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Everest Group Publishes 2023 Rating of Top Global Business Services Employers

July 6, 2023

Sixty companies across India, the Philippines, and Poland recognized as Top GBS employers

DALLAS, July 6, 2023 — Everest Group today released the results of its second annual rating of top Global Business Services (GBS) employers across India, the Philippines and Poland. The Everest Group Top GBS Employers™ report for 2023 provides an “outside-in proxy” on how prospective candidates perceive employer companies. Leading global GBS organizations can leverage insights from this study to optimize their talent management strategies.

“Despite the slowdown and layoff cycles of 2023, talent is still the differentiating factor that enables organizations to survive uncertainties and thrive in intense competition,” said Rohitashwa Aggarwal, partner at Everest Group. “Our research shows that perceived brand perception strongly influences and correlates with success in talent markets for GBS employers. GBS organizations need to understand what components most contribute to employer brand perception in local talent markets and how to strengthen their brand to attract and retain the best and brightest.”

***Download a complimentary copy of the 2023 Everest Group Top GBS Employers™ list and analysis***

For this year’s study, Everest Group analyzed the employer brand perception of more than 300 leading GBS employers across India, the Philippines and Poland. Using publicly available information, Everest Group explored multiple dimensions of employer brand, including compensation and benefits, work environment, career development, and diversity and inclusion. The study also analyzed the perceived performance of each of these GBS organizations in the local talent markets based on prevailing retention rates, net gain-loss, and employee satisfaction scores.

Everest Group identified the Top GBS Employers for 2023 by plotting aggregate ratings of employer brand perception against aggregate ratings of success in the talent market. Amazon.com is the only company to be rated a Top GBS Employer in all three geographies.

Top GBS Employers in India

Among 165 India-based companies assessed by Everest Group, 30 employers were designated the Top GBS Employers in India. Among the highest rated employers are American Express, AT&T, Bank of America, Cisco Systems, Colt, Expedia Group, Experian, Ford Motor Company, GSK, Mondelēz International, Sun Life Financial, Target & Trans Union.

“Target is honored to be recognized again as a top employer by Everest Group,” says Bruce Starnes, president of Target in India. “Our team is at the heart of Target’s strategy, and our global culture of caring, growing, and winning together includes ongoing opportunities to engage in meaningful work and develop new skills.”

“Hyderabad boasts a vibrant ecosystem with a rich pool of highly skilled engineers, innovators and technical professionals,” said Alexander Lintner, CEO of Experian Software Solutions. “This achievement is a testament to the Hyderabad team, and a direct reflection of how we truly live through our brand values by continually advancing our technology, and innovating to grow to delight our customers. A huge part of how we achieve this is to attract and retain top talent across our markets through our unique, people first culture. I believe with this award we will propel to new heights of success, enabling us to further drive innovation, accelerate product development and establish ourselves as a leader in the industry.”

Top GBS Employers in the Philippines

Among 70 Philippine-based companies assessed by Everest Group, 15 were designated the Top GBS Employers in the Philippines: Amazon.com, American Express, Diageo, Henkel, ING Group, Johnson & Johnson, JPMorgan Chase, Macquarie Group, Northern Trust, Philip Morris International, Procter & Gamble, RELX, Sun Life Financial, Synchrony Financial and Wells Fargo.

Top GBS Employers in Poland

Among 70 Poland-based companies assessed by Everest Group, 15 were designated the Top GBS Employers in Poland: Amazon.com, AstraZeneca, Avon Products, Bayer, Cisco Systems, Colgate-Palmolive, F. Hoffman-La Roche, GSK, ING Group, Mars, Mondelēz International, Motorola Solutions, Philip Morris International, Takeda Pharmaceutical, and Procter & Gamble.

“Our ambition for Takeda Business Solutions – the global business services (GBS) arm of Takeda – was to create a GBS function that would become a valued partner to the business, delivering innovative and optimized solutions that would significantly free up our people’s time to do more for the patients we’re privileged to serve,” said Sanjay Patel, global head of Takeda Business Solutions. “As we continue our journey to become a best-in-class GBS function, we welcome this invaluable opportunity to benchmark our performance and identify opportunities for further growth.”

Key Takeaways:

GBS employer brand perception is volatile and changes over time. In 2022-23, Everest Group observed a notable dip in employer brand perception ratings across regions. On average, employer brand perception for GBS employers in India, the Philippines, and Poland has decreased by 2%, 20% and 11%, respectively
Employee expectations are ever-changing. Work flexibility as well as diversity and inclusion emerged as crucial factors in attracting and retaining talent. In fact, mentions of concerns about work flexibility have more than tripled compared to last year’s analysis. Compensation and benefits also remain of key importance
Holding the top GBS employer position is no easy feat; approximately 15% of last year’s top performers have slipped from the top quadrant in India, the Philippines and Poland However, some GBS employers have achieved significant positive shifts in brand perception through multi-pronged initiatives. An improvement of 60% within one year is the highest recorded this year and 12 organizations achieved improvement of more than 20% year on year
Cultural differences impact employer brand perception, as employees in the Philippines generally exhibit more positivity compared to their counterparts in India and Poland
Employer engagement period counts. GBS employers in the Philippines with over 6 years of local presence secure higher positions on the chart

