Category: Press Releases

Swapna Allapur Joins Everest Group as Chief People Officer

Allapur to lead human resources strategy and operations for the global research firm.

DALLAS, April 6, 2022 — Swapna Allapur has joined Everest Group—a global research firm focused on strategic IT, business services, engineering services and sourcing—as chief people officer. Allapur, based in Bengaluru, India, is responsible for the human resources strategy and operations for the firm, which employs nearly 400 people across the U.S., Canada, Europe, India and Latin America.

A global HR professional with more than 25 years of multinational experience, Allapur will direct all aspects of the Everest Group people strategy and function, including acquiring, nurturing and retaining talent. She will also oversee the firm’s application of technology to transform its HR operations in a distributed environment.

“We are tremendously excited to have Swapna join us and contribute her deep acumen in human resources to our growing firm,” said Peter Bendor-Samuel, founder and CEO of Everest Group. “Her multinational experience and her expertise in leadership development will be particularly valuable to Everest Group as our workforce continues to expand across the globe.”

Founded in 1991, Everest Group has experienced rapid growth in recent years, including a 27% leap in research bookings in 2020 and an additional 50% growth in 2021. The firm’s global headcount has seen year-over-year increases of more than 25% for several years running.

“Everest Group is well respected by its Global 1000 client list for its depth of expertise,” said Allapur. “The firm already has a strong foundation in hiring great people from a wide variety of backgrounds, which has no doubt contributed to its rapid growth in recent years, even as talent shortages have adversely impacted enterprises across the globe. It’s an exciting and challenging time to join this organization as chief people officer, and I look forward to applying the best people strategies and technology to help Everest Group succeed in building an unparalleled workforce.”

Prior to joining Everest Group, Allapur was with Deloitte Consulting for a decade in multiple senior roles. She was instrumental in driving large-scale HR transformation in talent management, global mobility and talent acquisition. Her previous international stints have included roles with Sun Life Financial and Hexaware Technologies in the U.S., as well as Satyam Computers, Mascon, Parke-Davis and HMT. She also has extensive experience enabling organizational capabilities through leadership development, succession planning and brand-building initiatives.

Allapur is a certified Global Professional in Human Resources (GPHR) and holds a master’s degree from Tata Institute of Social Sciences, Mumbai, and an HR certification from Carnegie Mellon University.

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.

Everest Group Announces Winners of Inaugural 2022 Engineering Services PEAK Matrix Provider of the Year Awards | Press Release

Capgemini, HCL Technologies and TCS tie for the No. 1 spot on the list of Top 15 Engineering Services Providers.

Everest Group—a research firm focused on strategic IT, engineering services, business services and sourcing—today announced the winners of the 2022 Engineering Services PEAK Matrix Provider of the Year™. The awards, presented for the first time this year, recognize Engineering Services providers who have demonstrated consistent leadership in the PEAK Matrix® reports issued by Everest Group in the previous year (October 2020 to September 2021).

Capgemini, HCL Technologies and TCS tie for the No. 1 spot on the list of Top 15 Engineering Services Providers. Wipro took the No. 4 spot, followed by Tech Mahindra at No. 5. Rounding out the Top 15 are LTTS and Cognizant (tied for No. 6), Accenture (8), Infosys (9), Harman (10), Alten (11), UST (12), Cyient and Tata Elxsi (tied for No. 13) and Persistent (15).

Everest Group determined its rankings by evaluating consistent performance in PEAK Matrix® reports across five segments: Industry 4.0, Software Products, Semiconductor, ACES (autonomous, connected, electric and shared automotive engineering), and 5G. The Top 15 providers were identified based on comparative assessment of over 50 engineering service providers using a consolidated score reflecting points received on individual evaluations.

Everest Group also recognized the Top 5 Challengers—Engineering Services providers that offer credible alternatives for enterprises by focusing on specific solution segments, geographies, and/or industries. DXC Technology, NTT Data and Virtusa tied for the No. 1 Challenger position. KPIT earned the No. 4 spot, followed by Infogain at No. 5.

