Tag: IT

CIOs Meeting ESG Commitments Must Go Beyond Reducing Carbon Footprint | Blog

Environmental, Social, and Governance (ESG) initiatives and investments are growing in importance and starting to significantly influence the marketplace, particularly for services and products. Almost every large company in the world now has an ESG agenda, comprising CEO and leadership team formal commitments to their boards and other stakeholders. Those commitments now are moving down in the organization to the different functional heads, including the CIO, for IT’s share of the responsibility for meeting the company’s commitments.

Read more in my blog on Forbes

Always on Call: How to Avoid an IT Meltdown | In the News

For enterprise leaders hoping to ensure their companies can respond to outages whenever they happen, there are some essential tactics to execute, according to Mukesh Ranjan, Vice President at Everest Group.

  • Enable self-service for commonly occurring issues: Leaders can create marketplace portals, one-click resolutions, FAQs, and do-it-yourself videos contextual to company needs
  • Incorporate chatbots with embedded RPA: To address key workflows and use cases such as internet issues
  • Make resources available: During weekends and graveyard shifts, have a go-to process to respond to critical outages
  • Follow the sun model: Create rotation schedules to ensure round-the-clock resolution

Read more on CIO Dive

How to Clear Up Industry Cloud Confusion and Choose the Right Solution

With so many industry cloud platforms available from different technology players, selecting the right solution for your enterprise is not simple. Learn the important characteristics to look for from providers in this latest blog in our industry cloud series.

As cloud technology matures, industry-specific solutions are emerging as a leading preference over generic options to deliver efficiency, experience, innovation, and business-enabled growth. According to Everest Group’s latest survey, a staggering 87% of enterprises rate industry cloud as one of their top three investment priorities.

The supply landscape is heating up with technology providers leading with an industry cloud-focused go-to-market narrative, investing in multiple offerings for target verticals, initiating industry cloud-dedicated partner launch programs, and announcing large enterprise engagements.

Many technology providers operating in different spaces are approaching this market in their own ways. In our last two blogs on this topic, Demystifying Industry Cloud and The Battle for Supremacy in Industry-specific Cloud Has Begun, we discussed the evolving industry cloud solution provider landscape and go-to-market strategies adopted by key ecosystem players.

Read on for a deep dive into suppliers’ industry cloud offerings and our recommendations to equip enterprises to select the best-suited industry cloud solution for them.

The industry cloud solution marketplace is proliferating

The following three broad categories of industry-specific cloud solutions are emerging in the market:

  • Cloud infrastructure providers such as Microsoft Cloud for Manufacturing, AWS for Health, and Google Cloud for Telecommunications focus on providing an industrialized set of cloud solutions and services tailor-made for specific industries. Industry-specific configurations, interfaces, use cases, and blueprints are embedded into existing functionalities and bundled with partner solutions
  • Enterprise platform providers such as Salesforce Financial Services Cloud, SAP Digital Manufacturing Cloud, and Oracle Retail Cloud embed industry-specific processes, solutions, and frameworks into their horizontal applications and functions to enable industry specificity
  • Business solution providers such as Veeva Systems Life Sciences Cloud, Temenos Banking Cloud, and Guidewire Cloud for Insurance deliver true and heavily nuanced vertical solutions by providing niche industry-specific functionalities covering the breadth and depth of the value chain, targeting industry pain points

Though the objectives appear similar, technology providers take different routes for portfolio development based on their heritage and core strengths and provide varying degrees of industry specificity, adaptability, and improvisation.

For instance, cloud infrastructure providers offer flexible and ecosystem-driven industry cloud, while business solution providers have a more exhaustive use case coverage.

How to select the right industry cloud for your firm?

Enterprises need to make informed decisions when selecting providers of choice and carefully consider their business objectives, existing technology landscape, level of industry-specificity and enterprise-contextualization required, and preferred consumption model (off-the-shelf solution versus customized offerings).

Below, we detail the key characteristics of each solution type to assist enterprises in selection.

  • Industry cloud solutions by cloud infrastructure providers

Cloud infrastructure players provide a basic level of industry-specific functionalities and configurations powered by advanced cloud computing and next-generation technology capabilities in data analytics, Artificial Intelligence and Machine Learning (AI/ML), and the Internet of Things (IoT).

