Tag

Outsourcing trends

Sourcing RPA: Latest Developments and Enterprise Implications | Webinar (Hosted by the New England chapter of IAOP)

By | Webinars

Tuesday, September 25, 2018 | 8 a.m. CDT, 9 a.m. EDT, 2 p.m. BST, 6:30 p.m. IST | Hosted by the New England chapter of IAOP, co-chaired by Foley & Lardner, Sapience, and Everest Group

Register Now

Robotic Process Automation – RPA – is impacting the very way companies do business. Negotiating the right contracts with your RPA software vendor along with your outsourcing service providers is critical.

In this fast-paced, dynamic market, it’s essential that you stay abreast of the latest market and vendor developments to best harness the power of RPA – at the right cost, and with suitable contract terms. And, with everyone touting their “latest thing,” one must be able to separate the hype from the truth.

Our RPA experts will help to light the path. In this 60-minute webinar, we’ll arm you with the following actionable takeaways:
• Vet the underlying RPA software vendors based upon late-breaking market developments
• Understand impacts of the convergence of RPA and AI (and other key automation tools)
• Learn about key contract pricing metrics so you are prepared for deal negotiations
• Tips for managing the implications on your existing outsourcing relationships

Who should attend?
Enterprise executives responsible for outsourcing and vendor management strategy, and professionals who oversee RPA implementation and operations

Presenters
Sarah Burnett
Executive Vice President and Distinguished Analyst
Everest Group

Michel Janssen
Chief Research Guru
Everest Group

 

Q3 2018 Market Vista™ Update, and Key Implications of the Pressing Issues of the Global Services Market | Webinar

By | Webinars

Presentation originally aired on Wednesday, August 29, 2018 | 9 a.m. CDT, 10 a.m. EDT, 3 p.m. BST, 7:30 p.m. IST

It’s Q3 already?! It seems like just yesterday we were making final adjustments to our 2018 plans, and yet here we are beginning to consider the year that’s been while looking ahead to 2019. With that sentiment in mind, Everest Group conducted a brief survey with leading service providers on their market perspectives for the remainder of 2018 and into 2019.

We invite both service provider and enterprise executives to join us for an insightful 60-minute session in which Everest Group industry experts will offer insights on the key issues service providers are facing, along with their market implications. In addition, we will also comment on global services developments in the second quarter of 2018, covering:

  • Outsourcing trends
  • Market trends in digital adoption
  • GIC market trends and analysis
  • Insights into location activity in offshore and nearshore geographies

Who Should Attend
Enterprise executives, particularly those focused on outsourcing & vendor management and global in-house centers, will gain providers’ perspectives on several of the key aspects of their client relationships (e.g., key budget center, benefits from digital initiatives) and key implications for their sourcing strategies.

Presenters
Michel Janssen
Chief Research Guru
Everest Group

Prashray Kala
Practice Director, Global Sourcing
Everest Group

Salil Dani
Vice President, Global Sourcing
Everest Group

Moderator
Alan Wolfe
Senior Vice President
Everest Group

Sourcing RPA: Latest Developments and Enterprise Implications | Webinar

By | Webinars

Presentation originally aired on Wednesday, August 8, 2018 | 9 a.m. CDT, 10 a.m. EDT, 3 p.m. BST, 7:30 p.m. IST

Robotic Process Automation – RPA – is impacting the very way companies do business. Negotiating the right contracts with your RPA software vendor along with your outsourcing service providers is critical.

In this fast-paced, dynamic market, it’s essential that you stay abreast of the latest market and vendor developments to best harness the power of RPA – at the right cost, and with suitable contract terms. And, with everyone touting their “latest thing,” one must be able to separate the hype from the truth.

