Category: Press Releases

IAOP Announces Everest Group as Its Research Partner to Serve Sourcing Professionals | Press Release

IAOP’s sourcing practitioners, providers, and advisors to benefit from Everest Group’s key research, including the 2021 Key Issues in Global Sourcing study.

Everest Group—a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing—today announced it has been named a research partner to IAOP, an international professional association that brings together business services providers, advisors and customers in a collaborative effort to improve business service models and outcomes.

Everest Group helps its clients solve their toughest sourcing and digital transformation challenges. The firm offers a unique depth of sourcing knowledge and decades of insight gleaned from working alongside leading organizations tackling challenging transformation agendas.

For well over a decade, IAOP has been the association that sourcing professionals count on to keep them informed, educated, and, above all, connected to the resources and people they need to succeed.

In partnership, Everest Group and IAOP will collaborate on key research, including the 2021 Key Issues in Global Sourcing study. In addition, Everest Group will offer IAOP members key insights and offerings at special pricing.

Michel Janssen, chief research officer at Everest Group, will serve on the IAOP Strategic Advisory Board. He and other Everest Group experts will regularly contribute to IAOP conferences, webinars and podcasts, sharing insights to help executives tackle outsourcing challenges and make data-informed decisions for the future.

“Everest Group is honored to partner with IAOP, an organization that is committed to provide the resources, tools and networking opportunities that its members need to succeed,” said Michel Janssen, chief research officer at Everest Group. “We are excited to be part of IAOP’s effort by providing the research-informed insights to help the industry continue to evolve and rapidly respond to today’s ever changing normal – whether that be Work From Home issues, digital transformation, changing sourcing portfolios, or evolving talent profiles.”

“We are thrilled to announce Everest Group as our new Research Partner,” said Debi Hamill, CEO of IAOP. “Our collaboration will offer IAOP members unprecedented, research-informed insights into the market and the most pressing issues keeping them up at night. Empowering our members to not only prepare for the future but also make smarter decisions along the way is key. We look forward to leveraging each of our unique capabilities to do just that.”

About IAOP
IAOP is the global association that brings together customers, providers, and advisors in a collaborative, knowledge-based environment that promotes professional and organizational development, recognition, certification, and excellence to improve business service models and outcomes. IAOP connects you and your organization to our growing global community and to the resources you need be successful. For more information, visit IAOP.org.

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/.

Process Mining Market More Than Doubles in Revenue and Client Base in 2019—Everest Group | Press Release

Process mining—which is the technique of using software to discover and map business processes in order to optimize and automate them—is an emerging market for service providers, growing at around 140-160% from 2018 to 2019 to reach US$230-US$250 million, according to Everest Group. The process mining vendor market witnessed a doubling in the client base from 2018-2019, indicating increasing adoption among enterprises.

Process mining blends the power of data-based analysis techniques, such as data mining and machine learning, to help organizations discover the as-is process along with its variants and identify opportunities for optimization and automation. Process mining technology can be categorized as follows:

  • Classic process mining technology leverages specialized algorithms to examine and analyze process-related information captured in event logs generated by enterprise systems such as ERP, CRM, and SCM to discover processes and generate process maps.
  • Desktop Process Mining (DPM) refers to the ability to capture user’s keyboard, mouse and potentially other system-level activities performed simultaneously on various desktops to virtually reconstruct the processes and generate process maps.

Process mining can play a key role in the success of an organization’s process optimization and digital transformation journey. However, the associated technologies are not only relatively new to many potential buyers but also rapidly evolving in terms of product features, deployment options, training and support, partner ecosystem, and commercial models.

Currently over 85% of the revenue generated in the process mining market comes from software licenses, with most vendors offering cloud-based access. Continental Europe holds the lion’s share of the market (50%) while North America accounted for the highest growth rate in revenues in 2019 (nearly 200%). Manufacturing; banking, financial services, and insurance (BFSI); and the telecom industries are among the leading adopters of process mining solutions.

