Category: Press Releases

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

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

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

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

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

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

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

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

More GIC Landscape Trends:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Other highlights:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Everest Group Leads Analyst Community with Unmatched RPA Credentials

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Only 10% of Enterprises Have Effective Applications Strategy | Press Release

Transformative enterprises balance application development and modernization of legacy apps to drive agility, better customer experience

In an ideal world, enterprises that invest in application services capabilities would see a return in the form of application quality, operational efficiency and speed to value, but only 10% of enterprises are achieving this, according to Everest Group. The firm recently surveyed 194 C-level officers of global enterprises with revenues over US$1 billion and found that nearly 90% of global enterprises are unable to achieve the desired business outcomes of their application portfolios.

“Unfortunately, too many enterprises focus entirely on either investing in new technology stacks or blindly replacing their legacy applications, and this unbalanced approach is highly ineffective,” said Yugal Joshi, vice president, Information Technology Services, at Everest Group. “In contrast, 10% of enterprises are able to achieve significant improvement on their business metrics as a result of their applications strategy. What these leading organizations have in common is that they take a balanced view of their legacy and new application investments.”

Everest Group identified four more elements of effective applications strategies that leading organizations share:

  • Alignment of business and IT objectives
  • Outcome-oriented organizational structure
  • Robust talent strategy for legacy and new applications
  • Investment in strategic automation

These results and other findings are explored in a recently published Everest Group report: “Business Transformation: A Confluence of New and Legacy Applications – Annual Report 2019.” This report gives insight into the current applications services landscape, providing a fact-based analysis of buyer trends by geography, industry, and revenue size, and also offers an outlook for the application services market in the global ITS industry.

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

Other Key Findings

  • Application Services, which comprises application development, maintenance and testing services, accounts for approximately 32% of the US$539 billion global information technology services (ITS) outsourcing market, which is expected to continue growing at 2% per annum.
  • Application services are the fulcrum of the ITS industry, with 79% of ITS deals having some form of application services in the scope. Stand-alone application services deals have been growing consistently and contribute the largest share (68%) to the IT services market.
  • Enterprises are not shying away from making long-term investments. Deals with longer duration (longer than three years) have seen an increase at the expense of deals with shorter durations.
  • Average deal sizes in most verticals have plummeted, except for healthcare and life sciences, which saw a marginal increase in deal sizes.
  • Multi-region deal signings decreased sharply from 11% in 2017 to 2% in 2018.

About Everest Group

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

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Intelligent Document Processing Market Is Exploding, Expected to Grow 70-80% Over Next 2 Years | Press Release

Enterprise adoption of IDP is accelerating geometrically as companies apply AI technologies to improve governance and compliance, reduce costs and increase customer satisfaction.

The Intelligent Document Processing (IDP) market reached US$250-350 million in 2018 and is expected to grow at a compound annual growth rate of 70-80% over the next two years, approaching US$1.1 billion by 2020, according to Everest Group. Adoption of IDP will rapidly accelerate as enterprises seek to harness the power of artificial intelligence (AI) technologies to improve compliance and governance and reduce the overall cost of processing huge volumes of information.

IDP software solutions blend the power of AI technologies—such as computer vision, optical character recognition (OCR), natural language processing (NLP) and machine/deep learning—to efficiently process all types of documents, extract relevant information, and feed the output into downstream applications. The most common use cases of IDP solutions are KYC (know-your-customer) verification, invoice processing, insurance claims, patient onboarding, patient records, proof of delivery and order forms.

“Today’s IDP solutions are already capable of handling complex documents with accuracy and a fair amount of resiliency to change and variation, which is why enterprise adoption is accelerating rapidly,” said Sarah Burnett, Executive Vice President and distinguished analyst at Everest Group. “Even more exciting, however, is the way the technology is evolving to help enterprises achieve strategic business outcomes. In the very near future, for example, we’ll see remarkable capabilities such as pre-trained, ‘out-of-the-box’ solutions for particular use cases and better integration with robotic process automation solutions to enable end-to-end automation for enterprises. Mobile capture, multilingual solutions and ways to improve capture of low-quality images and handwritten documents are also on the horizon.”

