Gradual economic recovery counterbalanced by uncertainty surrounding regulatory reform.
DALLAS, May 30, 2013 ─ Economic recovery brought stabilization to the global services marketplace in Q1 2013, with deal volume and size similar to 2012, according to a new research study by Everest Group, an advisory and research firm on global services.
However, pending regulatory reform, particularly in the U.S., could have a significant impact on the extent of recovery in the global services marketplace as well as the continued evolution of sourcing models moving into the second half of 2013 and 2014.
The report, Market Vista: Q1 2013, presents detailed industry information, including trends and service providers profiles. Key topics include:
- The global services market is showing early signs of recovery, with the number of transactions up slightly from Q3-4 2012, bolstered by revenue and operating margin growth among major service providers.
- Although still in flux, proposed U.S. visa regulations would have an onerous impact on Indian IT service providers, with adverse impacts on the onshore portion of the global delivery model.
- Europe is the preferred destination for a growing number of offshore delivery centers. This investment signals an expectation that growth in Europe will follow both the region’s economic recovery and favorable government incentives.
- A review is presented of current best practices among market leaders regarding reduction of location concentration risk.
“There appears to be a gradual, cautious and thoughtful recovery underway in global services,” said Eric Simonson, managing partner at Everest Group. “Market leaders are making strategic and careful investments in geographies where evidence suggests new demand will develop over the remainder of the year and into 2014. Risks remain, however, and this may be a key reason why the recovery is tepid.”
For more information about the report, Market Vista: Q1 2013 or other research services, please visit research.everestgrp.com, e-mail [email protected] or call +1-214-451-3110.
Stream the Market Vista: Q1 2013 Webinar
A replay of the May 23 webinar presenting the Market Vista: Q1 2013 report can be streamed from the Everest Group Website. Visit Market Vista: Global Services Developments in Q1 2013 Webinar to view.