Everest Group expects adoption of process mining to maintain high-growth momentum driven by the need to accelerate automation initiatives and as more enterprises become aware of the benefits of the technology, which include identifying process optimization and automation opportunities, improving process governance and compliance, and enhanced employee experience through better resource allocation.

These findings are discussed in more detail in Everest Group’s recently published report “Process Mining State of the Market Report 2020.” The report includes a detailed view of the current state of the market and analyzes it across various dimensions, including market size and adoption trends, buyer satisfaction, product capabilities and trends, solution characteristics, vendor landscape, challenges to process mining adoption, and the outlook for 2020-21.

“The process mining market has seen exponential growth over the last few years and is expected to continue the momentum in the future,” said Amardeep Modi, practice director of Everest Group. “The COVID-19 crisis is likely to temper the growth of the process mining market in the short term, especially in the manufacturing industry, but the market is expected to pick up toward the end of 2020 as the demand for automation and process optimization begins to surge.”


Overview of the Process Mining Vendor Landscape

  • Celonis, Software AG, and Minit are the top vendors in terms of process mining license revenue. ABBYY Timeline (formerly TimelinePI) has experienced the highest year-over-year growth in revenue.
  • Celonis dominates the process mining software market, accounting for over 60% market share, and has the largest client base spread across small, mid-size and large enterprise segments.
  • The process mining market has expanded beyond Europe and North America to emerging geographies such as Asia Pacific (APAC) and Latin America (LATAM). Localized vendors in these regions, such as Puzzle Data (APAC) and Everflow (LATAM), have started competing with the relatively more established process mining vendors.

***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/.

Both Capital Markets IT Spend and Outsourcing Will Fall in Wake of COVID-19—Everest Group | Press Release

New report from Everest Group examines how IT investment priorities in Capital Markets industry will vary by line of business and health of organization post-pandemic.


The capital markets industry will be under stress in 2020 as the ongoing COVID-19 global health crisis adds cost and profitability pressures. Growing regulatory requirements and changing customer demand themes will lead to a further decline. As a result, Everest Group predicts that the spend on IT services in the capital markets industry will decline 2.1% in 2020, with outsourcing spend seeing a dip of -3.7% as firms reallocate resources and cost transformation initiatives are prioritized.

Learning from and looking beyond the pandemic, capital market firms are focusing IT spend on resiliency of systems, revitalizing core to drive growth, and undertaking cost control measures. Specific IT spend priorities vary by line of business. Three examples follow:

  1. Asset management firms are investing in cloud and platforms to keep overall expenses down and make up for lower fees.
  • Vanguard, for example, migrated monolithic applications away from managed data centers to Amazon Web Services. The firm has been able to reduce the cost of compute by at least 30% and also reduce time to market by building and deploying software faster.
  • Fidelity leveraged a cloud foundry platform-as-a-Service to further develop its agile software delivery strategy. Fidelity teams used automated Continuous Integration/Continuous Deployment (CI/CD) pipelines extensively and were able to reduce the time to market for several new low-commission products designed for the mass affluent customer segment.
  • Madison Investment Advisors chose a Charles River enterprise platform to replace multiple, disparate systems running across the business. The platform enables Madison to have integrated data, analytics and benchmarks across global equities, mutual funds, options and fixed income, with comprehensive compliance monitoring across the entire investment process.
  1. Wealth management firms are investing in new channels to adapt to increasing regulations, shrinking margins and an evolving investor demographic. As aging investors are being replaced by Millennials and Gen Zs, asset and wealth managers are adapting to new-age investors who generally prefer using hybrid advisory services, value socially responsible investing, expect fee transparency and demand personalized experiences. In response, asset and wealth management firms are establishing new technology priorities, such as:
  • Using machine learning, artificial intelligence and analytics for better assessment of portfolios
  • Accelerating the use of digital channels and robo-advisors
  • Adopting agile development models to be more responsive to customer needs
  • Managing compliance and security considerations via private cloud
  • Using virtual tools for customer interaction management
  • Using Distributed Ledger Technology to improve efficiency and transparency
  1. Pension funds have high exposure to market volatility and are currently experiencing a rise in withdrawal requests from pension holders to withstand the economic shock of the pandemic and recession. Pension funds are increasing their investments in big data and analytics for portfolio analysis, correlations, risk management and long-term cash flow projections. They are also investing in robust fraud detection mechanisms to minimize data breaches.

