Category: Press Releases

Everest Group Nails Global Services Growth Predictions for 2019, Names Most Attractive Sourcing Locations for the Year Ahead | Press Release

Enterprise focus on digital, engineering and R&D will be growth drivers in 2020, but pandemic, other macroeconomic trends will dampen growth rate yet again.

Everest Group’s predictions that the global services market would witness slightly lower growth in 2019 than 2018 was right on the money. Revenue growth in 2019 was 5%-7% as compared to 6%-8% in 2018. The slower pace of growth can be largely attributed to the global macroeconomic slowdown, volatile currency fluctuations, and the tightening legal and regulatory landscape, with Brexit in the United Kingdom and the European Union’s General Data Protection Regulation (GDPR) as two notable examples.

Looking ahead to 2020, these factors will continue to dampen growth even more, compounded by the disruptive impact of the coronavirus pandemic, apprehensions about an economic recession, trade conflicts between the U.S. and China, and decreased demand for traditional services due to digitalization and automation.

“We believe that the 2020 outlook for the services market remains uncertain,” said Parul Jain, practice director at Everest Group. “Enterprises will continue to rebalance portfolios to bring more critical pieces of work in-house, and leverage low-cost alternatives for non-core workstreams.”

Everest Group shares these findings in two recently published reports: Global Locations State of the Market 2020: Moving Forward in Turbulent Times and 2020 Location Predictions: Confronting the Impending Slowdown. Collectively, this research explores the nuances of the global services locations landscape and interprets locations-related developments and trends to help organizations design a best-fit locations portfolio strategy.

Selected Findings

  • Market activity for new center setups was high across regions, though new center setups grew at slower pace in 2019 over 2018.
  • For new center setups, engineering/research and development (R&D) and IT services continue to experience the highest growth.
  • Growth in Asia Pacific (APAC) locations is expected to be slower in 2020 than in the past few years due to the global macroeconomic climate, the impact of the coronavirus outbreak on Asian markets, and tightening laws in the data protection space.
  • Growth in Central and Eastern Europe (CEE) locations is expected to continue, albeit at a lower rate, given the region’s high-quality talent pool, geographical proximity to buyer locations and increasing leverage of digital technologies. Locations in Middle East and Africa (MEA) are likely to witness increased traction as companies look beyond the established delivery locations to unlock next wave of cost savings.
  • Moderate growth is expected in the Americas, given increasing nearshoring. Multiple players are setting up new centers across Latin American locations to provide voice-support due to the time-zone advantages.

Also included in the Global Locations State of the Market report is Everest Group’s Locations PEAK Matrix®, which provides a comprehensive view of the attractiveness of global delivery locations (cities) in terms of cost, talent availability and risk. The most attractive service delivery locations are deemed by Everest Group to be “Leaders”; “Major Contenders” are considered moderately attractive in terms of cost-savings and have a sufficient talent pool to support mid-to large-sized centers; “Aspirants” typically have lower maturity but offer low cost of operations and considerable opportunity if players invest in talent development. Locations that witnessed significant new center set-up activity by leading Global In-house Centers (GICs) and third-party providers in the past year are dubbed “Star Performers.”

Highlights of Locations PEAK Matrix®

  • Asia Pacific (APAC): Tier-1 locations in India maintain their “Leader” and “Star Performer” positions in English-language delivery functions. In India, tier-2 locations are being leveraged to a higher degree for access to an alternate talent market and higher cost-saving potential, especially for transactional business process services (BPS) and contact center work; however, large-scale delivery of complex functions such as digital services and engineering/R&D services continues to happen primarily from tier-1 cities. The Philippines are “Leader” for English-language contact centers, transactional BPS, and IT-ADM (application development and maintenance) functions.
  • Europe, Middle East & Africa (EMEA): Poland is “Leader” in European-languages BPS and a “Major Contender” for most functions. Poland also maintains its position as a “Star Performer” for BPS functions. Ireland is being leveraged considerably for judgment-intensive functions and European-languages BPS. Ireland also continues to witness high growth in engineering/R&D and digital delivery (including analytics, artificial intelligence and machine learning).
  • Americas: Argentina is “Leader” in bilingual BPS delivery and a “Major Contender” in other functions, such as IT-ADM, contact center and overall business processes. Costa Rica is “Leader” for bilingual BPS work and “Star Performer” for transactional and judgment-intensive BPS functions. Jamaica, Mexico and Guatemala maintain “Major Contender” positions for most functions.