These most benefit existing consumers of cloud infrastructure providers’ technology stack that intend to digitize their platforms and services by co-creating or co-developing solutions with ecosystem players, instead of preferring directly consumable end-to-end industry cloud offerings.

Level of industry-specificity: Low-medium

Degree of customization: High

  • Industry cloud solutions by enterprise platform providers

Enterprise consumers of Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and other horizontal applications focused on achieving unified customer relationships, and employee experience can leverage industry cloud solutions by these providers.

Enterprise platform providers provide out-of-the-box industry solution workflows, built on core horizontal enterprise platform functionalities consisting of purpose-built functionalities, pre-built data models, and automation and AI/ML capabilities for particular industries.

Their focus is on digitizing vertical systems across the front, middle, and back offices, powered by customer data-related insights and integration between the sales and operations teams. These offerings have a limited level of customization and are usually available as different editions of off-the-shelf offerings.

Level of industry-specificity: Medium

Degree of customization: Medium

  • Industry cloud solutions by business solution providers

Enterprises requiring extensive value chain coverage and high-grade industry-specific cloud solutions that are looking to digitize their industry platforms can consider offerings by business solution providers.

These solutions are delivered in a pre-packaged and composable format. Enterprises can consume these solutions and services in a modular form and augment functionalities by developing vertical-specific solutions and services on top of these platforms.

Level of industry-specificity: High

Degree of customization: Low

  • Interdependence of technology providers and the role of System Integrators (SIs)

These providers cannot independently provide end-to-end expertise across all layers of an industry cloud stack – infrastructure and platform layer, application layer, differentiation layer, and customization layer.

While these players bring their own strengths to the table, they rely on each other to fill in the missing pieces.

Both cloud infrastructure players and enterprise platform providers depend on business solution providers for domain expertise and vertical-specific contextualization. Meanwhile, enterprise platform and business solution providers rely on cloud infrastructure providers for underlying compute and next-generation technology capabilities.

In this ecosystem-led play, SIs play the key role of ecosystem enablers. For an effective industry cloud implementation, enterprises should engage with SIs for enterprise contextualization, industry knowledge, implementation capabilities, and system integration expertise.

Industry cloud offerings in banking and financial services

To illustrate, we compare different industry cloud solutions in the banking and financial services space by these provider categories below:

Picture1 3

The industry cloud outlook

Though this space is witnessing heightened investments and significant interest among enterprises, the market is still primitive, and the road to success is not straightforward.

To ensure optimum value from industry cloud adoption, enterprises need to clearly define their industry-specific cloud requirements, identify target use cases, choose the appropriate sourcing strategy, analyze available solutions, align the partner ecosystem, factor in technology-related dependencies, and consider industry-specific compliance regulations.

To share your thoughts and discuss industry cloud, contact [email protected] and [email protected].

Also, learn how enterprises can measure the value of cloud and how to unlock its full potential to maximize efficiency in our webinar, How to Unlock the Full Value of Cloud.

ServiceNow Launches Workflow, Workspace Tools for Enterprises and Government Agencies | In the News

ServiceNow has rolled out a trio of solutions to improve productivity for employees, customers, and partners. These promise to help digitize more aspects of workplace productivity, improving efficiency for enterprises and government agencies.

Yugal Joshi, Partner with Everest Group, an advisory service, believes service maps are moving in the right direction but progress has been incredibly difficult. Enterprises have been using change management databases (CMDB) for ages, but these are rarely updated or strategically used.

Read more on VentureBeat

 

Sustainability and the CIO’s Office: A Powerful Connection | LinkedIn Live

LINKEDIN LIVE

Sustainability and the CIO’s Office: A Powerful Connection

View the event on LinkedIn, which was delivered live on Thursday, November 1, 2022.

What did sustainability look like from the CIO’s office? Everest Group was honored to have Niklas Sundberg, SVP and CIO at ASSA ABLOY Global Solutions, joined us to answer this question ♻️.

Niklas is a leader in sustainable digital transformation and firmly believes in the diversity of people and the power of technology to positively change the world. He also recently authored a book presenting sustainability and its connection to the CIO’s office.

As a CIO himself, Niklas provided valuable insight into building an optimal sustainability strategy for 2023 💻.