These findings are discussed in more detail in Everest Group’s recently published report “Capital Markets State of the Market Report 2020: Automation, Data, and Cloud Trends for Buy-side Firms.”  The report includes a detailed analysis of the buy-side firms in the capital markets industry, analyzing the forces shaping the industry’s future, especially in the light of the COVID-19 pandemic.

“As capital market firms strive to recover from the COVID-19 pandemic, we’ll see them take one of four different approaches to their IT investments, depending upon how deeply they were impacted by the crisis,” explained Ronak Doshi, vice president of Everest Group. “Those most heavily impacted by the pandemic will be forced to either modernize quickly, tapping the resources of third-party platforms and service providers, or pursue aggressive cost take out, possibly even selling off legacy platforms to vendors.

“Among those more fortunate firms that are only moderately impacted by the pandemic, we’ll see some invest in longer-term transformation, taking the time to go for best-of-breed or custom solutions. Those firms with the healthiest balance sheets will pursue aggressive growth strategies, correspondingly focusing their IT spend on customer experience, the agility to rapidly launch new products, and scaling operations in the face of mergers and acquisitions.”

*** Download a complimentary report abstract ***

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 Reports Demand for IVA Technology Grew 42% in 2019, Projects 70% Growth Through 2022 After Momentary Dip Due to COVID-19 Pandemic | Press Release

IVA market growth will accelerate post-pandemic as enterprises strive to overcome recession with focus on automation, customer experience

The global Intelligent Virtual Agent (IVA) market stood at US$300 million-US$350 million in 2019, exhibiting about 42% growth year on year, according to Everest Group. The firm projects a dip in demand in 2020 due to the COVID-19 pandemic but expects the IVA market to post strong growth going forward, achieving as much as a 70% compound annual growth rate (CAGR) through 2022. In fact, Everest Group has boosted this estimate by 13-22%, anticipating that enterprises will place greater emphasis on cost reduction and improving business continuity in the post-pandemic period.

IVA solutions are a key enabler of automation in the front office, currently being used primarily for customer support as well as IT and help desk functions due to their large volumes of repetitive queries. These functions account for more than 80% of the IVA market today. Banking, insurance, and telecom industries account for the highest adoption of IVA and continue to exhibit impressive growth, particularly given the maturity of contact centers within these industries.

Increasing sophistication and collaboration with complimentary artificial intelligence (AI) based technologies are driving IVA popularity in the market. Enterprises across industries and geographies are leveraging or plan to leverage IVA solutions for different use cases to reduce human involvement and improve customer experience (CX).

“IVA is still in the realm of early adoption today, but that is rapidly changing as enterprises realize what a tremendous opportunity they have to leverage this technology,” said Anil Vijayan, vice president of Everest Group. “IVA technology is continuously advancing and growing in sophistication well beyond rule-based chatbots. Today we see a higher level of maturity in intelligent IVA applications, which are being used for a variety of use cases including payment services account resolutions and employee onboarding, for instance. We’re also beginning to see IVA playing a key role in conversational AI ecosystems, where a collaborative set of tools—including IVA, AI, robotic process automation, learning and listening engines, analytics and more—is used to seamlessly integrate front and back office systems. Here, IVA supports more advanced use cases such as cross-selling and upselling, customer retention, and making personalized recommendations. We expect this evolution to continue, leading to reliable and delightful customer experiences while reducing human effort through automation.”

These findings are discussed in more detail in Everest Group’s recently published report “Conversing with AI – Intelligent Virtual Agents (IVA) State of the Market Report 2020.”  The report includes a detailed analysis of the IVA market, including a market overview and adoption trends, solution characteristics, vendor landscape, barriers to IVA adoption and best practices, and the outlook for 2020-2021.

