Category: Press Releases

Healthcare Adoption of Salesforce Grew 35% Over Last 3 Years; More Growth to Come | Press Release

Salesforce applications in healthcare go far beyond patient management to address three of the industry’s biggest challenges: consumer experience, interoperability and value-based care.

According to Everest Group, healthcare adoption of Salesforce has grown approximate 35% since 2018, driven by the industry’s focus on implementing better care strategies, producing greater value, and refining patient and member experiences. Salesforce services for healthcare generated US$700 million in 2020. (This data is derived from Everest Group research and is not provided by Salesforce.)

Moving forward, Everest Group expects healthcare adoption of Salesforce to grow steadily. Future adoption drivers will include modernizing legacy applications and spearheading the digital transformation agenda. Healthcare organizations will use Salesforce to lower expenditures, build resilient business models and develop intelligent enterprises.

Salesforce Evolves, Adds Value Beyond Sales & Marketing
Salesforce is the world’s No. 1 customer relationship platform and a pioneer of Software-as-a-Service (SaaS). Across industries, early adopters of Salesforce services were looking to boost sales and marketing efforts by using Salesforce to effectively manage customer relationships, market targeted products, explore sales performance and drive cost efficiencies. As the Salesforce technology landscape broadened, enterprises’ approach toward Salesforce has evolved from “reactive” relationship management to a “proactive” approach to Customer Experience (CX).

Salesforce Helps Healthcare Address Big Challenges
Healthcare organizations are looking to leverage Salesforce not only to engage with patients, but also as a tool to manage end-to-end business functions and address three of the biggest challenges faced by the healthcare industry:

  1. Consumer Experience: Healthcare consumers experience disjointed services because different stakeholders have access to data residing at different places. Salesforce has capabilities to integrate the experience of consumers at different points of their care journey to provide a holistic view.
  2. Interoperability: The movement of data within healthcare is stymied today by infrastructure architecture and complexity. Salesforce allows sharing data across platforms and electronic health records (EHRs), including legacy systems, helping health systems become interoperable. This data-sharing ability makes Salesforce a powerful tool for creating a coordinated care experience.
  3. Value-based Care: Low patient satisfaction has been the result of healthcare’s focus on volume over value, fraud and waste, and ever-rising costs with a disproportionate improvement in outcomes. Salesforce, with its data integration, advanced analytics and workflow capabilities, is helping to improve care management and fast-track population health initiatives.

Salesforce Healthcare Services in the Sourcing Industry
Within the sourcing industry, the scope of Salesforce healthcare services being provided to healthcare organizations includes consulting and advisory, custom application development, implementation and integration, and maintenance and support.

Service providers are building strong healthcare-specific solutions to expedite their clients’ time-to-market with Salesforce and are taking an inorganic approach to fill gaps across their Salesforce services portfolios and enhance their geographic footprints.

More Information Available in Everest Group Report
Everest Group’s recently released report, “Salesforce Healthcare Services – State of the Market,” explores market trends for Salesforce Healthcare services in detail. The report includes market size and growth, adoption trends by products and lines of business, key uses cases for healthcare entities and service providers, adoption challenges, and enterprise expectations of service providers. Finally, Everest Group suggests strategies service providers can use to enhance customer satisfaction and build market share.

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

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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/

Everest Group Predicts Healthy Rebound in IT Spend by Banking and Financial Services Firms | Press Release

As traditional revenue sources of interest income and fees face downward pressure, banks and financial services firms will be forced to focus on innovation in products and customer experience to drive growth.

Pandemic-fueled demand shock, sustained low interest rates, and significant geopolitical shifts made 2020 a tough year for the Banking and Financial Services (BFS) industry. However, Everest Group reports that even as credit losses mounted and operating income fell, banks continued to invest in IT with the knowledge that it will be a major source of differentiation in the post-pandemic economy.

