Additional research findings and predictions are discussed in “Global Locations Annual Report 2019: Demand for Next-gen Services Defining Location Strategies,” a comprehensive guide to understanding the nuances of the global services locations landscape and interpreting locations-related developments and trends to frame locations strategies.

“In our volatile global services market, the location decision should never be about cost or talent alone,” said Sakshi Garg, vice president, Global Sourcing, Everest Group. “Enterprises today are having to continuously re-evaluate and carefully evolve their location strategies because of multiple disruptive forces that are at play. These forces include increasing demand for next-gen technologies, intensifying competition for talent, evolving customer preferences, pressure on growth and margins, and geopolitical and macroeconomic uncertainties, just to name a few.”

***Download a complimentary abstract of the report.(registration required)***

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at https://www.everestgrp.com

 

Increasing Talent Gap Propels Faster, Wider, Deeper Growth in Recruitment Process Outsourcing Market | Press Release

By | Press Releases

As enterprises face unprecedented talent acquisition challenges, recruitment process outsourcing soars as one of the fastest growing outsourcing markets in the world, growing at over 15% for the past four years.

The Recruitment Process Outsourcing (RPO) market is one of the fastest growing outsourcing segments today, with 20% growth in 2018 and consistent double-digit growth over the past four years, according to Everest Group.

There is a massive talent supply-and-demand gap in almost all major economies across the world, which is forcing enterprises to go the RPO route for their permanent talent needs. This not only has given a significant push to RPO adoption but also is altering the dynamics of the RPO industry.

Overall, the RPO market is:

Accelerating: There is a huge influx of new RPO deals in the market and increased adoption in emerging geographies with above-average growth in even the mature regions. We also have witnessed continuous growth in multi-country RPO (MCRPO) deals as enterprises look to further scale their RPO initiatives.

Widening: The RPO market is expanding its horizons owing to:

  • Increased adoption from small and mid-market enterprises and buyers from newer industries. Banking, Financial Services and Insurance (BFSI), manufacturing, and hi-tech and telecom are the traditional and biggest adopters of RPO; however, with RPO service providers developing industry-specific capabilities, new industries, especially healthcare and retail, are witnessing a high increase in their adoption.
  • New offerings such as Total Talent Acquisition (TTA) and high-volume low cost RPO. Enterprises are gradually resorting to TTA to manage both their permanent and contingent talent needs “under one roof” in light of the cost, operational and strategic advantages that TTA model has to offer. Another innovative offering is high-volume low-cost RPO, a technology-intensive approach to helping enterprises that require relatively less skilled manpower with high scalability and agility at significantly low prices.

Deepening: As the RPO market is maturing and becoming more sophisticated, buyers are looking for additional value in different areas of their RPO engagements. Service providers are responding with:

  • Consulting capabilities such as reskilling and training, outplacement and “best fit” consulting.
  • Value-added services such as employment branding, talent communities, workforce planning and career transition services.
  • New service-level agreements that measure outcomes and associate rewards and penalties with those metrics.
  • Digital solutions. RPO service providers are increasingly investing in next-generation technologies—such as analytics, artificial intelligence (AI), blockchain and robotic process automation (RPA)—to create valuable insights, additional increase in efficiencies, cost reductions and superior experience for both candidates and hiring managers.

“Enterprises today are facing unprecedented challenges in talent acquisition,” said Vishal Gupta, practice director at Everest Group. “Enterprise pain points include forecasting workforce requirements, adapting to the changing nature and demands of the candidate base, developing effective branding, and responding to rapid developments in technology. The RPO market is expanding rapidly as RPO service providers are seizing the opportunity to help enterprises meet recruitment challenges with industry-specific expertise, innovative offerings, next-gen technologies, and a willingness to put more skin in the game with metric-driven service level agreements.”

These and other research findings are explored in much greater detail in a recently published Everest Group report: “Recruitment Process Outsourcing (RPO) Annual Report 2019: Steering 3D Growth on the Tides of Talent Shortage.” This research provides a comprehensive coverage of the market across dimensions such as market overview, regional overview, adoption trends, total talent acquisition, value-added services and capabilities, and digital in recruitment.

***Download a complimentary 10-page abstract of the report here.***

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.