These findings are discussed in more detail in “Intelligent Document Processing (IDP) Annual Report 2019 – Let AI Do the Reading.” This report addresses IDP market size and adoption trends, product capability trends, solution characteristics, the IDP vendor landscape, challenges to IDP adoption, and the IDP market outlook for 2019-2020.

Other Key Findings:

  • Banking, financial services and insurance (BFSI) and healthcare industries are the early adopters of IDP, with over 50% share.
  • Consumer package goods (CPG) and retail, travel and logistics, manufacturing, and telecom are also deploying IDP solutions to process documents such as proof of delivery, custom declarations, driver logs and maintenance logs.
  • North America and Continental Europe dominate the market for IDP solutions, largely driven by mature enterprises within BFSI.
  • OCR, computer vision, machine and deep learning models, and NLP are the key core technologies powering IDP capabilities.
  • Sophisticated features such as configuration and set-up GUIs (general user interfaces), review or correction GUIs, workbenches for IT users, and analytics dashboards are proving of great use to enterprises.
  • The IDP software market primarily comprises three types of solutions: platform-based, package-based and IDP-as-a-service solutions. Package-based solutions are expected to become more prevalent than platform-based and IDP-as-a-service solutions, as they can be easily deployed and take less time to achieve high accuracy for pre-built use cases.
  • ABBYY, Kofax, Parascript and WorkFusion are the leading IDP vendors, each processing over one billion pages annually.

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

Everest Group Predicts Accelerated 12% Growth in Life & Pensions BPO Market in 2019 as Insurers Leverage Providers’ Digital Expertise | Press Release

L&P Insurance BPO providers offer scalable, cost-efficient digital talent and technology to help insurers remain relevant and competitive.

The Life and Pension (L&P) business process outsourcing (BPO) market has seen a consistent pace of year-on-year growth in the range of 9 to 10% since 2014. According to Everest Group, growth will accelerate in the future, jumping from a market size of US $2.3 billion in 2017 to US$3.1 billion by 2020.

“In 2019, we will see buyers in the L&P insurance BPO market increasingly partnering with service providers to leverage their technological capabilities and expertise,” said Skand Bhargava, practice director, Business Process Services, at Everest Group. “In particular, as insurers’ hurdles continue to magnify and the need to address inefficient legacy systems becomes unavoidable, buyers will be even more open to leveraging external resources for digital enablement. Thus, providers who have invested in digitally modernized and integrated platform solutions are going to have a clear advantage.”

Currently, the L&P insurance market massively lags behind other industries in adapting to the digital era; however, the following market forces are pressuring insurers to augment their front-, middle-, and back-office operations and connect these together through digital systems:

  • Growth opportunities in new product classes such as voluntary and worksite benefits, whole life and individual universal life. Delivering these products will require product innovation, speed-to-market, and customer experience delivery, all of which can be enabled and enhanced by leveraging digital capabilities.
  • Increasingly costly and complicated regulatory compliance requirements. In the UK, for example, L&P insurers are being impacted by Automatic Enrollment, Pensions Freedom and GDPR. Digital solutions can address the burdens of these requirements by enabling data visualization, providing analytics for identifying regulatory risk areas, and automating workflows for efficient compliance.
  • An evolving competitive landscape, including challenges from InsurTechs and continual competitive shifts from strategic mergers and acquisitions (M&As).

Everest Group advises L&P insurers to leverage partnerships with L&P BPO service providers to:

  • access the requisite talent and digital technologies at scale and efficient costs
  • gain from service providers’ experience in digital implementations
  • identify greater opportunities for digital interventions

These findings are discussed in more detail in “Life and Pensions (L&P) Insurance BPO Annual Report 2019: Digital a Potential Game-changer but Insurers Stuck in Legacy Mode.” This report provides comprehensive coverage of the global L&P insurance BPO market, including the adoption trends across geographies and buyer size, factors impacting the market, key solution characteristics, emerging trends and the service provider landscape.