Everest Group research indicates the BFS industry will increase IT investments in the coming year. In general, large banks have indicated that they will increase their technology spending by 1-2% in 2021, despite a sharp decline in their revenue and operating income in 2020. Some, including JPMC, Bank of America and Citi, have indicated that they will increase spending by 3-4% in 2021. In addition, regional banks, credit unions and non-banking financial companies (NBFCs) have indicated that digital spend is poised to increase in 2021 to 2022.

These findings are shared in Everest Group’s recently released State of the Market Report, “Healthy Rebound in BFS IT Services Spend – Growth Themes and Cautions.” In this report, Everest Group discusses strategies that BFS enterprises have adopted to counter challenges, especially in the wake of COVID-19; how banks and financial services firms are accelerating recovery and executing cost and efficiency transformations; and the IT investments that will help banks navigate to recovery and drive future success.

IT Spend Areas for BFS in 2021
Everest Group’s prognosis for 2021 is that BFS firms will increase their digital spend to build an agile, intelligent, cloud-enabled, and composable IT operating model on their road to recovery. Digital imperatives will include:

  • Reinventing the IT operating model: Banks have questioned the underlying assumptions of their IT operating model and are open to redesigning all aspects of their future of work and operations. Building resilient IT infrastructure that supports this journey is a critical spend area.
  • Bridging the talent divide: Talent deficit has impacted the availability of deployable resources in a cost-effective model, hence BFS firms are redoing their global workforce planning to tap into the extended talent ecosystem and also improve workplace diversity.
  • Consolidating to survive: Mergers and acquisitions in BFS will reshape the competitive landscape and trigger large-scale transformation programs with a short-term increase in consulting spend and long-term synergy in overall IT estate.
  • Going all-in on the cloud: More than 70% of incremental IT spend will go towards cloud or cloud-enablement services. BFS firms are exploring how to move sensitive data and applications to cloud in a journey to unlock value, build data-driven operations, and exit legacy IT infrastructure.
  • Embracing open banking 2.0: Open banking presents an opportunity to reinvent products and channels—both business-to-business (B2B) and business-to-consumer (B2C)—by using APIs and working with ecosystem partners.
  • Pivoting from continuous modernization to continuous simplification: BFS firms are wary of added complexity from each modernization initiative, especially a series of RPA-based investments. BFS firms are now looking at building domain solutions that wrap around complex technology and extract data and services to simplify the digital operations. This philosophy of digital pragmatism of solving specific domain issues to make IT and operations simple, efficient, effective, and aligned is driving the modernization spend.

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

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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/

Sourcing Service Providers Report Uptick in Q42020 Revenue and Margins | Press Release

Everyone likes to end the regular season with a win. According to Everest Group, the global outsourcing industry managed to eke out a few scores to close out a year dampened by the COVID-19 pandemic.

Although overall transaction activity (i.e., number of deals signed) decreased slightly from 438 in Q3 2020 to 422 in Q4, the total reported annual contract value (ACV) of outsourcing transactions increased from US$2.5 billion in Q3 to $2.8 billion during the final quarter of the year. In addition, service providers reported improved financials as the impact of COVID-19 continued to diminish. A majority of the providers reported a sequential rise in their revenue as well as improved margins.

Digital services continued to dominate transaction activity and experienced a slight increase in Q4 2020, rising to 56% of all outsourcing transactions from 54% in Q3. Cloud remained the most prevalent digital component of outsourcing deals (53%), with advanced automation (19%)—including artificial intelligence (AI), machine learning (ML) and cognitive technologies—edging out Robotic Process Automation (RPA) and analytics, 13% and 12% respectively.

These findings and more are shared in Everest Group’s Market Vista: Q12021 report. The Market Vista™ report highlights the key trends and developments in the fast-evolving global offshoring and outsourcing market. The study captures the key developments across outsourcing transaction trends, health of Global Business Services (GBS) centers, location risks and opportunities, and service provider developments.