Outsourcing Keeps Falling While Digital Picks Up the Slack, According to Everest Group Report on Top Trends in Global Sourcing | Press Release

By | Press Releases

Share of digital-focused outsourcing transactions witnessed a significant 8% increase in Q2.

The global sourcing industry posted a decline in transactions in the second quarter of 2019 as compared to Q1 2019, dropping from 501 transactions to 474, according to Everest Group. This marks the second consecutive quarter of declining transactions and a 3% year-on-year decline from Q2 2018 (489 transactions).

However, within the global outsourcing activity, the share of digital-focused deals continues to rise overall, posting a significant increase from 70% in Q1 to 78% in Q2. Cloud continues to be the dominant digital component, included in 46% of outsourcing transactions. Automation, artificial intelligence (AI) and analytics also factor heavily in driving digital transactions.

“Less than five years ago, digital capabilities were a competitive differentiator, but today they are a competitive must,” said H. Karthik, partner, Global Sourcing, at Everest Group. “As a result, enterprises and service providers alike are making significant investments in digital technologies to enhance customer experience and improve efficiency. We’re seeing this play out across the global sourcing landscape in the scope of outsourcing deals, the investments being made in internal capabilities, the focus of acquisitions and partnerships, and the recruitment of talent.”

These global sourcing trends are detailed in Everest Group’s recently released Market Vista™: Q3 2019 report. The report shines a spotlight on activity in the digital space, profiling key developments such as alliances, mergers and acquisitions (M&As), outsourcing deals, financial reports, Global In-house Center (GIC) or Shared Services Center (SSC) activity, and delivery locations.

Highlights:

  • Digital-focused GICs for offshore/nearshore locations formed 67% of the total new center setups, compared to 46% in Q1 2019, with AI included in 67% of GIC setups and expansions. Similarly, the share of digital-focused GICs in onshore locations grew from 44% to 49% in Q2 2019 over the last quarter, with AI included in 78% of onshore GIC transactions.
  • Although the share of digital in M&A activity declined significantly in Q2, digital-focused alliances increased due to cost benefits for enterprises and the opportunity to jointly utilize resources for capability expansion. Examples include the following transactions:
  • Accenture partnered with General Employee Benefits to jointly launch a blockchain solution to provide employee benefits such as life and healthcare insurance.
    ADP partnered with Google Cloud to launch identity services automation solution with Google Cloud’s Identity and G Suite. The partnership will enable customers to unite HR and identity solutions to simplify user lifecycle management.
  • HCL partnered with PTC Capability to launch Realtime Manufacturing Insights (RMI), an IoT solution that leverages PTC’s ThingWorx industrial IoT and Kepware industrial connectivity platforms.

Other notable Q2 trends:

  • The overall outsourcing transaction activity witnessed a substantial decline. The share of Market Vista™ Index service providers also decreased slightly in Q2 2019 as compared to the previous quarter. Within Market Vista™ Index service providers, deal activity from global service providers witnessed a significant decline in the volume of deals, as compared with the previous quarter.
  • Deals for Banking, Financial Services and Insurance (BFSI) and government were the highest among all industry verticals.
  • The technology and communications vertical experienced a decline due to a slowdown in telecom in the wake of financial stress and industry consolidation.
  • Technology and communications enterprises increased their GIC setups for business processes in North America to deliver finance and customer support services.
  • Business process focused center setups declined in India, slowing down Asia Pacific at large; service providers were primarily responsible for this decline.

***Download a complimentary 18-page abstract of the report***

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.

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Chief Procurement Officers Face New Roles, Responsibilities in Digital Era, According to Everest Group | Press Release

By | Press Releases

Double-digit procurement outsourcing growth is expected, as CPOs leverage service provider innovation to tackle complexity of next-gen demands.

The roles and responsibilities of the chief procurement officer (CPO) are changing—from back-office operations leader responsible for minimizing procurement expenses to a digitally-enabled C-suite member improving business outcomes and customer experience, according to new research from Everest Group.

Procurement has become deeply complex. Whereas the traditional focus areas of CPOs have been cost reduction, risk mitigation and supplier performance evaluation, the next-generation focus areas of CPOs are business partnering to enhance outcomes, digital enablement to improve the interface between procurement teams and other stakeholders, and maximizing value through supplier innovation.

