Tag: IT

Cost Optimization in Focus, Moderation in Growth Expected: What Accenture’s Results Mean for Indian IT Companies | In the News

Indian IT companies are likely to focus on cost optimization going forward, analysts said, after Accenture reported its numbers for the quarter that ended February 28. The company also announced that it is going to lay off 19,000 employees over the next 18 months, including over 800 of its 10,000-plus leaders. CEO Julie Sweet said the company is going after structural costs to ensure that it is in a better position.

Chirajeet Sengupta, Partner at Everest Group, said that the sentiment going forward is that things are not falling off a cliff, and even something like the impact of the collapse of SVB and the acquisition of Credit Suisse by UBS is being managed better by regulators currently than how things were in 2008, during the global financial crisis.

Read more in Money Control.

Changing Dynamics In The IT And Engineering Services Market | Blog

Looking at the market for IT and engineering services right now reveals that companies are in a spending dilemma. They face high demand for these services, yet they look to cut back on spending because they are concerned about a possible recession. The strategies large companies are already putting in place to address this dilemma are changing the marketplace dynamics. Here is an overview of what your company needs to understand about these strategies.

Read more in my blog on Forbes

Banking Crisis: India’s $245 Billion Business in Crisis, Millions of Jobs at Risk, Know What Is the Reason | In the News

Banks in North America lead the way in technology investment in the retail banking sector worldwide. According to the data of financial advisory firm Celent, in the year 2022, the IT budget of these banks was US$82 billion, while the world budget was US$250 billion. Indian IT companies benefited greatly from the banks’ spending on tech budgets.

According to Peter Bendor-Samuel, CEO of Everest Group, TCS, Infosys, Wipro, and Mindtree have exposure to regional banks in North America through their banking verticals, and the banking crisis will impact their BFSI growth in the short term.

Read more in Newsday Express.

This Is How Global Banking Crisis Can Impact India in Different Ways | In the News

India is seen to be relatively sheltered from the shocks of the crisis. It is unlikely to impact India’s banking system or its broader macroeconomic stability unless more banks in the US or Europe fail and the crisis gets pronounced. Yet, analysts and some economists believe the indirect impact of the banking crisis might ripple through India’s economy and manifest in India’s tech sector, markets, and startups.

However, there will be some positives. Firms like TCS and Infosys are best placed to win the cost optimization projects that will come up now due to the stress in the sector, and “even one large deal win can bring a substantial positive pace of growth for the companies,” according to Peter Bendor-Samuel, founder of research firm Everest Group.

Read more in The Economic Times.

Banking Crisis: Indian IT-BPM Companies May Feel the Heat | In the News

The banking crisis in the US and Europe could take a toll on the Indian US$245 billion IT business process management (BPM) industry, which draws close to 41% of its revenues from the banking, financial services, and insurance (BFSI) sector, analysts said.

“Companies like TCS, Infosys, Wipro, and LTIMindtree have exposure through their banking vertical across North American regional banks. Over the short term, there will be an impact to BFSI growth due to this crisis,” said Peter Bendor-Samuel, CEO at Everest Group.

Read more in The Economic Times.

TCS CEO Exit: ‘Reason is Internal Discomfort with Reorganization’ | In the News

With four years left before his term ends, TCS CEO and MD Rajesh Gopinathan announced his resignation from the country’s largest IT services behemoth last week. Though the next day after his resignation, at a press briefing, he said it is better to leave when everything is good and that “if not now, will there be a better time,” analysts said there is more to this than meets the eye.

In April 2022, TCS launched a new operational structure under which four business groups – acquisition, relationship incubation, enterprise growth, and business transformation – were created. “Under the new structure, it is hard to find who is in charge, and in some instances, with too many cooks in the kitchen, this is quite unlike the normal TCS interactions that are usually disciplined and on target,” said Peter Bendor- Samuel, CEO of Everest Group.

Read more in The New Indian Express.

Outgoing TCS CEO Rajesh Gopinathan’s Ops Model May Have Led to Unease | In the News

A new operating model mooted last year by the outgoing chief executive of Tata Consultancy Services (TCS), Rajesh Gopinathan, may have caused “unrest” among some employees of the country’s largest software services exporter, several sources in the company and industry experts told ET.

“Under the new structure, it is hard to find who is in charge in some instances with too many cooks in the kitchen. This is quite unlike the normal TCS interactions, which are usually disciplined and on target,” said Peter Bendor­ Samuel, CEO of Everest Group, adding that given the recent streak of good performance by TCS, it is, however, hard to say if the restructure caused a significant performance drag.

Read more in The Economic Times.

SVB Crisis: IT Industry May See Fewer BFSI Deals | In the News

The Indian IT industry, which has been facing macroeconomic challenges, might witness a further slowdown in BFSI (Banking, Financial Services, and Insurance) deals due to the recent collapse of Silicon Valley Bank (SVB).

Peter Bendor- Samuel, CEO of Everest Group, told TNIE that the direct impact of the SVB crisis on the Indian IT industry will be modest but the indirect could be more significant. In case of direct impact, this is going to have a negative effect on the high-tech customers, particularly the smaller start-ups.