Highlights from the Market Vista: Q1 2021 Report

  • As enterprises are trying to rationalize and consolidate their IT portfolios, the market is witnessing an increase in the number of mega deals, thereby causing an increase in the overall Total Contract Value (TCV) for deals. (Everest Group defines mega deals as those with TCV greater than US$50 million.)
  • Mergers and acquisitions (M&A) and alliances activity witnessed a significant rise in Q4 2020. Among M&As, cloud, advanced automation and analytics led the list of key digital focus areas, in that order. Since analytics has become relatively mature, companies are now focusing more on advanced automation than analytics.
  • New setups and expansions of GBS centers in Q4 2020 (58) remained in line with those of the previous quarter (59).
  • North America continued to dominate GBS activity in onshore locations and accounted for 46% of the total new center setups, followed by Western Europe, accounting for 42% of total new setups.
  • Nearshore and Eastern Europe witnessed growth in activity both in terms of new GBS center setups and surge in number of deals, primarily led by the Banking, Financial Services and Insurance (BFSI) vertical.
  • Technology & communication remained the most active sector in offshore/nearshore locations and accounted for 44% of the total GBS center setups in Q4 2020. GBS activity in the manufacturing sector increased substantially to 10 new setups in Q4 2020, up from six in Q3.

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

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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/

Insurers, Hit Hard by Pandemic, Turn to IT to Drive Recovery | Press Release

Insurers are reorienting their IT operating models to reduce costs and unlock efficiencies and also weaponizing technology to simplify and improve consumer experience; however, digital talent is in short supply

The coronavirus pandemic has dealt a hard blow to the insurance industry, and the economic outlook for the near term is still uncertain. In addition to facing revenue and profitability declines, insurers must now deliver compelling online experiences to sustain and grow their customer base. According to Everest Group, IT investment maturity is playing a crucial role in insurers’ recovery strategies, particularly as they battle to reduce costs and digitally innovate at the same time.

First, to achieve cost savings and resiliency, insurers are taking a defensive stance, reevaluating key levers of their IT operating model. Everest Group has identified the five most prominent approaches insurers are using:

  • Selling non-core technology assets
  • Increasing IT outsourcing
  • Balancing offshoring levels
  • Consolidating the IT supplier portfolio
  • Scaling agile methodologies across the organization

Secondly, to create competitive advantage and gain market share, insurers are seeking digital innovation from their internal IT teams and their sourcing providers. Adoption of cloud, platforms, and digital solutions may enable recovery and future success; however, the workforce to guide those efforts is in short supply. Everest Group research indicates the unmet demand for digital talent is as high as 25%.

“The digital talent gap is a significant challenge in the insurance industry,” said Ronak Doshi, vice president, Information Technology Services, at Everest Group. “Twenty-eight percent of the workforce in the insurance industry is nearing retirement, taking with them valuable institutional knowledge that can be lost if not passed along to younger employees. But only 4% of millennials are interested in working in insurance technology roles because of the negative perception they have about the industry being slow to adopt technology and having an antiquated culture. To attract the type of digital talent needed to build a more profitable future, insurers must make themselves appealing by offering disruptive work, robust training, attractive employee propositions, and agile and collaborate ways of working.”

Everest Group examines each of these areas in more detail in its recently published report, “Insurance IT Services – State of the Market 2021: Future-readying Insurance Business Through Continuous Digital Unraveling.”

Summary of Key Findings:

  • The quest for cost transformation and resiliency continues for insurance enterprises as the coronavirus pandemic slowly abates, prompting insurers to trim their technology asset portfolio and focus on strategic competencies.
  • Insurance enterprises are reevaluating their entire IT operating model and sourcing strategy to drive higher outsourcing activity, finely balance their sourcing location footprint, and consolidate their IT supplier portfolio.
  • While adopting Agile principles and a customer-first culture remains a key priority for insurers, the focus is now shifting to scaled Agile developments across insurance enterprises and digitizing their IT operating model.
  • Insurance enterprises are staying away from touching their core systems and are instead investing in optimizing service interactions to transform experience management. The focus for insurers is moving from continuous modernization to continuous simplification.
  • Insurers are weaponizing technology to drive growth and differentiation. Investments in composable technology platforms, value chain-specific solutions, and nurturing digital talent are the top insurer priorities in the near term.

