Category: Uncategorized

Analyst Relations Newsletter Q3 2018: Key Highlights from Custom Research

Key highlights from recent custom research projects by Everest Group

Case #1: Advised a leading service provider in U.S. location selection and portfolio design

Everest Group’s approach: The client sought Everest Group’s support in developing its 2020 location strategy for its U.S. locations. The scope of work included both technology and business process services. Everest Group developed a strategy for the service provider, which involved:

• Identifying a long list of potential locations
• Conducting a detailed function-specific filtering to identify relevant locations for further analysis
• Conducting a detailed function-specific deep-dive in each of the selected locations covering dimensions of talent availability, scalability/sustainability, operating costs (both current and future), and business/operating risks
• Recommending best-fit locations for the client and inputs on location portfolio design

The client is in process of implementing Everest Group’s recommendations on the best-fit locations

Case #2: Advised a leading global insurance firm on its GIC strategy design

Client overview and background: The client sought Everest Group’s help in developing its 2018-2025 GIC strategy to enable the parent to leverage the GIC more strategically. The new strategy was intended to strengthen and maintain the competitiveness and differentiation of the GIC from other options, including outsourcing.

Everest Group’s approach: Everest Group developed a 2025 strategy for the GIC, which involved:

• Framing key objectives for the future strategy, including a clear articulation of why the client needs a new strategy
• A blue sky assessment of priority areas for the new strategy and strategy finalization in syndication with the Group GIC board and management committee
• A collaborative effort with the GIC management and leadership teams to lay out an approach to achieve desired outcomes, i.e., how the GIC will implement the new strategy

The new strategy was developed using a combination of inputs including perspectives of key parent stakeholders, GIC leaders, and Everest Group’s outside-in perspectives. Everest Group created a strategy roadmap for 2018-2025, including prioritization of opportunities for the near term (1-2 years), medium term (3-5 years), and long term (5-7 years) and detailed plans to guide implementation in the near term.

Analyst Relations Newsletter Q2 2018: Key Highlights from Custom Research

Key highlights from recent custom research projects by Everest Group

Case #1: How we advised a leading services provider to identify the addressable market opportunity and associated value prop in cloud-based F&A services

Client overview and background: The client has a strong presence in some horizontal BPO services, but minimal to no presence in Finance & Accounting (F&A) and wanted to identify opportunities within cloud-based F&A services as well as value differentiators that would resonate in that market.

Everest Group’s approach: Everest Group conducted a detailed analysis of market attractiveness along the following dimensions:

• Market demand (opportunity size, growth, buyer trends)
• Competitive landscape (key players, offerings, approach, proposition)
• Solution dynamics (process coverage, digital leverage, pricing trends

Client benefits: We cut the market across its constituents and identified pockets of addressable opportunity. By combining both demand and supply constraints, we helped the client prioritize opportunities and drive thinking on the required solution characteristics to be successful in the shortlisted segments. Everest Group’s inputs and insights served as a direct input into the client’s investment decisions and to-to-market strategy.

Case #2: How we assisted a fast-growing back-office services provider to develop and execute a go-to-market strategy for an Accounts Payable (AP) services offering in Australia

Client overview and background: The client offers back-office accounting services to Australian clients primarily from its offices in India and wants to expand into AP services banking based in its current footprint in Australia.

Everest Group’s approach: Everest Group conducted a two-phased approach to help the client:
Phase 1: Opportunity identification – assessing addressable opportunity across industries and prioritizing high-potential industries
Phase 2: Go to market strategy (for a chosen industry) – Buyer demand and trends in AP services, customer segmentation, target group identification, CFO behavior archetypes and proposition design, sales force structure and size, sales territory design, etc.

Client benefits: Everest Group used its proprietary data assets to shortlist one industry from Phase 1 that offered the highest opportunity for the client. In Phase 2, we conducted an in-depth exercise to understand the Australian AP market within the chosen industry and the client’s internal structure and capabilities. The client used Everest Group’s recommendations to guide its go-to-market strategy in Australia. 

googleb134639d1c7f2d47.html

googleb134639d1c7f2d47.html

Analyst Relations Newsletter Q1 2018 | Key Highlights from Custom Research

Advised a leading Engineering Services provider on refining its market positioning and improving articulation of capabilities to customers

Client overview and background: The client believed that while it had strong engineering capabilities, it lacked in impactful messaging and effective articulation of business impact created

Our approach: Everest Group conducted a detailed analysis of client impact created across marquee projects in four areas of focus:

• Design Thinking
• AI/ML/Automation led engineering efficiency improvements
• Transforming traditional products to smart products
• Industry 4.0/Factory of the future

Client benefits: Everest Group was successful in bringing out compelling differentiation for the client, emphasizing on innovation and unique strengths, and enhancing articulation of outcomes. Everest Group’s inputs and insights served as a direct input into the client’s marketing strategy, sales pitch documents, and overall branding material.

