IT Industry Archives - Everest Group

Six major IT companies reduce employee strength by over 4,000 | In the News

November 2, 2017

The $156-billion Indian IT industry, often called the biggest job creator in the organised sector, is seeing a tectonic shift in recruitment.

For the first six months of the fiscal, Cognizant, Infosys, Wipro and Tech Mahindra have all seen their employee strength actually decline — quite sharply in Cognizant’s case (by over 5,000). TCS and HCL Technologies are the only exceptions among India’s top six IT companies, but even TCS’ addition is a fraction of what it did in the first six months of the previous fiscal.

Peter Bendor Samuel of outsourcing research firm Everest Group told TOI, “The employment picture in Indian IT is changing rapidly. The intake of new campus hires in the Indian IT industry is dramatically down and looks to continue to fall. The industry will continue to be a great place for engineers with the right skills in AI, automation, and other digital skills that are in high demand. However, for those individuals who have traditional IT skills, the picture changes dramatically.”

The impact of automation collapsing enterprise IT | Sherpas in Blue Shirts

September 11, 2017

The IT stack is collapsing, thanks to the latest innovation in IT and moving into a software-defined service-oriented architecture. What can happen as a result of the collapse is important for every company to understand, as the more the stack collapses, the better results IT can deliver.

Before we look at the potential impacts, let me explain what I mean by collapsing the stack. A multi-layer stack of technology comprises IT – things like the server layer, operating system, middleware, enterprise application, security layer, etc. That stack informs and drives a reciprocal stack, which is the functional organization of enterprise IT. In this functional stack are infrastructure, database, middleware software, database and middleware teams, application maintenance and development, security, etc.

EXCLUSIVE-Hit by slowing growth and automation, IT industry has started sacking freshers | In the News

August 17, 2017

If you are a young software professional still flush with the excitement of being hired from campus a year or so ago and cherry-picked for training programmes, take a deep breath before you read this.

Anecdotal evidence shared with Moneycontrol suggests that companies are sacking youngsters within a year of having hired them as they get increasingly desperate to cut costs in the face of slowing growth and automation.

The IT industry is coming to grips with a market shift from an arbitrage-first model to a digital-first model, said Peter Bendor-Samuel, CEO of consultancy Everest Group.

IT faces conflicts in realities of digital world | Sherpas in Blue Shirts

June 29, 2017

IT faces two realities: a legacy environment and a digital environment. When your company commits to a digital future, your legacy environment doesn’t go away. But adopting a bimodal strategy is not successful. Here’s the reality: digital transformation is a game changer that requires changing your business model; therefore, you must drive change into both environments.

A company’s legacy environment is mature, sedimented and complex with many layers of technologies, applications and processes that are interrelated. It is also overspread with the company’s culture and its organizational structure.

In Digital, What was Context Now Becomes Core | Sherpas in Blue Shirts

June 21, 2017

I don’t know about your company’s situation; but having looked at literally hundreds of outsourcing contracts, I see that they all have something in common. The original intent was a one-time shift to transform and improve an operational aspect. Unfortunately, IT outsourcing contracts sort of poured concrete around the outsourced processes. Thus, the quest for operational excellence through outsourcing IT has the effect of stopping companies from changing. That’s a non-starter in the digital world.

When companies begin to rotate from legacy environments into digital technologies and digital business models, it’s not long before they realize they must fundamentally rethink their assumptions around the old ways of doing things. In those old assumptions, outsourcing IT infrastructure, development and maintenance and other IT functions made sense. The assumption was those functions were not core competencies, so the company should outsource to get efficiencies of scale and price points through leveraging the outsourcer’s core expertise. That assumption was usually right; the company transformed from Point A to Point B and achieved a one-time shift in improving operations.

How DevOps changes the delivery of IT functions | Sherpas in Blue Shirts

June 13, 2017

Labor arbitrage and shared services companies have had a perfect marriage over the last 20 years. Then along came the Digital Revolution with new business models and a new construct for services. One component of the digital model construct is DevOps. It makes a significant impact on business services, but it’s important to understand how it changes the picture for labor arbitrage and shared services.

Shared service companies are structured on a functional basis. One way to think about them is they are a stack of functional expertise. In the case of IT, the stack includes such functions as infrastructure, security, application development and maintenance, and compliance. There is a multiple stack hierarchy, with each functional layer having shared service champions responsible for delivering that function cost-effectively at a high level of quality. Labor arbitrage fits perfectly into this equation in that each functional layer uses people, and the work can often be done more cost-effectively offshore than onshore.

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Tag: IT Industry