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

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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/

HR Outsourcing Market on the Rebound as Enterprises Seek to ‘Future Proof’ Operations | Press Release

Buyers of MPHRO now list ‘access to better technology’, ‘employee experience,’ and ‘better insights and analytics’ among the most important drivers of their outsourcing decisions.

Despite short-term disruptions in 2020 due to COVID-19, the Multi-Process Human Resources Outsourcing (MPHRO) market is expected to grow at a steady rate of 5-7% over 2020-22, primarily driven by organizations attempting to future-proof their HR operations. According to Everest Group, enterprises need to focus on speed, agility, resiliency and digital enablement in their HR processes in order to achieve a future-ready state and safeguard the HR function against crises in the future.

The top digital levers used to enhance the HR function include:

  • Automation and AI solutions, which reduce dependency on manual interventions, increasing agility and resiliency.
  • Data and analytics technologies, which bring greater visibility and transparency into organizational data and strengthen decision making
  • Employee experience components, which enable faster remote working and improved efficiency.

“Digital will have a vital role to play in helping enterprise HR functions prepare for the ‘next normal,’” said Anil Vijayan, vice president at Everest Group. “As we have seen during the COVID-19 pandemic, a good digital infrastructure enables organizations to reduce dependency on manual interventions and more quickly transition to new working modes, when necessary. As evidenced by the rise in digital adoption seen in recent outsourcing deals, enterprises are taking this lesson from the pandemic to heart, and we expect digital adoption to accelerate even further.”

The infusion of technology in the HR function has been increasing over several years, but it is expected to become a necessity rather than an option for all stakeholders in the future. Buyers of MPHRO now list “access to better technology”, “employee experience,” and “better insights and analytics” among the most important drivers of their outsourcing decisions. For this reason, Everest Group projects that the role of HR service providers will evolve even further toward that of strategic partner, as service providers respond to the demand for technology solutions.

These findings and more are shared in Everest Group’s Multi-process Human Resources Outsourcing (MPHRO) State of the Market Report. This report provides comprehensive coverage of the 2020 MPHRO services market and analyzes it across various dimensions such as market overview, buyer adoption trends, solution trends, and service provider landscape.

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

MPHRO Market Highlights:

  • North America is the most mature geography by MPHRO adoption, followed by Europe-UK and Asia Pacific. APAC is expected to become a hotbed for HR transformation due to COVID-19 impact.
  • Financial services and manufacturing constitute a major share of the MPHRO market; healthcare and life sciences underwent significant growth and are expected to grow further despite COVID-19 impact.
  • There has been a marked increase in the inclusion of talent management processes as buyers look toward taking an end-to-end approach to their MPHRO deals.
  • Output-based pricing continues to be the most popular pricing model; Input-based pricing is also being used in some emerging markets and in first-generation contracts.
  • The top four providers (Alight, Accenture, ADP, and IBM) contributed more than 40% of the market share in terms of annual contract value (ACV).
  • Leading providers experienced strong traction from the more mature markets; in emerging markets, local players featured more prominently.
  • ADP has significant presence across the top four industry segments for MPHRO; TCS has the highest number of deals in the retail industry segment.

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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/

89% of Enterprises Seek to Redefine Customer Experience Using Digital Technologies | Press Release

Enterprises are increasingly turning to new-age tools to meet stakeholders’ demands for at-home and touchless experiences and brands doing social good.

Everest Group reports that 89% of enterprises are adopting digital technologies to redefine their customer experience (CX) strategy. The CX services market is expected to expand at a compound annual growth rate (CAGR) of 20-22% through 2025.

Although the current focus remains on CX, employee experience (EX) is taking center stage, driven by the pandemic and evolving expectations of millennials and Gen-Z. As enterprises grapple with post-pandemic business models, addressing employee experience to solve for productivity in a remote work-first world will be crucial. Everest Group projects that EX will experience an even higher CAGR (28-30%) through 2025.

