Category: Outsourcing

Impact Of Coronavirus Threat To The IT Services Industry | Blog

Clearly, the coronavirus (COVID-19) already has an impact on the global economy and broader market. Companies are cancelling conferences and events. They are closing their campuses to outsiders. Travel is restricted. And in some instances, companies impose a work-from-home policy. In the IT and BPO services industry, decision-making is stalled, and we already see clients cancelling planned contracts.

How bad is the disruption to the services industry? It will have a negative impact on revenue growth in the next quarter (ending in June 2020) and potentially in several quarters to come. New projects will be postponed or cancelled. This is because, first, companies simply cannot buy complicated services without some form of travel. Second, any large initiatives require executive support and energy, and they won’t have time to push contracts forward during the next few months.

Read more in my blog on Forbes

Visit our COVID-19 resource center to access all our COVD-19 related insights.

Coronavirus Service Delivery Update | Blog

This is the third in a series of blogs that explores a range of topics related to these issues and will naturally evolve as events unfold and facts reveal themselves. The blogs are in no way intended to provide scientific or health expertise, but rather focus on the implications and options for service delivery organizations.

These insights are based on our ongoing interactions with organizations operating in impacted areas, our expertise in global service delivery, and our previous experience with clients facing challenges from the SARS, MERS, and Zika viruses, as well as other unique risk situations.

Over the past two to three weeks, media focus has shifted away from China, where the growth rate of new infections has slowed markedly. Hubei province remains the epicenter of the disease, but 8 of the 10 provinces that make up that core group of provinces where the disease has been most prevalent, have seen no new cases for several days. Hubei and the coastal province of Zheijang alone among the 10 are reporting new positive cases. There have been no public reports of service delivery interruption from any of the 44 Global In-house Centers (GICs) inside the core group of 10 provinces. Indeed, the last week has seen a steady return to work outside Hubei province.

The new global focus is on a group of high-risk countries including South Korea (Daegu and Cheongdo), Iran and Italy (specifically the whole of the north of the country and not just the provinces of Lombardy and the Veneto), and on a secondary group comprising Japan, Singapore, Laos, Thailand, Vietnam and Myanmar.

Data from Everest Group Market Intelligence (EGMI) shows that there are 470 Global Inhouse Centers (GICs) – or shared services centers – and 196 service provider delivery centers located in China and across these additional nine countries. Based on travel advisory and media reporting of regions that are more or less severely impacted, China still has the greatest exposure to delivery risk, with 73 delivery centers in high impact areas, and a further 272 in areas that are likely seeing little or no impact. Italy has 14 service provider delivery centers in the high-risk Northern provinces. South Korea has one or two GICs in Daegu, the city most affected by coronavirus infections. See details by country and sector in the two tables below.

exposure by country

exposure by sector

In view of restrictions imposed by governments, or companies implementing business continuity protocols, or simply out of fear of contracting the virus through proximity to large numbers of people, it is highly likely that most, if not all, of the delivery centers in high impact areas are closed and will remain so until further notice.

Many multinational corporations with offices in China and Hong Kong have imposed either complete travel bans (Amazon, Apple, Citigroup, Credit Suisse, Ford, Goldman Sachs, Google, HSBC, JP Morgan, LG, Salesforce) or have banned non-essential travel (GM, Johnson & Johnson, P&G, PwC, Siemens) to and from mainland China, Italy, Japan, and South Korea. In some cases, cross-border travel has been suspended indefinitely.

The same imposition of a work from home policy for all staff of multinationals in China and Hong Kong, which is beginning to ease, is now the norm for many businesses in Milan, the capital of Lombardy. The cancellation of meetings or conferences involving even modest numbers of international participants is now a daily occurrence.

The outward spread of the disease has also started to impact major service delivery locations, especially India, which comprises 40 percent of the world’s global services delivery capacity. As of March 6, 2020, 30 Covid-19 cases have been confirmed in the country. Initially, only passengers from high-risk countries were being checked at airports, but the government has implemented universal screening for all passengers flying into the country. Multiple companies such as Cognizant, PayTM, Wipro, and KPMG have temporarily closed select offices in Delhi NCR and Hyderabad and stepped up their employee safety efforts. In addition to encouraging the remote working model, these efforts include disinfecting and sanitizing office spaces, putting hand sanitizers at entry and exit points, discouraging staff from conducting physical meetings, restricting the entry of outsiders in office premises and distributing N95 masks amongst employees.

