Outsourcing is Robust in Q3: 28 Major Deals Signed, including Mega Deal Exceeding US$1 Billion | Press Release

Key trend to watch:  Global In-house Centers elevate role in enterprise through digital adoption

DALLAS, NOVEMBER 24, 2015 — Global outsourcing demand was robust in Q3 2015 as buyers sought to cut down their operating costs amidst economic slowdown. Most service providers reported sequential quarterly growth in revenue and operating margins, according to research recently published by Everest Group, a consulting and research firm focused on strategic IT, business services and sourcing.

Twenty-eight major deals were signed in the quarter, including a mega deal between HP and the United Kingdom Ministry of Defence with a total contract value exceeding US$1 billion.

“A significant trend we witnessed in Q3 is the continuing, expanding role of Global In-house Centers in the digital transformation of enterprises,” said Salil Dani, vice president at Everest Group. “GICs are increasingly supporting enterprise digital initiatives—including analytics, cloud, mobility, social and interactive and robotics process automation—particularly as technologies mature and offshore cost benefits decline. However, a majority of GICs are still in the initial to mid stages of maturity, with significant potential for impact remaining. Analytics is the exception; among the digital services, analytics is fairly established among GICs, with multiple GICs having scaled operations with sizeable headcount in this function.”

These results and other findings are explored in “Market Vista™ Q3 2015.”

Market Vista Q3 2015 includes data, analysis, and insights on transaction trends, major outsourcing deals, global in-house center market dynamics, trends in offshoring emerging destinations, and service provider development. The report also includes the Standard Locations Database, which tracks 23 leading offshore locations.

***Download the Complimentary Summary of ‘Select Findings’ Here*** (Registration required.)

***Webinar Replay***

Sign up here to download the Everest Group webinar “Global Locations Update: Plus Market Vista Q3 2015 Global Services Update.” This one-hour webinar featured Everest Group experts discussing key market developments and shifts in the delivery locations landscape in 2014 and H1 2015. As a special topic, Everest Group subject matter experts also evaluated the impact of digitalization, specifically Robotic Process Automation (RPA), on delivery location strategies of companies.

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