Life sciences BPO | Buyer geographies
Life sciences BPO | Buyer geographies
For the longest time, US was the largest as well as the most dominant market for the $150-billion software services industry. While it still contributes to two-thirds of the sector’s revenues, over the past few quarters, it is countries in Europe – especially in Continental Europe – that are bringing the maximum growth, defying the concerns around Brexit. Under a lot of pressure, US – especially in the banking and financial services (BFSI) industry –growth rates have reduced to low, single digits for top IT companies.
Meanwhile, Europe – traditionally considered shy of outsourcing (except for UK) – is growing at a much faster pace. The percentage share of revenues contributed by the US has also been steadily coming down.
In the case of Infosys, the number is down from 61.5% to 60.6% during the same period, while for Wipro, it has fallen from 54.8% to 53.6%. Peter Bendor-Samuel, the CEO of market consultancy firm Everest Group, said the EU economy has lagged the US and is now accelerating.
With just seven months to go to the General Data Protection Regulation (GDPR) compliance deadline, many companies still have wholly inadequate data management capabilities. Strict requirements for personal data security, privacy, and the right to erase, among other things, will cause severe headaches for many CIOs not only in the EU but in all regions, as organizations will have to know which data is and is not subject to the regulation, and where in the world it is stored.
Download our special complimentary report: EU GDPR: Is There a Silver Lining to the Disruption?
No doubt many complex and conflicting scenarios will arise out of GDPR. For example, consider the following data-related issues:
These and a multitude of others will take many more years to understand, get guidance on, and resolve. In the meantime, companies must be compliant, or face fines that are the greater of €20 million or 4 percent of global annual turnover.
For those organizations that have not yet prepared for GDPR, the overheads of data management are increasing significantly. For example, they must figure out how to best obtain and maintain personal consent, handle access requests, process revocation of consent and requests to be forgotten, train personnel to know what they can and cannot do with data under GDPR, ensure outsourced services, cloud providers, other suppliers, e.g. in the supply chain, and partners are compliant, and run audits to check the readiness and effectiveness of the provider/supplier/partner ecosystem.
This is where, with its rules-based bots, Robotic Process Automation (RPA) could prove to be God’s gift to the laggards. Scenarios where RPA could be ideal include, but are not limited to:
As organizations collect more and more GDPR-related data, Artificial Intelligence (AI) solutions could come into their own by helping with risk and impact analysis and reporting:
A new era of data protection is upon us. It is coming at a time when, some would say, that companies have taken far too many liberties with their customers’ data. The full implications for businesses are yet to be understood. But we believe that all organizations that hold or process personal data will experience some disruption in service delivery as a direct result of GDPR. For more on Everest Group’s point of view, please see our latest free publication: “EU GDPR: Is There a Silver Lining to the Disruption?“
Leaders, Major Contenders, and Aspirant locations for Service Delivery Automation (SDA).
The employed talent pool availability for SDA technology and project management teams is low across locations; competition for this talent is intense given both demand and the size of the experienced talent pool.
The high entropy data protection space has once again gained headlines after Equifax, the U.S- based consumer credit reporting agency, revealed that a July 2017 theft compromised more than 143 million American, British, and Canadian consumers’ personal data. The data breach incident, one of the worst cyber-attacks in history, was conducted by hackers who exploited a vulnerability in the company’s U.S. website and stole information such as social security numbers, birth dates, addresses, and driver’s license numbers. (Equifax maintains and develops its database by purchasing data records from banks, credit unions, credit card companies, retailers, mortgage lenders, and public record providers.)
Much about the situation would have been considerably different had this breach happened after May 2018, at which time the General Data Protection Regulation (GDPR) – a regulation by which the European Parliament, the Council of the European Union, and the European Commission intend to strengthen and unify data protection for all individuals within the European Union (EU) – goes into effect. Even though it is not headquartered in the EU region, Equifax would have come under the purview of GDPR, because it maintains and reports the data of British citizens. And the stringency of requirements and degree of implications would have been significantly higher for the credit rating agency.
Although not directly related to GDPR, another significant business impact is the sudden “retirement” of Equifax’s CEO less than three weeks after the breach was announced.
This massive cyber-attack is a wake-up call for the services industry. Starting today, operations and businesses must regard data protection regulations with the utmost importance. Non-compliance will not only harm firms financially, but also expose them to brand dilution and business continuity risks.
Some of the key imperatives for enterprises operating in the ever-so-stringent data protection space include:
To learn more about the strategic impact of the EU GDPR on the global services industry, please read our recently released viewpoint on GDPR: “EU GDPR: Is There a Silver Lining to the Disruption.”
New locations (think Jamaica, Romania, Malaysia, and Singapore) are gaining traction as Global In-house Centers (GICs) and service providers seek to match talent to specific need, as well as to diversify their location portfolios
While APAC remains the dominant delivery location, global services headcount is growing in other locations as GICs and service providers recognize the value of location-specific talent and seeks to diversify their portfolios
While the APAC region remains dominant, other regions are growing on the back of digitalization, risk diversification, increasing regulation
Cost of operations for digital services varies widely across key locations for service delivery