Tag: GBS

Snakes & Ladders: Are You Ready for the GBS Game? | LinkedIn Live

linkedin live

Snakes & Ladders: Are You Ready for the GBS Game?

View the event on LinkedIn, which was delivered live on July 20, 2022.

Global business services (GBS) is a game. There are opportunities. And there are setbacks. 🐍 

GBS 2022 is a particularly challenging game to play for leaders. Inflation is pressuring costs. Attrition is gathering steam. Supply chains are crazy. Funding for GBS projects is in question. Oh my!

But with another roll of the dice, possibilities abound: Pull for new services. Supply chain improves. Staff driven by purpose. Take that!

It’s all in how you play the game.

In this LinkedIn Live, our GBS experts and practitioners will discuss the strategies you should consider putting in place, including the “just in case” ones, so you win the ultimate goal of becoming a “GBS recognized as a competitive advantage.” As an attendee, we welcome you to share your experiences and ask the speakers and peer attendees questions.

This LinkedIn Live session will provide meaningful takeaways and practical approaches to address the many challenges and opportunities that await in the remainder of the year.

What questions will the event answer for the participants?

  • What opportunities and obstacles should GBS leaders prepare for?
  • What strategies need to be deployed to capitalize on opportunities and overcome obstacles?
  • What is ophidiophobia, and which of the presenters have it?

Meet the Presenters

Kops Deborah
Principal, Sourcing Change
BarbaraHodge
Barbara Hodge
Global Online Editor
Shared Services & Outsourcing Network
SLN Headshot 2018 e1657827886805
Suzanne Leopoldi-Nichols
Chief GBS Officer
WPP, formerly with UPS

GBS Leadership Exchange: Life Sciences GBS Success – Reimagining Operating and Governance Models | Virtual Roundtable

GBS Leadership Exchange | Invitation-only event

Life Sciences GBS Success – Reimagining Operating and Governance Models

Thursday, July 14, 2022 |
8:30-10 am EDT / 6-7:30 pm IST

Life sciences GBS organizations today are strategic partners for their enterprises, delivering innovative capabilities for operational and technological advancements. The next wave of evolution for GBS is now upon us and will focus on reaching value beyond arbitrage, growing the enterprise’s top line, and reducing barriers inhibiting GBS-enterprise collaboration.

However, evolution will hinge on a reimagining of the GBS operating and governance models.

Attend our exclusive virtual roundtable, “Life Sciences GBS Success – Reimagining Operating and Governance Models,” on Thursday, July 14, 2022, 8:30 am – 10:00 am EDT / 6:00 pm – 7:30 pm IST.

In this collaborative session, our analysts will lead a conversation with you and your industry peers exploring the operating and governance model changes that are critical to position GBS for sustained success.

What you will take away

Together, we’ll discuss the key priorities for the future of life sciences GBS organizations, including:

  • The 2025 vision for life sciences GBS organizations
  • Key areas and enablers for future value creation
  • Futuristic operating and governance models
  • Success-driving actions and approaches for life sciences GBS leaders
  • Success stories and ideas from best-in-class peers

Who should attend?

  • GBS leaders
  • GBS strategy leaders
  • GBS site leaders

Virtual Roundtable Guidelines

This event is available to our GBS Leadership Exchange members only. The only price of admission is participation. Attendees should be prepared to share their experiences and be willing to engage in discourse.

Participation is limited to enterprises (no service providers), and Everest Group must approve each attendance request to ensure an appropriate size and mix of participants. The sessions are 90 minutes in duration and include introductions, a short presentation, and a facilitated discussion.

Arora Jimit Refresh gray square 1
Jimit Arora
Partner
Bharath M Refresh gray square
Bharath M
Practice Director
Kushagra Singh
Kushagra Singh
Senior Analyst

Six Highlights from the 2022 NASSCOM GCC Conclave to Watch | Blog

India’s continued position as a leading destination for Global Capacity Centers (GCCs) was among the key themes emerging from the first hybrid National Association of Software and Service Companies (NASSCOM) GCC Conclave on June 29-30 in Hyderabad. To learn the top priorities among GCC leaders, read on for takeaways from our experts who attended the mega event. 