Evolution of the IVA Market

  • The IVA market is witnessing a significant shift from rule-based solutions to AI-driven IVA solutions, propelled or aided by the following:
    • Increase in consumer demand for self-service
    • Integration of IVA solutions with critical enterprise back-end systems
    • Innovation of voice-based conversational capabilities
    • Shift from multi-channel to omnichannel delivery by software vendors
  • In order to meet the evolving CX needs, next-generation intelligent automation technologies are expected to witness high growth as they play a key role in transforming service delivery.
  • The conversational AI ecosystem in contact centers will enable seamless collaboration between front and back office and empower faster, more reliable, and lower cost operations.

*** 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 Unveils Sixth Annual Business Process Services Top 50 | Press Release

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

Everest Group today released the sixth 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 valued at more than US$200 billion. The ranking is based on 2019 revenues and year-on-year growth.

Topping the 2020 list of BPS providers are these 10 leaders:

  1. ADP
  2. Concentrix
  3. Teleperformance
  4. Accenture
  5. Arvato/Majorel
  6. Paychex
  7. Conduent
  8. Genpact
  9. Xerox
  10. Alight Solutions

***Download a complimentary copy of the 2020 Everest Group BPS Top 50 list and analysis***

Everest Group estimates there are more than 250 service providers with more than US$50 million in revenues offering BPS around the globe. What started as a cost optimization concept focusing on “non-core” and “back-office” business processes today permeates the entire business process value chain, addressing a wide variety of business objectives.

North America-head quartered service providers continue to dominate The Everest Group BPS Top 50, with a 58% share; Europe and Asia Pacific regions followed, with 24% and 18% shares respectively. Providers in the United Kingdom made up 4% of the market.

Top 3 North American Providers:

  • ADP
  • Conduent
  • Paychex

Top 3 European providers:

  • Accenture
  • Teleperformance
  • Webhelp Group

Top 3 APAC Providers:

  • TCS
  • Wipro
  • Transcosmos

“In this year’s listing, we see two interesting trends,” said Rajesh Ranjan, partner at Everest Group. First, the divide between risers and decliners continues to widen, increasing to 35% this year. This was 23% in 2017. Secondly, we saw an uptick in the volatility in the rankings. 54% of the listed providers’ ranks changed by five or more positions in 2019, compared to 32% in 2018.”

Other highlights:

  • The Top 5 leaders in terms of revenue were ADP, Accenture, Teleperformance, Concentrix and Conduent.
  • The Top 5 fastest growing companies year-on-year were Concentrix, Willis Towers Watson, Infosys, Telus International and Teleperformance.
  • Top risers (companies whose position in the list advanced the most) include Willis Towers Watson, Infosys, CGI, TTEC and Allegis Global Solutions.

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 ES revenue in US$ million and accounting for 12.5% of the composite score) and percentage growth (measured as percentage change in ES revenue and accounting for the final 12.5% of the composite score).

 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/.

COVID-19, Recession Deal Double Whammy to Property & Casualty Insurance BPS Industry | Press Release

Everest Group estimates the P&C insurance BPS industry, currently measured at US$2.4 billion, will attain only single-digit growth through 2020.

The COVID-19 pandemic has dealt a blow to the Property & Casualty (P&C) insurance industry, and the current recession is exacerbating the impact, according to Everest Group. Consequently, Everest Group is revising down its projected growth rates for the P&C insurance business process services (BPS) market. Everest Group estimates the P&C insurance BPS industry, currently measured at US$2.4 billion, will attain only low single digit growth rather than the double-digit growth previously expected, putting a question mark on the market’s ability to cross US$3 billion by 2022.

The P&C insurance BPS growth rate in 2018-2019 (approximately 10%) was already the lowest it had been in the past four years, due to the strong linkage of the market to economic cycles and the recessionary prospects that had begun to surface. Then came the COVID-19 pandemic, which has negatively impacted both the personal and commercial lines of the P&C insurance industry, and a fully recognized recession with poor recovery prospects for the near future.