On-Demand Webinar: “Winning Employer Value Propositions: Strategies from Top GBS Employers”

In this webinar, available on demand, Everest Group presents the results of its Top GBS Employers study and shares what top GBS employers are doing to set themselves apart. Watch this webinar to learn what factors impact GBS brand perception in key markets, how companies can evaluate their own brand perception from an employee’s perspective, what organizations can do to address employee grievances and enhance their overall brand perception among potential employees.

About Everest Group

Everest Group is a leading research firm helping business leaders make confident decisions. We guide clients through today’s market challenges and strengthen their strategies by applying contextualized problem-solving to their unique situations. This drives maximized operational and financial performance and transformative experiences. Our deep expertise and tenacious research focused on technology, business processes, and engineering through the lenses of talent, sustainability, and sourcing delivers precise and action-oriented guidance. Find further details and in-depth content at http://www.everestgrp.com.

Everest Group Unveils 9th Annual Business Process Services Top 50

June 8, 2023

ADP, Accenture, Teleperformance, Concentrix and Paychex take Top 5 spots among world’s largest third-party BPS providers.

DALLAS, JUNE 8, 2023 — Everest Group today released the ninth annual edition of “The Everest Group BPS Top 50™,” a ranking of the world’s largest third-party providers of business process services (BPS). The list was launched in 2015 as the first of its kind for the global industry, which is now valued at more than US$250 billion. The ranking is based on 2022 revenues and year-on-year growth.

Topping the 2023 list of leading BPS providers are these 10 service providers:

ADP
Accenture
Teleperformance
Concentrix
Paychex
Foundever
Konecta
Genpact
TCS
Conduent

The Everest Group BPS Top 50 report also includes:

The Top 10 BPS providers by revenue. (ADP, Accenture, Teleperformance, Concentrix and Paychex take the Top 5 on this list.)
The Top 10 BPS providers by growth rate. (Topping this list are Iron Mountain, Tech Mahindra, TaskUs, NTT Data and EXL, in that order.)

“Over the years the BPS industry has expanded in both breadth and depth of services, and today it generates more than $250 billion in revenue and touches every facet of the business services value chain,” said Rajesh Ranjan, partner at Everest Group. “Our BPS Top 50 report helps enterprises understand the scaled-up provider options while allowing BPS providers to compare themselves against others. As we look forward, we expect the list to become more dynamic against the backdrop of a recessionary environment and emergence of Generative AI as a potential value creation lever. Service providers’ ability to quickly figure out a way to ride this wave of disruption will define their future success.”

***Download a complimentary copy of the 2023 Everest Group BPS Top 50 list and analysis***

BPS (also referred to as business process outsourcing or BPO) started as a cost optimization concept focusing on “non-core” and “back-office” business processes. Today BPS permeates the entire business process value chain, addressing a wide variety of business objectives.

Everest Group estimates there are more than 250 service providers with more than US$50 million in revenues offering BPS around the globe. Some are pure-play BPS providers, while others offer business services as part of a broader portfolio (including IT services, consulting, technology products, etc.). Some are focused on a particular domain or geography, while others are broad-based. Some are listed, while others are privately held. To complement the BPS Top 50 report, we also offer Everest Group PEAK Matrix® reports which provide in-depth assessments of service providers’ performance across various BPS segments.”

Notable trends among 2022 BPS providers

After a banner year in 2021 with growth rates in the 12.5 to 13% range, 2022 saw a slight deceleration in the market, with growth rates in the range of 7.5 to 8.5%. This decline can attribute that to several factors, most notably major currency depreciations versus the U.S. dollar and the attenuation of one-time COVID-related government contracts.

As in 2021, IT-BPS providers with stronger reported stronger revenue growth than pure-play BPS providers. IT-BPS providers benefitted from large integrated deals.

The growth rates of broad-based providers in comparison to those of specialists we relatively comparable at 8.0% and 8.2%, respectively. Although specialists were buoyed by the growth of HR specialist providers due to the hot talent market, the specialist category also saw a decline among CXM providers due to the attenuation of one-time COVID-related contracts.

The Everest Group BPS Top 50 is based on both revenues and year-on-year growth. Revenues comprise 75% of the composite score used for ranking. Growth comprises 25% and has two sub-parameters: absolute growth (measured as change in BPS revenue in US$ million and accounting for 12.5% of the composite score) and percentage growth (measured as percentage change in BPS revenue and accounting for the final 12.5% of the composite score).

