Outsourcing Archives - Page 3 Of 14

Significant Outsourcing Demand Growth According to Everest Group Report on Top Q3 Trends in Global Sourcing | Press Release

December 10, 2018

Digital services continued to dominate outsourcing activity, driven by cloud-based deals

The global sourcing industry posted healthy numbers for Q3 2018, marked by notable increases in outsourcing demand, according to Everest Group. The total contract value of outsourcing transactions rose 11 percent from Q2 to Q3.

Digital services continued to dominate the outsourcing activity, driven by cloud-based deals. Among GIC setups, the share of digital services as compared to traditional services increased from 44 percent in Q2 to 56 percent in Q3. Likewise, a focus on digital continued to dominate both service providers’ acquisitions (73 percent) and partnerships (84 percent) landscape. Both enterprises and service providers are increasingly leveraging disruptive technologies such as artificial intelligence (AI) and machine learning (ML) to build more a strategic digital agenda, drive innovation and focus on value-added services.

Everest Group discusses these and other third-quarter developments in the sourcing industry in its recently released Market Vista™: Q4 2018 report. The quarterly report highlights the trends in the fast-evolving global sourcing market, exploring the key developments across outsourcing transactions and Global In-house Centers (GICs), as well as location risks and opportunities, and service provider developments.

“The global services industry has enjoyed three consecutive quarters of growth in 2018,” said Salil Dani, vice president at Everest Group. “In Q3, transaction activity rose, and the volume of new contracts increased significantly. Although Q3 did see a decline in GIC market activity in comparison to Q2, we continue to expect healthy growth of the overall global services market through the remainder of the year.”

Additional highlights from the Market Vista: Q4 2018 report:

North America reported a significant increase in transaction activity, especially in the retail and consumer packaged goods segment and the technology and communication vertical.
GIC activity continues to be driven by existing adopters, with focus on establishing R&D centers for next-generation technologies.
While there was a decline in activity for Europe, emerging locations such as Bulgaria and Czech Republic witnessed an increase in activity given high-skilled IT talent, favorable business environment, and excellent R&D and digital infrastructure.

***Download a complimentary 16-page abstract of the report findings here.*** (Registration required.)

5 Types of Outsourcing Providers — and How to Get the Most from Them | In the News

November 27, 2018

As corporate technology leaders pursue their digital transformation strategies, many are looking to IT service providers as potential partners in those change efforts. However, a one-size-fits-all approach to outsourcing providers is not likely to serve CIOs well in meeting innovation goals. In fact, bigger doesn’t necessarily mean better in the digital change era.

“Traditionally, size was a good proxy for capability, especially when technology was viewed fundamentally as an enabler of efficiency,” says Jimit Arora, partner in Everest Group’s IT Services practice.

SIG Global Executive Summit 2018 — October 15-18 | Event

October 15, 2018

Chief Research Guru Michel Janssen will be speaking at the 2018 SIG Global Executive Summit held in Rancho Mirage, California on October 15-18. On October 17, Michel will host a session titled “The Robots are Coming: Sourcing Implications on Pricing, Contracting, and the Future.” Other leaders from Everest Group will be attending the event as well.

Research VP Shirley Hung will participate in a panel discussion at the event as well. The topic of the October 17 discussion is “CSR, Sustainability, and Impact Sourcing: Perspectives and Best Practices”

About the session

Robotic Process Automation – RPA – is impacting the very way companies do business. 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.

Learning Objectives

Considerations for vetting the underlying RPA software vendors based upon late-breaking market developments
The impact of the convergence of RPA and AI (and other key automation tools)
Key contract pricing metrics so you are prepared for deal negotiations
Managing the implications on your existing outsourcing relationships

About the event

SIG Global Executive Summits are 4-day events that are packed with the latest best practices, cost-cutting strategies, innovative processes and risk-mitigation approaches. Through CPO roundtables, keynote sessions, workshops, breakout sessions and networking events, you’ll hear from industry thought leaders, discover the latest innovative trends and have the opportunity to network with like-minded professionals facing similar challenges.

When

October 15-18, 2018

Where

Rancho Mirage, California
Omni Ranch Las Palmas Resort & Spa

Speakers

Michel Janssen, Chief Research Guru, Everest Group

Shirley Hung, Vice President, Research

Learn more and register to attend

7 Keys to Transformational Outsourcing Success | In the News

September 18, 2018

With digital transformation all but mandatory across industries today, that innovation imperative is impacting every part of IT, including its outsourcing engagements. However, many CIOs are struggling to integrate third-party IT services deals into their long-term business strategies. Indeed, a recent Everest Group survey found that 61 percent of enterprises pursuing digital transformation were dissatisfied with their service providers.

More than a quarter of revenues for the top 20 outsourcing providers are generated by digital services, according to Jimit Arora, partner in Everest Group’s IT Services practice, with those markets growing as the traditional services market is shrinking.

