Tag: BPS

Everest Group Unveils 9th Annual Business Process Services Top 50

ADP, Accenture, Teleperformance, Concentrix and Paychex take Top 5 spots among world’s largest third-party BPS providers.

DALLAS, JUNE 8, 2023 — Everest Group today released the ninth annual edition of “The Everest Group BPS Top 50™,” a ranking of the world’s largest third-party providers of business process services (BPS). The list was launched in 2015 as the first of its kind for the global industry, which is now valued at more than US$250 billion. The ranking is based on 2022 revenues and year-on-year growth.

Topping the 2023 list of leading BPS providers are these 10 service providers:

  1. ADP
  2. Accenture
  3. Teleperformance
  4. Concentrix
  5. Paychex
  6. Foundever
  7. Konecta
  8. Genpact
  9. TCS
  10. Conduent


The Everest Group BPS Top 50 report also includes:

  • The Top 10 BPS providers by revenue. (ADP, Accenture, Teleperformance, Concentrix and Paychex take the Top 5 on this list.)
  • The Top 10 BPS providers by growth rate. (Topping this list are Iron Mountain, Tech Mahindra, TaskUs, NTT Data and EXL, in that order.)

“Over the years the BPS industry has expanded in both breadth and depth of services, and today it generates more than $250 billion in revenue and touches every facet of the business services value chain,” said Rajesh Ranjan, partner at Everest Group. “Our BPS Top 50 report helps enterprises understand the scaled-up provider options while allowing BPS providers to compare themselves against others. As we look forward, we expect the list to become more dynamic against the backdrop of a recessionary environment and emergence of Generative AI as a potential value creation lever. Service providers’ ability to quickly figure out a way to ride this wave of disruption will define their future success.”

***Download a complimentary copy of the 2023 Everest Group BPS Top 50 list and analysis***

BPS (also referred to as business process outsourcing or BPO) started as a cost optimization concept focusing on “non-core” and “back-office” business processes. Today BPS permeates the entire business process value chain, addressing a wide variety of business objectives.

Everest Group estimates there are more than 250 service providers with more than US$50 million in revenues offering BPS around the globe. Some are pure-play BPS providers, while others offer business services as part of a broader portfolio (including IT services, consulting, technology products, etc.). Some are focused on a particular domain or geography, while others are broad-based. Some are listed, while others are privately held. To complement the BPS Top 50 report, we also offer Everest Group PEAK Matrix® reports which provide in-depth assessments of service providers’ performance across various BPS segments.”

Notable trends among 2022 BPS providers

  • After a banner year in 2021 with growth rates in the 12.5 to 13% range, 2022 saw a slight deceleration in the market, with growth rates in the range of 7.5 to 8.5%. This decline can attribute that to several factors, most notably major currency depreciations versus the U.S. dollar and the attenuation of one-time COVID-related government contracts.
  • As in 2021, IT-BPS providers with stronger reported stronger revenue growth than pure-play BPS providers. IT-BPS providers benefitted from large integrated deals.
  • The growth rates of broad-based providers in comparison to those of specialists we relatively comparable at 8.0% and 8.2%, respectively. Although specialists were buoyed by the growth of HR specialist providers due to the hot talent market, the specialist category also saw a decline among CXM providers due to the attenuation of one-time COVID-related contracts.

The Everest Group BPS Top 50 is based on both revenues and year-on-year growth. Revenues comprise 75% of the composite score used for ranking. Growth comprises 25% and has two sub-parameters: absolute growth (measured as change in BPS revenue in US$ million and accounting for 12.5% of the composite score) and percentage growth (measured as percentage change in BPS revenue and accounting for the final 12.5% of the composite score).

About Everest Group
Everest Group is a leading research firm helping business leaders make confident decisions. We guide clients through today’s market challenges and strengthen their strategies by applying contextualized problem-solving to their unique situations. This drives maximized operational and financial performance and transformative experiences. Our deep expertise and tenacious research focused on technology, business processes, and engineering through the lenses of talent, sustainability, and sourcing delivers precise and action-oriented guidance. Find further details and in-depth content at http://www.everestgrp.com.