Our RPA experts will help to light the path. In this 60-minute webinar, we’ll arm you with the following actionable takeaways:
• Vet the underlying RPA software vendors based upon late-breaking market developments
• Understand impacts of the convergence of RPA and AI (and other key automation tools)
• Learn about key contract pricing metrics so you are prepared for deal negotiations
• Tips for managing the implications on your existing outsourcing relationships

Who should attend?
Enterprise executives responsible for outsourcing and vendor management strategy, and professionals who oversee RPA implementation and operations

Presenters
Sarah Burnett
Executive Vice President and Distinguished Analyst
Everest Group

Michel Janssen
Chief Research Guru
Everest Group

Moderator:
Alan Wolfe
Senior Vice President
Everest Group

 

Indian IT Stares at Major Shake-Up | In the News

By | In The News

The Indian tech industry is headed to a big shakeout with a couple of major mergers and acquisitions expected in 18-36 months. It could mean tier 2, 3, 4 or 5 firms exploring merger with peer or giving in to M&A invitations from external player.

Thus the leader board of Indian IT may look different in the near future as the next couple of years will flesh out a new set of league players in the business, say global analysts who track the space.

Few M&As are likely as domestic tech players are constantly forced to evaluate the size and scale needed to compete in new markets and in new technologies. The dual forces of industry consolidation and new emerging digital market will end status quo and remake the industry. Thus, the entire pecking order of IT Indian may change, they say.

According to Peter Bendor-Samuel, CEO of US-based Everest Group, clear signs of consolidation are discernible in the global markets. The latest example of it is Atos acquisition of Syntel.

Read more in mydigitalfc.com

Infosys Creates a Unit to Respond to Call of the Telecom Billions | In the News

By | In The News

Infosys chief executive Salil Parekh has carved out a separate business that will increase focus on telecom companies that look to leverage their network and subscriber base to transform themselves as content providers and retain their customers.

“The communications services segment is poised for strong growth over the next few years and will likely emerge as a strategic segment in which strong performance will be essential,” said Peter Bendor-Samuel, chief executive, Everest Group, a global IT research and advisory firm. He added that implementation of 5G networks itself would be a big opportunity, which will only increase with the convergence of “telecom and media”.

Read more in The Economic Times

Accenture and Genpact Making Big Plays In Supply Chain Digital Transformation | Sherpas in Blue Shirts

By | Blog, Digital Transformation

The supply chain function is an area crying out for a digital platform or utility. In fact, I believe it’s ripe for digital disruption. Digital technologies such as automation, advanced analytics, AI, cloud and the IoT can make a huge contribution to rationalizing and managing the supply chain for companies in the North American market and globally, so it’s a prime candidate for transformation. Companies such as Amazon and Walmart are building logistics and supply chain digital platforms for themselves, but they seek to shape the space and disadvantage other companies. So, several vendors are pushing to provide supply chain platforms. It’s clear that especially Accenture and Genpact, also believe in the coming disruption, as they are making very big plays to compete against Amazon in the supply chain space.

Read more in my blog on Forbes

Redesigning Your Outsourcing Portfolio for a Digital World | Virtual Roundtable

By | Webinars

Thursday, June 28, 2018 | 11:00 a.m.  – 12:30 p.m. ET

Request to attend the Virtual Roundtable

As digital services cause yet another inflection in the outsourcing market, the service provider landscape is undergoing significant changes. Against this backdrop, enterprises need to recalibrate and reimagine their outsourcing portfolios to capture transformational value and manage risks.

To help organizations future-proof their outsourcing service provider portfolios, this session will provide an alternative view to segment the landscape. Participants will exchange perspectives on how they are shaping their outsourcing supply strategies to align with new demand strategies.

Who should attend

Strategic sourcing and vendor management executives who currently manage their enterprise’s portfolio of IT Services providers.

What you will learn

The session will help participants understand contemporary practices for structuring outsourcing portfolios and share best practices for future-proofing outsourcing relationships.

Presenters

Jimit Arora, Partner, Everest Group
Eric Simonson, Research Managing Partner, Everest Group

Request to attend the Virtual Roundtable

Outsourcing Deals Jump 11% in USA Thanks to Growing Economy | In the News

By | In The News

Outsourcing deals in the United States grew 11% in the first fiscal quarter of 2018, with cloud, automation, and analytics accounting for 65% of outsourcing activity.

There were 115 deals in 1Q18, compared to 103 recorded in 4Q17, according to market analyst firm Everest Group.