***Download a complimentary abstract of “Global Locations State of the Market 2020: Moving Forward in Turbulent Times” 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.

Online Tool Uses Everest Group Data to Track COVID-19 Impact on Delivery Locations for IT and Business Process Outsourcing | Press Release

Tracker shows enterprise and service provider leaders how COVID-19 is affecting leading offshore and nearshore locations around the world.

Everest Group has created a dynamic and interactive tracker that provides a comparative view on COVID-19 risk exposure across locations and also how the risk has evolved in the last two months across 37 countries. The tracker is updated every weekday.

***Bookmark this page: https://www.everestgrp.com/covid-19-dynamic-tracker ***

COVID-19 has turned business continuity planning into a boardroom conversation topic and has enhanced the need for risk management. This is especially true in the IT outsourcing (ITO) and business process outsourcing (BPO) services industries, where—despite significant advancements in automation and AI—people still manually deliver the work.

“Enterprises and services providers have widely used the cost arbitrage model and expanded their delivery sites in offshore and nearshore locations globally,” said Sakshi Garg, vice president at Everest Group. “Everest Group developed this dynamic tracker to help organizations better track COVID-19 risk exposure to various delivery locations and thereby evaluate options to diversify their operational risk.”

Enterprises who are outsourcing or operating Global Business Service (GBS) centers can select the locations of their choice or locations in their existing portfolio and monitor risk exposure. They can also use the tool to select locations not in their current portfolio to assess options for medium- to long-term risk diversification.

Garg explained, “The tracker also helps leaders understand the IT-BPO delivery profile of the locations in terms of market size, nature of delivery (that is, IT or BPO or both), and evidence of adoption by other enterprises and service providers.”

The tracker has been built by combining publicly available data on COVID-19 cases, mortality rate, and recoveries with Everest Group’s proprietary data on delivery locations, which is based on ongoing tracking of 150+ locations across dimensions of talent, cost, market activity, and nature of work delivered.

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.

6 Innovation Myths Busted by Everest Group Research on Global Business Services | Press Release

May 7 Webinar to Address How GBS Organizations Can Leverage Innovation to Prepare for Economic Downturn

For those enterprises striving to create a culture of innovation, Global Business Services divisions* can be an enormous asset, markedly accelerating the innovation journey and driving the enterprise innovation agenda, according to Everest Group research.

In its newly published report, Innovation in GBSs: Pinnacle Model® Analysis, Everest Group examines 51 GBS organizations and identifies Pinnacle™ (best-in-class) GBS centers—those entities that are achieving superior outcomes because of their advanced capabilities.

Collectively, Pinnacle GBS organizations debunk six common myths associated with innovation.

1.    Myth: Bigger and older GBS centers are not agile and lean enough to deliver better business outcomes. Reality: Bigger and older GBS centers deliver better business outcomes.
2.    Myth: GBS centers should not focus on in-house technology development. Reality: Pinnacle GBS centers primarily develop mature technologies in-house while leveraging ecosystem partners for niche technologies.
3.    Myth: Mature GBS centers deliver only high-end innovation. Reality: Pinnacle GBS centers focus mostly on incremental innovation.
4.    Myth: The GBS innovation team should have more leadership members to ensure better outcomes. Reality: Pinnacle GBS organizations exhibit a balanced team structure while other GBS organizations are more top-heavy.
5.    Myth: Centralized innovation teams in GBS centers and parents are essential to deliver business impact. Reality: A hybrid team structure at the parent level and an innovation head or dedicated steering committee at the GBS center level have proved to be more successful.
6.    Myth: Service providers and technology vendors are the most important value creators in the innovation ecosystem. Reality: Pinnacle GBS organizations extensively leverage a mix of service providers, technology vendors, and startups for driving innovation.