Cognizant Conveys its Commitment to Growth to Analysts at Inaugural Event with New Leadership Team | Blog

At its first analyst event under the leadership of CEO Ravi Kumar, Cognizant openly discussed the company’s past problems, emphasized its renewed focus on relationship management, shared clients’ success stories, and previewed new products. Read on for reflections based on the Everest Group team’s interactions with Cognizant leaders at the event.  

Contact us directly for questions and or more information.

After a challenging past six years, the recent Cognizant event highlighted the company’s commitment to growth and improvement. The new leadership team demonstrated its awareness of issues that need repair and reinforced the company’s strong focus on bringing its core differentiator, relationship management, to the forefront. Compelling client success stories with renowned organizations like US Bank and Bristol Myers Squibb also were shared with the analysts and advisors who attended the event.

The context for the event was significant given the company’s struggles in recent years involving an activist investor followed by a slow growth period precipitated by misaligned priorities. Despite these issues, Cognizant ranked sixth in Everest Group’s latest version of the flagship leaderboard of global IT organizations – PEAK Matrix Service Provider of the Year 2023.

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Even with the remaining issues that need to be fixed, the company has sound fundamentals. Here are our takeaways from the main points we heard from Cognizant’s leadership at the event:

  • Self-awareness and commitment to improvement

The company’s self-awareness of the challenges it faced and its commitment to addressing them was a key theme that emerged from Cognizant’s analyst event. The provider acknowledged how several issues had impacted its performance and reputation in recent years. Rather than shying away from these concerns, it displayed a refreshingly transparent approach, recognizing the need for change and outlining specific actions to address the identified areas for improvement. This commitment to self-improvement demonstrates Cognizant’s dedication to delivering exceptional client experiences and driving sustainable growth.

  • Bringing relationship management to the forefront

Cognizant has long been recognized for its deep client relationships, which have been instrumental to its success over the years. The company emphasized the importance of relationship management as its core differentiator. Cognizant showcased a renewed focus on nurturing and strengthening these relationships, leveraging its vast expertise, industry knowledge, and client-centric approach. By reinforcing the significance of strong client partnerships, Cognizant appears to be picking the right battles.

  • Compelling client stories: US Bank and Bristol Myers Squibb

Cognizant shared inspiring client success stories that showcased its ability to drive innovation and create value for its clients. One notable example was its collaboration with US Bank, where Cognizant leveraged its digital transformation expertise to help the bank enhance its customer experience, streamline operations, and drive cost efficiencies. Cognizant’s partnership with Bristol Myers Squibb was another example shared. Cognizant supported the global biopharmaceutical company in leveraging advanced analytics and data-driven insights to accelerate drug discovery and development, leading to improved patient outcomes. These successes served as compelling examples of Cognizant’s ability to deliver tangible business results through technology-driven solutions.

  • Stability in leadership

A crucial factor contributing to the sense of stability and confidence at the analyst event was Cognizant’s leadership team. Along with Kumar, the other executives speaking at the event included Surya Gummadi, Prasad Sankaran, and Ganesh Ayyar. The leadership team’s steady guidance has played a pivotal role in steering Cognizant through transformation and growth. Analysts and attendees noted leadership’s openness in addressing concerns and the confidence they exuded in their ability to guide Cognizant.

Lastly, Cognizant gave the community a preview of recent offerings such as Cognizant Neuro AI, its new, enterprise-wide platform designed to provide enterprises with a comprehensive approach to accelerate the adoption of generative Artificial Intelligence (GAI) technology.

By acknowledging areas for improvement and demonstrating a transparent and determined approach, Cognizant conveyed its commitment to growth and delivering exceptional client experiences. The emphasis on relationship management as its key strength reinforced the company’s focus. As analysts, we will closely scrutinize Cognizant’s progress in these areas and offer insights to buyers and investors in IT and Business Process Services.