In fact, enterprises are increasingly focusing on delivering enhanced experience to all of their stakeholders—including customers, employees, partners and society. Everest Group projects the overall Digital Interactive Experiences (IX) Services market to grow CAGR of up to 22% through 2025, reaching US$94 to $96 billion.

New-age technologies are playing a significant role in accentuating and transforming stakeholder experience. Among the technologies enterprises are actively using today are augmented reality (AR), virtual reality (VR) and mixed reality (MR), advanced machine learning (ML), connected things, conversational systems, and wearables.

These findings and more are discussed in Everest Group’s newly published research, “Digital Interactive Experience (IX) Services State of the Market Report 2021 – Moving from Persuasive to Purpose Driven Experiences.” The report explores the trends governing the interactive experience design market, examines the impact of the pandemic on experience design, and presents a framework for the future of experience design.

“The pandemic has had a profound impact on the way enterprises think about and deliver experiences to their stakeholders,” said Nitish Mittal, vice president at Everest Group. “At-home experiences are extremely important now, with consumers demanding digital channels and employees having special needs for working from home. It’s amazing how quickly enterprises have shifted to touchless experiences, as exemplified by the increased adoption of ‘Buy Online, Pick Up In Store,’ curbside collection, telehealth, touchless payments, self-service kiosks and more. The pandemic has also brought about new expectations placed on brands, forcing companies to focus on social responsibilities and values in order to resonate with consumers and the general public. Going forward, enterprises will have to continually evolve their offerings and messaging to design sustainable, responsible, and inclusive experiences for all their stakeholders.”

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

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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/

Everest Group Announces Winners of 2021 PEAK Matrix Service Provider of the Year Awards for IT Services | Press Release

Accenture takes No. 1 for fifth straight year; TCS, Cognizant, Wipro and HCL round out the Top 5 IT service providers based on broad-based capabilities and successful service strategies

Everest Group—a consulting and research firm focused on strategic IT, business services and sourcing—today announced the winners of the 2021 PEAK Matrix Service Provider of the Year™ Awards for IT Services. The awards, now in their sixth year, recognize IT service providers who have demonstrated consistent leadership in the PEAK Matrix® reports issued by Everest Group in the previous year.

Topping the Top 20 IT Service Providers list for 2021 are Accenture, TCS, Cognizant, Wipro and HCL Technologies, in that order. Accenture retains its position at the top of the leaderboard for the fifth straight year. TCS, Cognizant and Wipro have been in the top five since Everest Group launched the rankings in 2016 and have retained their respective positions for the last two years. HCL Technologies edges out Capgemini this year for the No. 5 slot; the two companies have traded the No. 5 and No. 6 positions since 2019.

“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.”

Four service providers improved their rankings:

  • HCL Technologies moved from 6 to 5
  • Infosys moved from 8 to 7
  • Larsen & Toubro Infotech (LTI) moved from 16 to 11
  • Deloitte moved from 15 to 12

New entrants to the list this year are Zensar, PwC and Coforge. CGI, UST and Hexaware exited the list in 2021. Overall, four service providers improved their rankings, seven service providers slipped, and six service providers maintained their position.

***All winners are listed in the report, “2021 PEAK Matrix Service Provider of the Year Awards for IT Services,” available for complimentary download here.***

Everest Group’s 2021 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 2021 are LTI, Virtusa and Mphasis.

“Although smaller in size, these challengers are credible alternatives to the leading players in the industry in certain niches,” said Abhishek Singh, vice president 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 2020, Everest Group published 26 PEAK Matrix reports, evaluating a total of 100 service providers in these eight segments of the IT services market:

1.    Healthcare
2.    Life sciences
3.    Banking and financial services
4.    Insurance services
5.    Application services
6.    Cloud and infrastructure services
7.    Digital services
8.    Enterprise platform services

In addition to recognizing top performers overall, Everest Group acknowledges Leaders and Star Performers in each of the eight 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.