About Everest Group
Everest Group is a leading research firm helping business leaders make confident decisions. We guide clients through today’s market challenges and strengthen their strategies by applying contextualized problem-solving to their unique situations. This drives maximized operational and financial performance and transformative experiences. Our deep expertise and tenacious research focused on technology, business processes, and engineering through the lenses of talent, sustainability, and sourcing delivers precise and action-oriented guidance. Find further details and in-depth content at http://www.everestgrp.com.

Everest Group Announces Winners of the 2023 Service Provider of the Year Awards for IT Services

May 2, 2023

Accenture takes No. 1 for seventh straight year. TCS, Capgemini and Wipro rise in ranking to take No. 2, 3 and 4 spots, respectively. HCLTech rounds out the Top 5.

DALLAS, May 2, 2023—Everest Group—the global research firm focused on strategic IT, business services, engineering services and sourcing—today announced the winners of the 2023 PEAK Matrix Service Provider of the Year™ Awards for IT Services. The awards, now in their eighth year, recognize IT service providers who have demonstrated superior capabilities and service strategies in the PEAK Matrix^® reports issued by Everest Group in the previous year.

Topping the Top 20 IT Service Providers list for 2023 are Accenture, TCS, Capgemini, Wipro and HCLTech, in that order. Accenture retains its position at the top of the leaderboard for the seventh straight year. TCS has been in the top five since Everest Group launched the rankings in 2016 and rose in the rankings this year to take the No. 2 position. Capgemini and Wipro each rose three positions in the rankings over last year. HCLTech remains among the Top 5 providers, although it slipped a notch from the No. 4 slot it held last year.

“The Top 20 IT Service Providers list identifies the best of the best—IT service providers with strong, broad-based capabilities and successful services strategies that align well with the evolving enterprise IT demand,” said Chirajeet Sengupta, partner at Everest Group. “Throughout the year, Everest Group evaluates service providers’ market success, their business strategies and how they are investing in the future. By taking all of that into account, these PEAK Matrix IT Service Provider of the Year awards recognize the IT service providers that truly set themselves apart.”

Overall, eight service providers improved their rankings, five slipped and three maintained their position in the Top 20. LTIMindtree (No. 10), EY (No. 18), Orange Business Services (No. 19), and EPAM (No. 20) are newcomers to the leaderboard this year. UST Global and EXL exited the list in 2023. Star Performers of the Year, recognized for achieving the greatest positive relative year-on-year movement on the PEAK Matrix assessment, are LTIMindtree, Tata Consultancy Services (TCS), Capgemini and HCLTech.

***All winners are listed in the report, “2023 PEAK Matrix Service Provider of the Year Awards for IT Services,” available for complimentary download here.***

Everest Group’s 2023 PEAK Matrix Service Provider of the Year Awards for IT Services also honor the Top ITS Challengers. This list recognizes the top 10 IT service providers with annual revenue of less than US$2 billion. The Top 3 ITS Challengers in the 2023 awards are Mphasis, Virtusa and Zensar. Zensar additionally is recognized as the Top ITS Challenger Star Performer for achieving the greatest cumulative upward mobility within the Top ITS Challengers list.

“Although smaller in size, these challengers are credible alternatives to the leading players in the industry in certain niches,” said Abhishek Singh, partner at Everest Group. “Challengers have successful service strategies that focus on specific solution segments, geographies or industries that align well with enterprise needs.”

Other Award Highlights:

Everest Group publishes the PEAK Matrix Service Provider of the Year Awards to recognize consistent top performers across PEAK Matrix assessments. In 2022, Everest Group published 34 PEAK Matrix reports, evaluating a total of 138 service providers in these nine segments of the IT services market:

Application services
Banking and financial services
Cloud and infrastructure services
Data and analytics services
Digital services
Enterprise platform services
Healthcare services
Insurance services
Life sciences services

Everest Group acknowledges Leaders and Star Performers in each of these nine industry segments. Leaders are determined by the number of leader positions an organization holds in the PEAK Matrix reports published across each category. Similarly, Star Performers recognize those organizations who achieve the greatest cumulative upward mobility from the previous year in the PEAK Matrix reports for each industry segment. A complete list of segment winners is included in the complimentary report.

About the PEAK Matrix™

The Everest Group PEAK Matrix^® is a proprietary framework for assessing the relative market success and overall capability of service providers based on Performance, Experiences, Ability and Knowledge. Each service provider is comparatively assessed on two dimensions: market success and delivery capabilities. Market success is measured by revenue, number of clients and year-over-year growth. Delivery capability is measured by scale of operations, scope, technology and innovation, delivery footprint and buyer satisfaction. The resulting matrix categorizes service providers as Leaders, Major Contenders, and Aspirants. Companies that demonstrate strong upward movement in successive reports are recognized as Star Performers.

Everest Group Launches ‘Talent Genius,’ an AI-powered Platform to Guide Workforce, Location Decisions for IT, Business Process Services

April 3, 2023

With Talent Genius from Everest Group, global organizations can build, monitor and optimize their location portfolio and talent hubs by staying on top of talent market dynamics.