Everest Group was represented at this event by CEO Peter Bendor-Samuel, and Partners Abhishek Singh, Achint Arora, Manu Agarwal, Ronak Doshi, and Shirley Hung. Contact this team with questions about IT and BP services markets, enterprise buying trends, and the role of vendors. Reach out to contact us.


From left, Ronak Doshi, Shirley Hung, Abhishek Singh, Ravi Kumar, Achint Arora, Peter Bendor-Samuel, and Manu Aggarwal

Watch our webinar, Welcoming the AI Summer: How Generative AI is Transforming Experiences, to learn why leading providers are entering the market with significant investments.

An Unnecessary Defense of “Indian IT” | Blog

The recent headline, Indian IT Firms Set to Slash 3 Million Jobs by 2022 Due to Automation, grabbed attention. But our analysis shows this is nothing more than a catchy title. To learn about the other side of the picture that points to job and hiring growth, read on.

Occasionally, a news article or stray comment will suggest the Information Technology (IT) industry in India faces a stiff battle to survive against an onslaught of automation, cloud, and insourcing. The latest is the claim in news stories that 3 million jobs in India will be lost by 2022. The next day, NASSCOM shared data that suggested the opposite, and a few media outlets issued clarifications.

We had a chance to view an excerpt of the original Bank of America report that found automation is creating millions of new jobs and boosting global productivity. Our initial reaction is that the original story is a combination of faulty or incomplete analysis and lack of context, topped with a sensational headline.

Below we share a more nuanced understanding of the industry to help avoid such storms in teacups in the future.

The Definition of Indian IT-BPS

Media coverage of the Indian IT and Business Process Services (BPS) industry often conflates the India-based talent pool with homegrown industry giants like TCS, Infosys, Wipro, HCL, and Tech Mahindra. The reality is that all firms, including globally headquartered giants like Accenture, Capgemini, DXC Technologies, and IBM (to name a few), have a massive presence in India.

The IT-BPS talent pool in India is employed across the following key segments:

  • Large service providers like the ones named above, irrespective of where they are headquartered
  • Mid-tier (e.g., L&T Infotech, WNS, Genpact, Mphasis, Hexaware), and smaller service providers (e.g., Aspire Systems, Maveric Systems, Cigniti, etc.)
  • Global Business Services (GBS) centers or Global in-house Centers (GIC) established by Fortune enterprises (e.g., Novartis, Bank of America, Shell, etc.) to serve their internal functions
  • Product development teams of Big Tech giants like Microsoft, SAP, Adobe, etc.
  • An increasingly rich ecosystem of start-ups that often serve a global clientele (e.g., Zoho, Zeta Technologies, Qure.ai, etc.)
  • Domestic demand for IT and Business Process Outsourcing (BPO)
  • Countless staff augmentation firms that serve as aggregators of talent (typically freelance) and help all the other segments meet their staffing requirements

Any analysis that fails to look at the swings and roundabouts between these segments risks missing the mark. For instance, insourcing – a growing trend of using an organization’s own resources instead of outsourcing – often tends to benefit Global Business Services (GBS) organizations at the expense of third-party providers. Automation and technology disruption may pull down demand for a few outsourced services, but simultaneously increase the desire for services in many other categories.

The Facts

Even if we assume for a moment that the term “Indian IT” was used loosely to focus on third-party outsourcers, the facts still do not support the following conclusions:

  • We estimate the total India-based headcount for outsourcers and shared service organizations (Segments 1, 2, and 3 above) across IT and BPS at 3 million full-time equivalents (FTEs) as of March 2021. The headline of slashing 3 million jobs by 2022 simply does not add up
  • TCS, Infosys, and HCL have publicly declared their intentions of hiring 40,000, 24,000, and 15,000 FTEs, respectively for FY 22. Capgemini and Cognizant plan to hire 30,000 and 28,000 in 2021. All of this is easily available public information
  • NASSCOM, in its clarification, estimates that the Indian IT-BPS talent pool expanded by 138,000 FTEs in FY21

Most of the industry leaders we speak with cite the opposite problem. They are facing a glut in demand and can’t hire fast enough. Enterprises are frantically upskilling existing employees to learn new technologies, impacting hundreds of thousands of FTEs across the talent pool in India. These skills do not exist in sufficient numbers externally so laying off current workers and hiring new ones is not an option. If the original report wanted to convey that companies are seeking to replace old tasks with new ones through reskilling, the headline failed to convey this accurately.