“The Engineering Services PEAK Matrix Provider of the Year Awards identify the best of the best – Engineering Services providers with strong capabilities and successful services strategies that align well with evolving enterprise engineering needs,” said Akshat Vaid, vice president at Everest Group. “Throughout the year, Everest Group evaluates Engineering Services providers across multiple ER&D domains to help buyers compare and contrast their options. Our evaluations offer guidance and nuanced insights into each provider’s strategies for key business lines, geographies and technologies. Taking these evaluations into account, the Engineering Services PEAK Matrix Provider of the Year Awards recognize the providers that truly set themselves apart by exhibiting consistent leadership and top performance.”

***A complete list of winners are listed in the report, “Engineering Services PEAK Matrix Provider of the Year 2022,” available for complimentary download.***

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.

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 http://www.everestgrp.com.

Outsourcing Demand Held Steady in Q4 2021 as Global Sourcing Industry Exhibited Modest Signs of Post-COVID Recovery | Press Release

Setups of Global Business Services centers increase in India and China, providing evidence of post-COVID economic recovery

In its latest quarterly report on the global outsourcing industry, Everest Group revealed outsourcing demand held steady from Q3 to Q4 2021, with 404 transactions reported in each quarter. Activity in offshore locations experienced an increase, providing evidence of post-COVID economic recovery, particularly in India and China; however, offshore activity has not yet reached pre-COVID levels.

Notable Global Services Trends in Q3 2021:

  • North America experienced a decrease in its share of outsourcing deals. “Rest of Europe” (excludes U.K.) and “Rest of World” (comprising Asia Pacific, the Middle East, Africa and Latin America) geographies recorded higher transaction activity compared to the previous quarter, due to an increase in deals across the energy and utilities sector.
  • The demand for digital services such as automation, blockchain, cybersecurity and Internet of Things (IoT) experienced an increase in offshore GBS centers, driven by cloud-based contracts as businesses continue to migrate toward cloud infrastructure.
  • During Q4 2021 setups of new Global Business Services (GBS) centers in offshore/nearshore locations numbered 45 as compared with 37 in Q3 2021.
  • Notably, GBS center setups increased in offshore Asia (primarily China), driven by companies in the manufacturing industry seeking to leverage engineering research and development (ER&D) services involving software development, systems integration and testing of autonomous, connected, electric and shared (ACES) mobility offerings.
  • GBS activity also increased slightly in India, with 16 setups in Q4 2021 to deliver ER&D and digital services, compared with 15 setups in Q3 2021.

Key Service Provider Developments:

  • Revenue for both global and offshore heritage service providers experienced a rise on a sequential and annual basis, but operating margin decreased in Q3 2021. In fact, the average operating margin of offshore heritage service providers is at its lowest when compared to the last two quarters. Although revenues have increased, an increase in employee, subcontractor and hiring costs as well as lower utilization of resources have negatively impacted margins.
  • Merger and acquisition (M&A) and alliance activity among service providers experienced an increase, driven by heightened demand for digital-based capabilities, especially artificial intelligence (AI) and cloud. Forty-four acquisitions were documented for Q4 2021 as compared to 25 in Q3 2021. Alliances also experienced a significant increase.
  • The number of setups of delivery centers by service providers remained similar to the previous quarter. Centers established in onshore regions decreased from 10 in Q3 2021 to four in Q4 2021; on the other hand, the number of new centers in offshore regions increased from four in Q3 2021 to 10 in Q4 2021.
  • Service providers are now deriving 40-45% of automotive engineering services revenues from engagements involving ACES mobility services, a market which is expected to increase through 2025 at a rate of 20%.

Everest Group’s Market Vista Report
In its newly published report, “Market Vista™: Q1 2022,” Everest Group highlights the key trends and developments in the fast-evolving global offshoring and outsourcing market. The study provides data, analysis and insights on major outsourcing deals, Global Business Services (GBS) market dynamics, trends in offshoring from emerging destinations, and service provider developments (including latest developments on next-generation technologies such as digital services). The report includes assessments of 29 leading service providers, including 4 engineering services providers.

In its on-demand webinar, Key Global Services Trends Shaping 2022, Everest Group experts break down key global services market developments and explore trends in outsourcing and the global in-house market. The speakers also report insights on talent, location activity, service provider M&A activity, and the key trends likely to shape the global services industry in 2022.

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 http://www.everestgrp.com.

Enterprises—More Open than Ever to Outsourcing—Will Drive Double-Digit Growth in Finance and Accounting Outsourcing (FAO), According to Everest Group | Press Release

FAO buyers are increasingly open to third-party support for complex, judgment-intensive processes and digital solutions; providers are further differentiating themselves with talent strategies, governance models and ESG initiatives.