The P&C insurance BPS industry is expected to bear a four-fold impact from the pandemic:

  • Operations: Business operations will be disrupted mainly due to reduced mobility and difficulties of working from remote environments. For example, IT infrastructure is strained, and physical inspection of claims is more challenging.
  • Costs: Costs will depend on how reduction in claims, drastic measures of liquidity preservation, and increasing litigations against insurers play out. For example, auto claims will likely fall due to reduced driving, but lawsuits for not covering business interruption losses caused by the shutdowns will add to insurers’ costs.
  • Customer demand: Customer demand will vary across different product segments, ranging from high to extremely strained demands, making the demand landscape diverse in terms of the impact. Customer demands may include specific product lines such as cybersecurity and directors and officers (D&O) insurance. Customers also will likely demand more value for their money, increasing the chances of switching based only on premium prices.
  • Compliance: A host of compliance and regulatory measures will have to be introduced to protect all the affected stakeholders amidst the evolutionary landscape. For instance, pressure to extend coverage for cybersecurity attacks and business interruption losses will increase.

“With the extreme shifts in business environment due to COVID-19, both for insurers as well as their service partners, many have struggled for even basic operational continuity,” said Skand Bhargava, practice director at Everest Group. “While the industry has now largely adjusted to the vagaries of the changed operating environment, these changes appear to be more permanent than expected. The P&C insurance BPS market is expected to transition through significant operating model and engagement structure changes. Now, with the onset of a recession, it is even more imperative for service providers to understand the developments in insurers’ sourcing strategies and the implications on future sourcing requirements.”

In particular, Everest Group recommends that providers tap into these emerging trends:

  • Localized delivery with greater onshore/nearshore mix
  • Talent upskilling to move up the value chain
  • Expanding first-time buyer engagements
  • Transformation consulting to enable buyers to adapt their operation models to the new demand environment
  • Adding more digital point solutions to the outsourcing levers mix.

These findings are discussed in detail in Everest Group’s new report, “Property & Casualty (P&C) Insurance BPS State of the Market Report 2020: Deconstructing the Present and Expected Future of Sourcing Strategies.” In this report Everest Group offers a detailed analysis of third-party outsourcing of business process services in the P&C insurance industry, including market size and growth, adoption trends, present and expected sourcing strategies, and action items for service providers.

***Download the complimentary report abstract.***
***Also, visit Everest Group’s COVID-19 page for a Global Service Delivery tracker, recent reports, webinars, and more.***

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 IDP Market Growth Acceleration in 2021 | Press Release

Cost-saving, productivity benefits of Intelligent Document Processing solutions are accentuated by the current crisis; post-COVID-19 adoption expected to accelerate significantly in banking, insurance and healthcare industries.

Everest Group reports that the Intelligent Document Processing (IDP) market generated US$540 – $560 million in revenues in 2019 and achieved a nearly 60% growth from 2018 to 2019. However, Everest Group recently scaled back its 2020 growth projections for the IDP market by 50%, revising its original estimate of 50-60% CAGR to 27-30% due to the impact of the COVID-19 crisis.

Everest Group defines Intelligent Document Processing (IDP) as any software product or solution that captures data from documents (e.g., email, text, pdf, and scanned documents), categorizes and extracts relevant data for further processing using artificial intelligence (AI) technologies such as computer vision, optical character recognition (OCR), Natural Language Processing (NLP), and machine/deep learning (ML/DL).

“The IDP technology vendor market is certainly impacted due to the ongoing COVID-19 crisis and is currently experiencing a short-term dip in volumes and growth; however, as the economy recovers, we expect the IDP market to witness accelerated demand,” said Anil Vijayan, vice president at Everest Group. “Adoption of automation products in general, and IDP products specifically, will intensify considerably, particularly in those industries such as banking, insurance and healthcare, which are already leading the way in adopting IDP solutions. Post-COVID 19, these industries will seek to accelerate low-touch processing and faster turnaround times through automated extraction of data.”