While we had doubts over GCC participation in the first-ever hybrid conclave since 2019, the event was a huge success for GCC leaders who enjoyed making and renewing contacts, exchanging learnings and best practices, and sharing fond memories of past gatherings.

As the strategic partner for NASSCOM, Everest Group is pleased to share these six key takeaways from the GCC Conclave, themed Leaning in for Impact in the Networked World:

  1. Continued endorsement of India as a leading GCC location

India remains at the center of the offshore/nearshore global delivery portfolio across most enterprises. Most GCC leaders expect higher growth from the India centers than other locations. Some have plans to double their India headcount in the next two to four years.

  1. Return to office (location) is a top priority for GCC leaders

Two out of three GCC leaders highlighted their efforts to bring employees back to work locations as part of the hybrid model. With location flexibility emerging as a strong value proposition for employees, balancing employee preferences and organization goals (e.g., building workplace culture) is becoming critical.

  1. Increased endorsement for the GCC model has positively impacted GCCs’ influence across the enterprise; however only in pockets

GCC influence across the organization has increased post-pandemic but only in pockets. Building strong adjacencies with core enterprise priorities goes beyond scaling high-skill capabilities in the GCC. Many GCC leaders still have concerns about managing cost competitiveness with third-party providers, securing buy-in for expanding capabilities, etc. To top this, several enterprises are restructuring, which is also impacting GCC growth.

  1. The next wave of growth is likely to be anchored around centralization (again)

The “scale-optimize-centralize” cycle is not new for GCCs. Across different stages of evolution, GCCs have experienced this cycle and have also come out successfully post internal restructuring initiatives (e.g., banks centralizing third-party risk compliance that supports different businesses).

Over the last two years, many GCCs expanded the breadth and depth of services offered (with insourcing also being a factor). Many leaders are now looking at the next wave of centralizing capabilities. However, this centralization wave will likely be more borderless because the remote model has helped address location dependency constraints. In that context, the role of India-based GCCs as an “orchestrator of services” (see next point) across the global delivery network will likely increase. Click here to check out Everest Group’s thought leadership content around the borderless GCC/GBS model.

  1. Mature GCCs are betting big on services orchestration

As GCCs expand ownership, a wide array of responsibilities exist. Mature GCCs are already orchestrating services – coordinating with in-house teams, third-party vendors, start-ups, etc. – and are owning end-to-end accountability for services in scope. See the exhibit below for an example of GCC ownership, from skills to processes to platforms, with distinct needs from talent and operating model perspectives.

 

NASSCOM GCC Event blog table

Exhibit 1: The spectrum of GCC ownership (tech example)

  1. The GCC journey is akin to a Snakes and Ladders game!

Factors such as increased sponsorship and niche talent availability can help accelerate the journey towards being recognized as an entity delivering competitive advantage for the global enterprise. At the same time, conditions like macroeconomic impacts (e.g., the Ukraine war) and spinning off divisions at the enterprise level could deter GCC’s progress.

Several leaders enthusiastically played the GBS 2022 Snake and Ladders game, developed by Deborah Kops and Everest Group team, at the 2022 NASSCOM GCC Conclave. The game highlights the perils and opportunities for GBS organizations as they strive to become entities delivering competitive advantage for global enterprises. Learn more about this game in our upcoming LinkedIn Live event. As one GCC leader noted, “Yes, there are several ups and downs. The key is to keep rolling the dice!” And the same can be said about the GCC journey.

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Discover more about Everest Group’s research on the GCC evolution.

Sustainability Enablement Technology Services PEAK Matrix® Assessment 2022

Top Sustainability Enablement Technology Services 

Enterprises have started adopting a triple-bottom-line approach, which encompasses people, planet, and profit in business strategies. The role of enabling technology for sustainability and responsible business models is fast evolving, with emerging technologies such as Artificial Intelligence (AI), Internet of Things (IoT), predictive analytics, and blockchain underpinning the sustainability services market. 