Other Key Findings:

  • New deals were signed across almost all geographies, with the exception of Latin America and Middle East and Africa.
  • Buyers’ inclination toward continuing with their incumbent service providers is being reflected by the market growth, which is primarily attributed to contract renewals and expansion in the existing scope of services.
  • Small- and mid-sized buyers are increasingly opening up toward outsourcing and now contribute to the market almost in the same proportion as large-sized buyers.
  • As a greater number of L&P insurers realize the need for digitalization of operations to adapt to the market forces and strengthen their competitive positioning, service providers need to be prepared for such opportunities through requisite investments.

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

Outsourcing Transactions, Global In-house Center Setups Grew in Q4 2018 According to Everest Group Report on Top Trends in Global Sourcing | Press Release

Digital services—especially automation, analytics and cloud—continued to dominate outsourcing activity

The global sourcing industry posted healthy numbers for Q4 2018, marked by an 8 percent increase in outsourcing transactions and a 13 percent increase in Global In-house Center (GIC) setups and expansions over the previous quarter, according to Everest Group.

Digital services continued to dominate the outsourcing activity in Q4, with 74 percent of all outsourcing transactions comprising digital-focused services as compared to 26 percent of transactions focused on pure traditional services. Cloud services were included in 44 percent of all digital-focused transactions for the year.

  • The majority (55 percent) of offshore and nearshore service delivery centers set up in Q4 were focused on digital services. Fifty-six percent of new centers established in Q4 supported automation and 33 percent included analytics services.
  • GICs were increasingly leveraged for digital services in Q4, with 59 percent of GIC setups and expansions including digital services in their scope. Automation continued to account for the maximum share (63 percent) of the total digital-based GIC setups during Q4, reflecting the significant degree to which enterprises are seeking to leverage automation to improve efficiency, deliver business value and reduce cost beyond traditional means.

“The global services industry enjoyed a fourth consecutive quarter of growth in Q4 2018, with digital services activity continuing its upward trend,” said H. Karthik, partner at Everest Group. “Two key areas of service provider activity in Q4 demonstrate this strong emphasis on digital services. First, service providers such as Accenture, DXC Technology and TCS announced acquisitions of startups to enhance their interactive digital content capabilities. Secondly, several service providers announced innovative partnerships with educational institutions in their attempts to bridge the digital skills gap. For example, Accenture announced a partnership with Georgia Institute of Technology, IBM is teaming up with IIT Delhi, and Infosys is joining forces with Cornell. We will continue to see service providers investing in acquisition and partnership strategies to strengthen their digital services capabilities in the year ahead.”

Everest Group discusses these and other fourth-quarter developments in its recently released Market Vista™: Q1 2019 report. The quarterly report highlights the trends in the fast-evolving global sourcing market, exploring the key developments across outsourcing transactions and Global In-house Centers (GICs), as well as location risks and opportunities, and service provider developments.

Additional highlights from the Market Vista: Q4 2018 report:

  • Themes such as design, customer experience, automation and cloud were prominent in Q4 2018.
  • The uptick in outsourcing activity was led by the Banking, Financial Services and Insurance (BFSI) sector.
  • Q4 saw substantial growth in adoption of GICs by small enterprises, with a particular focus on specific services rather than multi-functional centers.
  • The Asia Pacific region witnessed a significant rise in research and development (R&D) GIC setups by manufacturing enterprises, demonstrating a preference to insource next-generation engineering services.
  • To build niche capabilities, service providers focused on the acquisition of startups as opposed to partnerships. As many as 70 percent of acquisitions in Q4 were startups compared to 50 percent in Q3.
  • Key location risk/opportunity trends identified for Q4 2018 include South Africa announcing a new GBS incentive scheme to improve the country’s value proposition; Lithuania attracting a multitude of players looking to innovate and deliver FinTech services, increasing competition from service providers for engineering services sourcing, and significant investment from the Canadian government, likely to boost attractiveness of British Columbia for digital services delivery.

Learn More

  • Download a complimentary 16-page abstract of the report findings here.
  • In the recent webinar, “The 5 Most Important Global Services Trends for 2019,” Everest Group experts shared the context for many of the highlights of the Market Vista™: Q1 2019 report as well other key market trends. Watch the replay or download the webinar deck here.

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