DALLAS, Texas—April 3, 2023—Global organizations are constantly searching for talent locations that offer the right balance of cost savings, skills and risk profile, but they lack the credible, easily accessible data they need to make confident location and talent decisions. Everest Group is addressing that challenge today with the launch of Talent Genius™, its AI-powered cloud platform purpose-built to deliver critical location and talent insights for IT and business process (BP) services.

With Talent Genius, global organizations can build, monitor and optimize their location portfolio and talent hubs by staying on top of talent market dynamics. Talent Genius allows decision makers to interact with intuitive dashboards and visualizations to evaluate location attractiveness across economic and geopolitical risk, wage inflation, attrition, and talent supply and demand. Clients can monitor demand trends, talent hotspots, competitive intensity, and salary benchmarks for various roles and skills in the IT-BPS space.

***Learn more about Talent Genius***

“The global services market runs on the power of talent, so it’s critical that organizations make the right decisions when it comes to creating and optimizing their location and workforce strategies,” said Sakshi Garg, vice president at Everest Group. “That is why we are excited to expand our services portfolio with a new cutting-edge location and talent intelligence tool. With Talent Genius, at the click of a button our clients will have the highly contextualized, expert-vetted information they need to make those decisions—confidently. With our commitment to innovation and excellence, we are confident that this new offering will provide unparalleled value to our clients.”

Everest Group is the leading research firm in the global services space, with decades of experience in partnering with global IT-BP service organizations to provide location and talent insights to enable confident decisions. Talent Genius combines Everest Group’s proprietary datasets from years of research with ongoing talent market data to equip global services and IT-BP services industry leaders with powerful insights in an interactive, on-demand platform.

Talent Genius is a comprehensive membership that delivers on-demand insights through access to the Talent Genius platform, as well as guided expertise through access to Everest Group analysts. It also includes other deliverables, such as research reports. This unique combination of on-demand data and expert insights ensures organizations have the right level of support to make confident decisions in any scenario.

***Book a demo to explore how Talent Genius’ capabilities can provide value.***

Everest Group Declares “The Age of Decentralized Clinical Trials Has Begun”

March 29, 2023

Everest Group also joins DTRA, offering members accessibility to pioneering research on clinical technology

DALLAS, March 29, 2023 —Everest Group today released its latest research report on Decentralized Clinical Trials, which documents a 38% increase from 2021 to 2022 in the number of trials conducted with a decentralized and/or virtual component. Everest Group predicts that the adoption of DCTs by pharmaceutical companies will rapidly accelerate as early adopters praise the approach for putting patient experience at the forefront.

DCTs enable patients to participate in a clinical trial from the comfort of their homes through the use of technology (such as sensors or remote monitoring devices) and home-visit services. In an Everest Group survey of buyers of DCTs, interviewees reported that 20-25% of their trial portfolios were decentralized or hybrid in nature today, but that 80-90% of their trial portfolios will be decentralized/hybrid by 2027. When asked to name the biggest benefit of DCTs, two out of three of those buyers interviewed (67%) cited “improved patient enrollment and retention rates.” Other benefits named include reduced cost (20%), reduced trial timelines (13%), more diverse patient populations (13%), getting real time data (7%), and enabling complex scoring and analysis (7%).

These findings and more are detailed in the Decentralized Clinical Trials Adoption Playbook. This playbook looks at more than 50 DCT case studies across different therapy areas and informs enterprises about the trends, benefits and challenges in DCT adoption to help them design a strategy for seamless DCT adoption. (A complimentary abstract of this report is available for download.)

Everest Group also released today its 2023 Life Sciences Decentralized Clinical Trial Platforms State of the Market Report, which analyzes the current state of the DCT market. The report explores adoption and market trends; the DCT platform providers’ landscape; the enterprise view of DCT platform providers; Environment, Social, and Governance (ESG) initiatives; and emerging technology opportunities in the industry. (A complimentary abstract of this report is available for download.)

Pandemic Spotlight on DCTs Revealed Major Benefits to the Approach

Traditional clinical trials are an expensive affair, costing upwards of US$2.6 billion and up to 12 years in research effort before approval by a regulatory body. Additional burdens of the traditional approach are patient recruitment challenges, patient adherence and engagement challenges, and regulatory challenges.

During the COVID-19 lockdowns, clinical trial activity came to a halt because patients could no longer travel to hospital networks to participate in a clinical trial. Fortunately, DCTs breathed new life into these paused clinical trials and delivered a host of benefits beyond those offered by the traditional clinical research approach. As a result, enterprises have accelerated their plans toward DCT adoption, looking to convert their piecemeal deployments into a comprehensive strategy aimed at enhancing the trial experience for patients, sponsors and Contract Research Organizations. Additionally, recent technological advances, the proliferation of wearables, and the regulatory pressure on the industry to adopt DCTs following the pandemic have made the DCT landscape ripe for disruption.