Our speakers explored:
✅ How should CIOs view the sustainability puzzle?
✅ How can the diversity of people and power of technology strengthen your sustainability strategy?
✅ What were the best tips to optimize your sustainability strategy for 2023?

Meet the Presenters

Life Sciences Supply Chain Visibility: A Strong Link in the Chain | Blog

Improved supply chain visibility can help global pharmaceutical and medical device suppliers overcome the many logistics challenges they face post-pandemic. Internet of things (IoT) and blockchain technologies offer promise to address the growing demand for product traceability and transparency. Read our second blog in this series to learn more.

The COVID-19 pandemic exposed major supply chain weaknesses in the life sciences industry as the industry experienced skyrocketing demand for innovative medical products.

Enterprises struggled to keep operations running amid the pandemic without adequate supply chain product visibility or unified systems to provide needed data to improve logistics performance.

Most companies lack the analytical tools to completely integrate and analyze data from various systems at all levels – from the plant’s local work centers to the world’s end-to-end supply chain.

As a result, the massive data generated during the pandemic provided little usable information and insights.

Supply chain visibility: right time for real time?

Supply chain visibility can help enterprises overcome these challenges and build more robust and effective supply chains by tracking medical products in transit and providing a clear view of the inventory and activity.

Let’s look at the factors that are driving enterprises to invest in supply chain visibility.

  • Product loss and recall: Theft is costly to the industry and needs to be stopped. The pharmaceutical industry experienced its largest theft in 2020 when $1.2 million worth of oncology drugs were stolen from a cold storage warehouse. In the second largest theft that year, $600,000 in pharmaceuticals were taken from a distributor.

 The industry also is being hit by losses due to expired, non-compliant, or recalled products that have problems with temperature parameters or other issues. According to the U.S. Food and Drug Administration (FDA), 281 drugs and 50 medical devices were recalled during the two years of the pandemic

  • Counterfeit products: Increasing numbers of fake drugs and medical devices have found their way into customers’ medicine cabinets. Counterfeit drugs are valued at an estimated US$200 billion annually. Since the World Health Organization (WHO) established a global surveillance and monitoring system in 2013, it has received 1,500 reports of substandard or falsified products. Of these, antimalarials and antibiotics are the most reported. Geographically, 42% come from the African region and 21% each from the Americas and Europe.

Local regulatory frameworks are being implemented to provide more product visibility. For example, the Indian government has mandated life sciences enterprises include Quick Response (QR) codes on Active Pharmaceutical Ingredients (APIs), effective January 2023

  • Regulatory frameworks: The Drug Supply Chain Security Act (DSCSA), amended by the FDA in 2013, mandates enterprises to create an electronic system to track and trace certain prescription drugs. Manufacturers and trading partners are required to encode their products with unique identifiers on the individual packages and track products at the unit level by November 2023.

Similarly, the European Union (EU) Medical Device Regulation (MDR), which regulates the production and distribution of medical devices, mandates MedTech enterprises place a Unique Device Identifier (UDI) for better visibility and tracking of products across the supply chain

A recent analysis found the top 15 global pharmaceutical companies emit 55% more greenhouse gas emissions per million dollars of revenue than the automotive sector. Medical waste has also become a significant issue, particularly with the spread of single-use personal protective equipment and testing kits. As a result, life sciences enterprises are taking initiatives to build more transparent supply chains to track and trace carbon emissions, medical device decommissioning, and secondary package waste

Everest Group’s view of end-to-end supply chain visibility solutions

Picture1 4 

Let’s explore more on the supply chain visibility framework:

  • Make/Manufacture – Inbound logistics that includes procuring raw materials, drug packaging, and moving finished goods to the supply chain

Use Cases: Addressing drug serialization and aggregation, strategic sourcing, fleet tracking, drug e-labelling, artwork management, and API tracking

  • Deliver – Outbound logistics that include order confirmation, shipping, last-mile delivery, and customer service

Use Cases: Addressing drug expiry monitoring, network management, demand forecasting, and warehouse management 

  • Stakeholders experience – Unifies vendors, suppliers, distributors, pharmacies, patients, and others in the life sciences supply chain with one platform 

Use Cases: Asset tracking, anomaly detection, and condition monitoring alerts

  • Returns management: Communicating with end-customers, stakeholders, and life sciences enterprises to obtain and restock goods. Having visibility of goods in reverse logistics helps enterprises make calls on whether to discard, repurpose or recycle drugs and medical devices

Use cases: Case and compliance management, returns tracking and scheduling, conditional monitoring alerts, and drug serialization

Service provider landscape

IT service providers are increasingly offering solutions to address these needs as these instances gain traction. One example is HCL’s serialization and authorization solution that helps track product returns in real time.