Everest Group projects that the finance and accounting outsourcing (FAO) market will grow significantly (up to 10% year-on-year) in 2022, because enterprises are demonstrating an openness toward expanding their scope of services with third-party service providers. While FAO is one of the most mature Business Process Services markets, it is far from reaching saturation, and great growth opportunity still exists in the market, as evidenced by the double-digit growth rates that Everest Group is forecasting over the next few years.

FAO buyers are increasingly embracing the advantages third-party providers bring to the table, as reflected by these key trends:

  • Mature buyers are becoming more open to leveraging third-party support across more complex, judgment-intensive processes [such as financial planning and analysis (FP&A) and tax] as well as industry-specific processes (such as premium collections and claims accounting in the insurance sector). Other industries where specialized expertise in finance and accounting is highly valued include banking and financial services (BFS), media and entertainment, healthcare, retail and consumer packaged goods (CPG), and travel and logistics.
  • CFOs and other finance leaders are increasingly leveraging a “one-team” approach with third-party providers to centralize governance frameworks; implement environmental, social and governance (ESG) initiatives; and demonstrate success with measurable and standardized metrics.
  • Organizations are also becoming more open to leveraging service providers’ support in their Global Business Services (GBS)/Shared Services Center (SSC) operations.

Service providers are positioning for growth by evolving in these ways:

  • Developing more flexible global services delivery and location models. Providers are rebalancing and “de-densifying” work across locations while enabling office, work-from-home and hybrid models.
  • Building a robust talent management strategy with a well-differentiated, techno-functional talent pool.
  • Creating robust, agile and secure workspaces by investing in collaborative tools and platforms.
  • Investing in partnerships to cater to digital demand, especially with respect to cloud, AI (artificial intelligence) and D&A (data and analytics).
  • Creating synergies and market differentiation by unifying digital assets into best-of-breed Business-Process-as-a-Service (BPaaS) platform solutions that help buyers minimize upfront capital expenditures.

“The finance and accounting outsourcing market has been resilient throughout the pandemic, continuing to grow at a rate of 9 to 11 percent,” said Shirley Hung, partner at Everest Group. “During this time, service providers have proven themselves to be valuable partners, not just in cost control, but in far more sophisticated ways, like helping organizations respond to workforce challenges, adopt digital technologies, and develop strategies for governance, ESG, and more. We’re also seeing that buyers are much more confident in using service providers for complex, judgment-intensive processes. All of this suggests that the FAO market will regain its pre-pandemic momentum and grow at a healthy clip for the next few years.”

These findings are discussed in more detail in Everest Group’s recently published report, “Finance and Accounting Outsourcing (FAO) State of the Market Report 2022: Growth and Opportunity in the Digital Era.” This research provides comprehensive coverage of the FAO market and analyzes it across aspects including regional variations, buyer adoption trends, growth drivers and digital trends.

***Download a complementary abstract of the report***

Other key findings:

  • An 8-10% growth rate in FAO spend is expected from June 2021 to June 2022.
  • BFSI, manufacturing and retail constitute the major share of the FAO market; retail, hi-tech and telecom, and healthcare segments are key drivers of growth, despite the impact of COVID-19.
  • While mature markets of North America and Europe continue to dominate the FAO market, APAC, the U.K. and LATAM grew strongly in 2020; APAC has become a hotbed for F&A transformation.
  • While India continues to be the leading delivery location for F&A services across the globe, FTEs grew across delivery locations in North America, Europe and Southeast Asia, with the emergence of new service delivery centers in Poland, Brazil and tier-2 cities in the U.S.
  • The Everest Group PEAK Matrix® for FAO Services identifies Leaders as Accenture, Capgemini, Genpact, IBM, Infosys, Tata Consultancy Services and Wipro. These leaders hold more than 65% share of the FAO market and demonstrated 10-14 % growth in 2020, which was above market average.

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 http://www.everestgrp.com.

Where in the World Should Enterprises Look to Find Talent? Everest Group Research Points to India and Africa | Press Release

Asia-Pacific and Africa offer best source of talent for enterprises taking a long-term view; Everest Group advises companies to invest now for highest future payoff.