Everest Group Partners with DTRA

Everest Group also announced today that it has joined the Decentralized Trials Research Alliance (DTRA) to support the organization’s mission of advancing policies, research practices and new technologies to make clinical trial participation widely accessible.

“Today, pharmaceutical companies are optimistic about and investing in DCT trials, and Everest Group sees great potential in the market; however, because the technology and adoption is nascent, additional stakeholder education, product innovation and partnerships are needed,” said Nitish Mittal, partner at Everest Group. “DTRA is one of the few bodies which is driving standardization in the process and stakeholder education in this space. We’re pleased to support the DTRA mission and to contribute by giving DTRA members access to Everest Group’s curated clinical development technology research.”

A frontrunner in the research of clinical technology, Everest Group has a deep research portfolio focused on the demand and supply side of DCTs. By partnering with DTRA, Everest Group aims to disseminate information about the DCT market (such as DCT product suppliers and their capabilities, enterprise DCT adoption trends and sourcing considerations, DCT state of the market, etc.) to various stakeholders responsible for adoption and continued success of DCTs.

About Everest Group

Remote Work, Global Hiring Drive Explosive Growth in ‘Employer of Record’ Partnerships—Everest Group

February 21, 2023

Employers of Record (EORs) help enterprises hire and retain skilled talent in new countries or regions, use technology to provide a seamless experience to a globally distributed workforce.

DALLAS, February 21, 2023 — Everest Group research suggests that 71% of organizations want to improve their geographical footprint; however, global expansion can be a complex and lengthy process, with organizations needing to navigate new legal systems, regulations, taxes, cultures, languages and more. Enterprises are discovering that Employer of Record (EOR) arrangements can ease the burden of international expansion; accordingly, the EOR market swelled 170% in 2020 and 120% in 2022 and is expected to continue to grow at a compound annual growth rate of 40-50% through 2025 according to Everest Group.

An Employer of Record is a third-party organization that becomes the full legal employer of a company’s workforce and assumes all employee-related responsibilities in a particular country. With an EOR, enterprises can onboard and manage talent without needing to establish a new legal entity in a particular region or risk violating local laws. EOR offerings can span the entire employee administration value chain and include services such as onboarding, benefits provision and administration, time and expense management, and payroll. An EOR partnership is a better alternative to traditional outsourcing in that it offers higher accessibility and control over the employees, better transparency in employee practices, lowered complexity in end-to-end HR management, and shorter onboarding timelines.

“Two of the top benefits enterprises receive from EOR adoption is that they no longer have to deal with the complexity of setting up international entities nor worry about staying in compliance with local laws and regulations,” said Priyanka Mitra, vice president at Everest Group. “In addition to mitigating these risks, EOR partnerships deliver administrative cost and time savings, business continuity, and global mobility—all of which are now highly valued by enterprises striving to excel in a post-pandemic, next-normal business environment.

“Despite explosive growth in the EOR industry, it does have its fair share of challenges, not the least of which is the lack of awareness among buyers,” continued Mitra. “Large enterprise buyers are still gaining confidence in the model. Even those who are adopting the model often see it as a short-term solution, preferring to set up their own entities if they plan to remain in the territory for a long time. Other challenges include the recessionary headwinds that may slow down adoption and the ever-evolving regulations around remote work and dispersed workforces that add complexity to the space.”

Despite these challenges, EOR firms are investing significantly to enhance their technological capabilities to provide elevated stakeholder experiences and to bring efficiencies to various processes. For example, service providers interviewed by Everest Group have made investments in chatbots, advanced analytics, dynamic dashboards and benchmarking, and employee self-service and manager self-service tools. In addition, EOR firms are expanding payroll capabilities and services capabilities, such as recruitment, multi-language support, knowledge centers, and benefits offerings.

These findings and more are detailed in Everest Group’s recently published report, “Employer of Record (EOR) – State of the Market 2023.” This report offers an introduction to Employer of Record and an EOR market overview, including buyer adoption trends, the provider landscape, key investment themes and the outlook for 2022-2023.

Market Highlights

Adoption by buyer size: EOR solutions are largely adopted by small and midsized buyers, as they are primarily focused on expanding their employee size and tapping potential markets across regions.
Adoption by geography: North America remains a major adopter and has the highest contribution to the overall revenue of EOR providers, followed by Europe and Asia Pacific regions.
Adoption by industry: The services industry has the highest market share followed by the financial and healthcare industries.

Solution Provider Landscape

Based on Everest Group’s comprehensive evaluation framework, the PEAK Matrix^®, 15 leading EOR providers evaluated are segmented into three categories:

Leaders: Atlas, Deel, Globalization Partners, Safeguard Global, and Velocity Global
Major Contenders: BIPO, Mauve Group, Mercans, Neeyamo, Omnipresent, Oyster, Papaya Global, and Remote
Aspirants: Links International and Skuad

***Download a complimentary abstract of “Employer of Record (EOR) – State of the Market 2023.”***

Customer Experience Management (CXM) Outsourcing Spiked 12-14% in 2021 as Enterprises Doubled Down on Delivering Digital Experiences to Customers—Everest Group

January 10, 2023

Everest Group says growth in CXM outsourcing will continue as enterprise seek to maximize customer retention in face of recessionary climate.