While, currently, the focus is more on the planet aspect of sustainability, with providers designing net-zero strategies, providing climate risk assessment and auditing, and enabling sustainable product life cycles for their clients, the pandemic has put the social aspect of sustainability into the spotlight. Service providers have proactively started enhancing their people-led solution portfolios to help clients with accessibility, Diversity, Equity, Inclusion, and Belonging (DEIB), and Environment, Health, and Safety (EHS) services, along with planet-focused offerings.

DOWNLOAD THE FULL REPORT: Sustainability Enablement Technology Services PEAK Matrix® Assessment 2022

What is in this PEAK Matrix® Report:

  • An assessment of 14 leading sustainability enablement technology service providers on Everest Group’s Services PEAK Matrix® evaluation framework
  • Characteristics of Leaders, Major Contenders, and Aspirants in the sustainability enablement technology services market
  • Strengths and limitations of the sustainability enablement technology service providers examined

In this inaugural Everest Group research, we present detailed assessments of 14 IT service providers featured on Everest Group’s Sustainability Enablement Technology Services PEAK Matrix® 2022 and categorize them as Leaders, Major Contenders, and Aspirants based on their capabilities and offerings across the people, planet, and profit aspects of sustainability services.

LEARN MORE ABOUT enabling technology for sustainability

Our Thinking

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What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

Optimizing Guidewire Licensing: A Guide to SaaS Vendor Management Pricing

With increased competition and cost pressure in the property and casualty industry, insurers are rapidly modernizing technology and moving to the cloud. Top SaaS vendors like Guidewire and Duck Creek are playing increasingly important roles in insurers’ modernization journeys. Getting the correct licensing for your enterprise needs is critical to the success of these strategic partnerships. Read on to learn the key aspects that go into Guidewire pricing to negotiate smarter and make more informed purchasing decisions.     

How does Guidewire charge for its platforms?

The most common Guidewire products we see clients use are InsuranceSuite and InsuranceNow. For both platforms, Guidewire’s annual fees are charged as a percentage of the annual Direct Written Premium (DWP) of the procuring enterprise.

An incremental license fee applies to all DWP increases once the enterprise exceeds the DWP baseline contracted during the term period. The incremental fee is typically staggered in nature and decreases as a percentage with increased DWP.

Negotiating the right fees for the platform remains a key stepping-stone to realizing commercial success and increased ROI for the platform. Some of the key negotiating levers in SaaS vendor management scenarios are:

Capture

Five factors to focus on beyond fees

While subscription fees remain the most important aspect of the commercial agreement, the following factors play a key role during negotiations:

  • Non-production environments

The number of non-production environments (NPEs) included in the subscription is an important parameter to consider.

Similarly, Guidewire provides additional credits that can be redeemed to provision NPEs. These NPEs are typically used to provision dev, test, pre-production environments and come in multiple sizes from Guidewire – Standard, Enhanced, Performance, etc. Since these environments are chargeable (post credit redemption), it becomes extremely important to internally calibrate enterprise requirements for NPEs and understand if the provided credits will suffice now and in the future.

  • Price renewals

Price hikes during contract renewals are one of the most dreaded conversations for an enterprise, especially for a niche vendor like Guidewire. Negotiating favorable terms around price renewals is critical. Typically, we observe enterprises pushing for renewal prices to be capped at a mutually agreeable percentage.

  • Price lock-in

Guidewire typically provides multiple add-ons like Predictive Analytics, DataHub, etc., at additional costs. While these may not be immediate enterprise requirements, they may later become necessities. In certain scenarios, Guidewire offers price holds for some of these products.

We recommend price lock-ins at the time of contracting for add-ons that may become requirements in the future and also advise that customers take these two additional steps:

      • Be sure the price lock-in term is longer to take into consideration the implementation period
      • Negotiate a broad price lock-in that includes all add-ons that may become future requirements
  • Service credits

In addition to the core product, Guidewire significantly cross-sells its services. It typically offers service credits that come with conditions. Using service credits is restricted up to a certain percentage of the invoice value (thereby allowing Guidewire to bill for the remaining invoice amount) and the credits expire.

Both of these conditions are geared towards allowing Guidewire’s professional services arm to make inroads into the client environment. Based on our benchmarking engagements, some of the key negotiation points for clients remain around service credits adequacy and the validity period, and the increased usability of each invoice.