We continue to monitor these locations.

Visit our COVID-19 resource center to access all our COVD-19 related insights.

South Africa – The Emerging Hub for Information and Communication Technology Services Delivery | In the News

The Global Business Services (GBS) industry in South Africa experienced about a 25 percent Compound Annual Growth Rate (CAGR) from 2015 through 2019 – that’s three times the global average. Business process services, especially for English language voice-based delivery, has been the strongest foothold for the country, driven by growing availability of a large, accent-neutral, and empathic workforce, government support with improved access, and enhanced enabling infrastructure. Now, the country is fast emerging as an attractive location for Information and Communication Technology (ICT) services delivery, a segment that today comprises about one-fifth of the total global services market in South Africa.

So, what’s propelling South Africa’s appeal as a destination of choice for all kinds of IT services?

The digital value proposition

South Africa has kept pace with increasing global demand for digitalization and offers capabilities for next-generation services including testing, data services, analytics, and end-user support. The growth rate for next-generation technologies, such as AI, blockchain, machine learning, and IoT, is almost double that of the country’s ICT sector. The country consecutively ranked among the top 20 digital nations in the Tholons Globalization Index in 2018 and 2019, and secured the fourth highest innovation/digital score globally in 2019. Within the continent, it is the leading destination in terms of technological readiness for a digital revolution, and it was ranked among the top five for AI readiness by the Government AI Readiness Index 2019.

The talent value proposition

South Africa has a sizable pool of technically skilled and trainable English-speaking talent, with a more neutral accent than offshore geographies such as India and the Philippines. And because of lower infrastructure costs, GBS-focused government incentives, and relatively low attrition rates, the country offers cost arbitrage rates for ICT delivery that are 25-35 percent less than in competing central and eastern European (CEE) locations, and 50-60 percent less than tier-2 locations in the UK.

The government support value proposition

In the past couple of years, the government has proactively rolled out various incentive plans and policies to develop ICT capabilities for domestic and global companies. Programs including GBS incentives, employment tax incentives, the Export Marketing and Investment Assistance (EMIA) scheme, and the Sector Specific Assistance Scheme (SSAS) are aimed at creating employment by servicing offshore activities and contributing to the country’s export revenue from offshoring services.

The central and provincial governments have also made concerted efforts to build more complex IT skills through industry-academia collaboration and training programs such as Digital Innovation Precinct and ImpaCT, which provide training and education for software engineering, game development, data science, and other digital skills. Cloud engineering, cyber security, data services, and analytics are among the top investment areas for the government’s 2030 Green Target Plan to develop digital/ICT outsourcing capabilities in South Africa.

With all this, it’s no surprise that the country is experiencing increasing demand for IT services across industries, including healthcare, BFSI, and telecom. The country is home to a fast-growing cluster of companies providing website architecture and development, application and platform development, big data analytics, RPA, and cybersecurity solutions. Currently, South Africa houses two Azure datacenters by Microsoft and one by Huawei, and Amazon has plans to open a data center in 2020. South Africa’s thriving start-up community further supports innovation and advances in emerging fields such as Fintech, EdTech, InsurTech, and HealthTech.

While contact center continues to be the mainstay of the South African GBS industry with almost three-quarters of the total headcount, the country’s capabilities in other functions, including ICT, are growing quickly. To learn more about South Africa’s attractiveness as an ICT delivery destination, please contact H Karthik, Parul Jain, or Ratandeep Burman.

Impact of Coronavirus on Service Delivery Is Limited But Ongoing | Blog

This is the second in a series of blogs that explores a range of topics related to these issues and will naturally evolve as events unfold and facts reveal themselves. The blogs are in no way intended to provide scientific or health expertise, but rather focus on the implications and options for service delivery organizations.

These insights are based on our ongoing interactions with organizations operating in impacted areas, our expertise in global service delivery, and our previous experience with clients facing challenges from the SARS, MERS, and Zika viruses, as well as other unique risk situations.

To date, over 99 percent of the officially confirmed total of 45,000 (61,000 if the Chinese authorities’ newly expanded definition is used) Covid-19, or Coronavirus, cases are inside China. The impact of the virus is pronounced in a core group of ten Chinese provinces: Hubei, where the virus originated, the six neighboring provinces of Shaanxi, Heinan, Anhui, Jiangxi, Hunan, and Chongqing, plus the adjacent coastal provinces of Guangdong, Fujian, and Zheijiang. As of February 9, these areas account for 90 percent of the total reported confirmed cases and 92 percent of China’s new cases.