A shrinking labor pool in North America, Europe and China is at the heart of the talent scarcity, forcing companies in these countries to look elsewhere to find the talent needed to run their business. New research from Everest Group advises companies to double down in Asia-Pacific (especially India) and consider Africa for the best long-term solutions.

Everest Group’s Top-Line Recommendations:

  • Immediately: Pay your employees more, improve employee experience, reduce talent demand via automation and technology.
  • Next 3-5 years: Double down in India. India represents the biggest growing educated pool of talent in the world today. Tier 2/3 cities are particularly poised for the next round of growth.
  • Long term: Look to Africa and boldly go where no one has gone before. In addition, discover new pools of candidates from millions of previously excluded people. Innovative approaches to socially responsible recruiting include reevaluating education requirements and targeting previously excluded groups (such as women, people with disabilities, LGBTQ+, and veterans and military spouses) and under-resourced or marginalized groups (such as rural or urban poor, refugees, incarcerated groups, and indigenous communities).

***Register for LinkedIn Live Video Presentation***

Everest Group experts will share their recommendations in a live video presentation on LinkedIn on Thursday, January 27, at 9am EST. “Now is the Time to Refresh Your Global Talent Strategy: Could Africa be the Next Great Talent Pool?” will be presented by Parul Jain, practice director, and Michel Janssen, chief research officer of Everest Group. Jain and Janssen will discuss how organizations can address the talent challenge by focusing on untapped populations and the top emerging hotspots for talent.

“Enterprises in North America and Europe are facing a stark reality: their onshore and nearshore labor pool has 2.4 million fewer employees than they’ve had access to before,” said Michel Janssen, chief research officer for Everest Group. “This is a huge wake-up call, forcing employers to think outside the box and deploy strategies they’ve never considered before to find the talent they need. Our research points to not only where organizations can find immediate solutions to their workforce challenges today, but also what strategies they need to enact today to prepare for 5 and 10 years down the road.”

Evaluating Location Readiness and Future Potential

Everest Group maintains that locations should be evaluated both from their current readiness and future potential. Although the talent in onshore geographies such as the U.S. and Western Europe are considered high on a “readiness” scale, the workforce populations in these regions are shrinking. The same is true for Nearshore Europe (e.g., Poland, Romania, Czech Republic and Lithuania). North America and Europe, in particular, have unhealthy “labor pyramids,” with 2.4 million less new workers coming into the workplace than just 5-10 years ago.

In contrast, populations in Africa and Asia-Pacific are continuing to expand. India and the Philippines are particularly attractive short- and long-term talent locations, boasting high talent readiness, relatively mature markets that will continue to grow, and multiple tier-2/3 locations that offer untapped potential. Africa is a viable long-term solution with an attractive population pyramid: Africa has almost six times more people entering the workforce than North America will have this year. However, the talent readiness in Africa is comparatively low, and significant investment will be required to shape the talent market and enable a strong talent delivery ecosystem.

Latin America and the Caribbean, although supported by a stable population pyramid and featuring strong pockets of expertise in contact center and IT services, is hampered by dicey geopolitical and macroeconomic situations.

It’s Not a Talent War, It’s a New Reality

Everest Group’s Key Issues study revealed that enterprises are bullish about growth in 2022; however, they’re facing a nearly “immovable issue”—fewer new workers entering the workforce. On one hand, enterprises anticipate 7.4% headcount growth in 2022, a much more positive growth sentiment than expressed in 2020 (5.2%) and 2021 (2.7%). On the other hand, enterprises report their No. 1 constraint heading into 2022 is “finding enough talent to run the business.”

According to Everest Group, enterprises need both short-term and longer-term solutions, with each requiring businesses to reach beyond their comfort zones.

  • In the short-term, the winners in the talent war will be companies that become radically better at hiring and are willing to bust their budgets by paying higher salaries. Executives responding to Everest Group’s Key Issues study anticipate average salaries to increase 6% in sourcing positions, 8.1% in Global Business Services, 6.7% in IT, and 4.5% in engineering.
  • In the longer term, the winners will be those businesses that reduce demand through process reengineering, automation, and the application of technology and also branch out to new geographies and talent pools (e.g., GIG workers and disadvantaged communities) to build their workforce.

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

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 http://www.everestgrp.com.