“CPOs are being asked to move beyond cost containment to become contributors to corporate growth,” said Shirley Hung, vice president at Everest Group. “To respond to this mandate, CPOs must lead their teams and tap the expertise of third-party service providers to revamp processes, implement digital solutions, evolve recruiting strategies, and redefine what it means to be a successful procurement organization. As a result, we expect procurement outsourcing to sustain double-digit growth for the next two years.”

According to Everest Group, the “next generation CPO” must focus on four imperatives to stay relevant:

  1. Process transformation: Redesign current processes and streamline them as per the evolving digital landscape.
  2. Digital interventions: Implement digital levers such as Robotic Process Automation (RPA), analytics, and AI to drive efficiencies, cost savings, and enhance customer experience.
  3. Talent Management: Realign hiring and training strategies to keep the talent pool updated.
  4. Change in Metrics to Measure Success: Revise key metrics used for measuring success—key performance indicators (KPIs) and service level agreements (SLAs)—to focus more on outcome-based business metrics.

These insights and recommendations are detailed in a recently published Everest Group report: “Procurement Outsourcing (PO) Annual Report 2019: Evolving Imperatives for Procurement and What a Chief Procurement Officer (CPO) Should do to Remain Relevant.”

***Download a complimentary abstract of the report here.***

The report also provides comprehensive coverage of the global PO market including detailed analysis of market size and growth, buyer adoption trends, key emerging themes, and service provider landscape.

Other key findings:

  • The global multi-process Procurement Outsourcing (PO) market is expected to witness a growth of 11-12 percent in the next three years to reach US $3.6 billion in size by 2020.
  • Global growth dynamics vary significantly, with North America continuing to lead the market and emerging geographies such as Asia Pacific, Latin America, and Middle East and Africa witnessing the highest year-on-year growth in 2018.
  • The market is dominated by a limited set of players. Accenture, IBM and GEP continue to command more than 50% share of the market.
  • Each geography and vertical has a different set of leading service providers in terms of market share. Accenture is the only service provider to appear in the top five service providers across all regions and industries.

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at https://www.everestgrp.com.

Global In-House Centers (GICs) Play Critical Role In Enterprise Digital Adoption, Innovation | Press Release

By | Press Releases

Insourcing of IT services has grown from 20% in 2010 to 28% in 2018—Everest Group

Enterprises are increasingly leveraging global in-house centers (GICs), often called Shared Services, as strategic partners that play a central role in digital transformation and innovation initiatives. According to Everest Group, GICs are playing a critical role in helping enterprises adopt new digital technologies such as advanced analytics, machine learning, robotic process automation, blockchain, IoT and artificial intelligence.

“As GICs continue to evolve and deliver value beyond arbitrage, their role is becoming a more involved and critical one in supporting their enterprises’ innovation agenda and sustained competitiveness,” said Rohitashwa Aggarwal, practice director, Global Sourcing, at Everest Group. “Most mature GICs have evolved to drive impact through high-value capabilities, operating as an integral team with core business teams, building the next-gen talent pool, and leveraging ecosystem partnerships to capitalize on digital opportunities.”

While enterprises continue to predominantly rely on service providers for IT services delivery, they have started leveraging the GIC model, which is consistently driving the share of GICs in the overall sourcing mix for IT services. Insourcing has experienced constant growth, with the share of GICs in overall IT services delivery for global organizations increasing from 20% in 2010 to 28% in 2018.

The GIC segment accounted for 26% of the global offshore services market (estimated at US$196 billion in 2018). The GIC market has now grown to reach more than 3,100 centers and more than 1.4 million FTEs across leading offshore and nearshore locations.

The GIC market saw a 20% year-on-year increase in 2018 in the number of new GIC setups, driven by new setups from the manufacturing; healthcare and life sciences; retail and consumer product goods (CPG); and banking, financial services and insurance (BFSI) sectors.

The research supporting these findings is summarized in “Global In-house Center (GIC) Annual Report 2019: Enterprises Insourcing IT Services to Their GICs,” a report recently published by Everest Group. This report provides a deep dive into the GIC landscape, year-on-year analysis, and the GIC trends in 2018, comparing them with trends in last two years. The research also brings out key insights related to the GIC market across locations, verticals and functions and concludes with an assessment of the increasing insourcing of IT services delivery in GICs.