“The entities we’ve identified as Pinnacle GBS centers are adept at leveraging their unique position and capabilities to help their parent organizations build truly disruptive innovation capabilities,” said H. Karthik, partner at Everest Group. “This is demonstrated by significantly higher ROI and cost savings as well as operational and strategic impact.”

Pinnacle GBS centers have been able to achieve significant business impact by effectively driving their innovation engines. Here are a few examples:

  • Cost impact: Pinnacle GBS centers generated 1.5X higher return on investment (ROI) and cost savings than other GBS centers. An example of an innovation initiative with cost impact is identifying potential opportunities to consolidate multiple product lines and processes, thereby realizing the benefits arising from economies of scope.
  • Operational impact: Pinnacle GBS centers have achieved 1.9X greater operational impact than other GBS centers. For instance, a leading Banking, Financial Services and Insurance (BFSI) GBS organization built a smart contracting platform to seamlessly process unstructured data and automate multiple transactional processes, reducing FTE time.
  • Strategic impact: Pinnacle GBS centers delivered 1.6X more strategic impact than other GBS centers. An example of a GBS center having significant impact is a leading electronic and hi-tech GBS organization who leveraged next generation technology solutions to revamp its existing cold chain to preserve and increase the shelf life of perishable goods and chemicals, ensuring the quality through last-mile delivery to the end customer.

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

May 7 Webinar: How GBS Centers Can Leverage Innovation to Prepare for the Economic Downturn

Everest Group is hosting a complimentary webinar to assist senior enterprise executives in understanding how they can effectively leverage their GBS organizations for driving the enterprise innovation agenda. The webinar will address these questions:

  • For what kinds of innovation initiatives are enterprises leveraging the GBS model?
  • How does the current uncertain environment present a significant opportunity for GBS centers to build and demonstrate innovation?
  • What business outcomes have Pinnacle GBS centers delivered for their organizations?

The live webinar will be held on Thursday, May 7, at 9 a.m. CDT.

***Register 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.

*Note: For the purposes of this report, Everest Group uses the term GBS to include Shared Services Centers (SSCs), Global In-house Centers (GICs) and Global Capability Centers (GCCs), although distinctions in these business models can be made.

GBS Share of Market Expands to 27%, with 54% of New Setups Focused on Digital Services | Press Release

Setups of Global Business Services centers outpaced outsourcing growth in 2019 as enterprises looked in-house for high-value contributions beyond arbitrage

Everest Group reports that the Global Business Services (GBS) market1 commanded a 27% share of the US$210 – $212 billion global services market in 2019, outpacing the growth of outsourced services and continuing the segment’s gradual increase in share of market over the last decade.

Enterprises are extensively leveraging the GBS model to accelerate enterprise-wide digital transformation initiatives, with approximately 54% of new GBS centers focusing on digital services. In particular, GBS centers in the engineering services and research and development (R&D) space have gained traction during the last couple of years, with focus on building deep capabilities in areas such as machine learning (ML), artificial intelligence (AI), internet of things (IoT), mobility, analytics, cloud, and cybersecurity.

GBS organizations are also undergoing changes in their operating and governance models, driven by three key needs: building greater alignment with business teams, building agile organizations, and improving performance reporting mechanisms. As a result, GBS organizations are increasingly:

  • moving from a horizontal to a vertical reporting model.
  • shifting to dual-responsibility leadership roles where the site-head’s responsibilities are entrusted (or co-trusted) to other functional leaders.
  • collapsing IT and operations silos into integrated teams focused on business objectives.
  • taking global ownership roles across various domain or functional areas.
  • deploying a wide array of metrics to measure value beyond costs.

“GBS organizations are evolving to become strategic partners to enterprises, playing a significant role in enterprise digital transformation journey as they continue the move from an ‘arbitrage-based model’ toward a ‘value-based model,’” said Rohitashwa Aggarwal, practice director at Everest Group. “We see GBS organizations building deep domain capabilities and shifting to operating models that allow them to build “agile” into their core philosophy and to work closely and freely with key global business leaders. Another major shift is in evaluation—GBS organizations are linking their goals to business- or domain-specific targets and shifting beyond cost-arbitrage as the key metric of performance to a wide array of operational, financial and innovation-related indicators.”

