Global Offshore Services Market Snapshot | Market Insights™
Global services market, 2010-15, and distribution of global services market by sourcing model, 2015
Global services market, 2010-15, and distribution of global services market by sourcing model, 2015
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
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Key global services location opportunities for 2016
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Although India remained the front-runner in offshore activity among leading service providers and company Global In-House Centers (GICs), Romania, the Republic of Ireland, and Singapore experienced a significant increase in delivery center setups
While the financial crisis had a major impact on the BPO market*, increased activity in newer segments is likely to accelerate growth over the next few years
8 key delivery locations comprise ~90% of the Global In-house Center (GIC), or captives, FTEs
Hybrid sourcing constructs: Build Operate Transfer (BOT), Joint Venture, Assisted/Virtual GICs
Global In-house Center (GIC), or captive, Global Activity Heatmap
Business process services are the most common GIC function … and growing
US share of the worldwide Global In-house Center (GIC), or captives, market declines as other geographies increasingly adopt the model
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