DALLAS, January 10, 2023 — Following pandemic shutdowns in 2020, the global outsourced customer experience management (CXM) market spiked in 2021, with the fastest year-on-year growth (12-14%) in recent history, according to Everest Group. Growth of the CXM outsourcing market, which currently stands at 31% of overall global CXM spend including in-house contact centers, outpaced GDP growth in all economies in 2021 after a decline in 2020.

Everest Group says the CXM outsourcing market will continue to grow, albeit at a more normalized rate (7-9%), despite the uncertainty presented by a looming recession. In fact, the recession will act as an indirect market driver; to compensate for low buying sentiment, enterprises will focus on customer service and retention, thereby spurring continued growth in CXM outsourcing over the next few years.

Additional growth drivers will include the following:

A considerable shift of contact center operations toward a hybrid delivery model, with greater emphasis on gig and work-at-home (WAH) workers to enhance delivery capabilities
The increasing use of conversational artificial intelligence (AI) and automation to decrease reliance on full-time equivalent (FTE) employees while delivering better CX outcomes
A foray of first-time outsourcers into the CXM market, especially driven by the small and midsize business (SMB) segment, which will continue to grow rapidly.

“The future of CXM service delivery will be defined by a combination of locations, technology and delivery models to create unique solutions that are flexible, scalable and tailored, based on each enterprise’s requirements,” said Shirley Hung, partner at Everest Group. “The service providers who are growing faster than the market average are those who offer end-to-end CXM solutions that include advanced digital tools, front- and back-office services, and advisory and consulting services to provide bespoke solutions tailored to their clients’ requirements.”

Everest Group also notes interesting geographic dynamics in the CXM market, including:

Numerous mergers and acquisitions primarily focused on expanding geographic presence.
Multiple new multilingual hubs emerging in the Eastern European region
The linguistically diverse ASEAN (Association of Southeast Asian Nations) region being considered for Asian language capabilities
Africa experiencing increasing demand from customers in the MEA (Middle East and Africa) region to provide quality CXM and from other enterprises who want to diversify their service delivery footprint by shifting work away from India and the Philippines.

These findings and more are detailed in Everest Group’s recently published report, “Capturing the Post-pandemic Resurgence: Customer Experience Management (CXM) State of the Market Report 2023.” In this report, Everest Group examines the CXM market in the wake of the pandemic, factors affecting market growth, and changes in service delivery models. The report also addresses differentiating factors for service providers, buyer satisfaction performance, key investment themes, major acquisitions, and future trends in the CXM market.

***Download a complimentary abstract of “Capturing the Post-pandemic Resurgence: Customer Experience Management (CXM) State of the Market Report 2023”***

Everest Group Survey Points to a Resilient Year for Outsourcing in 2023 as Global Enterprises Prioritize Cost Savings, Talent Management

January 5, 2023

Global leaders share their chief concerns and strategy adjustments for outsourcing in 2023 in Everest Group’s annual Key Issues survey.

DALLAS, January 5, 2023 — In the face of macroeconomic uncertainty, the majority of enterprises feel cautiously optimistic about 2023 and expect to tap outsourcing resources to control costs and meet the demand for talent, according to the results of Everest Group’s annual Key Issues survey. In fact, more than 80% of respondents expect their investments in outsourcing for IT services (ITS) and business process services (BPS) to stay the same or increase in 2023 over 2022, and more than 40% are optimistic about growth in their global services budgets in the coming year.

Everest Group’s 2023 Key Issues Study comprises the input of 200 global leaders across enterprises, Global Business Services (GBS) centers and service providers. Everest Group delivered the key findings from this research in a December 13 webinar, “Rise Above Economic Uncertainty and Succeed.” The webinar deck and recording are available for complimentary download.

Asked to rank their top-of-mind issues for 2023, enterprises cited “price and cost pressures” as number one this year, moving into the top position from second place last year. “Talent/skills shortage,” which held the number one spot in 2022, dropped to third. “Slowdown in demand,” which ranked tenth in 2022, has moved into the No. 4 position.

***Top of Mind Issues for Enterprises in 2023***

Price/cost pressures
Adapting to evolving customer needs and business models
Talent/skills shortage
Slowdown in demand
Slowdown in customer decision making

As a result of these concerns, enterprises have identified cost optimization, digital transformation, and productivity improvement as their top three priorities going into 2023.