Case Study II: Assisted a leading Engineering Services provider in identifying best-fit European location for delivery of engineering services

Client overview and background: The client’s current delivery presence in Europe was spread across small-scale centers and client sites. The client wanted to identify the best-fit location for establishing a large-scale delivery center which would service some of its existing clients as well as support a new large client.

Our approach: Everest Group conducted a detailed assessment of multiple locations in Southern Europe and Central & Eastern Europe. The analysis was based on a combination of analyst visits, interviews with market participants, and proprietary databases and IP.

Client benefits: The analysis provided views across Automotive Engineering skills and other adjacent verticals (Semiconductor, Electrical & Electronics, Medical, Telecom & networking, Software/Internet). The detailed assessment consisted of a deep-dive on skills availability, operating costs, incentives, infrastructure, existing player landscape, and business environment assessment. Everest Group also provided insights on scalability potential and forward-looking talent sustainability across the cities.

Analyst Relations Newsletter Q4 2017 | Key Highlights from Custom Research

Case Study I: A Europe-headquartered Financial services company with Global operations engaged Everest Group to benchmark their current Global ITO/BPO service provider rate cards

Client overview and background: The client manages a sourcing portfolio involving multiple IT-BPO contractual relationships with a global footprint. The benchmarking scope included functions like Software Engineering, Testing, Project Office, Business Analysis, Program Management within IT. Procurement, Finance and Accounting and Client Service within BPO. The scope also included providing guidance on factors impacting rates such as Best-in-class staffing pyramids, Best-in-class offshore ratios, volume based price discounting, PMO/Governance fees overheads, Continuous improvement charters and Language based price premiums.
Our approach: Everest Group undertook the following activities to perform a thorough benchmarking assessment:

• Map client role nomenclatures to industry standard roles with years of experience and job descriptions
• Identify market proxies and perform normalization removing outliers
• Provide detailed role level benchmarks by geography and identify role-wise savings potential

Everest Group also provided comprehensive guidance on additional solution parameters based on best-in-class contracts.

Client benefits: The benchmarking study highlighted a set of roles and associated delivery locations where the current pricing was much higher than the market benchmarks. This enabled them to prioritize meaningful and effective negotiations with the respective vendors to align their contracted rates with market norms.

Case Study II: Everest Group provided market price benchmarks for Digital Services, for a US based service provider as part of their overall Go-to-Market strategy for Digital Services

Client overview and background: The client, a global information technology services company headquartered in the US sought to assess its price competitiveness across Digital services to support its ‘Price-to-Win” mandate along the following components:

• Rate Card benchmarking: FTE-based price benchmarking for Mobility, Cloud, Analytics, Big Data, RPA, AI, Machine Learning, Digital Program Management, Customer Experience, eCommerce, Content Management Systems, IOT and User Design
• Additional Pursuit Metrics: IP Commercialization trends, Offshore leverage, Team composition, Service Level metrics, Price premium for Digital Skills, etc.

Our approach: Everest Group leveraged its direct benchmarking approach to develop benchmarks for various FTE roles for key geographies like US, UK, India, China, Germany, etc. The benchmarks were based on Everest Group led live deal rate card data in the last 12 months. To provide comprehensive and market competitive benchmarks, we considered a large set of service providers across four categories: Indian, Global, Boutique and Digital Agency firms and provided comprehensive benchmarks across each of the categories. Similarly, we provided targeted guidance on the additional pursuit metrics mentioned above.

Client benefits: Price benchmarks enabled the service provider to assess its price competitiveness across multiple role types and geographies. Additional analysis further enabled the service provider to gain deeper understanding of nomenclatures and solution-related parameters, to eventually align their commercial proposition with industry standards.