More GIC Landscape Trends:

  • Europe-headquartered firms are setting up GIC centers in Central and Eastern Europe given proximity and language-skills requirements, while US-based companies are more inclined to leverage India due to the availability of large-scale talent for English language delivery.
  • A majority of GICs focus on a single function (such as operations, IT or voice-based business process services), but many have multi-functional capabilities.
  • Technology and communications firms lead GIC activity in terms of the number of centers (37%), but the BFSI vertical has the highest share of FTEs employed by GICs (36%).
  • GIC setups by small companies have increased on the back of higher demand for R&D and innovation. In 2018, small companies’ GIC setups increased by 65% over 2017.
  • While business process/operations continue to be the dominant function served by GICs, R&D GICs have gained traction during the last couple of years to help develop digital products and services such as machine learning, artificial intelligence, IoT, mobility, analytics, cloud and cybersecurity.

***Download a complimentary abstract of the report here.***

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.evererstgrp.com.

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Stressed Out P&C Insurers Need Digital Solutions, Outsourcing Partners to Address New-Age Risk Management Complexities | Press Release

By | Press Releases

BPO providers help risk managers capitalize on digital technologies such as workflow automation, drone inspections, analytics, Internet of Things, and artificial intelligence

Property and casualty Insurers could relieve many of the risk management headaches they face today by leveraging digital technologies, but internal budget and staffing constraints typically prevent them from doing so. The solution to this problem is increased collaboration between risk managers and business process outsourcing (BPO) service providers, according to Everest Group.

“New-age market dynamics in the Property and Casualty insurance industry have negatively impacted insurers’ ability to effectively assess and underwrite risks and have exacerbated the need to rapidly evolve archaic risk management functions,” said Skand Bhargava, practice director at Everest Group. “Solutions to P&C risk management challenges can be found in digital technologies such as workflow automation, drone inspections, analytics, IoT, and artificial intelligence. However, because of internal challenges, many insurers are limited in their ability to adopt the requisite digital solutions. We highly recommend that insurers source risk management services from third-party providers to tackle internal limitations while also boosting productivity.”

Property and Casualty (P&C) insurers have been witnessing massive external disruptions in their business ecosystem, including:

  • Customers demanding Amazon-like experiences
  • Climate change causing widespread and difficult-to-predict catastrophes
  • New-age coverages for cyber breaches and drones
  • Increased demand from small and midsized businesses (SMBs), for which traditional risk models for personal or commercial lines are not well aligned

Digitalizing risk management operations would help P&C insurers address these market shifts, but most insurers are overwhelmed by internal challenges such as budgetary constraints, shortage of requisite talent, and out-of-date technology. As a result the market is ripe for third-party service providers that have both a knowledge of insurers’ risk workflows and the requisite digital capabilities to reduce cost and talent pressures, impart flexibility and compliance preparedness, and deliver superior customer experiences.

Specific examples of how digital technology can be applied in risk management include the following:

  • Workflow automation: automated data collection from multiple sources for assessing risks while underwriting; improved customer services, resulting in increased probability of customer retention
  • Drone inspections: Aerial data collection enabling remote inspections when the conditions are hazardous from deploying claims adjusters on the ground
  • Analytics: Geospatial analytics to assess the potential risks that policyholders face in a particular location
  • IoT: Property sensors alerting insurers about impending risks such as fire or flood
  • Artificial Intelligence: Natural Language Processing (NLP) technologies enabling digitization at source and thus expanding the pool of data that risk managers can leverage while also streamlining operations

Everest Group explores these findings and others in a recently published report: “Property and Casualty (P&C) Insurance BPO Annual Report 2019: Combating New-Age Risks – How Digital Helps.”

***Download a complimentary abstract of the report*** (Registration required.)

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.

Everest Group Launches Global Top 50 List for Engineering Services Providers | Press Release

By | Press Releases

Altran is No. 1 in the industry, Alten takes No. 2, and HCL ranks No. 3 among world’s largest third-party engineering services providers

Everest Group today announced the launch of “The Everest Group Engineering Services Top 50™,” an annual ranking of the world’s largest third-party providers of engineering services (ES). The list identifies the largest ES providers, their growth and coverage cutting across geography and verticals. The global ES market is valued at more than US$40 billion.