In light of these results and its corporate body of research, Everest Group has forecast five trends for the new year:

A significant service provider portfolio rebalancing by enterprises is in the cards. The percentage of enterprises expecting to rebalance their workload across providers has increased from 25% last year to 36% heading into 2023. Those expecting to consolidate or rationalize the service provider portfolio in the next 12 months has increased from 20% last year to 34%.
The talent demand-supply mismatch will continue. Enterprises will shift their focus to internal talent management (upskilling and employee experience/engagement) as higher priorities than recruiting.
Service provider bill rates will increase, albeit slower than in 2022. To manage the impact of inflation, service providers will increase price/rate cards and optimize costs by employing automation and adjusting locations mix, scopes and roles.
The service delivery model will continue to evolve. Organizations will leverage alternative delivery strategies to optimize cost and gain access to talent. Examples include remote and hybrid workers, tier-2/3 locations, center setups in offshore-nearshore countries, and setup of small, satellite centers.
Pragmatic digital investments will be prioritized over moonshot investments. Proven investments such as cloud solutions, cybersecurity, analytics, advanced automation (AI, cognitive) and automation (RPA) will remain high priorities for enterprises in 2023. Other technologies (such as Internet of Things, UX/CX design, blockchain, mobility, edge computing, Web 3/metaverse, 5G/6G and extended reality/ AR/VR) will receive relatively lower focus.

During the webinar, Everest Group experts recommended ways organizations can address this new reality, including strategies for pricing, sourcing, ESG, and potential technology solutions.

“Our advice to enterprises is not to obsess about the uncertainty of their external environment but instead focus on creating the agility to respond with speed as the situation unfolds,” said Rajesh Ranjan, partner at Everest Group. “This will require them to strategically leverage global services, human capital, technology initiatives, and delivery models to not only address the upcoming challenges but position the organization to capture upsides as we come out of it. Put another way, don’t miss the forest for the trees.”

***Additional Resources Available from Everest Group***

Global Services Market Update: Emerging Location Opportunities to Combat the Economic Slowdown | On-demand Webinar
2023 Predictions For Tech and Services Demand | Blog

Insurers Can Unlock $874 Billion in Untapped Potential by Investing in Data and Analytics—Everest Group | Press Release

December 16, 2022

Everest Group estimates the massive economic value insurance enterprises can generate by tapping their vast data pools to achieve operational efficiency and drive premium growth.

By investing in becoming data-centric organizations, insurance companies can unlock a collective economic value of US$874 billion, according to Everest Group. This potential lies in the impact data and analytics can have in helping organizations increase operational efficiency (US$306 billion), reduce claims leakage and fraud (US$117 billion), and achieve premium growth in the Property & Casualty (US$285 billion) and Life & Annuity (US$166 billion) sectors.

“Insurers today are challenged by an environment of high uncertainty that includes natural disasters, geopolitical and macroeconomic risks, the repercussions of a global pandemic, inflation and the looming threat of a recession,” said Ronak Doshi, partner at Everest Group. “Nevertheless, they can unlock immense value and come out on top by investing in data and analytics. Everest Group has documented how insurers can use data and analytics to achieve cost savings from increased operational efficiency, reduce claims leakage and fraud expenses, and drive premium growth by unlocking higher sales efficiencies and rapid product innovation. We estimate that collectively the industry could tap up to $874 billion in value by investing in a data-driven approach.”

Currently, insurers’ data and analytics spend is growing at an accelerated rate of over 25% annually. The spend is being directed toward digital transformation of business operations. Key priorities include:

Modernizing the data estate (especially, eliminating data silos and storing customer data in a governed data lake), enabling a single view of customers across ecosystems.
Redesigning operations to infuse data across workflows to enable enterprise-level, data-driven decision-making capabilities
Leveraging cloud-based analytics and AI/ML (artificial intelligence/machine learning) tools to process large data volumes for more effective risk assessment, building hyper-personalized products, and improving agility to respond to customer demands.
Building focused solutions to extract value from existing data, especially to build value-added products and services and minimize loss ratios.

These improvements will lead to value creation across five key areas:

Product and experience innovation
Minimization of claims payout
Enhancement of operational efficiency
Reduction in fraud abuse and claims leakage
Revenue growth

These findings and more are detailed in Everest Group’s recently published report, “Insurance IT Services – State of the Market 2022: Unveiling the Economic Value of Data and the Road to Actualization.” In this report, Everest Group showcases the need for a platform-based operating model with a collapsed data supply chain that can enable insurers to transition into data-driven organizations. In addition, the report examines the global insurance IT services outsourcing market and lists various services and technology providers across the data and analytics ecosystem that can help insurers maximize the value from their data and analytics initiatives.

***Download a complimentary abstract of “Insurance IT Services – State of the Market 2022: Unveiling the Economic Value of Data and the Road to Actualization”***

About Everest Group
Everest Group is a leading research firm helping business leaders make confident decisions. We guide clients through today’s market challenges and strengthen their strategies by applying contextualized problem-solving to their unique situations. This drives maximized operational and financial performance and transformative experiences. Our deep expertise and tenacious research focused on technology, business processes, and engineering through the lenses of talent, sustainability, and sourcing delivers precise and action-oriented guidance. Find further details and in-depth content at http://www.everestgrp.com.