Everest Group shares these findings in its recently published report, GBS State of the Market Report: Evolving Operating and Governance Models to Build GBS of the Future. This report analyzes the GBS landscape, sharing key insights on the GBS market across locations, verticals, and functions.

Additional Findings

  • The GBS market continues to experience strong growth, with 3,300 offshore and nearshore GBSs established until 2019.
  • The GBS model continues to attract new adopters. Around two-thirds of the companies that established GBS centers in 2019 were new entrants with no existing offshore or nearshore GBS facility. At the same time, there are several global companies that have divested their GBS operations, mainly due to talent-related challenges, especially for IT services.
  • India dominates delivery, with a 35-40% share of the overall GBS market. U.S.-based companies are especially inclined towards leveraging India; approximately 58% of the total GBS centers in India are set up by U.S.-based companies.
  • European firms prefer the Central and Eastern European (CEE) region (39% of GBS centers in CEE belong to European firms) due to geographical and time-zone proximity. However, in 2019, the share of U.S.-based companies in the mix of GBS setup in CEE increased considerably.
  • APAC-based firms experienced an increase in overall GBS activity, driven by an uptick of 80% in R&D GBS centers set up by enterprises in China.
  • GBS setups by small companies (annual revenue less than US$1billion) have increased on the back of higher demand for R&D and innovation. In 2019, small companies’ GBS setups increased by 22% over 2018.
  • A majority of GBS centers focus on delivering a single function, such as information technology (IT) or voice-based business process services (BPS), but many (44%) have multi-functional capabilities such as a combination of R&D and IT capabilities.
  • Technology and communication firms lead GBS activity in terms of the number of GBS centers (38%); but the banking, financial services and insurance (BFSI) sector dominates in terms of scale (34%).

***Download a complimentary abstract of this 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.

1Everest Group uses GBS as the preferred term for in-house Global Business Services setups, which are also referred to as Global In-house Centers (GICs), shared services, global capability centers, or captives. The scope of this research does not include GBS centers serving the domestic market.

Everest Group Predicts Significant Slowdown in Revenue for Third-Party Administrators as Needs of Insurance Industry Shift | Press Release

Insurers’ extreme focus on employee and customer experience is forcing TPAs to adapt their offerings beyond commoditized services by leveraging digital technology.

Some third-party administrators (TPAs) are building the requisite capabilities in talent, technologies and data to address the changing needs of the insurance industry, but most TPAs lag behind. Everest Group reports that the top 10 US TPAs suffered a significant drop in year-on-year revenue growth, falling from 20% for 2017-2018 to 5-10% for 2018-2019. Everest Group predicts the slowdown will continue in the year ahead under the impact of the COVID-19 crisis as TPAs look to battle against the falling demand and the changing requirements of insurers.

“Insurers’ extreme focus on employee and customer experience is forcing TPAs to adapt their offerings beyond commoditized services,” said Skand Bhargava, practice director at Everest Group. “Most of the digital-led use cases that TPAs have implemented thus far are low on the sophistication scale when compared to the use cases implemented by insurance IT or Business Process Outsourcing providers. However, some leading TPAs have showed signs of change, making intensified digital investments in more new-age partners and technologies, such as the use of IoT sensors, artificial intelligence, predictive image analytics, telematics and predictive modeling. As a result, these more innovative TPAs are reaping differentiation in the market and positioning themselves for success amidst recessionary pressures because of the greater value they are providing for their clients. Going forward, those TPAs who deliberately commit to well-executed digital transformation will not only deliver a more progressive value proposition to clients but also secure the relevance of the overall industry, especially considering the current environment.”

Third-party administrators are commonly used by health insurance providers as well as enterprises or healthcare organizations who fund their own health plans for employees. TPAs assist these organizations with claims administration as well as premium billing, customer enrollment, and other day-to-day operations of insurance programs.