While supply chain organizations in these provinces are facing severe impacts due to closures, we believe the level of exposure to risk of disruption for service delivery organizations is limited because the service delivery centers are largely servicing internal customers, which are themselves operating at reduced capacity or are closed completely until further notice.

Data from Everest Group Market Intelligence (EGMI) shows that there are 51 Global Inhouse Centers (GICs) – or shared services centers – and 20 service provider delivery centers located in these 10 provinces. Of the seven GICs in Hubei at the epicenter of the outbreak, two, owned by FedEx and UPS respectively, are thought to deliver internal shared services to domestic and near-Asian employees. The rest are technology research or innovation centers.

In view of restrictions imposed by the Chinese government, provincial governments, or companies implementing business continuity protocols, it is highly likely that most, if not all, of these delivery centers are closed and will remain so until further notice.

Examples of the restrictions imposed by the authorities or by companies themselves that have been in place for at least two weeks and look set to remain include:

  • The Chinese government extended the New Year holiday, which began on January 24, to February 2. Authorities in in 24 provinces and cities further extended closures by a week to February 9, and many businesses look set to remain closed the week of February 10; authorities in Beijing have urged businesses to adopt flexible working policies, including working from home
  • Places of business in Hubei will remain closed until February 15 at the earliest
  • With extensive internal travel restrictions in place, many workers who had returned to their home provinces for the New Year holiday are now unable to return to work
  • All multinationals with offices in China and Hong Kong have imposed either complete travel bans (Amazon, Ford, Google, HSBC, and LG) or non-essential travel (GM, Johnson & Johnson, P&G, PwC, and Siemens) to and from mainland China
  • Many multinationals have imposed a work from home policy for all staff in China and Hong Kong until further notice; in some cases, this policy has been backed by widescale closure of offices and facilities
  • Some businesses have cancelled meetings or conferences involving large numbers of international participants, including, for example, Citibank’s annual investor conference in Singapore, ZTE’s press briefing at MWC in Barcelona, and Ericsson’s attendance at MWC in Barcelona.

As an example of specific defensive measures businesses are taking, all businesses and public facilities in Singapore, in accordance with government guidelines issued on February 10, are now:

  • Scanning people entering and leaving buildings for raised temperature
  • Increasing the frequency and intensity of cleaning
  • Making hand sanitizer widely available
  • Requiring all visitors to make a health and travel declaration
  • Issuing face masks to staff who interact with members of the public

It is possible that some enterprises will use the disruption caused by the outbreak as justification for cost cutting and capacity reduction, but we don’t yet see clear evidence of that.

Visit our COVID-19 resource center to access all our COVD-19 related insights.

Selecting the Best Multilingual European Service Delivery Destination for Your Needs | Blog

Although Europe is the second smallest of the world’s continents by surface area, it packs a huge business and economic punch. And because the continent is home to 24 official languages, businesses that are headquartered or have large operations there need to have workforces proficient in languages beyond the native tongue in the country in which they’re located. Extensive language capabilities will help them penetrate new European markets and enable them to have more productive conversations with stakeholders across the globe.

So, just as we did in a recent blog on service delivery destinations best suited for Asian language delivery, we’re taking a look at the countries best equipped to handle the wide range of European languages.

European Countries and Regions

While Europe is, of course, the go-to continent for European language delivery, there are considerable differences among the Central and Eastern Europe (CEE) and nearshore regions, and among the different countries within each region.

Central and Eastern Europe (CEE)

CEE locations offer high scalability of multiple European languages at relatively moderate cost, but many face certain regulatory and macroeconomic issues.

Poland is the premier location in the CEE region. Because many shared services centers – or global in-house centers – are based in Poland, it has a mature service delivery ecosystem and robust infrastructure. Poland also has significant talent availability with the ability to support complex service delivery, and a multilingual talent pool with high scalability potential for a number of European languages, particularly German and French, and Russian, Italian, and Spanish to a lesser extent. However, because it’s a preferred location in the region, high competition for talent has created sourcing and talent retention issues. The country also lacks the ability to scale delivery in other European languages, such as Dutch and Portuguese.

Romania and Hungary are other good options in the region; they offer particularly high scalability for French, Spanish, and Italian language skills at a moderate cost of operations.

