Share of Europe-Headquartered GICs Grows | Market Insights™
June 30, 2016
Share of Europe-headquartered GICs grows
Share of Europe-headquartered GICs grows
The consistent growth rate in number of GICs indicates that they are no longer viewed simply as low-cost in-house delivery centers, but are being leveraged as strategic units and value-add partners for the parent organizations
Global services market, 2010-15, and distribution of global services market by sourcing model, 2015
Drivers of GIC and start-up collaboration
Non-standard rate cards can cause significant headaches for GICs and their parents; these tips can help
Webinar identifies “talent hotspots”– locations well positioned to lead in the delivery of digital services
Global outsourcing demand exceeded industry expectations in Q1 2016, according to Everest Group, a consulting and research firm focused on strategic IT, business services and sourcing. Most service providers reported sequential growth in revenue, and transaction activity increased significantly, with more new deals reported in Q1 than in any of the previous eight quarters.
Growth in the IT outsourcing market was a key contributor to the outsourcing industry’s strong performance in Q1, with banking, financial services and insurance (BFSI) and manufacturing, distribution and retail (MDR) verticals leading the way. Service delivery automation, an ongoing trend among service providers, is helping replace a substantial amount of human yields, resulting in significant cost savings for enterprises.
Everest Group presented these and other highlights of the global services market in Q1 2016 in a one-hour live webinar on May 12. The webinar, “Key Insight on Digital Service Delivery ‘Talent Hotspots’ PLUS Market Vista™ Q1 2016 Update,” featured Everest Group experts offering insights on the delivery locations that are positioned to become the “talent hotspots” for the delivery of digital services.
“Service delivery automation continues to shape the industry, and we are beginning to see a clear demarcation of leading providers who have witnessed significantly greater impact on the revenue, cost and productivity,” said Salil Dani, vice president at Everest Group. “Best-in-class providers are reporting some remarkable milestones, such as a 24 percent reduction in net headcount addition, cost savings between US$100 to $300 million annually, and up to 50 percent improvement in productivity due to automation.”
Other Key Takeaways
Click image to enlarge
India GIC IT talent migration patterns
Click image to enlarge
Contrary to popular belief, computer science engineers constitute less than 30% of total employed pool for IT services
Click image to enlarge
More than 90% of the IT services talent employed by GICs in India is concentrated among few locations
Click image to enlarge
High retention is based on strong brand positioning, work environment, and compensation policies
©2023 Everest Global, Inc. Privacy Notice Terms of Use Do Not Sell My Information
"*" indicates required fields