Everest Group: The Talent Shortage Is Not Temporary; It’s Here to Stay | Press Release

Enterprises responding to Everest Group’s 2022 Key Issues Study list “finding enough talent to run the business” as their No. 1 constraint.

The results of Everest Group’s 2022 Key Issues Study are in: Enterprises are bullish about growth in 2022; however, they’re facing a nearly “immovable issue”—fewer new workers entering the workforce.

On one hand, enterprises anticipate 7.4% headcount growth in 2022, a much more positive growth sentiment than expressed in 2020 (5.2%) and 2021 (2.7%). On the other hand, enterprises report their No. 1 constraint heading into 2022 is “finding enough talent to run the business,” a challenge that has moved up from the No. 5 position it held in both 2020 and 2021.

Everest Group says the concern about a talent shortage is entirely supported by the facts. Contributing factors explored in the study include the following:

  • North America and Europe, in particular, have unhealthy “labor pyramids,” with 2.4 million less new workers coming into the workplace than just 5-10 years ago.
  • Anti-immigration policies
  • COVID deaths
  • Government subsidies that provide alternatives to work
  • Changing culture views (including a rise in stay-at-home parents)

Other talent issues detailed in the study:

  • North America and Europe (including UK and Ireland) are the geographic regions most heavily impacted.
  • The talent shortage seems to be all-pervasive across all job levels and has spread beyond IT and high-end digital skills.
  • One half of all respondents reported they were actively looking to make a work change.
  • In general, enterprises cannot find enough qualified people to fill roles, and attrition levels are too high.
  • Enterprises are being compelled to compete not only by paying budget-busting market rates but also by improving employee experience and actively addressing environmental, societal and governance (ESG) issues.

“With 2.4 million less new workers entering the workplace in North America and Europe, the talent shortage is what we deem an ‘immovable issue’ for enterprises for the foreseeable future,” said Michel Janssen, chief research officer for Everest Group. “The talent shortage is our new reality, and the enterprises we surveyed recognize this as their No.1 constraint against their growth goals. So, the question then becomes, ‘When dealt a difficult hand, what strategies can we use to overcome this challenge?’ As we head into 2022, developing and implementing a talent strategy should be at the top of any enterprise’s list of priorities.”

***Webinar: It’s Not a Talent War, It’s a New Reality***
Everest Group will present the findings of its 2022 Key Issues Study in a December 14 webinar. Everest Group experts will recommend ways organizations can address this new reality, including strategies for pricing, sourcing, ESG, and potential technology solutions.
***Register for the webinar here.***

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

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 http://www.everestgrp.com.

Recruitment Process Outsourcing Market Suffered COVID-based Contraction of 13% in 2020, But Sharp Recovery Is Underway | Press Release

Recruitment Process Outsourcing Market Suffered COVID-based Contraction of 13% in 2020, But Sharp Recovery Is Underway—Everest Group

The global Recruitment Process Outsourcing (RPO) market contracted 13% in 2020 as enterprises’ talent demand decreased substantially during the pandemic. However, according to Everest Group, during this downturn, service providers accelerated the development of their technological capabilities and service offerings and are now poised to usher in a new era—RPO 4.0—as enterprises rebuild their businesses and resume hiring activity.

Everest Group expects a sharp recovery in the RPO market in 2021 and beyond.
The recovery began in the third quarter of 2020 as enterprises, especially those who had downsized their internal talent acquisition function, began to rebuild their workforce and turned to RPO for its flexibility and scalability. The early recovery also was boosted by strong demand from healthcare, pharmaceutical and life sciences segments as well as government/public sector looking to strengthen their workforce for contract tracing purposes.

Rapid growth in 2021 and beyond will be led by increased adoption from new industries such as fast-growing tech, retail, services, and government/public sector. The increased adoption from new market segments such as small- and mid-sized buyers along with increased penetration from traditional RPO adopters will further boost market growth.

Everest Group’s State of the Market Report
In its newly published report, “Building for the New Normal: Recruitment Process Outsourcing (RPO) State of the Market Report 2021,” Everest Group provides comprehensive coverage of the 2020 RPO market and analyzes it across aspects such as post COVID-19 recovery, regional overview, adoption trends, value-added services and capabilities, and digital trends in permanent recruitment. Everest Group also details the next evolution of this sector—RPO 4.0.