Recognizing the need for greater insights into supply chain performance, enterprises have invested in Enterprise Resource Planning (ERP), Laboratory Information Systems (LIMS), Electronic Batch Records (EBR), Manufacturing Equipment Systems (MES), Quality Management Systems (QMS), and other IT systems to capture transactional and performance data.

Information sharing, data interoperability, security, and trust are the major hurdles for life sciences enterprises to implement supply chain visibility solutions. Blockchain and the Internet of Things (IoT) offer promising prospects to tackle these challenges by maintaining the continuity of information, realizing the link between physical and information flow, and providing fraud detection alerts.

IBM, KPMG, Merck, and Walmart successfully completed an FDA pilot program in 2020 that found blockchain technology can be used to meet the DSCSA requirements to track and trace prescription drugs and vaccines distributed in the U.S.

We recommend life sciences enterprises partner with IT service providers that have point solutions for supply chain visibility or engage with niche platform providers to build end-to-end supply chain visibility solutions.

Keep following this space as we explore the technology in supply chain visibility platforms, and see our prior blog on Five Factors Transforming the Life Sciences Supply Chain and Creating IT Opportunities.

What are your views on life sciences supply chain visibility? Reach out to [email protected] and [email protected] to discuss.

You can also learn about planning for a sustainability in your organization in our webinar, Sustainability and the CIO’s Office: A Powerful Connection.

Five Factors Transforming the Life Sciences Supply Chain and Creating IT Opportunities | Blog

Supply chain visibility, strategic sourcing, cold chain requirements, sustainability demands, and personalized medicine are creating opportunities in the life sciences supply chain for IT partners delivering digital solutions. Read this first part of our blog series to understand the shift that is underway.

New security requirements, industry mandates, and changing customer needs require the contemporary life sciences supply chain to become more efficient, transforming the logistics network.

The worldwide value of pharmaceutical goods traded has grown six-fold in the past two decades from US$113 billion in 2000 to US$629 billion in 2019, according to the United Nations Comtrade Database.

This growth has driven more companies to outsource production to Contract Manufacturing Organizations (CMOs) to meet the pent-up demand. Let’s explore the factors impacting these increasingly global and complex chains.

1

  • Pandemic-driven supply-demand fluctuations: Rising consumerism and pandemic-driven proliferation of precision medicines, wearables, and telehealth applications have left enterprises struggle to meet increased demand. One example of this is Bristol Myers Squibb’s struggling to meet the strong demand of BCMA-targeted CAR-T cell therapy Abecma
  • Ever-changing regulatory oversight: Many industry-wide regulations have been implemented to strengthen the safety and effectiveness of medical devices and drugs commercialized across the globe. These include the European Union Falsified Medicines Directives (EU FMD) in 2011, Drug Supply Chain Security Act (DSCSA) in 2013, European Union Medical Device Regulation (EU MDR) in 2017, and the UK Medicine and Medical Devices Act (MMD) in 2021
  • Need to reduce product diversion and recall: Increasing numbers of black-market activities and illegal drugs are finding their way into the supply chain and affecting companies’ brand values. The most common drug diversions are class benzodiazepines, opioids, stimulants, antipsychotics, anesthetic drugs, and GABA agonists
  • Supply chain data sharing and data security: Broad threats, ranging from cybersecurity to data breaches, have led to unplanned financial and intellectual property losses. A case in point: IBM detected cyberattacks against the cold chain drugs specifically associated with GAVI, the vaccine alliance, and government agencies involved in the drugs’ distribution

Five key investment areas in the life sciences supply chain

  1. Supply chain visibility: Implementing visibility platforms could have saved 1 billion vaccines during the pandemic, according to the United Nations Environment Programme. This creates opportunities for IT service providers to partner with enterprises to enable end-to-end supply chain track and trace models.