Currently, the Top 10 TPAs in the U.S command only 3-5% of a $270 billion market, with some of the largest TPAs functioning on single-digit operating margins and very few keeping pace with digital transformation. By leveraging digital technology, TPAs can improve margins, drive differentiation, address operational challenges, enhance talent throughput and ensure client retention. In the longer term, digital adoption can help TPAs adjust to changing risks and move up the value chain to manage critical tasks.

Everest Group shares these findings in its recently published report, Third Party Administrator (TPA) State of the Market Report 2020: Industry Facing an Urgent Mandate to Transform. This report examines the global TPA market, particularly the property and casualty (P&C) and workers’ compensation insurance segments, including changes in client demand patterns and delivery requirements from TPAs, and the role and adoption of digital levers.

Additional Findings

  • For property and casualty (P&C) and workers’ compensation insurance, TPAs are primarily restricted in the value chain to end-to-end claims management.
  • For employee benefits—both life and pension (L&P) and health insurance—TPAs play a more end-to-end administration role.
  • While there are multiple growth drivers for the TPA industry, such as expansion in the scope of services and carrier outsourcing, there are a number of impending challenges as well that restrict the growth opportunities.
  • Intelligent automation, mobility, predictive analytics, drones, and cloud-based modern claims platforms are the five key digital and technological enablers for the transformation of the TPA industry.

***Download a complimentary abstract of this 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.

Growing at a Steady 9% Pace, IT Services in Life Sciences Drives Advancements in Pharmaceuticals, Medical Devices, Supply Chain | Press Release

Nearly $4.5 billion of life sciences IT services deal up for grabs over 2020-2021

Speed to market is the primary focus of biopharmaceutical and medical device firms when it comes to their investment in life sciences IT services (ITS), a market which is expected to grow at a steady 9% compound annual growth rate (CAGR) through 2025, according to Everest Group.

Nearly $4.5 billion of life sciences IT services deal are up for grabs over 2020-2021. Everest Group research shows that these deals will be led by digital initiatives such as artificial-intelligence-assisted drug discovery, leveraging real-world data (RWD) and real-world evidence (RWE) to make clinical trials more accurate, industry 4.0 to automate manufacturing, and responsive supply chains.

Everest Group reports that although biopharmaceutical companies and medical device firms have traditionally devoted the largest share of their ITS investments to manufacturing (31% share) and sales and marketing (25% share), research and development (R&D) has become the fastest growing segment of life sciences ITS expenditures. ITS investments in clinical/device trials and drug discovery/device product development are expected to grow at rates of 15% and 12% respectively through 2025.

“Rising drug prices have become a major concern for healthcare payers, governments and patients, especially since drug and device efficacy and outcomes have not been improving in line with the increasing prices,” explained Nitish Mittal, vice president at Everest Group. “As life sciences firms face pushback on pricing as well as pressure from competitive forces, they can and will look to the IT services landscape for innovative platforms and solutions for R&D functions. As a result, we expect the life sciences R&D segments to witness a healthy growth in demand for IT services in the 12-15% range, compared to an 8-9% growth rate for the life sciences ITS market as a whole.”

Digital transformation has been identified as a strategic imperative by many life sciences enterprises, with particularly emphasis on leveraging enormous amounts of health data now available from electronic health records (EHR), clinical trials, wearables, health apps, genomic sequencing, social media and many other sources. Enterprises are looking at AI-driven systems to leverage this RWD. For example, about 60% of biopharmaceutical companies currently use machine learning to analyze RWD; 95% expect to use it in the future.

ITS providers are significantly ramping up their digital capabilities to cater to this need. Everest Group predicts that numerous high-growth segments in the life sciences ITS market will exceed 10% CAGR from 2020 to 2025, including the following:

  • Clinical trials management (13-15%): Top demand themes will be pharmacovigilance (PV) automation, pragmatic trials using real-world data (RWD) and real-world evidence (RWE), and virtual trials enablement.
  • Personalized and efficient drug discovery (14-16%): Top demand themes will be genomics data analysis and drug repurposing solutions.
  • Patient engagement (16-18%): Top demand themes will be digital therapeutics and Software as a Medical Device (SaMD), including mobile apps, patient portals and smart devices. Patient monitoring and health interventions will be top demand themes as well.
  • Omni-channel marketing support (10-12%): Top demand themes will be customer analytics to measure success of different marketing channels, and customer cohort segmentation and engagement through customized digital marketing campaigns.