Key Characteristics of RPO 4.0:

  • Integrated Talent Acquisition Platform: There is increased adoption of a platform-based approach, integrating a diverse range of tools and platforms that together form the talent acquisition technology ecosystem, including Software-as-a-Service human resources systems, applicant tracking systems, candidate relationship management systems and bolt-on tools. Seamless data flow between these tools and platforms will enable service providers and enterprises to leverage advanced predictive and prescriptive analytics and glean meaningful insights.
  • Total Talent Acquisition: Leading service providers are investing heavily in the development of digital capabilities platforms and associated integration tools for the management of both permanent and contingent workforce.
  • High-volume, Low-Cost RPO: Leading RPO providers have made dedicated investments and launched highly automated high-volume, low-cost RPO solutions.
  • Diversity, Equity and Inclusion (DE&I): As DE&I transitions from “nice to have” to a critical part of enterprises’ talent strategies, RPO providers can play a key role in building a truly diverse and inclusive workforce by sourcing a diverse slate of candidates and removing inherent biases in the recruitment process.
  • Distributed and Dispersed Talent: Global preference for the Work From Home (WFH) and hybrid models will be equally applicable to RPO services delivery. RPO providers can play a key role in formulating and executing a strategy to engage and source talent across geographies.
  • Automation Solutions in RPO: Cognitive automation solutions driven by artificial intelligence (AI), machine learning (ML) and natural language processing (NLP) are helping ensure business continuity and cost reduction.
  • Blockchain in Recruitment: Blockchain-enabled solutions can ensure security of data and help build trust between candidates and enterprises amid growing data privacy concerns.
  • Advanced Analytics: With a higher degree of data availability, enterprises and service providers are leveraging advanced data analytics to draw better insights and optimize the recruitment process.
  • Value-added Services: Strategic value-added services, such as employer branding, talent community curation, and workforce planning, will become crucial as enterprises scramble to compete for limited supply of talent.
  • Outplacement and Career Transition Services: As enterprises focus on workforce agility and look inward to fulfill their talent needs, RPO providers may expand into outplacement and career transition services space to explore opportunistic growth possibilities.

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

Life Sciences Operations

About Everest Group

Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com

As Enterprises Scale Their Contingent Workforce, Vendor Management System (VMS) Market Will See 7-10% Growth by 2023 | Press Release

Broader awareness of VMS benefits and rising demand for holistic digital solutions are paving the way for surge in VMS adoption.

Following a year of stagnation in 2020 (declining 3%), the market for Vendor Management Systems (VMSs) is expected to bounce back and grow at a faster pace (approximately 7 to 11% by 2023) than in pre-COVID times, according to Everest Group.

A Vendor Management System (VMS) is a software application that helps manage and procure contingent talent or the non-permanent workforce. VMS providers typically charge enterprise buyers a fee as a percentage of managed spend.

VMS continues to be an important technology solution for enterprises globally, especially as enterprises increasingly leverage contingent workers as part of their workforce. In recent years, VMSs have not only enhanced the features and functionalities of core technologies, but also expanded the scope of services delivered to other areas within Contingent Workforce Management (CWM), such as direct sourcing and services procurement.

Currently, temporary labor, sourced through staffing agencies, accounts for 60-70% of spend under management by VMS providers. However, changing employment requirements and increasing preference for contingent workforce is leading to a rise in other categories, such as services procurement or statement of work (currently 20-25%) and independent contractors or freelancers (currently 10-15%). Everest Group expects these other segments to be major growth drivers of VMS in the future.

Other Key Trends in the VMA Market
While buyers expect to achieve all three benefits—cost, operational and business impacts—from VMS adoption, they are currently the most satisfied with the operational impacts delivered by their VMSs. A majority of enterprise buyers praise their VMSs for ease of use, but enterprises also seek improvement with respect to analytics capabilities and reporting functions.

Spurred to innovate, VMS vendors are working to develop end-to-end candidate management capabilities, including compliance and shift management; leverage next-generation artificial intelligence (AI) and machine learning (ML); develop strategic partnerships with other vendors; and provide holistic insights leveraging multiple data sources.

These findings are explored in Everest Group’s newly published report, “Vendor Management System (VMS) State of the Market Report 2021: Keeping Pace with Rapidly Evolving Buyer Expectations.” In this report, Everest Group provides comprehensive coverage of the 2020 VMS market and sheds light on the future trajectory of VMS.