“The design-to-development process has traditionally been something enterprises kept in-house, but the need for scalability and rapid innovation has compelled them to consider third-party providers,” said Akshat Vaid, vice president at Everest Group. “As a result, engineering services providers have grown, with both more and larger deals as they have expanded their industry breadth, solution breadth and global footprint. They are also developing domain expertise and gaining scale through IP engagements and acquisitions. The market is becoming more favorable to engineering services providers as more high-end engineering services opportunities are being outsourced.”

Topping the 2019 list of ES providers are these 10 leaders:
1. Altran
2. Alten
3. HCL Technologies
4. AVL
5. AKKA Technologies
6. Accenture
7. Tata Consultancy Services
8. Wipro
9. AF
10. L&T Technology Services

***Download a complimentary copy of the 2019 Everest Group Engineering Services Top 50 list and analysis***

The ranking is based on both revenues (75% of the composite score used for ranking) and year-on-year growth for the calendar year 2018. Growth has two sub-parameters: absolute growth (measured as change in ES revenue in US$ million and accounting for 12.5% of the composite score) and percentage growth (measured as percentage change in ES revenue and accounting for the final 12.5% of the composite score).

***Video: Watch “The Everest Group Engineering Services Top 50“***

Other highlights:

Top 10 ES providers by revenue:
1. Altran
2. Alten
3. HCL Technologies
4. AVL
5. AKKA Technologies
6. AF
7. Accenture
8. Tata Consultancy Services
9. Wipro
10. Bertrandt

Top 10 ES providers by growth:
1. L&T Technology Services
2. Altran
3. Globant
4. HCL Technologies
5. SII Group
6. GlobalLogic
7. KPIT
8. EPAM
9. Mindtree
10. Tech Mahindra

Most large ES providers (62%) are pure play. Broad-based service providers that offer ES as part of a broader portfolio (IT and/or business process services, consulting, technology products, etc.) represent 38% of the global ES market; these organizations are focusing on increasing revenue from ES to offset the risk of lower growth and narrowing margins in traditional areas such as application development and maintenance.

Top 5 broad-based ES providers (by revenue):
1. HCL Technologies
2. Accenture
3. Tata Consultancy Services
4. Wipro
5. IBM

Top 5 pure play ES providers (by revenue):
1. Altran
2. Alten
3. AVL
4. AKKA Technologies
5. AF

Europe has the highest number of ES providers, with more than half of the companies in the list (52%) headquartered in the region. APAC and North America follow at 32% and 14% of the companies, respectively.

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.
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Everest Group Issues Latest Assessment of RPA Technology Vendors as Market Becomes Increasingly Complex, Competitive | Press Release

By | Press Releases

Automation Anywhere, Blue Prism, NICE and UiPath named as the world’s leading RPA technology vendors in Everest Group’s fourth release of Products PEAK Matrix Assessment

Everest Group today released its evaluation of 22 leading robotic process automation (RPA) technology vendors, a report designed to assist the growing number of enterprises, global in-house centers (GICs) and service providers that are investing in RPA technology.

With all the hype, it is easy to forget that RPA is still a burgeoning market with technologies that are relatively new to many potential buyers in terms of product features, deployment options, training and support, partner ecosystem and commercial models. The technologies are also evolving, with an expanding feature set and increasing richness of functionality.

In 2015, Everest Group became the first analyst firm to assess Service Delivery Automation technologies, including RPA and AI software applications. The report released today — Robotic Process Automation (RPA) – Technology Vendor Landscape with Products PEAK Matrix™ Assessment 2019 — is the fourth edition of this landmark research.

“The market for RPA technology is becoming more complex, with highly competitive and evolving product offerings,” said Sarah Burnett, executive vice president and distinguished analyst at Everest Group. “The Everest Group Products PEAK Matrix™ is an unbiased assessment that uncovers vendor and product differentiators to identify the leaders in RPA technology based on research that goes deep into the vendors performance and product details, features, functionalities and more.”