  • Support costs

Support costs are an often-overlooked aspect of the agreement. As is the case with most top SaaS vendors, platform support remains with the product vendor, and the cost is baked into Guidewire’s licensing fees. However, Guidewire charges a certain percentage of the subscription fee for extended support if the enterprise is currently on an earlier product version.

This can be a tricky scenario since enterprises may choose not to upgrade due to various reasons – making this one of the most important aspects to benchmark and negotiate as part of your SaaS vendor management.

To learn more about how Everest Group can help your enterprise optimize and navigate through your Guidewire license procurement and SaaS vendor management, please reach out to [email protected].

Learn more about pricing in the services industry in our webinar, Outsourcing Pricing: 3 Pitfalls and 2 Unknowns Enterprises Need to Know in 2022.

 

GBS Leadership Exchange: Retail and CPG GBS Success: Reimagining Operating and Governance Models | Virtual Roundtable

GBS Leadership Exchange: Invitation-only event

Retail and CPG GBS Success: Reimagining Operating and Governance Models

May 19, 2022 |
8:30 am EDT | 6 pm IST

Summary

As you are likely experiencing first-hand, retail and consumer packaged goods (CPG) Global Business Services (GBS) organizations have evolved from internal providers to strategic partners to the enterprise, driving operational and technological advancements.

What’s next? How can you ensure your GBS continues to be successful?

The next wave of evolution will hinge on key outcomes, such as delivering value beyond arbitrage, growing your enterprise’s top-line, and reducing barriers inhibiting GBS-enterprise collaboration. To meet these objectives, GBS organizations such as yours will need to make critical adjustments to their operating and governance models.

Join our exclusive GBS Leadership Exchange virtual roundtable,Retail and CPG GBS Success: Reimagining Operating and Governance Models,” on Thursday, May 19, 2022, 8:30-10 am EDT / 6-7:30 pm IST.

What you will take away

In this collaborative session, you’ll come away with new insights from our experts and your peers as you exchange perspectives on key priorities for retail and CPG GBS organizations, including:

  • The 2022 vision for retail and CPG GBS organizations
  • Key areas and enablers for future value creation
  • Futuristic operating and governance models
  • Success driving actions for retail and CPG GBS leaders
  • Success stories from best-in-class peers

Who should attend?

  • GBS leaders
  • GBS strategy leaders
  • GBS site leaders

Virtual Roundtable Guidelines

This event is available to our GBS Leadership Exchange members only. The only price of admission is participation. Attendees should be prepared to share their experiences and be willing to engage in discourse.

Participation is limited to enterprises (no service providers), and Everest Group must approve each attendance request to ensure an appropriate size and mix of participants. The sessions are 90 minutes in duration and include introductions, a short presentation, and a facilitated discussion.

Aggarwal Rohitashwa gray square
Rohitashwa Aggarwal
Vice President
Bharath M Refresh gray square
Bharath M
Practice Director
Burman Ratandeep 1
Ratandeep Burman
Senior Analyst

Invest to Grow or Invest in Efficiency? | Blog

Most IT technology in organizations focuses on helping to improve the efficiency of the organization. However, as digital transformation takes hold, we can now see that a significant portion of these new IT investments focus on building technology platforms that allow organizations to compete for customers. These new “growth-focused” investments behave differently than their efficiency-focused cousins. They create a more dynamic relationship between technology and the business and evolve at a faster rate, often in less predictable ways. This new relationship between the business and technology increasingly calls for a different governance, investment, and management philosophy.

Conversations with Leaders – Episode 1 | A LinkedIn Live Series

LINKEDIN LIVE series

Conversations with Leaders | Episode 1

April 27, 2022 |
9:30 AM CDT | 10:30 AM EDT | 3:30 PM BST | 8 PM IST

Our Conversations with Leaders LinkedIn Live series, a part of Everest Group’s GBS Leadership Exchange, features GBS executives who have shown significant leadership and innovation in GBS.

Join to learn from and interact in the peer-to-peer discussions on the transformative journeys – including the challenges and rewards — renowned leaders are undertaking in the GBS space.

Episode 1 | A conversation with Serge De Vos, Founder, Interaxis AI an Anheuser-Busch InBev Venture.

