Key Global Services Trends Shaping 2022 | On-demand Webinar
The global services industry has found its stride coming out of 2021, showing transformational growth and ceaseless resilience with no sign of slowing down.
In this webinar, our experts break down key global services market developments and explore trends in outsourcing and the global in-house market. The speakers also report insights on talent, location activity, service provider M&A activity, and the key trends likely to shape the global services industry in 2022.
During this session, attendees learn:
How the global services market performed and key developments in outsourcing in 2021
Insights on the growth of the GBS market
The evolution of the delivery center location strategy
Expectations for 2022 and how to continue to prepare
Jimit Arora leads Everest Group’s practice focused on serving enterprise customers. This responsibility spans Everest Group’s research offerings focused on executives in IT, sourcing & vendor management, and shared services.
Prashray Kala is a member of the Global Sourcing team and assists clients on topics related to location optimization, enabling talent models for digital initiatives, increasing inclusivity and diversity in enterprises, quantification of business impact, and benchmarking of global delivery models.
Prior to joining Everest Group, Prashray worked at i3 Consulting, where he was based out of multiple countries in the Middle East and North Africa and worked on strategy consulting, operations consulting, and risk policy and analytics. He holds a Bachelor’s degree in Financial and Investment Analysis from the College of Business Studies, Delhi University.
Everest Group’s Amy Fong and Michel Janssen will be speaking in the session Managing the Transition to a Work from Home Model in Global Services in IAOP’s GOV20 virtual forum.
Leading service providers have announced a significant portion of their roles will shift to a work from home (WFH) model. While many organizations allowed WFH as a temporary solution during the crisis, its likely it will become the norm for many roles. In this session Everest Group will share the latest research on market trends as well as guidance to prepare for the “Next Normal” in service delivery. We will discuss:
How prevalent will WFH become in the post COVID-19 world?
Which roles are most appropriate for WFH? Where is the risk too high?
What are the greatest concerns with wide scale WFH?
Which contract terms should be re-examined when negotiating a long term WFH model?
What questions should you ask your service providers to ensure strong governance and risk mitigation?
The COVID-19 crisis has forced organizations to reevaluate risks across locations and the supply base. Do you know where to start?
In this interactive session, we will discuss common risks in services sourcing across locations and service providers. We will cover tactics to measure and mitigate risk. Topics will include changes in approach to risk management during the COVID-19 pandemic.
Who should attend
Global services, procurement, VMO and outsourcing executives of enterprises wishing to learn more about locations and service provider risk management in services sourcing.
What will you learn
This session will help participants consider options to broaden their monitoring and mitigation activities related to location and service provider risk, and share experiences to date.
While there is no charge for these sessions, the price of admission is participation. These sessions are most successful when all attendees are prepared to share their experiences with colleagues at other enterprises.
In support of this objective, participation is limited to senior executives within enterprises (no service providers), and each attendance request must be approved by Everest Group to ensure an appropriate size and mix of participants. The 90-minute session includes introductions, a short presentation, and 60 minutes of facilitated discussion.
Changing expectations for how Global Business Centers deliver value and innovation, combined with the increasing adoption of intelligent automation technologies, are dramatically impacting the talent equation across shared services and outsourcing activities.
To address these challenges, this session will provide you with actionable insights on related topics, including:
Workforce planning for the future
Talent scarcity challenges and options
Getting more from the existing workforce
We will answer the following questions:
Why and how are talent needs evolving?
What are the options to address future talent needs?
How do you balance the talent demand-supply dynamics?
What are best-in-class organizations doing to cultivate a future-ready workforce?
Who should attend and why?
This webinar will provide leaders of Shared Services, Global In-house, and Global Business Centers with critical insight around current vs. future talent needs, how best to navigate shortages in skilled talent, and key takeaways from best-in-class talent management practices.
Can’t join us live? Register anyway! All registrants will receive an email (typically within 1-2 business days of the live delivery) containing the link to session slides and on-demand playback. In addition, we’ll also provide details on how to take advantage of a special offer to be made during the live delivery.
Numerous locations in the Middle East and Africa (MEA) are emerging as upcoming destinations for global services delivery. Several multinational companies have set up their centers in the MEA region to deliver services to Europe and North America, and tech giants including Apple, Facebook, Google, Microsoft, and Uber are leveraging it for global services delivery.
What’s the appeal?
Availability and quality of talent pool
There’s been a consistent increase in the pool of entry-level talent and experienced professionals with domain-specific skills. Egypt is the leader in the region; due to various government measures to improve education quality and a significant rise in contact center operations in multiple languages, including English, French, and Arabic, the country posted an enormous 35 percent increase in the headcount for global services exports in 2018.
There’s also been a considerable rise in R&D centers and Centers of Excellence (COEs), where talented professionals with relevant and often advanced technological skill sets work to develop state-of-the-art solutions.
Less competition for talent
Because there’s a relatively large population base, limited jobs, and high unemployment rates throughout much of the region – for example, South Africa is at 27 percent and Nigeria is at 23 percent – organizations can procure talent easily and train the workers as per their specific business needs.
Some of the countries in the MEA region offer highly attractive cost arbitrage compared to source geographies. For example, Egypt, Nigeria, and Kenya come in at 70-80 percent less (although Nigeria and Kenya are primarily leveraged to serve domestic markets), and South Africa (for non-voice F&A) and Morocco (for voice-based services) offer cost savings of 40-60 percent over source geographies.
Proximity to Europe
Proximity with various European countries is a big selling point of many African locations. For example, because Morocco offers both cultural and geographical proximity to France and Spain, companies are increasingly leveraging it for French and Spanish voice-based business process services. Because the English language was introduced by British colonists, and because there’s shared cultural affinity, South Africa is becoming a popular destination for voice-based services delivery for U.K. companies. Additionally, because most African countries share similar time zones with Europe, delivery and client teams are able to collaborate in real time, thereby, optimizing work in both the geographies.
The leading locations in the MEA region
The map below highlights key locations leveraged by global enterprises and service providers for global services delivery. While the emerging locations house 20,000 to 100,000 FTEs across global services, nascent locations employ less than 20,000 FTEs in this space.
A snapshot view of the top five global services delivery locations in MEA
Egypt: Offers the most attractive cost-talent proposition, with strong multilingual skills, especially in English, French, and Arabic languages. However, relatively higher operating environment risk with concerns around high inflation rates and repressive government policies
Morocco: Primarily leveraged for French and Arabic language voice-based BPS and IT services. Morocco offers moderate-high competitive intensity and strong government support (especially for the IT-BPS sector through financial, tax, and customs advantages)
South Africa: Characterized with large, high-quality talent pools and the highest maturity across functions, South Africa houses multiple organizations delivering voice and non-voice BPS, including complex processes. It has a stable geopolitical environment, well-developed infrastructure, high ease of doing business, strong government incentives for the IT-BPS sector, and limited safety and security concerns
Mauritius: It is leveraged for IT (both ADM and infrastructure), non-voice business process services, and R&D services to serve French and Canadian markets. It offers a favorable business environment, with government incentives for the IT-BPS sector, such as tax-free dividends and foreign tax credits
Israel: Leveraged for delivery of advanced IT (including IoT, ML, and AI) and R&D services, primarily to support the U.S. and Europe. Israel offers a highly favorable business environment with lower tax rates and conducive government incentives, such as low corporate tax and grants up to 20 percent of the amount of the investment.
For a detailed view of each of these locations, please read our latest Location Spotlight reports. Each report analyzes the individual country’s global sourcing profile, key opportunities, drivers, challenges, talent and skills availability, financial attractiveness, and environment risks.