Everest Group classifies RPA technology vendors on the Everest Group Products PEAK Matrix™ into the three categories of Leaders, Major Contenders, and Aspirants:

  • Leaders: Automation Anywhere, Blue Prism, NICE and UiPath
  • Major Contenders: Another Monday, AntWorks, EdgeVerve, HelpSystems, Jacada, Jidoka, Kofax, Kryon, Pegasystems, Servicetrace, Softomotive, Thoughtonomy and WorkFusion
  • Aspirants: AutomationEdge, Datamatics, Intellibot, Nintex and Nividous

AntWorks, Automation Anywhere, Datamatics, Softomotive and UiPath demonstrated the strongest year-over-year movement on both market impact and vision-and-capability dimensions and emerged as “2019 RPA Market Star Performers.”

Automation Anywhere, Blue Prism and UiPath are the top vendors in terms of RPA license revenue, closely followed by NICE. Pegasystems leads in terms of revenue from attended RPA (also known as robotic desktop automation, or RDA) licenses.

These findings and more are detailed in Robotic Process Automation (RPA) – Technology Vendor Landscape with Products PEAK Matrix™ Assessment 2019. In addition to providing the classification and detailed assessment of 22 RPA technology vendors, the report describes the competitive landscape of the RPA market, outlines key RPA technology trends, and provides a snapshot of the supply and demand for assisted RPA/RDA capabilities.

***Download a complimentary abstract of the report***

Everest Group Leads Analyst Community with Unmatched RPA Credentials

A dedicated team of Everest Group analysts has been conducting in-depth research and analysis of the RPA market and technologies for more than five years, creating a wake of industry leadership in the space. Everest Group was the first analyst firm to:

  • Publish game-changing research into what the best-in-class enterprises are doing differently to accelerate adoption of RPA and generate greater business value.
  • Conduct an industry-critical survey of 72 executives from enterprises to establish thought leadership on defining the key characteristics of an enterprise-grade RPA platform.
  • Publish a robust industry playbook (over 200 pages) with insights, methodologies, and practical advice to help enterprises develop winning strategies to achieve best-in-class business outcomes from their Smart RPA investments.

“Everest Group is deeply committed to and invested in providing potential RPA technology investors with an accurate and in-depth assessment of their options,” said Amardeep Modi, practice director of Service Optimization Technologies at Everest Group. “At the heart of our robust research approach is our proprietary database of over 22 RPA technology vendors—we track detailed operational, market and product-related information of each vendor. Layered atop that data are insights gleaned from a comprehensive request-for-information, in-depth vendor briefings, live product demonstrations and feedback from referenced buyers. Comprehensively, this body of knowledge sets Everest Group apart as the leading expert on RPA technology vendors.”

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.

Which Enterprises Achieve Best ROI on Data and Analytics Initiatives? Everest Group Reveals Who and How | Press Release

By | Press Releases

Enterprises that achieve the greatest success with data and analytics focus on customer experience and revenue growth

Those enterprises that outperform their peers in data and analytics within their global in-house centers (GICs) have an entirely different mindset than all the rest, according to Everest Group. The best-of-the-best organizations are intent on using data and analytics to improve effectiveness of existing delivery teams and achieve improved customer experience and revenue growth, whereas other enterprises focus primarily on cost savings.

“Interestingly, those organizations that focus their GIC’s data and analytics efforts on higher-level business impact also achieve far better cost-savings—three times as much—than those who focus on cost-savings alone,” said H. Karthik, partner at Everest Group.

Everest Group recently assessed the data and analytics capabilities of 50 enterprises’ global in-house centers (GICs) and also appraised the business outcomes of their data and analytics initiatives. Five GICs were deemed Pinnacle GICs™ for their ability to achieve significant impact through data and analytics, both in terms of cost savings and improvement in operational and strategic/business indicators.

In comparison to other GICs implementing data and analytics initiatives, Pinnacle GICs

  • Realized 1.3 to 1.5 times greater improvement in strategic areas as compared to other GICs. For example, Pinnacle GICs demonstrate much higher improvement in customer experience scores, top-line revenue growth and employee satisfaction as well as greater reduction in fraud- and risk-related incidents.
  • Achieved 1.4 times more improvement in staff productivity. Eighty percent of Pinnacle GICs witnessed significant improvement in staff productivity as compared to 39% of other GICs.
  • Generated 3 times the cost savings for the enterprise. Average cost savings (beyond cost arbitrage) delivered by Pinnacle GICs is 55% versus 19% cost savings delivered by other GICs.