New Everest Group Research on Change Management Reveals the Huge Chasm Between ‘We Should’ and ‘We Do’ in Global Business Services Centers

November 30, 2022

Change management viewed as critical by 75% of GBS organizations, but only 16% manage change systemically; Everest Group offers practical 12-step guide to help GBS organizations approach, staff, invest in, and manage change.

DALLAS, November 30, 2022 — When enterprises establish a Global Business Services (GBS) center, the mission of the center is to make and sustain a positive change in business operations; however, despite the fact that change is their raison d’être, one-third of GBS organizations have no change management capability within their organization, according to new research from Everest Group.

In a first-of-its-kind study, Everest Group surveyed 58 leading GBS organizations across the globe, followed by in-depth interviews, to better understand their approaches to change management.

“Our study findings indicate that 75% of GBS organizations see change management as critical, overwhelmingly confirming that it is vital to the success of the model, but this does not align with actual execution, as only 16% of these organizations take a systemic approach to managing change across their scope of initiatives,” said Deborah Kops, executive advisor to Everest Group and a co-author of the report.

“Change management is a work in progress for most GBS organizations and poses significant challenges: there is no one-size-fits-all solution; it’s not a once-and-done task; and it’s difficult to define ‘good’ and ‘best’ when so much of what comprises change management is perceived as ‘soft stuff’—unmeasurable and therefore unknowable,” explained Kops. “This research aims to address these challenges head on by defining the dimensions of change management for GBS organizations to help the industry understand how to approach, staff, invest in and manage change.”

Selected Observations

Strategic or Situational?: Only 16% of respondents manage change as a critical component of GBS initiatives, or what we would consider systemic across all aspects of GBS operations. The normative view of change management is that it is situational, triggered by an event.
Biggest Catalyst is Change in Operations: Today, GBS change management at its most evolved is focused on changes in operations, such as a transition to a new delivery model, or to ease the pain of a transformation project, such as digitization.
A Tool to Diminish Resistance: Change management approaches have been focused primarily on informing and breaking down resistance as opposed to helping enterprises adopt and embrace the changes that an agile GBS model continually makes. Over 50% of respondents see change management a tool to “tell” or diminish resistance to a GBS program.
Maturity and Scale Matters: Maturity and scale of the GBS organization impacts the approach to change management: 45% of GBS organizations with large scale (5,000+ FTEs) tend to approach change management as a strategic transformational tool while the majority of smaller organizations (with a scale of 100-999 FTEs) tend to focus on communications and diminishing resistance to change.
Digital Maturity Correlates with Strategic Change Management Approaches: There is a discernable shift from communications to a more strategic approach as respondent organizations mature their digital operations. Over 70% of those GBS organizations embracing digital initiatives focus their change approaches on strategic transformation.

These findings and more are detailed in Everest Group’s recently published report, “State of Play in GBS Change Management.”

In addition to the findings above, the report explores these key questions:

What is the right time to involve GBS change management teams?
Do change management approaches foster real change?
Is the GBS change management operating model aligned with imperative?
To whom does the GBS change management team report? Do they have a seat at the table?
How do GBS organizations measure the success of change management initiatives?
What are the key priorities for GBS change management teams?
What is the scope of responsibilities of GBS change management teams?
What is the preferred approach to build change management competency?
What is the normative size and skills mix for the change management team?
How are change management teams governed?
What is the formula to fund change management?
How do GBS organizations measure the impact of change management teams?

Examining the responses to these questions, Everest Group was able to identify patterns that define four personas, ranging from organizations who have not yet prioritized an investment in change management (“Headshakers”) to those that embed it into all aspects of GBS operations (“Institutionalists”). Falling in between are “Crawlers”—who are gradually moving toward establishing a GBS change management competency— and “Game Changers,” organizations who see change management as necessary and are aggressively establishing it as a strategic capability.

Everest Group has also used the findings of this research to develop a 12-step program to help GBS organizations advance along the persona continuum and “do change management well.”

“One of the most surprising findings of our research was to see how common it was for GBS organizations to take a piecemeal approach to change management rather than developing it and strengthening it as a strategic muscle that is always in use,” said Rohitashwa Aggarwal, vice president at Everest Group. “Our research findings clearly indicate that ideally the change management team will have a seat at the leadership table from the outset of the GBS journey. The team also needs systemic funding, the scope and authority to succeed, and the right talent and training to adapt to all the needs of the GBS organization over time, because, as we’ve said, change is at the very heart of the GBS mission, every day, all the time.”

***Download a complimentary abstract of “State of Play in GBS Change Management”***

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our research also covers the technologies that power those processes and functions and the related talent trends and strategies. Our clients include leading global companies, service and technology providers, and investors. Clients use our services to guide their journeys to maximize operational and financial performance, transform experiences, and realize high-impact business outcomes. Details and in-depth content are available at www.everestgrp.com.

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Category: Press Releases