Attrition Is Major Problem for Technology Service Providers | Press Release

Talent management has emerged as a major reason of enterprises’ dissatisfaction with IT services and technology providers, as attrition impacts project timelines, cost and quality.


DALLAS, June 29, 2022 — Although enterprise satisfaction with technology service providers improved 5% overall in 2021, talent management has emerged as the biggest reason for enterprises’ dissatisfaction, according to Everest Group.

Everest Group conducted 496 unique interviews with global enterprise executives in 2021 and determined that attrition is enterprises’ biggest pain point with respect to their technology service providers. Many executives shared that their providers are finding it hard to replace talent quickly and effectively, which negatively impacts project timeline, cost, and quality.

Enterprises are looking for IT services and technology providers that can ensure the following:

  • Talent availability, including a global presence, deeper bench strength, a wider talent pool and talent mapping.
  • Low attrition, with fast and effective replacement of talent when necessary.
  • Strong learning and development programs, including upskilling in digital technologies, onboarding of new hires and development of domain expertise.
  • Robust internal and external communication along with standardized documentation, which have become particularly important in the era of remote working.


“We found that enterprises’ overall satisfaction with their technology service providers improved again for the second year in a row, which is good news for providers, indicating they have fared well in terms of managing the implications of the pandemic and post-pandemic world,” said Pranati Dave, practice director at Everest Group. “However, talent management was cited as a pain point by a majority of the executives we interviewed and therefore is an important area of improvement that service providers must address.”

These findings and more are detailed in Everest Group’s recently published report, “Enterprise Pulse 2022: Solving the Talent Conundrum Around Availability, Attrition, and Reskilling of the Workforce.” This study summarizes the views of various enterprises on the capabilities of their technology service providers across information technology services. The report also captures quantitative and qualitative insights across enterprises’ digital agendas.


Additional Key Findings:

  • The proportion of satisfied customers of IT services (ITS) has increased from 70% in 2020 to 75% in 2021, making it the second year in a row where the proportion of satisfied customers has increased.
  • Satisfaction levels have seen an uptick across most geographies.
  • Enterprises are satisfied with their IT services and technology providers in terms of technical expertise, client management, flexibility of engagement and commercials, such as pricing structure and contract terms.
  • Enterprises are dissatisfied with talent management, lack of innovation and domain expertise. They want better reporting, knowledge transfer, standardization across long-term projects and talent retention.
  • About 50% of enterprises indicate automation, cloud adoption and data management as their top digital levers to achieve profitability and growth.


***Download a complimentary report abstract***

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our research also covers the technologies that power those processes and functions and the related talent trends and strategies. Our clients include leading global companies, service and technology providers, and investors. Clients use our services to guide their journeys to maximize operational and financial performance, transform experiences, and realize high-impact business outcomes. Details and in-depth content are available at

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