“Several of the benefits of IDP solutions are being accentuated by the current crisis,” continued Vijayan. “For example, post-COVID-19, enterprises will want to automate as much as possible to reduce dependence on the human workforce and to cut costs. Automated extraction of data using IDP solutions will enable organizations to process large volumes of semi-structured and unstructured documents with low-touch processing, greater accuracy, and faster turnaround times, thus helping deal with volume fluctuations as well.”

Banking, financial services and insurance (BFSI) and healthcare enterprises continue to
be the major adopters of IDP solutions, together accounting for a 50% share of the market. Growth in each of these segments between 2018 and 2019 was significant, with BFSI posting a 50% CAGR and healthcare growing at 65-75%. BFSI use cases include customer onboarding, mortgage processing, trade financing and claims processing. Invoice processing, Know Your Customer (KYC) paperwork to prevent medical identity fraud, insurance claims, patient onboarding, and patient records are among the most common healthcare use cases of IDP solutions.

These findings are discussed in more detail in Everest Group’s recently published report “Intelligent Document Processing (IDP) State of the Market Report 2020 – Leave No Page Unturned With AI.” This research provides a detailed view of the current state of the IDP technology market, including market size and adoption trends, buyer satisfaction, product capabilities and trends, solution characteristics, vendor landscape, challenges to IDP adoption.

The report also offers Everest Group’s outlook for the IDP Market for 2020-2021. Trends expected for the coming year include:

  • Package-based IDP solutions will become more prevalent due to the need for faster deployment.
  • The current global pandemic will lead to more receptiveness among enterprises toward cloud-based solutions.
  • Enhanced product capabilities such as software learning, user-friendly interfaces, pre-trained models, better integration with enterprise IT architecture, and security and data protection enhancements will make IDP adoption more attractive.

*** Download Complimentary Abstract ***

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 Unveils Its 2020 List of Top 50 Engineering Services Providers | Press Release

Altran, Alten and HCL Technologies maintain their positions atop the revenue leaderboard

Everest Group today released the second annual edition of “Everest Group Engineering Services Top 50™,” a ranking of the world’s largest third-party providers of engineering services (ES). The ranking is based on revenues and year-on-year growth.

Topping the 2020 list of ES providers are these 10 leaders:
1.    Altran (part of Capgemini)
2.    Alten
3.    HCL Technologies
4.    AFRY (ÅF Pöyry)
5.    AVL
6.    AKKA Technologies
7.    Tata Consultancy Services
8.    Accenture
9.    DXC Technology
10.    Wipro

*** Download a complimentary copy of the 2020 Everest Group ES Top 50 list and analysis ***

Engineering services include all activities that support the design, development, testing and management of products, both hardware and software.

The Everest Group Engineering Services Top 50 represented more than $US 45 billion of outsourced spending. The global ES industry grew 13% in 2019, driven by enterprises’ need for support in the form of scale, skills, technologies and intellectual property. The ES market consolidated significantly in 2019, with many ES providers acquiring others to enhance their competitive position and drive revenue growth.

“We expect engineering service providers to assume an increasingly significant role as enterprises turn to them for high-end engineering activities,” said Akshat Vaid, vice president at Everest Group. “In 2019, service providers undertook many strategic initiatives to gain competitive advantage, such as investing in digital engineering capabilities; scaling their talent pool in emerging skill segments and technologies to address the supply gap for customers; and setting up Centers of Excellence, innovation labs and new centers to strengthen their offerings portfolio. Several engineering services firms also merged and acquired others to grow their business. As the COVID-19-triggered economic slowdown drives firm valuations lower, we expect M&A activity to increase, driving further consolidation in the ES industry in 2020. We also expect significant churn in the existing outsourcing relationships in 2020 as enterprises across industry verticals look at vendor consolidation as a strategic lever for structural cost savings ”

Other highlights:

  • The Top 5 companies based on revenue alone are Altran, Alten, HCL Technologies, AVL and AFRY (ÅF Pöyry).
  • The Top 5 fastest growing ES companies were DXC Technology, AFRY (ÅF Pöyry), Infogain, Globant and HCL Technologies.
  • Exiting the list were these five companies: Luxoft, APL, Sonata Software, Cybage and Semcon.
  • Top risers (companies whose position in the list advanced the most) include DXC Technology, QuEST Global, Belcan, Infosys, Pactera, Etteplan, Globant, Ferchau, EPAM and P3.
  • Seven service providers in the list experienced decline in revenue ranging from -0.3 to -9%. The decline was attributable to multiple factors, but the most common reason was economic slowdown in specific industry sectors such as automotive, aerospace and defense, and manufacturing.
  • Europe continues to hold a major share (48%) of the providers in the Top 50 list, followed by Asia Pacific at 28% and North America at 22%.

The Everest Group Engineering Services 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 ES revenue in US$ million and accounting for 12.5% of the composite score) and percentage growth (measured as percentage change in ES revenue and accounting for the final 12.5% of the composite score).

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/.

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IT Outsourcing in Life & Annuities Insurance Industry is Readying for Cost Transformation by Systems Simplification and Rationalization | Press Release

Adopting a digital platform-first operating model is key to L&A insurers remaining agile, efficient, and customer-centric in the post-COVID-19 era

The Life & Annuities (L&A) insurance segment experienced a growth in premiums of 2.0% to 2.5% in 2019, but this is expected to drop to -3.5% to -1.5% through 2020 as a result of the COVID-19 crisis, according to Everest Group. However, long-term industry growth fundamentals remain robust amidst the COVID-19 turmoil, albeit with concerns on investment income shock, demand shock, and claims shock leading to near-term financial distress. As the coronavirus crisis abates, the L&A industry segment will invest in IT to drive cost efficiency and improve user experiences, contributing to a modest 0.9% compound annual growth rate (CAGR) of L&A IT outsourcing through 2022.

Everest Group projects that IT spending hotspots for L&A insurers in the future will include omnichannel digital solutions for customers, digital tools for agent enablement, shifting legacy applications to modern platforms, automation, analytics, Robotic Process Automation (RPA), and Application Programming Interface (API) solutions to integrate third-party services.

Everest Group advises L&A insurers to focus on the following IT priorities to ensure future success:

  • Investing both in platforms to drive long-term cost transformation and in technology solutions such as automation, analytics, and cloud for improved process efficiency and compliance.
  • Capturing the digital channels opportunity:
  • – Improving the online research and shopping experience.
  • – Balancing human and digital touchpoints in the sales journey.
  • – Enabling agents/brokers with digital tools.
  • Modernizing legacy platforms and IT infrastructure.
  • Investing in analytics solutions for effective risk assessment to improve product pricing.
  • Attracting enough young talent to build skills of the future and build domain understanding to replace an aging workforce.

“Above all, L&A insurers need to double down on user experience and efficiency, and that’s why adopting a modern platform-first operating model is crucial to the future success of the L&A insurer,” said Ronak Doshi, vice president at Everest Group. “Digital capability platforms support ecosystem interaction via microservices and APIs, enabling customized business processes, analytics solutions, and cross-selling and up-selling across multiple customer segments. L&A insurers can also reduce costs by carving out non-core operations in a Business-Processes-as-a-Service model. L&A insurers who explore these operating models now with an end-goal of becoming more agile, efficient and customer-centric will be best positioned to succeed in a post-COVID-19 world.”

These recommendations are discussed in more detail in Everest Group’s new report, “Life & Annuities (L&A) Insurance State of the Market 2020: Platform-first Model to Simplify and Rationalize Systems for Rapid Cost Take-out.

In this report Everest Group offers a detailed analysis of the L&A insurance industry, analyzing the forces shaping the industry’s future, especially in the light of the COVID-19 pandemic. The report also highlights the implications for key insurance functions and recommends strategies for L&A insurers to thrive in the next normal.

