How Manufacturing Digital Pinnacle Enterprises™ Outperform Peers | Market Insights™
Manufacturing digital Pinnacle Enterprises™ outperform others in 18 evaluation dimensions
Manufacturing digital Pinnacle Enterprises™ outperform others in 18 evaluation dimensions
Cloud, automation and analytics lead in digital-focused outsourcing deals, which dominate outsourcing activity with a 65 percent share.
North America witnessed a significant increase in outsourcing transaction activity in Q1 2018 as compared to 4Q 2017, with 115 deals recorded as compared to 103, respectively, according to Everest Group. This increase can be attributed to an improved business sentiment in the U.S. as well as an increase in outsourcing demand across healthcare and manufacturing verticals.
For the first time, the number of new centers supporting digital skills surpassed new centers supporting only traditional services. Among global services transactions overall, digital services continued to dominate the outsourcing activity in Q1, similar to the previous quarter. The share of digital-focused transactions increased from 61 percent in Q4 2017 to 65 percent in Q1 2018 vis-à-vis the pure traditional services, which showed a decline in adoption over the past quarter.
Among all outsourcing transactions, 50 percent included cloud, 21 percent included automation, 14 percent included analytics, 13 percent included mobility, 7 percent included cyber-security and 30 percent included some other form of digital service, such as social media, Internet of Things (IoT) or blockchain.
Other key global services market trends noted for the quarter include the following:
These findings and more are discussed in Everest Group’s recently released report, released Market Vista™: Q2 2018. The report discusses outsourcing transaction trends, GIC-related developments, global offshoring dynamics, location risks and opportunities, and key service provider developments.
“Outsourcing activity remained steady in Q1 as compared to the previous quarter, with a growth in information technology outsourcing as well as increases in several verticals, including retail and consumer product goods, technology and communication, and healthcare,” said H. Karthik, partner at Everest Group. “New GIC setups, which reached an all-time high in Q4 2017, declined slightly, but GIC expansions are at a seven-year high. All-in-all, Q1 was a good quarter for service providers—both global as well as offshore-heritage service providers—with most reporting sequential growth in revenue and an increase in operating margins.”
Complimentary Webinar Offers Q1 Review Plus Bonus Topic—“War for Talent: Impact on Talent Acquisition Strategies”
Everest Group hosted a webinar on May 22—Webinar Deck: Q2 2018 Market Vista™ Update and Implications on Talent Acquisition with Intensifying War on Talent—in which the findings of the “Market Vista: Q2 2018” report were reviewed. During this 45-minute webinar, Everest Group experts discussed the most impactful events in the global services industry thus far in 2018 and looked ahead to how these events likely will shape the rest of the year.
The webinar also addressed talent acquisition strategies, including the factors impacting talent models and the resulting implications and imperatives for employers. The impact of automation on transactional jobs and the redesign of the employee value proposition to reach a predominantly millennial workforce are two of the key topics covered in the discussion.
*** Watch the Webinar Replay *** (The webinar slide deck also is available for complimentary download with registration.)
Top technologies / focus areas and their impact on retail
A large proportion of retailers are ignoring the threat from cyber attacks; they need to invest in data security to gain customer trust
Innovation builds a strong base over which digital investments in technology and talent enable development and execution of the right customer strategy. Retailers should focus on four key data strategies to propel business growth.
The growing importance of data & analytics has led to the evolution of the Chief Data Officer (CDO) role
Digital Pinnacle Enterprises™ – the best digitally performing retail organizations – differentiate from the rest in four key areas
Demands of the next-generation investor
Enterprises are increasingly looking to analytics to achieve top line impacts – think marketing and pricing analytics to support new product launches and better understand consumer behavior – and positive contributions to their bottom line through, for example, risk and fraud analytics. And they’re increasingly favoring GICs over third-party providers to support their analytics initiatives.
Why? By the nature of their engagement model, GICs are tightly integrated with the parent organization, which better enables the high levels of governance and management that are essential to deliver analytics services. GICs also have an edge as they can bundle analytics services into the business process services they deliver to provide integrated solutions.
Here are just a handful of examples of the types of value GICs are delivering to their parent companies.
Of course, the quality of the analytics and the impact of the resulting outcomes are directly related to the analytics talent the GIC employs.
Some GICs have chosen to upskill and reskill their existing workforce. While one has made it mandatory for select teams to undergo analytics courses and training, others have provided monetary incentives to team members who willingly opt into the training. Both approaches make GICs talent-ready to deliver analytics capabilities and face demand fluctuations. GICs are also exploring partnerships with specialist firms that can provide resources for a short duration, as needed.
To deliver even greater value, many GICs are proactively identifying areas within their operations to plug-in the analytics layer. To facilitate this, they have established analytics as a shared horizontal capability in their organization structure so that the skills and knowledge attained from one team can be leveraged by others. Further, GICs are heavily investing in training data scientists, and providing them global exposure to understand business needs better.
The days of providing just arbitrage are long gone. If your GIC wants to deliver the value your parent company needs in today’s business environment, analytics capabilities must enter into your equation.
To learn more about our view on GICs’ analytics capabilities, be sure to attend our sessions at the NASSCOM GIC Conclave (note, Everest Group is the Strategy Partner for the event) and visit us at Stall 7.
©2023 Everest Global, Inc. Privacy Notice Terms of Use Do Not Sell My Information
"*" indicates required fields