Rohitashwa Aggarwal, Vice President, GBS Research and Advisory, at Everest Group, will lead a conversation live on LinkedIn with the inspirational leader, Serge de Vos of Anheuser-Busch InBev as they talk about his journey of taking their GCC from a low-cost service delivery center to a truly strategic partner for Ab InBev, delivering approx. 5 times impact than cost arbitrage provided by the GCC.

Join the conversation to ask questions and dive into the transformation Serge and his team initiated including how they measure impact, key changes they implemented in the GCC’s operating model, and the biggest challenges they faced along the way.

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Serge De Vos
Founder
Interaxis AI an AB InBev Venture

4Cs to Successfully Attain Business Agility in GBS Organizations | Blog

Business agility has emerged among leading Global Business Services trends as a key driver for growth, innovation, and business excellence. Attaining business agility requires new ways of thinking and working. To learn more about the 4Cs (commitment, collaboration, competence, and construct) that can help GBS organizations rapidly respond to market changes and emerging opportunities, read on.

Looking at the latest Global Business Services trends, business agility is a key lever driving cost optimization, improved operational efficiency, accelerated digital transformation, higher revenue impact, improved customer experience, and other positive business impacts. Mature GBS organizations are increasingly reaping the benefits of agility, often reacting, and adapting to changes and challenging situations faster than ever before.

But business agility doesn’t prioritize speed over quality. Being agile doesn’t deteriorate quality, limit documentation, or micromanage. Business agility is an organization’s ability to rapidly adapt to the market and environmental changes productively and efficiently. Organizations who think lean and embrace agility or possess a Lean-Agile mindset are proving they can overcome challenges and seize emerging opportunities quicker than their competitors.

4Cs to successfully attain business agility in GBS organizations

Through our research with mature GBS organizations, Everest Group has identified 4Cs to attain business agility success as shown below:

Picture1 1

Exhibit 1: Everest Group

GBS organizations need to possess the following characteristics to reach business agility:

  • Commitment
    • Change the mindset and increase risk tolerance (over 50% of companies believe resistance to change impedes their progress towards achieving complete agility)
    • Evolve the organizational culture to scale the agile model
  • Competence
    • Focus on talent management by taking an empathy-based approach to leadership and hiring team players
    • Invest in roles for the future and nurture specialist talent
  • Collaboration
    • Leverage internal social tools to drive transparent collaboration across the organization
  • Construct
  • Ensure autonomy and evolve the operating model to avoid getting stuck in existing models and being unable to innovate and realize the true potential of agility
  • Establish open communication channels and/or build a bottom-up communication channel

A shift to agile work

With enterprise expectations evolving and GBS organizations becoming strategic business partners driving higher value and impact, adopting agile work methods has become an urgent need.

Traditional work ways have visibly shifted to an agile mindset. Let’s look at how the 4Cs translate to the new agile approaches as illustrated below:

Graph 2

Exhibit 2: Everest Group

Business agility – the path forward for GBS centers

With enterprises viewing GBS as the hubs for innovation, digital transformation, and change, integrating agile working methods will help GBS centers deliver value-based outcomes productively and efficiently. This also will enable different GBS centers to operate as a cohesive network, benefiting from each other’s best practices. In today’s rapidly changing times, business agility is the path forward for GBS organizations.

To learn about how GBS centers are implementing agility across their operations, read our report 4Cs of Success to Attain Business Agility in GBS Organizations. Please reach out to Aditi Bansal ([email protected]) and/or Meghna Thomas ([email protected]) to share your experiences or discuss Global Business Services trends.

To find out if your GBS is organization evolving to create superior value, take our GBS Evolution Personas Framework assessment.

Technology Service Providers’ Conundrum: Cloud Good for Growth, Not for Their Leadership | Blog

Leaders of cloud development at technology service providers are often seen as stars, leaving executives in charge of traditional segments feeling left out and unnoticed. The C-Suite needs to recognize the important contributions business units and their leaders play to the company’s overall growth and future success. Read on to learn the actions “non-cloud” business leaders should take to be sure they get the company investment, attention, and rewards they deserve. 