***Visit Everest Group’s COVID-19 page for a Global Service Delivery tracker, recent reports, webinars, and more.***

Selected Highlights of L&A Insurance IT Outsourcing Market:

  • Insurance IT services spend grew at a compound annual growth rate (CAGR) of 2.4% from 2017-2019, reaching a total of US$115.8 billion. The Global Business Services (GBS) portion was $66.8 billion, and the outsourcing IT services portion was $49 billion.
  • The outsourcing IT services spend of $49 billion comprises $4.1 billion for the reinsurance segment, $24.2 billion for Property & Casualty insurance, and $20.7 billion for L&A insurance.
  • Geographically, North America accounted for the largest portion of the IT services spend at $28.4 billion, followed by the United Kingdom with $6.4 billion, and Rest of Europe at $7.9 billion. Asia Pacific (APAC) is the region projected to experience the fastest growth in the future.

***Download the complimentary report abstract.***

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/.

 

Salesforce Services Market Booms at 28% Growth as 70% of Enterprises Struggle with Salesforce Integration | Press Release

North America, largest Salesforce services market, posts 18% CAGR; markets outside North America grow faster with 35% CAGR.

Although Salesforce dominates the US$57 billion global customer relationship management (CRM) software market with a 22% share, Everest Group reports that 70% of enterprises struggle with integrating Salesforce with other applications and platforms within and outside the Salesforce ecosystem. Accordingly, Everest Group predicts that Salesforce service providers who focus on building solutions to accelerate time-to-market and guide enterprises on the change management journey will be tomorrow’s market leaders.

Enterprise expectations from Salesforce adoption now go beyond customer experience and CRM software implementation to creating a competitive advantage. Recent Everest Group research reveals the high expectations of Salesforce users:

  • 45% expect their Salesforce adoption to enable them to identify new revenue streams
  • 60% expect that Salesforce will provide a single source of truth for customer data to expedite decision making
  • 55% expect faster and easier integration of Salesforce with both upstream and downstream industry-specific systems.

For assistance in realizing these objectives, enterprises frequently engage third-party Salesforce service providers for consulting, implementation, maintenance and support services. The global Salesforce services market is estimated at US$14.5 billion, growing at a CAGR of 28% over the past three years. The market is also one of the largest and fastest growing in the broader enterprise platform services landscape.

“Enterprises now look to the CRM function to create a 360-degree customer view, but this requires a level of integration and organizational change that few enterprises have been able to achieve thus far,” said Yugal Joshi, vice president of Everest Group. “Organizations are aspiring to become an ‘intelligent enterprise,’ and this requires a ‘unified data fabric’ that encompasses their ecosystem, a fabric that weaves together all relevant data sources and leverages advanced analytics. Salesforce is expanding their offerings to help companies achieve this vision, particularly with products like Einstein for analytics and Mulesoft for integration. With changing enterprise expectations and the evolving Salesforce tech landscape, Salesforce service providers can play a critical role in helping enterprises derive maximum business benefit from the platform.”

These findings are discussed in more detail in Everest Group’s recently published report “Salesforce Services – Solving for the Missing Link.” The report includes insights on the market trends for Salesforce services, including deal trends and enterprise spend characteristics, based on the firm’s analysis of about 300 large Salesforce services deals.

Key Trends in the Salesforce Services Market

  • North American Salesforce services market logged 18% CAGR since 2018, whereas the markets outside North America increased exponentially at 35% CAGR.
  • While Salesforce has increased the revenue guidance for 2021, Everest Group estimates that due to COVID-19 the overall growth of the services market will be negatively impacted in FY2021. This will primarily be due to large-scale transformation projects that may be kept on hold in industries such as travel, energy and utilities, and manufacturing, which will, in turn, negatively impact the demand for Salesforce consulting and implementation services.
  • Salesforce adoption is growing fastest (35% year-on-year) in the healthcare and life sciences industry. Regionally, Asia Pacific is fastest growing economy (~35% YOY), and marketing cloud is the fastest growing Salesforce product (~40%YOY).
  • Service providers are investing in building strong industry-specific solutions and integration frameworks to expedite time-to-market for clients.
  • Service providers are taking a strong inorganic approach with tuck-in acquisitions to fill gaps across their Salesforce services portfolio and further enhance their geographic footprint.

***Download Complimentary Abstract***

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/.

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