The report includes the Everest Group PEAK Matrix® for VMS, an assessment of the capabilities and market impact of 18 VMS providers. Beeline, PRO Unlimited, SAP Fieldglass and VNDLY are classified as Leaders.

Market Highlights:

  • Healthcare; manufacturing; and banking, financial services and insurance (BFSI) are the leading adopters of VMSs, accounting for more than 50% of market share in terms of active deals.
  • Engineers/IT and blue-collar job roles together account for more than 70% of market share.
  • The small and mid-sized market dominates with two-thirds of the market share, with activity rising rapidly across all buyer sizes.
  • Single-country deals dominate the VMS market currently; however, multi-country deals saw an increase in 2020 and are expected to increase further.
  • North America is the largest (64%) and most mature of VMS geographies, followed by EMEA (27%), Asia Pacific (7%) and Latin America (1%).

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

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com

Life Sciences Operations Outsourcing Is Expected to Grow 9-11% Through 2022 | Press Release

Pharmaceutical firms are seeking faster time to market, reduced costs and access to technology, thereby generating rapid traction in life sciences outsourcing marketing

The life sciences industry is going through a renaissance period that is marked by transformational breakthroughs in the way technology is utilized. Key market trends such as rising adoption of decentralized trials, focus on research and development (R&D) efficiency, rise in the use of specialty medication, and increasing importance of real-world evidence (RWE) is forcing enterprises out of their comfort zone and necessitating the development of next-generation technological capabilities, resulting in increased adoption of outsourcing in the life sciences space.

The rising demand for technological support is one of many trends compelling firms in the life sciences industry to rethink their strategy and operations. Other trends are explored in depth in Everest Group’s “Life Sciences Operations: Changing Market Dynamics Ushering In a New Wave of Digitalization” In this report, Everest Group examines the key themes and trends characterizing the life sciences operations market, including the various levers of emerging technologies and their impact across the life sciences value chain, outsourcing dynamics, deal trends, and the service provider landscape.

Selected Highlights:

  • Modernizing clinical trials: Clinical trials in the life sciences sector are experiencing a shift from a centralized clinical trial approach to a decentralized clinical trial (DCT) approach, which has resulted in reduced costs and enhanced recruitment. DCTs leverage virtual platforms and other technologies (such as smart phones, wearables, sensors, and in-home devices) to enable clinical trial testing in various settings—from point-of-care locations to trials conducted at patients’ homes. Artificial intelligence (AI) and machine learning (ML) are being leveraged to facilitate diagnosis, improve patient satisfaction, and generate real-world evidence of drug efficacy.
  • Increased focus on APAC markets: Although North America and the European Union (EU) are currently the largest geographies for life sciences, Asia Pacific (APAC) countries are growing in importance due to the increase in healthcare spending and rise of non-communicable diseases (such as cardiovascular disease, cancer, and diabetes) in the region. Healthcare spending in APAC is projected to surge to US$2.3 trillion by 2026, based on an analysis of health expenditure data from the Organization for Economic Co-operation and Development (OECD). The rise in spending will be partly utilized to purchase medication and MedTech devices, thereby boosting the life sciences market in the region.
  • R&D’s focus on efficiency: To improve their return on investment, pharmaceutical companies are shifting towards more cost-efficient DCTs, improving efficiencies through collaborative R&D, and utilizing emerging technologies such as AI and analytics. Additionally, life sciences firms are increasingly outsourcing their R&D activities in a bid to reduce cost.
  • Specialty medicine: The life sciences industry is transitioning from a blockbuster model (i.e., development of mass market drugs to generate new sales) to a specialty model (i.e., development of specialized medicines to treat specific disease subtypes). Examples of specialty medicine include gene therapy and precision medicines customized to each patient’s genetic makeup. As the demand for biotechnology drugs grows, enterprises will be required to develop and adopt new technologies such as AI and analytics for rapid drug development and adaptive clinical trials.
  • Beyond-the-pill services: “Beyond-the-pill services” refers to an accompanying offering to a pharmaceutical or medical device product that addresses a patient’s needs along the entire journey, leading to better health outcomes. Such services may include education and information, assistance in managing the disease or side effects of treatment, tracking therapy progress, and co-pay programs. To develop and implement an effective beyond-the-pill service offering, life sciences firms need to invest in digital remote monitoring platforms and cloud-based technologies and increase hiring of trained personnel to provide care.
  • Regulatory scenarios: In nearly every geographic region, life sciences firms are anticipating regulatory changes that will impact their business. The U.S. is developing guidelines to regulate the Software-as-a-Medical Device (SaMD) market. In Asia, regulatory scrutiny is on the rise, particularly in the Chinese and South Korean markets. In the EU, the Medical Device Regulation (MDR) and In Vitro Diagnostic Regulation (IVDR) are set to replace the Medical Device Directive of 1993.
  • Real-World Evidence: The US Food & Drug Administration (FDA) defines Real-World Data (RWD) as data relating to patient health status and/or the delivery of health care routinely collected from a variety of sources. Real-World Evidence (RWE) is the clinical evidence about the usage and potential benefits or risks of a medical product derived from analysis of RWD. Currently RWE is used to support regulatory submissions and label expansion, to inform the design of value-based contracts for comparative effectiveness research, and as a synthetic control arm of clinical trial design. To develop RWE capabilities, most pharmaceutical firms are actively seeking access to new sources of data; however, many lack the capabilities and infrastructure to analyze large datasets, which may result in huge investments in data analytics platforms and a rise in outsourcing to service providers with data analytics capabilities and requisite data security and governance measures.
  • COVID-19 impact: The pandemic has exposed the pharmaceutical industry’s supply chain fragility and its dependence on China and India, leading several countries to restructure pharmaceutical supply chains to enhance onshore production capacity. The pandemic has also ushered in the digital age in the life sciences industry, with several firms focused on investing in social media, cloud computing, big data, cybersecurity, and digital platforms.