Additionally, the Drug Supply Chain Security Act (DSCSA) outlines requirements to achieve interoperable, electronic product tracing at the package level to identify prescription drugs distributed in the United States by November 2023. Similar laws are in effect in Europe and other parts of the world. (For more on supply chain visibility, see our next blog.) 

  1. Strategic sourcing: With the growing awareness post-pandemic of the supply chain risk of overdependence on raw material procurement from India and China, enterprises are starting to reshore pharmaceutical manufacturing in the US and Europe. 

Also, since sourcing and procurement account for roughly half of drug development and manufacturing costs, firms are focusing on optimizing spending by using technology to gain real-time spending views, structure budget accountabilities, and align purchasing with production

  1. Emerging cold chain requirements: Various factors have pushed enterprises to increase their focus on temperature-sensitive drugs that contain high-value active ingredients and have shorter shelf lives. Cold chain adoption also has been accelerated by the rapid growth of consolidated distribution houses and online retailers’ improved last-mile connectivity 
  1. Sustainable supply chains: The growing importance of sustainability initiatives is evident from the surge we have seen in Environment, Social and Governance (ESG) report. ESG funds in biopharma companies increased 27% in 2021 from the prior year.

Sustainable secondary packaging, carbon footprint tracking, responsible raw materials procurement, effective medical device decommissioning, and scrap minimization are gaining more traction in the life sciences industry. Additionally, the European Union directive 94/62/EC, in conjunction with directive 2018/852, demands a significant reduction in packaging waste by 2025 

  1. Supply chain tailored to personalized medicine: Specialized logistics partners are needed to handle the extremely delicate and patient-specific components of innovative and personalized medications – from collecting cells/genes from healthy donors to delivering innovative medicine to patients.

Life sciences enterprises have invested approximately US$ 13 billion in cell and gene technologies since 2018. More than 900 enterprises worldwide are developing cutting-edge advanced therapeutics, and approximately 1,000 advanced therapy clinical trials are underway. This changing landscape requires supply chains that provide temperature-sensitive environments, closed loops, Chains of Identity (COI), and Chains of Custody (COC)

Implications for service providers

In response to these factors, next-generation connected supply chain ecosystems are beginning to emerge. Life sciences enterprises will need the right complementary digital technologies to optimize costs, drive productivity through streamlined route selection, and improve the customer experience.

This will create new opportunities for IT service providers that bring niche talent and a balanced portfolio of engineering and digital services, as well as supply chain-specific platform providers who will become partners of choice for life sciences enterprises.

Follow the second part of this blog series as we explore supply chain visibility platforms and enterprise initiatives.

To share your views on the life sciences supply chain, please reach out to [email protected] and [email protected].

For more details on the service provider outlook, watch our webinar, Outsourcing Services Pricing: What to Expect Next.

Advocating for IT Innovation in an Evolving Market | Blog

The biggest advocates for information technology transformation can come from inside your organization. Internal IT innovators can spark business growth and evolution. Learn how having employees as innovation champions can benefit your company in this blog. 

With companies increasingly relying on IT post-pandemic and through the current macroeconomic headwinds, innovation is vital to continue pushing the business world forward. Having employees as IT innovation advocates can help your company attract talent and optimize efficiency. While it may seem like a big undertaking to tackle, let’s explore how employees can play this important role in organizations.

How can IT organizations become more innovative?

Leadership alignment and buy-in can inspire innovation and make IT organizations more effective. Technology should enable and act as the catalyst for business objectives – not the end state. Organizational leadership should align on objectives. Executives responsible for IT and digitalization who report to the board and executive committees, such as CIOs and CTOs, should sponsor innovation initiatives.

Implementing contextual metrics for progress is another focus of innovation. Because IT organizations often are viewed as cost centers, they are typically measured on efficiency and policy only. As technology fundamentally enables new business models, organizations need to ensure they are using purpose-led metrics. Everest Group recommends using different metrics based on the objective, such as time to implement systems, improvement in customer onboarding scopes, and automating back-office processes that measure efficiency, and customer experience and new business model innovation that track growth. We believe IT is becoming an enabler for growth, through Systems of Growth thinking, Agile governance also drives innovation in IT organizations. Given the rapid technological change and disruption, IT organizations cannot be static. A cross-functional leadership team should re-examine IT organizations frequently to ensure they remain aligned to their “North Star” and quickly learn from mistakes and course correct.