Read more in The New Indian Express

Driving Social Transformation: The Power of Impact Sourcing on India’s Rural Economy | Blog

By working together, employers, training institutions, the government, and other stakeholders can create a sustainable and inclusive impact sourcing movement in India that empowers the rural population and drives overall social transformation. Read on to learn about the benefits of impact sourcing and the role each group can play to advance this powerful business practice.

My eyes were fully opened to the transformative impact social organizations can have on rural populations as a first-time attendee to Development Dialogue 2023, an international gathering of diverse sectors with the common purpose of creating sustainable solutions, organized by the Deshpande Foundation in Hubli, Karnataka, India.

While I had done some basic research on the foundation’s operations, I never expected to be surprised by the social impact on the local rural economic development from their work that includes farmer support, start-up and micro-entrepreneur programs, and a youth skilling initiative.

Hearing a 14-year-old girl from a small village near Hubli conversing in fluent English with tremendous confidence with dignitaries such as Infosys Founder N.R. Narayana Murthy and Founder and CEO of iMerit Radha Basu amazed me.

This was the moment I realized the real empowerment and impact that NGOs and organizations such as Deshpande Foundation have on the rural population. These enabling institutions educate and train the rural youth population with job-ready communications and technical skills to improve their employment prospects and advance impact sourcing in India.

Pic with Legends

What is impact sourcing?

Impact sourcing involves intentionally hiring and providing career development opportunities to people from marginalized communities. This business practice aims to meet objectives such as maintaining service quality and cost at parity with traditional Business Process Outsourcing (BPO) and Information Technology Service (ITS) providers, fulfilling Corporate Social Responsibility (CSR), Environmental Social Governance (ESG), and diversity objectives of both the business and their clients, and leveraging the unique assets of the target marginalized group.

Impact sourcing creates opportunities for such groups as economically-disadvantaged individuals, women, minorities, LGBTQ+ individuals, survivors of gender-based violence, persons with disabilities, veterans, military spouses, refugees, rural residents, and single parents.

Impact sourcing in India

As one of the fastest-growing economies in the world, India has rapidly expanded its metro cities and developing urban regions in recent years. Almost all higher education facilities and formal sector employment opportunities are concentrated in the metros or tier-I cities.

Meanwhile, more than 64% of the population resides in rural areas with limited growth options. BPO companies in metro and tier-I cities face a severe talent crunch due to high contact center agent attrition rates. Shifting urban BPO centers to rural areas not only reduces operational expenses but also provides job opportunities to the rural population.

To drive major social impact through inclusive hiring models, India needs to create a policy and institutional environment to improve employment opportunities for the rural population that includes the value chain’s three main stakeholders: government support, NGOs/training institutes, and employer organizations.

Currently, India needs more private organizations, NGOs, and training institutes focusing on sustainable rural economic and social development. Increased impact sourcing initiatives are critical to improve job opportunities and drive overall social transformation. Let’s look at the role each of these groups can play:

Role of skilling institutions

Some of the prominent NGOs and training institutes working towards these goals include:

  • Deshpande Foundation, through Deshpande Skilling, focuses on skill development and training elementary and middle-school students as well as graduates from tier II and III towns and villages
  • Anudip Foundation, an NGO in partnership with the National Skill Development Corporation (NSDC), concentrates on providing technical training to Indian youth from underprivileged communities
  • Youth4Jobs focuses on the education and employment of persons with disabilities. Many similar NGOs focus on making unemployed youth job-ready by skilling them with technical education and developing soft skills

Support from government

To promote impact sourcing among disadvantaged rural communities, the government has launched numerous initiatives for skill development, including Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the Employability Enhancement Training Programme (EETP), and the National Employability Enhancement Mission (NEEM).

NASSCOM Foundation frequently uses the mantra of “technology for good” and “changing India bit by bit” to encourage private organizations to actively participate in creating a sustainable impact sourcing movement.

Need for private sector participation

While some organizations such as B2R, Genpact, HGS, iMerit, IndiVillage, Infosys, Rural Shores, and Vindhya have taken steps towards impact sourcing and rural BPO, India needs active participation from all major private organizations.

Impact sourcing offers a compelling business case that goes beyond “doing good.” Studies have shown that impact-sourcing workers are more tenacious, dedicated, and hardworking, with very low attrition rates.

Shifting to rural areas not only reduces infrastructure and operational expenses but also lowers recruitment and training costs, resulting in overall cost savings for organizations. Enterprises also gain community support and social recognition by practicing impact sourcing while contributing to social transformation.

Everest Group, in partnership with the Clinton Global Initiative (CGI), has pledged to increase the impact sourcing workforce across the globe. Through our Commitment to Action proposal, the firm provides a platform for impact sourcing stakeholders to connect and access our research on the global impact sourcing market.

To learn more about Deshpande Foundations’ Development Dialogue event, read this blog, Inspiring Development Dialogue Event Demonstrates the Transformative Force of Impact Sourcing.

If you have questions or want to join other organizations that have already taken this pledge, contact Aman Birari.

Learn more about impact sourcing trends and drivers leading to impact sourcing demand in our LinkedIn Live session, What Are the Benefits and Barriers of Impact Sourcing in CXM? 

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