Everest Group shares these findings and more in its recently published report, Life Sciences State of the Market – Key Trends, Service Provider Performance in 2019, and Outlook for 2020. This report examines the global 2019 life sciences ITS service provider landscape and covers themes expected to garner greater interest in 2020. It analyzes key market trends and provides a snapshot of all the life sciences IT services PEAK Matrix® assessments carried out in 2019.

***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.

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Covid-19 Propels Healthcare Providers to Accelerate Shift to Telehealth and Digital-First Models—Everest Group | Press Release

Surge in telehealth necessitates investments in analytics, automation, IoT, and cloud infrastructure to enable distributed and scalable care models

Healthcare providers, historically slow to pursue digital transformation, are being forced to jump on the digital bandwagon. According to Everest Group, the surge in telehealth to meet the demands being placed on the healthcare ecosystem by COVID-19 will accelerate healthcare providers’ investment in digital technologies.

Prior to the coronavirus pandemic, Everest Group predicted that healthcare providers would increase spending on digital IT services by more than 15% by 2025. The firm now expects higher investment and a shorter timeline.

“The digital adoption levels in the healthcare provider market had been relatively low, but healthcare response to COVID-19 will accelerate digital adoption,” said Chunky Satija, practice director at Everest Group. “The pandemic is a forcing function, necessitating that healthcare providers future-proof their technology estate—led by investment in analytics, automation, IoT, and cloud infrastructure—to enable distributed and scalable care models such as telehealth and telemedicine.”

Healthcare providers historically have been mired down by their legacy and disintegrated IT systems and by regulations that have had the unfortunate consequence of incentivizing them to maintain the status quo. But that’s not an option anymore, particularly as healthcare providers scramble to meet the unprecedented needs of a world disrupted by the COVID-19 pandemic.

Today’s new models of healthcare delivery, including telemedicine and telehealth, offer great potential for enabling remote healthcare management and better access to care, both during the current crisis and henceforth. However, these new models of care delivery require more widespread digital adoption. Automation, analytics and IoT are the biggest areas of opportunity.

Other opportunities likely to emerge in the healthcare provider space in 2020 include the following:

  • Data monetization. The emergence of a data exchange platform is likely to spur revenue generation for companies holding data assets.
  • Cloud adoption to improve clinical data handling. The use of cloud-based platforms for management of disparate data sources allows for seamless collaboration across multiple stakeholders.
  • Rising stringency of healthcare policies. Due to regulatory changes (such as CMS hospital price transparency requirements recently announced and effective January 1, 2021), providers must establish efficient channels and methods to disclose cost and price-sharing information to patients.

Everest Group shares these findings in its recently published report, Healthcare Provider State of the Market – Trends, Service Provider Performance in 2019, and Outlook for 2020. This report examines existing trends in the healthcare provider space and how they are impacting providers’ decisions. It also provides a snapshot of the PEAK Matrix® healthcare assessments that Everest Group carried out in 2019.

The report includes an overview of the marketplace pressures impacting the strategic decisions of healthcare providers, such as:

  1. BigTech claiming space in healthcare. BigTechs such as Amazon, Apple, Facebook and Google are invading the healthcare market, bringing technologically advanced solutions that aim to drastically improve overall physician and patient experience.
  2. Providers adopting value-based care (VBC). The shift to align healthcare provider incentives with quality of care and health outcomes of patients requires an unprecedented level of data sharing and usage.
  3. The advent of business models of coexistence. To improve patient outcomes and reduce costs, hospitals and health systems are joining forces, providers are partnering with payers, and accountable care organizations (ACOs) are on the rise. These new business models require integration of infrastructure, data and IT management and spur uptake of technologies such as IoT for remote healthcare, analytics to guide interventions, and mobility for intuitive patient portals and information exchange.
  4. Rise in consumerism. Patients increasingly expect healthcare to be delivered as a digital service, but also expect their healthcare information be secure and protected.