These results and other findings are explored in a recently published Everest Group report: “Data and Analytics Maturity in GICs: Pinnacle Model™ Analysis.” Everest Group’s Pinnacle Model research methodology is designed to illuminate the best practices of global enterprises that are most effectively developing and deploying capabilities to achieve business outcomes.

“Pinnacle GICs teach us a great deal about how to achieve the greatest return on data and analytics investments,” said Karthik. “We have found that the journeys of Pinnacle GICs are quite unique, differing greatly from others not only in their technological and people capabilities but also in in their vision, their operating models, and the strategic, proactive role they play within the parent organization.”

With respect to successful data and analytics initiatives, Pinnacle GICs have these key enablers and investments in common:

  • Serve as their parent enterprise’s strategic partner in global data and analytics programs and are two times more likely to proactively develop solutions ahead of demand. Also, many more Pinnacle GICs drive enterprise-wide initiatives (100% for Pinnacle GICs versus 20% for others).
  • Achieve greater adoption of data and analytics across functions. Best-in-class GICs have achieved more than 50% penetration for multiple functions.
  • Own entirely the enterprise’s capability in key areas such as data management (60% of Pinnacle GICs), modeling and decision support (60%), visualization/dashboarding (80%) and data trust (60%).
  • Spend 1.7 times as much as other GICs, which allows them to invest in specific skills and technologies.

***Download a complimentary abstract of the report***

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.

Outsourcing Demand Falls, Global In-house Center Setups Grow in Q1 2019 According to Everest Group Report on Top Trends in Global Sourcing | Press Release

By | Press Releases

Enterprises increasingly outsourcing engineering services, including software engineering, mechanical engineering, and embedded engineering.

The global sourcing industry posted a decline in transactions in the first quarter of 2019 as compared to Q4 2018, dropping from 551 transactions to 501, according to Everest Group. Conversely, Q1 saw Global In-house Center (GIC) activity increase vis-à-vis Q4 2018, with the number of new GIC setups and expansions increasing in onshore as well as offshore and nearshore locations.

Everest Group also identified these Q1 global sourcing trends in its recently released Market Vista™: Q2 2019 report:

Large financial services firms, especially banks, are increasingly looking to expand their in-house IT teams and insource parts of their outsourced IT services portfolios.

The United Kingdom witnessed a significant decline in outsourcing activity, primarily due to a decline in contracts signed by banking, financial services and insurance (BFSI) enterprises in anticipation of Brexit.

Western Europe saw increased activity driven by an increase in set-ups of engineering-focused GICs in Germany by manufacturing firms and an increase in IT-focused service provider delivery centers in the Netherlands given its skilled and multi-lingual talent pool and well-developed digital infrastructure.

Indian-heritage service providers increased product-focused investment, mainly driven by next-generation technologies and competition from global majors. For example, Genpact acquired RiskCanvas to access its suite of Anti-Money Laundering (AML) solutions, and Tech Mahindra partnered with Rakuten Mobile Network to open a next-generation (4G and 5G) software-defined network lab.

Market Vista™: Q2 2019 features a profile of enterprise spending on engineering R&D (ER&D) and the increasing adoption of outsourcing services in this industry segment. Business ER&D spending stood at over US$739 billion in 2018, with global engineering sourcing constituting 10.9%, or approximately US$80.5 billion. Engineering service providers command a 51% share of this sourcing segment, while GICs account for 49%.

“Since 2016, engineering service providers have grown at a compound annual growth rate of 16.5%, while GIC activity expanded only 6.8% in this same three-year period,” said H. Karthik, partner, Global Sourcing, at Everest Group. “We’re definitely seeing a trend here as enterprises such as Google, Samsung, and Ford explore engagement with engineering service providers and reap the benefits of offshoring. We’ll see this trend continue as service providers invest in building their capabilities in software engineering, mechanical engineering, and embedded engineering.”

Market Vista™: Q2 2019 also addresses major outsourcing deals, Global In-house Centers (GICs) developments, location risks and opportunities, and service provider developments (including latest developments on next-generation technologies such as digital services).

***Download a complimentary 20-page abstract of the report***

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.

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