The increase in outsourcing transactions was largely due to improved business sentiment in the US as well as the growing demand for service providers in healthcare and manufacturing sectors.

For the first time, the number of new global innovation centers (GIC) supporting digital skills surpassed centers supporting only traditional services, according to Everest.

“New GIC setups, which reached an all-time high in Q4 2017, declined slightly, but GIC expansions are at a seven-year high,” said H. Karthik, Partner at Everest Group.

Read more in Nearshore Americas

Global Services Industry Experiences Modest 5-7% Growth Overall, But Nearshoring, Reshoring, GICs, Digital and Engineering Services Are High-Growth Exceptions—Everest Group | Press Release

By | Press Releases

Nearshore Europe—fertile with a multi-lingual workforce with complex skills and buoyed by data protection laws—enjoys nearshoring boom driven by enterprises seeking IT, digital services

In the past year, growth of the global services market, which comprises global revenues of US$198 billion, remained modest overall—5 to 7 percent in 2017 as compared to 6 to 8 percent in 2016. However, some key pockets are growing faster than the overall market: nearshore and onshore, in-house models, digital services, and engineering services being key examples, according to Everest Group, which published this week its annual report on the global services locations.

Global services delivery is increasingly being characterized by nearshoring. While Asia Pacific has been the global services location leader in terms of revenue, nearshore geographies, particularly Nearshore Europe, are growing rapidly due to availability of complex skills, increased regulatory oversight and multi-lingual skills. The share of Nearshore Europe in terms of revenue reached 14 to 19 percent in 2017, up from 8 to 13 percent in 2014. Ireland, Poland and Scotland are the top delivery locations, followed by Ukraine, the Czech Republic and Portugal.

Also, reshoring continues to grow amidst the increasing needs for data protection and portfolio optimization. In fact, 52 percent of the setups of the top 20 global service providers were onshore in 2016-2017, as compared to 32 percent in 2012-2013.

“Two more global services trends worthy of note are the shifts we’re seeing in functions and sourcing models,” said Anurag Srivastava, vice president and director of the Global Sourcing practice at Everest Group. “At a functional level, engineering and R&D services and especially IT services dominated the global services industry across all geographies, with Nearshore Europe showing significant growth in this regard. Specifically, the percentage of new center setups in Nearshore Europe for engineering /R&D services jumped from 18 to 25 percent from 2014 to 2017, while the percentage of setups for IT services jumped from 41 percent to 56 percent.

“With respect to sourcing models, global in-house centers are taking center stage, representing US$48-52 billion and employing more than 1.2 million FTEs in 2017,” continued Srivastava. “For the first time since 2014, GICs surpassed service providers in terms of new center setups, accounting for 53 percent of all new center setups. This is being driven primarily by the digital delivery mandates of enterprises, including small and mid-sized enterprises, who are leveraging GICs for digital services such as analytics, social media, mobile, cloud, artificial intelligence, service delivery automation and blockchain.”

Since 2014, the total number of new center setups for digital services (including setups by GICs and service providers) has jumped 105 percent, from 91 in the 2014-2015 period to 187 between 2016 and 2017.

Looking to 2018 and beyond, Everest Group expects the market to remain in flux and offers these predictions:

  • While revenue growth from traditional IT-BP services remains low, emerging technologies such as cloud and automation should witness significant growth as enterprises look to improve cost savings and productivity.
  • Profit margins may reduce marginally in the short term, as providers and enterprises increase focus on data protection processes and infrastructure.
  • The number of full-time employees engaged in delivery of transactional work will grow at a lower rate.
  • All players in the global services market will increasingly focus on reskilling and upskilling talent across multiple emerging technologies.
  • Investments in automation technologies will grow, which will have a sustained depressive impact on headcount growth.
  • APAC will continue to be the largest geography for the global services industry in terms of new center setups due to cost arbitrage and ample talent availability; however, other geographies, such as Nearshore Europe, are expected to grow faster.