Nearshore Europe

Nearshore locations provide the best quality of life in an optimum business environment, but operational costs are high.

Ireland is the top nearshore destination in Europe. It offers a high quality of life, a favorable business environment and infrastructure, and significant availability of multilingual talent, with high scalability potential for French, German, Spanish, and Italian due to its ability to attract quality talent from other countries. And many companies are attracted to its high proximity to onshore locations.

However, like Poland, it suffers from high global and regional player competition for talent and struggles to achieve scaled service delivery for Dutch and Portuguese. It’s also among the most expensive locations in Europe for service delivery.

Scotland is a good alternative, as it offers comparable languages skills and infrastructure at a lower cost of operations.

Beyond Europe

There are also destinations in Latin America and the Middle East and Africa (MEA) region that can satisfy some European languages needs.

Most Latin American countries have large graduate pools with bilingual capabilities, despite a general lack of high-quality educational infrastructure. In particular, Mexico and Costa Rica provide strong Spanish and English skills, along with mature global services ecosystems and proximity to onshore locations. However, as the premier location in the region, Costa Rica suffers from high competition for talent and the highest cost of operations in Latin America.

Destinations in MEA also have large graduate pools with strong multilingual capabilities. For example, Egypt and Morocco offer abundant French – and, to a lesser extent, Spanish – language skills, driven by a strong cultural and historical affinity to France and Spain. But the cost of operations is high in Morocco, and Egypt is politically unstable.

To learn more about the relative attractiveness of key global locations to support global languages, please see our recently published Talent Handbook for Language Skills.  The report, which assesses locations against 20+ parameters, uses our proprietary ”Enabler-Talent Pulse Framework” to determine the attractiveness of locations for language delivery. You can also reach out to the report authors: Parul Jain, Kunal Anand, and Pagalam Rajeshwaran.

Ongoing Coverage of the Service Delivery Impacts of Coronavirus | Blog

Ongoing Coverage of the Service Delivery Impacts of Coronavirus

Coronavirus, or 2019-ncOv, creates many uncertainties for organizations engaged in the delivery of business process, IT, and engineering services. While the initial focus is the delivery of services from China, geographies such as India and the Philippines (and perhaps others) may also become areas of increased concern. Global service delivery organizations are typically large and involve extensive international mobility, increasing their risk exposure; at the same time, they are also leaders in virtual interactions via phone, email, and video.

This is the first in a series of blogs that explores a range of topics related to these issues and will naturally evolve as events unfold and facts reveal themselves. The blogs are in no way intended to provide scientific or health expertise, but rather focus on the implications and options for service delivery organizations.

These insights are based on our ongoing interactions with organizations operating in impacted areas, our expertise in global service delivery, and our previous experience with clients facing challenges from the SARS, MERS, and Zika viruses, as well as other unique risk situations.

Everest Group recently published a Risk Radar update on China related to coronavirus. With this update, we increased our risk rating for service delivery in China from “low-medium” to “medium.” Members of our Locations Insider, Catalyst, and Market Vista memberships can access the report.

We recommend that business process, IT, and engineering services firms migrate their critical operations to alternate delivery locations and promote the use of teleconferencing and work-from-home policies to ensure business continuity with minimal impact to operations. Additionally, companies should implement precautionary measures in compliance with the government guidelines.

In the coming days, we will publish additional blogs covering a range of topics related to this issue. At this point, mortality rates appear low, so the main concern may continue to be basic availability of business operations in China and implications on travel, families, and in-flight initiatives.

Visit our COVID-19 resource center to access all our COVD-19 related insights.

The Many Languages of Asia, and the Delivery Locations Best Positioned to Service Them | Blog

Asia has long been an important business destination, as it’s home to more than 60 percent of the world’s population and accounts for a major share of world consumption. In fact, forecasts suggest that – with increasing access to credit, low inflation, rising income levels, and a favorable regulatory environment – Asia alone will account for 40 percent of the world’s consumption by 2040. The region also accounts for approximately half (about 2.2 billion) of the world’s internet users, which constitutes an enormous pool of digital consumers.

So, it’s no surprise that many businesses have set up facilities closer to the region and that many indigenous organizations have emerged as well. Indeed, about 40 percent of the world’s 5,000 largest companies are based in Asia.

However, to truly succeed in this market, enterprises need a crucial weapon: a multilingual workforce proficient in Asian languages.