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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/

 

Business Process Services (BPS) Industry Propelled by Pandemic Into New Era, Accelerated Growth | Press Release

BPS industry, armed with experience from COVID-19 shutdown, is poised for BPS 4.0, an era of agile, efficient, and transformative delivery of next-gen services to enterprises

The Business Process Services (BPS) industry, armed with experience navigating the COVID-19 shutdown, is poised for its next evolution—BPS 4.0—an era of agile, efficient, and transformative delivery of next-gen services to enterprises, according to new research from Everest Group. Everest Group predicts that BPS 4.0 will create transformative value for enterprise stakeholders by delivering:
1.    Resilience and agility with lower risk
2.    Exponential efficiencies across the board
3.    Active contributions to business outcomes
4.    Superior stakeholder experiences

Everest Group, in partnership with NASSCOM, carried out this pioneering study leveraging both a bespoke NASSCOM-Everest Group survey and Everest Group’s comprehensive data and IP bank of primary research. Many respondents (88%) agreed that COVID-19 has hastened the arrival of a new era in the industry. During the pandemic, the BPS industry has swiftly adapted to work-from-home (WFH) delivery, ably fulfilled services, maintained quality levels, and demonstrated strong resilience in the face of unprecedented global disruption, with largely satisfied customers. In fact, 74% of enterprise adopters of BPS reported moderate or high satisfaction with their service providers during the COVID-19 shutdown.

“In 2020, as the world changed dramatically, the BPS industry needed to change with it,” said Rajesh Ranjan, partner and global head, BPS, at Everest Group. “Because of COVID-19, we now have a world where customers expect real-time, personalized omnichannel experiences; technology is being adopted on a large scale and at a much more rapid pace than originally expected; the dynamics and logistics of workforce management is forever changed; the geopolitical environment is turbulent with protectionism, trade wars and global recession; and, of course, there is an increased focus on risk management. To help organizations navigate these changes successfully, it is imperative for BPS industry to evolve into its next version—BPS 4.0—where the focus will be to create transformative value for enterprises.”

***Free Webinar, Thursday, February 18, 9 a.m. CST***
Everest Group experts will share their insights into what BPS 4.0 will bring to the industry and the implications for stakeholders in a complimentary webinar, “How to Attain Value from the Next Generation of Business Process Services, BPS 4.0.” Register here to attend and receive the recording and slide deck.

Everest Group predicts the BPS 4.0 era will bring accelerated growth of 6-8% over the next five years. As in the preceding era, the industry will continue to leverage design thinking, digital and data-driven capabilities, and domain knowledge but in deeper and broader ways. Also shaping the industry going forward will be new thinking such as a Business Process-DevOps-style approach, wherein cross-functional teams from different areas, such as development, IT operations, and business operations, will drive agility and speed in go-to-market approaches and decision-making. In addition, service providers will tap a differentiated and distributed workforce, where a mix of highly skilled talent works in a hybrid location model (combination of office-based and WFH) and with flexible employment arrangements.

“In terms of enterprise-provider engagements, we’re going to see a strong preference for strategic relationships and greater focus on overall return on investment, measured more holistically,” added Ranjan. “Technology will remain center stage, with continuous investments in technology a necessity. We’ll see a particular focus on integrated yet composable platforms that provide a seamless flow of data and use analytics and artificial intelligence to improve customer experience and real-time decision-making. Most importantly, talent holds the key to achieving the promise of BPS 4.0. BPS providers will have to double down on their talent-related investments across the hire-to-retire cycle.”

These findings and more are shared in “Business Process Services (BPS) 4.0: Heralding the Start of a New Era.” The report addresses key issues that will shape the future of the BPS industry and what industry stakeholders should do to effectively capture value in the BPS 4.0 era.

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

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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/

Cloud-native Initiatives Quadruple as Enterprises Seek to Become More Agile, Customer Centric | Press Release

Enterprises are investing in next-gen application development, particularly microservices, containers, service mesh and serverless.

Enterprise adoption of cloud-native applications has quadrupled over a three-year period, according to new research from Everest Group. Standalone cloud-native initiatives jumped 2.5 times in three years. Over the same period, cloud-native engagements per enterprise nearly doubled, jumping from 4-5 to 8-9.