***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 Webinar to Offer Counsel on Mitigating Process and Supply Chain Disruptions Due to COVID-19 Pandemic | Press Release

Everest Group’s leading analysts to offer specific actions and frameworks for minimizing the impact of the novel coronavirus to business operations in the short- and mid-term.

Leading analysts from across Everest Group’s practices have compiled their advice for enterprises on how to mitigate the business impact of the COVID-19 pandemic in the short- and mid-term. The firm will share this counsel in a complimentary webinar to be hosted on Tuesday, March 24, at 9 am CDT: “Coronavirus—Beyond Hand Sanitizer: Mitigating Business Impact and Uncovering the Positive.”

***Register for the webinar here***

The one-hour event will delve into these issues:

  • How do you assess immediate impact on supply base?
  • How can you find the cost savings you’re being asked for?
  • How do you reorganize resources and processes to maintain delivery in the mid-term, and how do you build in contracting flexibility/agility to address unexpected capacity variations?
  • Given the current and expected economic impact, do you renegotiate pricing … and how?

“Most organizations have already addressed the basic issues of safe hygiene practices, travel policies, work from home plans and other ways to conduct business while observing social distancing, so this webinar will take it to the next level,” said Michel Janssen, chief research officer at Everest Group. “We will address the questions business leaders have about how to get business done under these unprecedented circumstances and what adjustments can be made now to best position the company for the near and distant future. Our experts will offer a 360-degree view of the business implications and provide specific actions and frameworks leaders can deploy this quarter, next quarter, and the quarter beyond.”

The webinar is designed to help leaders across organizations evaluate impact and uncover opportunities. The event is particularly well-suited for executives in businesses that provide or use IT, business process, or engineering services, including:

  • Heads of procurement and sourcing
  • Category managers
  • Heads of in-house centers or shared services centers
  • C-suite leaders from service provider organizations and buying organizations

The webinar will be hosted by Janssen as well as Amy Fong and Abhishek Singh, vice presidents at Everest Group.

Live participation is encouraged, but registrants who are unable to attend will receive by email a link to the session slides and on-demand playback.

***Reserve your seat***

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.

More Than One-Third of Quality Assurance Spending Devoted to ‘Next-Generation Role’ in Digital Transformation—Everest Group | Press Release

No longer tasked with the mundane, innovative Quality Assurance teams are now playing a pivotal role in helping enterprises adopt emerging technologies without impairing existing operations.

In 2019 more than one-third of enterprise spending on quality assurance (QA) was devoted to next-generation technologies rather than traditional QA activities, representing a 23% jump in next-generation QA spending since 2017, according to Everest Group. Everest Group predicts the QA market will witness radical transformation in the next three to five years as enterprises address the challenges brought by the increasing industrialization of next-generation technology applications, such as Internet of Things (IoT), big data, cloud native, augmented reality/virtual reality (AR/VR), artificial intelligence (AI), and distributed ledger.

Recently, QA standards have been strained by enterprises’ adoption of Agile/DevOps methodology. For example, QA too often has been pursued as an afterthought rather than a strategic activity, and a focus on faster time-to-market has pushed QA to the back burner or made it a severely time-constrained activity.

“With next-generation applications becoming the fulcrum of enterprises’ competitive edge, quality assurance needs to take center stage,” said Yugal Joshi, vice president at Everest Group. “In the recent past, we’ve witnessed how even technology leaders like Google, Facebook, Amazon and GitLab have experienced QA shortfalls, underscoring the need for enterprises to transform the QA role and function.

“Gone are the days when QA is relegated to gathering quality metrics at the end of a process; QA must evolve to play a critical role as a process innovation engine. Next-generation QA teams not only need a knowledge of emerging technologies but also the skills and adaptability to contribute and innovate within more agile, inclusive and automation-led delivery models. This means organizations must redefine QA talent requirements, organizational structure, methodology and use of technology.”