What benefits come from being an IT innovator?

Innovative-driven IT organizations benefit in three main ways. First, organizations can respond to customer needs faster. More and more, an organization’s ability to use technology determines its success in a fast-changing environment as customer preferences and consumption patterns evolve.

Second, IT innovation improves the ability to attract the right talent. As Gen-Z (and beyond) become the primary workforce that organizations try to attract, they must provide the right tools and infrastructure to make the employee experience a key part of their value proposition. This is also the key to managing attrition and creating belonging in the workplace.

Lastly, IT innovation allows organizations to stay ahead of compliance and security needs. With the ever-evolving regulatory environment, using purpose-built technology can help organizations become resilient and secure. As a result, organizations can avoid brand, reputation, and financial loss.

How can IT leaders convince their business counterparts that it’s important to fund innovation?

Creating internal advocates and champions is vital to IT innovation. IT should seek greater feedback from internal and end users to create a distinctive business case. Beyond that, individuals can start promoting IT innovation.

The first way is to speak the language of business. IT enables business growth and innovation — thus, it needs to be referenced in the same context. Framing technology investments as anchored to growth, efficiency, and resilience will enable a wider cross-section of organizational counterparts to understand its impact.

Another avenue to garner support for IT innovation is to regularly report results. IT leaders shouldn’t wait for end-of-year results or budgeting cycles to showcase progress. They should do this quarterly or more frequently, so leaders see the impact and value.

The IT department shouldn’t be an isolated team but instead, plug into a company’s DNA and morph as the company changes. By collaborating with multiple sectors of the company, IT innovation can be built into the organizational framework. This will ensure the IT team is not at odds and can more easily assist their company by continuously adapting to changing markets.

For more information or to discuss how to implement innovation into your IT team, reach out to Nitish Mittal at [email protected].

You can also discover how technology, processes, and business networks will evolve in our webinar, What’s Ahead After a Decade of Digital Transformation?

Finance and Accounting Outsourcing (FAO) – Service Provider Landscape with PEAK Matrix® Assessment 2022

Top Finance and Accounting Outsourcing Services

The global multi-process Finance and Accounting Outsourcing (FAO) market has continued to grow at a steady rate of approximately 10% in 2022. Surging inflation, a recessionary environment, and geopolitical instability, coupled with pandemic-induced volatility, are driving enterprises to leverage third-party provider support for their finance functions. The need for digital transformation, an increasing number of first-time outsourcers, and growing demand for next-generation technology and high-end Finance and Accounting (F&A) work from mature outsourcers will continue to drive market growth in the near-term.

Some of the key means by which providers are differentiating themselves is by offering end-to-end transformation solutions, combined with domain and industry expertise and innovative Environmental, Social, and Governance (ESG) solutions, flexible pricing models, a design thinking-led approach, transformation frameworks, and next-generation offerings leveraging automation and analytics.

In this research, we assess FAO service providers based on their vision & capabilities and market impact and position them on the Everest Group PEAK Matrix®.

DOWNLOAD THE FULL REPORT Finance and Accounting Outsourcing (FAO) – Service Provider Landscape with PEAK Matrix® Assessment 2022

 

What is in this PEAK Matrix® Report:

This report includes:

  • Everest Group’s Services PEAK Matrix® evaluation, a comprehensive assessment of 27 FAO service providers
    • 2022 FAO PEAK Matrix® Leaders, Major Contenders, and Aspirants, as well as Star Performers
    • Service provider capability assessment
  • FAO service provider landscape
  • Key strengths and limitations of each FAO service provider

Scope:

  • Geography: global
  • Services: FAO

LEARN MORE ABOUT Finance and Accounting Outsourcing (FAO) – Service Provider Landscape with PEAK Matrix® Assessment 2022

 

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F&A Operations Transformation – an Illustrative Example for an Insurance Company

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Integrated F&A Operations Transformation Approach

Industry-specific F&A Solutions-An Evolving Landscape
Market Insights™

Industry-specific F&A Solutions – An Evolving Landscape

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.

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