Enterprises’ application portfolios continue to be dominated by monolithic and legacy systems; however, new applications are increasingly being built on cloud-native principles. Everest Group asserts that enterprises need to focus their application strategy on five key tenets to ensure success with modern applications:

  • Evolving the technology stack to include next generation application development concepts such as microservices, containers, service mesh orchestration and serverless
  • Rethinking funding parameters to support shorter development cycles
  • Managing change successfully
  • Embedding security across entire application lifecycles
  • Upskilling talent and targeting the right profiles when hiring

“The talent issue is becoming critical, and although we find that enterprises acknowledge the skills gap, they aren’t yet addressing the gap appropriately,” said Yugal Joshi, vice president at Everest Group. “For example, we analyzed 22,000 developer openings in the United States and found that less than 10% of job postings demand true cloud-native developer skills. Recognizing the need for new talent profiles for digital business is a good start, but to achieve results, enterprises need to target the right profiles when hiring.”

These findings and more are shared in Everest Group’s recently published report, “Cloud-native Application Services – the Cloud-native Juggernaut is Rolling; Be Mindful of Pitfalls.” The research analyzes the evolving dynamics of the cloud-native application services market, including enterprise demand themes, consumption patterns and evolving priorities. This Everest Group “State of the Market” report points to certain areas that need enterprise attention and provides key tenets responsible for the successful execution of application strategy.

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

Additional key findings:

  • Though cloud-based applications are gaining traction across all verticals, Banking, Financial Services and Insurance (BFSI) is the leader. High growth is expected in consumer-facing verticals—especially Telecom, Media and Technology (TMT); Travel, Transportation and Logistics (TTL); and retail and consumer goods—as enterprises in these segments aim to differentiate offerings.
  • Public cloud is taking the lion’s share of cloud-native business. Among hyperscalers, AWS continues to maintain a significant lead with more than 50% of engagements.

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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/

David Rickard Joins EMEA Research Team of Everest Group | Press Release

Rickard to lead research in the areas of Customer Experience Management (CXM) and Sourcing and Vendor Management

David Rickard has joined Everest Group, a consulting and research firm, as vice president. Rickard, based in London, advises senior executives using and delivering global services on their strategic mandates and initiatives. His responsibilities include leading Everest Group’s Customer Experience Management (CXM) and Sourcing and Vendor Management research offerings for clients in the Europe, Middle East and Africa (EMEA) region, as well as supporting global accounts.

Rickard brings to Everest Group more than 20 years of experience in contact center strategy, sourcing, and supplier relationship management, having held global-scale roles at both enterprises and consulting firms. In addition to sharing his expertise with clients, Rickard will serve as a subject matter expert, available to share research-based insights with journalists covering breaking news and trends in global sourcing.

“We are tremendously excited to have David join us and strengthen our expertise in customer experience management and vendor management,” said Eric Simonson, managing partner at Everest Group. “His experience across EMEA will not only complement our European research team based in the UK, but strengthen our broader services to global clients as well.”

Prior to joining Everest Group, Rickard served as consulting director at Ember Services, where he was responsible for the successful delivery of customer experience and outsourcing projects for clients in a wide range of industry sectors.

Rickard spent 17 years at Microsoft, most recently serving as senior director of global outsourcing procurement, directing Microsoft’s sourcing strategy and managing more than US$700 million in annual contact center outsourcing relationships. During his leadership tenure, Microsoft was named the winner of the prestigious IAOP Global Excellence in Outsourcing Best Practice Award.

Earlier in his career, Rickard managed quality, continuous improvement, and customer satisfaction programs for Dalkia Energy & Technical Services, an energy management company.

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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/

Request a briefing with our experts to discuss the 2022 key issues presented in our 12 days of insights.

Request a briefing with our experts to discuss our 2022 key issues

How can we engage?

Please let us know how we can help you on your journey.

Contact Us

  • Please review our Privacy Notice and check the box below to consent to the use of Personal Data that you provide.