Although English is still widely accepted as the universal language for business, a workforce proficient in Asian languages brings additional value to the table. It acts as a conduit between the organization and the region by helping develop a deeper cultural connection with customers, revealing their concerns and preferences, which might not be understood otherwise.

Major Asian business languages include Mandarin, Korean, Thai, Bahasa Indonesian, and Malay, and each one provides access to a different consumer market. Thus, one key strategic consideration for enterprises selecting an Asian service delivery location is the language capabilities of the talent in the destination.

Let’s take a quick look at some of the major multilingual destinations in Asia and the value proposition they offer.

Malaysia

Malaysia ranks among the top service delivery locations for Asian languages, primarily because it lies close to source markets and is a mature destination that supports a wide range of services and languages. The country supports scaled delivery of Mandarin and Bahasa Indonesian and, to a lesser extent, Korean, Japanese, and Thai. The only challenge is the relatively high cost of operations compared to other Asian service delivery locations.

The Philippines

Another attractive location for service delivery in Asian languages, the Philippines offers moderate cost savings, breadth and depth of services, and scalable language delivery. However, the country struggles with achieving scaled service delivery in Thai.

Vietnam

Vietnam is a moderately attractive location for Asian language delivery, driven by the significant cost arbitrage it offers compared to other prominent locations. Organizations can achieve scaled delivery of services in Japanese and Mandarin but will experience challenges in scaling up service delivery in other Asian languages.

India

Although India is a key global services destination, the country falls behind its competitors in multilingual service delivery in Asian languages. India struggles to scale up service delivery in almost all major Asian languages, and compensation for multilingual service delivery approximately costs 50 percent more than service delivery in English.

With India out of the race, what’s the best service delivery location for your organization’s Asian language needs? If cost is an important consideration in setting up your multilingual team, the Philippines and Vietnam are attractive locations. But if you are looking for market maturity, scaled language delivery, and proximity to source markets, Malaysia is the clear winner. The country can comfortably cater to Indonesia, Korea, Japan, China, and Thailand – a huge belt within Asia – which combined house a population of nearly 1.6 billion.

To learn more about key locations for language-based service delivery and the primary drivers – including infrastructure, talent potential, business environment, adoption maturity, competitive intensity, and financial feasibility – that impact location attractiveness, please read our recently published report, Handbook for Language Skills, or reach out to the report authors: Parul Jain, Kunal Anand, and Pagalam Rajeshwaran.

Dark Horses Challenging Mexico City’s Status as Top Mexican Services Delivery Location | Blog

Mexico continues to be the destination of choice for global services delivery across Latin America. Indeed, our  research for our “Global Locations Annual Report 2019: Demand for Next-Gen Services Defining Locations Strategies” report found that 26 percent of LATAM’s new set-ups established during 2017 to 2019 were in Mexico, including those by Atento, Continental, Harman International, Hexaware Technologies, Neoris, Tech Mahindra, and Zensar.

IMG2

There are multiple reasons that Mexico is the top LATAM global services delivery destination. First, while voice and non-voice business process services continue to grow moderately, the country is the leader in digital due to an increase in support for services including analytics, cloud, mobility, big data, IoT, and artificial intelligence. Second, very few locations offer a better cost-talent proposition to North American enterprises than does Mexico. And third, the fact that it’s a nearshore location makes it highly attractive to North America-based companies.

So, what are the top delivery destinations in Mexico?

Mexico City has the largest share of the Mexican market and is the most mature location in terms of breadth and depth of IT and business process services delivered, including IT consulting, digital, accounting, tax, and actuarial services.

However, despite being the country’s capital city and biggest business hub, Mexico City lags behind most of its Mexican counterparts in quality of life aspects including crime rates, traffic congestion, and air pollution. And, it ranks second to last of 32 cities assessed across Mexico on “ease of doing business.” All of this, coupled with the fact that clients care most about the talent capabilities in the destination, is opening the door for several other Mexican cities to carve out greater portions of the Mexico services delivery pie.

Let’s take a quick look at these dark horses.

Guadalajara

Guadalajara, often referred to as the “Silicon Valley of Mexico,” continues to grow due to its availability of IT-related talent and delivery of key skills such as IT-ADM, cyber security, and IT consulting. Large pools of talent from adjoining areas have been migrating to the city. Today, Guadalajara is home to some of the top service providers, including HCL Technologies, IBM, and TCS.