Everest Group explores these findings in its recently published Application Services State of the Market Report, “Next-Generation QA Services – From Mundane Existence to Innovation Engine.” The report presents a comprehensive analysis of the next-generation QA services market.

Selected Highlights:

  • QA is increasingly getting embedded in development processes, exhibiting convergence of QA spend with development spend.
  • Within next-generation QA, cloud native, big data and IoT are the leading investment themes with more than a 60% share.
  • End consumer-centric industries—such as banking, financial services and insurance (BFSI) and healthcare—are leading the charge of adopting next-generation QA services to stand differentiated amongst peers and attract users.
  • North America and Europe lead in adoption of next generation QA services, largely because these regions also lead in increased next-generation technology adoption and policies geared toward consumer protection.
  • Enterprises recognize the evolving talent needs but are still exploring different means to achieve the desired level of talent readiness. Eighty-five percent of QA leaders believe up-skilling the existing talent base is an urgent requirement.
  • Service providers are currently not measuring up to emerging enterprise expectations for QA services; only 31% of enterprises are open to working with new QA providers.

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

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business 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.

Enterprises Boost Investment in Application Transformation Initiatives by 64% in 2019—Everest Group | Press Release

Only 13% of application transformation initiatives have delivered the intended objectives, which makes the market ripe for service providers to deliver much-needed expertise, talent and technology

Application transformation initiatives by enterprises witnessed a steep growth rate of 64% last year, as enterprises sought to achieve competitive advantage by transforming their core applications, according to new research from Everest Group. Unfortunately, only 13% of all transformation efforts delivered the intended consequences.

Application transformation refers to the migration and/or adaption of an existing application to a modern environment designed to significantly increase the value delivered in terms of functionality or experience, or both.

Business stakeholders led 56% of the transformation initiatives in 2019 as they sought faster time-to-value, new revenue streams, enhanced user experience, faster insights and scalability for growth. This represents a significant shift from 2018, when the majority (62%) of transformation initiatives were driven by CIOs with core IT objectives of technology standardization, process simplification, increase in automation, efficiency, cost optimization and architecture unification. Alignment of business and IT objectives is an essential component of successful application modernization initiatives.

“The good news is that enterprises are increasingly viewing digital transformation as table stakes, and they are investing in application modernization, specifically, to deliver competitive differentiation and other key business outcomes,” said Yugal Joshi, vice president at Everest Group. “In fact, more than 80% of the application transformation initiatives are directed to transform core applications supporting the business. Unfortunately, too few of these initiatives are achieving the desired outcome. Enterprises particularly struggle with understanding their legacy systems, aligning business and IT objectives, and transforming their human resources to derive full benefits from the modernization effort.”

Everest Group explores the findings and the implications for service providers in the application transformation market in its recently published report, “Application Transformation – Business Pioneering the Agenda.” The report examines enterprise demand themes and consumption patterns and provides an easy-to-follow playbook to help enterprises begin their transformation journeys.

“Another important shift we’re seeing in the application transformation market is that the majority (55%) of enterprises are budgeting for transformation projects in their annual spends,” added Nitish Mittal, vice president at Everest Group. “The corresponding shift to long-term deals rather than small pilot projects is a move in the right direction, because enterprises need a longer-term, well-planned approach to application transformation in order to realize their desired business objectives.”

In the report, Everest Group identifies eight crucial steps in a well-planned approach to application transformation:

1.    Need identification – Clearly identify the business requirement and objectives.
2.    Landscape assessment – Undergo a value-chain assessment to identify processes and applications that require transformation.
3.    Transformational roadmap – Develop a strategic roadmap identifying key steps, stepwise goals, and the investment required.
4.    Measurable outcome – Develop a set of metrics across the funnel to improve the accountability of business outcomes.
5.    Self-funding model – Invest the benefits realized at each step to fund the successive transformation stages.
6.    Team structure – Promote a culture of innovation and shared responsibility through integrated teams.
7.    Talent – Build a learning ecosystem, enabling the workforce to evolve with technology and industry.
8.    Change management – Ensure enterprise-wide mandate of technology adoption with collaboration of the IT team.

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

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business 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 https://www.everestgrp.com/.

 

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