What describes the current cloud landscape for business at technology service providers

In our market observations, one aspect has become very common. Leaders at technology service providers who are driving cloud business development for their firms are witnessing much stronger professional growth in the organization than others.

Businesses always value and reward people who are part of fast-growing markets. Given that cloud business for technology service providers is growing two to five times more than overall company growth, it is the cynosure of discussions, investments, and leadership promotions. However, it is also creating challenges for C-level executives in terms of managing the morale of other “non-cloud” leaders.

As a result, we see some segments are now led by “lesser title” executives than in the past. Even if senior leaders run these businesses, they do not get the needed attention and investments from the C-suite. These units quickly become the cash cows that need to drive other high-growth business, such as cloud, which are subtle indications from top management around companies’ priorities.

What are non-cloud leaders doing?

Leaders driving traditional segments are partnering with cloud leaders to drive business. However, they also realize they need to play “second fiddle” in this partnership. Though the cloud business probably needs these segments more than vice versa, the cloud business becomes the fulcrum around which the partnership revolves.

This is forcing technology service providers to rethink the organizational structure of these segments. Some of them are or will embed these segments into different units instead of running them as standalone practices. Many leaders who were part of transformational offerings (e.g., modernization, platforms) have changed their roles now to align with cloud business units.

However, this is not enough, and the non-cloud leaders know it.

What should C-level leaders do?

Top management focuses on the overall growth of the firm. Cloud will continue to receive significant focus and investments from the C-suite because of the benefits of cloud technology to the business. However, the C-suite is failing to realize that the cloud business cannot be seen as an antagonist and other leaders should not feel excluded.

Although C-level executives have aligned non-cloud leaders’ incentives, growth, and influence areas based on capabilities, focus, and aspirations, they must design better models to engage them. They need to understand that cloud business development relies on the success of these other units that bring 50-80% of their top line.

While the cloud business at technology service providers acts as a “nodal agency,” it is unable to influence capability building across the organization. The key reason is because non-cloud leaders are unwilling to collaborate beyond the bare minimum because they see their personal growth being stifled even if they make the cloud business succeed.

We believe technology service providers who can solve this complex organizational structure problem will accelerate their overall business and cloud growth faster than their peers. As newer concepts of Metaverse, Digital Twins, Artificial Intelligence (AI), and composable businesses accelerate and large spend areas such as supply chain, networks, employee engagement, sustainability, and customer experience get disrupted by cloud, it will become even more important.

However, cloud will not be front and center before the strategy but an enabler for overall business outcome. Therefore, C-level leaders need to nurture their leadership outside of the immediate cloud business to prepare their organization for future success. Failing to do so may result in near-term growth for cloud business development but bring long-term challenges for the overall organization.

What should non-cloud leaders do?

  • Stake claim to the high table: Have the courage to speak up about the importance of your service line. Educate top management about how underinvestment in your business impacts the overall firm. Continue to collaborate with cloud leaders but build deep relationships where you are an equal partner instead of being in the back seat
  • Make your portfolio exciting: Leaders should make their management style and offering portfolio enticing. Unfortunately, most confuse their run the business innovation as exciting, which it is not. They should focus on revamping their offering portfolio, drive positive messages across team members about the impact they are creating, and create internal events for people to feel connected and motivated
  • Invest beyond run the business: Many leaders have almost given up on the hope of growth investing in their business. Some of it is a result of top management’s lack of interest, but in large part is due to the internalization the non-cloud leaders have of this apathy. These leaders need to build a stronger case for investments in their segments, link it to overall firm performance, and provide detailed insights into how their business is adding to cloud momentum
  • Quit: If the leaders continue to get short shrift in their organization, they should proactively look at opportunities outside their company. Smaller and niche companies are always seeking a growth-centric C-suite and will be happy to engage with them. In these companies, executives can create their charters and show the value add they can bring

What is your take on cloud business development at technology service providers? Please reach out to us at [email protected], [email protected], or contact us.

With the rapid pace of change and push toward digital adoption, enterprises need to identify the right vendors, determine the right price, and keep up with evolving operating models. Learn more in our webinar, Cybersecurity: What You Need to Know to Find the Right Partner and Price.

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