Monterrey

Monterrey continues to grow in the finance and accounting space and is one of the country’s most mature locations after Mexico City. The city also delivers some of the more complex functions including tax and accounting. Given its proximity to the U.S. border, the English language proficiency and scalability potential of its global services workers is the highest in the country. The city also offers the best overall business environment, primarily due to better quality of life, infrastructure, and connectivity.

Queretaro

With its proximity to Mexico City, Queretaro has grown steadily as a delivery location across functions over the past several years. The city has had maximum percentage growth in graduates across Mexico since 2015, albeit on a smaller base. However, its development is still nascent, so it’s largely being leveraged as a smaller spoke to a larger hub within the region. From a cost standpoint, most global companies view it as a low-cost alternative, primarily driven by lower people- and non-people costs.

 

IMG1

To learn more about the dynamics shaping the global services locations landscape, please read our recently published report, “Global Locations Annual Report 2019: Demand for Next-Gen Services Defining Locations Strategies.” We developed the report based on deep-dive discussions with regional investment promotion bodies, leading shared services centers, service providers, recruitment agencies, and other market participants.

For more information on Mexico as a global services delivery location, please contact us at [email protected], [email protected], or [email protected].

Companies Waste Or Overpay Service Vendors At Least 10% | Blog

Organizations buy services from a wide variety of service providers — ranging from managed services for IT applications and infrastructure, contingent labor to supplement gaps in skills and availability, cloud services, business process services, and more. We at Everest Group looked at the administration of these contractual relationships and discovered that most organizations leave tens of millions of dollars on the table. Why does this happen and what is the answer to this dilemma?

Read my blog on Forbes

What’s Driving the Upcoming Wave of Indian Service Provider Layoffs? | Blog

Recent news reports of upcoming layoffs in India’s IT-BP industry are painting a pretty gloomy picture for 2020. Indeed, the reported layoff numbers from Cognizant, DXC Technology, IBM, and Infosys collectively amount to more than 20,000 employees and account for 4-5 percent of their total India headcount. Coupled with the economic slowdown in the country, these layoffs will add to India’s high unemployment rate over the next few quarters.

What’s driving these layoffs? Is it the maturity of legacy systems, as Cognizant and Infosys said? Is it due to workforce restructuring and cost pressures, as Capgemini, DXC, and IBM cited?

There are four reasons that many of India’s IT and BP providers – not just those mentioned above – may have to trim their workforces in 2020.

Cost and margin pressures

The slow economic growth is putting pressure on providers’ ability to meet their target margins. Heavy discounts to retain existing clients, building new relationships, and slow revenue growth are exacerbating the situation. Letting some employees go helps them streamline their costs.

Rise in reshoring

Reshoring continues to grow for multiple reasons: stricter visa regulations, new data security regulations (i.e., the introduction of GDPR in 2018), and buyers’ increasing desire for providers to grow their onshore presence for ease of coordination, better alignment/training, and promotion of customer intimacy.

Given their dependence on multi-national and global clients, service providers have drastically increased hiring in some onshore locations to localize their business presence. This not only adds to the overall costs of operations but also translates into a reduced number of transactional roles in India to optimize overall costs.

Digital uprise

Legacy technologies are fast giving way to new digital technologies like cloud, Internet of Things (IoT), Machine Learning (ML), and Artificial Intelligence (AI). This is increasingly reducing the need for workers with expertise in legacy technologies. And automation adoption has made jobs redundant, leading to lower headcount demand than before.

Rationalization of the experience mix

One lever service providers are pulling to help their clients optimize their delivery costs is rationalizing their middle-heavy delivery pyramid, particularly in India. This is because mid-level resources add to the existing high cost of operations, aren’t particularly adept in emerging technologies, and have been slow to up-skill themselves on them. Thus, providers are increasingly targeting a healthy mix of resources spread across entry-level and experienced talent. This will result in substantial mid to more senior employee layoffs.

The double whammy of the economic downturn and technological transformation might lead service providers to cut more jobs in the coming quarters. This will not only help them streamline their costs, but also redirect their focus towards reskilling and restructuring the existing workforce. While the existing employees struggle to upskill themselves to retain their jobs, the fear of future uncertainties is comprehensible.

To learn more, please read our recently published report, “Market Vista: Q4 2019.” It’s designed to equip global sourcing professionals with incisive research and insights on the latest trends in the sourcing market, sourcing locations, and service provider developments. We develop the Market Vista reports based on deep-dive discussions with leading shared services centers, service providers, and other market participants.

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