These trends have generated rapid traction in the life sciences outsourcing market as service providers accelerate their efforts to assist enterprises in augmenting their operations by delivering services and solutions across the life sciences operations value chain.

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

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com

Serious Talent Shortage Deepens in Software Product Engineering, the Fastest Growing Segment of $1.27 Trillion Global Engineering Spend—Everest Group

Tremendous talent shortage anticipated as adoption of next-generation technologies—including cloud, AI/ML, IoT, analytics, cybersecurity, and AR/VR—grows exponentially over the next few years.

Everest Group reports that although a talent shortage exists across the overall engineering, research and development (ER&D) landscape, the supply crunch is much more pronounced for emerging skills, such as cloud engineering, artificial intelligence and machine learning (AI/ML), internet of things (IoT), analytics, cybersecurity, and augmented reality and virtual reality (AR/VR). According to Everest Group, the exponential growth in the adoption of these next-generation technologies over the next couple of years will cause a huge supply shortage in the software product engineering world.

Enterprises globally spent US$1.27 trillion on engineering in 2020, and more than one-third of that spend was on software product engineering. Software product engineering has been the fastest growing segment of engineering spending over the last four years and was the only segment to witness positive growth in 2020, even as overall global engineering spend declined by 2%. Contributing to sustained software engineering spending are commercial software sellers and internet companies as well as enterprises seeking to augment existing products with software-driven features and functionalities.

In its newly published report, “Reaching New Frontiers in Experience-centricity and Resilience –Software Product Engineering Services State of the Market Report,” Everest Group examines the dynamics of global software product engineering services trends prevalent among leading service providers. It includes an overview of the software product engineering market and an in-depth view of outsourcing in this space.

Selected Highlights:

  • Overall enterprise spend for software product engineering has been growing at a robust pace, reaching approximately US$410 billion in 2020.
  • The supply crunch in the software engineering talent market is leading to a price war, where enterprises are having to pay a premium rate to access talent skilled in emerging software engineering themes.
  • The talent shortage in emerging skillsets is also compelling enterprises to explore non-traditional locations to access talent. As a result, nearshore locations have steadily been gaining prominence for talent sourcing.
  • Cloud engineering has emerged as the biggest spend area for enterprises, with more activity around cloud-native engineering, platformization, carve-outs of legacy products and verticalized solutions.
  • The software product engineering services market (i.e., outsourcing) has grown at a rate of 16% over the past year to reach approximately US$23.5 billion, which is 5.7% of the overall enterprise spend.
  • The hi-tech verticals continue to hold a large share of the services market, while the geography split reveals North America to be the largest location.

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

Talent Shortages in Software Product Engineering

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com

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