The Myths and the Nuances

Myth #1: “Indian IT” survives on doing commodity jobs that no one else wants to do

Reality: The talent pool in India enables many of the world’s most innovative companies to meet their objectives

Yes, the industry might have started to provide labor arbitrage but it sure as heck could not have survived and grown that way over decades. Just to cite a few examples, talent pools in India are supporting the advancement and application of technologies critical for autonomous driving. Software that is required to roll out 5G networks is being built and supported by India-based talent pools, as are platforms that power banking operations for some of the biggest names in the world. Many GICs we speak with mention that the share of commodity tasks in their portfolio is down to 30% (from 70% 10-15 years back). The current reality is a very far cry from the days of Y2K and spammy call centers. It might be helpful for skeptics to visit some of today’s modern India-based development centers and labs. The experience is usually quite eye-opening!

Myth #2: Automation is the equivalent of the Infinity Stone

Reality: Automation takes years and years to get right, and scale. This usually means time to adjust, and more work, not less

No, the RPA God does not snap its fingers to kill jobs. At the current level of maturity, RPA typically eliminates specific tasks. However, it is still some distance away from automating a process (a series of tasks/activities). Further, the scalability of RPA remains a challenge. What works for one type of task or even a series of tasks may not work as the context changes.  Yes, automation is getting intelligent through cognitive and Artificial Intelligence (AI). But as anybody who has spent some serious time in the AI world would attest, it takes time to first get the AI-engine trained and usually requires human-in-the-loop (HITL) to complete the process. To be clear, smart automation does increase the productivity of the individual meaningfully and, in turn, lead to process efficiency and other benefits. However, instead of “killing jobs,” it is creating more opportunities for service providers and GICs to serve enterprises more deeply and widely leading to higher demand for labor in India.

Myth #3: Things just die

Reality: In the world of technology, services usually evolve, and new categories get created, replacing old ones

We often hear an implicit (and occasionally explicit) assumption that technology disruption will kill old service categories. For instance, cloud will kill the need for IT infrastructure management, and that application testing is passe. And that’s it – nothing else happens.

In reality, IT infrastructure management is evolving to handle the complexities of hybrid and multi-cloud and is facing an acute talent shortage. There is a shortage of people who can test complex apps that are hosted on the cloud, control software-driven physical devices, or have elements of AI baked into them.

The history of technology shows that every disruption creates its own service model. Enterprise Resource Planning (ERP) systems were supposed to be the death knell for bespoke applications. Instead, they spawned a massive industry of consulting, implementation, customization, and maintenance. Automation to scale will require highly skilled talent to build, monitor, and maintain algorithms and datasets. As the pace of AI and Machine Learning adoption picks up, we are witnessing the expansion of Machine Learning Operations (MLOps) services, which help in the continuous delivery of algorithmic models.

Vindicating the Indian IT Industry

The world of technology is changing, arguably faster than ever before. India just happens to have the world’s largest reservoir of talent that can enable this change. The “Indian IT industry” does not need a sensational headline and it does not need defending. It deserves a deeper understanding that will help us predict and navigate these changes better.

SA Well Positioned To Be A Global Destination For BPS | In the News

Global companies traditionally favour locations in the east like India and the Philippines as BPS destinations, due largely to the large pools of skilled, English-proficient workers and the labour arbitrage opportunities offered by the regions’ cost competitiveness.

However, South Africa’s BPS industry stakeholders have made significant efforts to develop and promote hubs of competency within the major economic regions of Gauteng, the Western Cape and Kwazulu-Natal. These efforts have yielded compelling results, with the local BPS industry growing 22% annually over the past four years, according to research by Everest Group, which is twice the global industry growth rate.

Read more in Mzansi Life

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