Additional research findings and predictions are discussed in “Global Locations Annual Report 2018: Service Delivery Portfolios in a Disrupted World,” a comprehensive guide to understanding the nuances of the global services locations landscape and interpreting locations-related developments. This research offers insights into the size and growth of the global services market, updates of locations activity, changes in risk profiles of locations, and an analysis of the relative maturity, arbitrage and potential of locations for multiple functions.

***Download a complimentary abstract of the report. (registration required)***

Everest Group Unveils Fourth Annual Business Process Services Top 50 | Press Release

By | Press Releases

ADP remains No. 1, Teleperformance leaps two spots to No. 2 and Accenture retains No. 3 ranking among world’s largest third-party BPS providers

Everest Group, a consulting and research firm focused on strategic IT, business services, and sourcing, today released the fourth annual edition of “The Everest Group BPS Top 50™,” a ranking of the world’s largest third-party providers of business process services (BPS). The list was launched in 2015 as the first of its kind for the global industry, which today is valued at more than US$175 billion.

This year’s ranking is based on both revenues (75 percent of the composite score used for ranking) and year-on-year growth, whereas the previous years’ rankings were based solely on revenues. Growth has two sub-parameters: absolute growth (measured as change in BPS revenue in US$ million, and accounting for 12.5 percent of the composite score) and percentage growth (measured as percentage change in BPS revenue, and accounting for the final 12.5 percent of the composite score).

Everest Group estimates there are more than 200 service providers with more than US$50 million in revenues offering BPS services around the globe. What started as a cost optimization concept focusing on “non-core” and “back-office” business processes today permeates the entire business process value chain, addressing a wide variety of business objectives.

“The industry has attracted many service providers from a broad range of backgrounds and heritages,” said Rajesh Ranjan, partner at Everest Group. “As digital forces create a new paradigm of value creation and service delivery, we are seeing a widening gap among providers in their capabilities and market success. By incorporating growth as an additional factor, we are making sure that the ranking reflects this. We also expect both the list and the rankings within to see greater volatility in coming years as this industry experiences accelerated change.”

This list helps enterprises to identify the scaled-up providers and their functional coverage. It helps BPS service providers to compare themselves against others in the industry.

***Download a complimentary copy of the 2018 Everest Group BPS Top 50 list and analysis.***

Topping the 2018 list of BPS providers are these 10 leaders:

  1. ADP
  2. Teleperformance
  3. Accenture
  4. Conduent
  5. Paychex
  6. Concentrix
  7. DXC Technology
  8. Xerox
  9. Arvato Bertelsmann
  10. Genpact

Other highlights:

  • The cumulative revenue of the providers in the BPS Top 50 list grew by 7 percent year-on-year.
  • The highest growth rate for the past two years was logged by Alorica at 95 to 105 percent and was achieved largely through acquisitions in 2015 and 2016. Cognizant logged the second fastest growth rate at 22 to 25 percent and achieved this largely through organic growth.
  • North America-based service providers continue to dominate the list; however, the region’s overall share has declined versus 2016 (54 percent share versus 56 percent), while the Rest of Europe’s share has grown (up from 14 percent in 2016 to 22 percent in 2017).

Top 3 North American Providers:

  • ADP
  • Conduent
  • Xerox

Top 3 “Rest of Europe” Providers (excludes UK providers):

  • Accenture
  • Teleperformance
  • Arvato Bertelsmann

Top 3 APAC Providers:

  • TCS
  • Transcosmos
  • Relia
  • For the first time in three years, the number of specialist service providers increased their share of market as compared to broad-based service providers, driven by increases in the Contact Center Outsourcing (CCO) submarket. Broad-based providers now represent 56 percent of the market whereas specialists represent 44 percent. The top 5 broad-based providers are:
    • Conduent
    • Accenture
    • DXC Technology
    • Arvato Bertelsmann
    • Capita
  • Among the specialist providers, the following ranked highest in their respective specialty area:

Human Resource Outsourcing:

  1. ADP
  2. Paychex
  3. Fidelity

Contact Center Outsourcing:

  1. Teleperformance
  2. Convergys
  3. Alorica

Document Management:

  1. Xerox
  2. Williams Lea Tag
  3. Iron Mountain

***Video: Watch “The Everest Group BPS Top 50 2018.***