Redesigning Your Outsourcing Portfolio for a Digital World | Virtual Roundtable

June 28, 2018

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

11 keys to a successful outsourcing relationship | In the News

June 15, 2018

When it comes ensuring a successful IT outsourcing outcome, the customer has more impact than you might think. In fact, recent research conducted by outsourcing consultancy ISG found that outsourcer and client are equally responsible for outsourcing results — regardless of whether the relationship succeeded or faltered.

“In our experience, there is good intent at the beginning of the program, but, clearly, as people get back to their day jobs, focus goes back to metrics, KPIs, and quarterly business reviews,” says Jimit Arora, partner in the IT services group at outsourcing consultancy and research firm Everest Group.

Improved Business Sentiment Drives 11% Jump in US Outsourcing Deals in Q1, According to Everest Group Findings | Press Release

May 31, 2018

Cloud, automation and analytics lead in digital-focused outsourcing deals, which dominate outsourcing activity with a 65 percent share.

North America witnessed a significant increase in outsourcing transaction activity in Q1 2018 as compared to 4Q 2017, with 115 deals recorded as compared to 103, respectively, according to Everest Group. This increase can be attributed to an improved business sentiment in the U.S. as well as an increase in outsourcing demand across healthcare and manufacturing verticals.

For the first time, the number of new centers supporting digital skills surpassed new centers supporting only traditional services. Among global services transactions overall, digital services continued to dominate the outsourcing activity in Q1, similar to the previous quarter. The share of digital-focused transactions increased from 61 percent in Q4 2017 to 65 percent in Q1 2018 vis-à-vis the pure traditional services, which showed a decline in adoption over the past quarter.

Among all outsourcing transactions, 50 percent included cloud, 21 percent included automation, 14 percent included analytics, 13 percent included mobility, 7 percent included cyber-security and 30 percent included some other form of digital service, such as social media, Internet of Things (IoT) or blockchain.

Other key global services market trends noted for the quarter include the following:

Global in-house center (GIC) expansions are at a seven-year high, as mature GICs added next-generation technologies (especially big data analytics, cloud and IoT capabilities) in their service delivery.
The industry saw a secular increase in the number of new centers supporting R&D/engineering services, driven by the need for innovation and customer-centricity.
Service providers are actively looking for partnerships with startups (as opposed to acquisitions) to leverage them for niche capabilities.

These findings and more are discussed in Everest Group’s recently released report, released Market Vista™: Q2 2018. The report discusses outsourcing transaction trends, GIC-related developments, global offshoring dynamics, location risks and opportunities, and key service provider developments.

“Outsourcing activity remained steady in Q1 as compared to the previous quarter, with a growth in information technology outsourcing as well as increases in several verticals, including retail and consumer product goods, technology and communication, and healthcare,” said H. Karthik, partner at Everest Group. “New GIC setups, which reached an all-time high in Q4 2017, declined slightly, but GIC expansions are at a seven-year high. All-in-all, Q1 was a good quarter for service providers—both global as well as offshore-heritage service providers—with most reporting sequential growth in revenue and an increase in operating margins.”

Complimentary Webinar Offers Q1 Review Plus Bonus Topic—“War for Talent: Impact on Talent Acquisition Strategies”

Everest Group hosted a webinar on May 22—Webinar Deck: Q2 2018 Market Vista™ Update and Implications on Talent Acquisition with Intensifying War on Talent—in which the findings of the “Market Vista: Q2 2018” report were reviewed. During this 45-minute webinar, Everest Group experts discussed the most impactful events in the global services industry thus far in 2018 and looked ahead to how these events likely will shape the rest of the year.

The webinar also addressed talent acquisition strategies, including the factors impacting talent models and the resulting implications and imperatives for employers. The impact of automation on transactional jobs and the redesign of the employee value proposition to reach a predominantly millennial workforce are two of the key topics covered in the discussion.

*** Watch the Webinar Replay *** (The webinar slide deck also is available for complimentary download with registration.)

11 outsourcing myths debunked | In the News

March 29, 2018

Even as CIOs enter their third generation of IT services deals, misconceptions persist about the practice of IT outsourcing. Worse, new illusions have begun to emerge as outsourcing approaches have evolved. Achieving desired outcomes when working with third-party providers depends on clear-eyed understanding of what’s possible and what’s not, what responsibilities remain with the buyer and what new capabilities are required, what’s changed about outsourcing models and what remains the same.

CIO.com talked to IT outsourcing experts who work with IT buyers and vendors to help bust some of the most common myths around outsourcing today — and to aid IT leaders in setting up their outsourcing engagements for success.

Myth: The old ways still rule

Third-generation outsourcers may think they know everything there is to know about structuring engagements for success, but the reality is that the fundamentals of value creation from outsourcing have changed significantly. Consumption-based pricing is replacing fixed-price models. Contracts designed for efficiency and cost reduction have given way to deals aligned to business outcomes and growth.

“The fundamental mindset needed to succeed is very different, and a contract written for efficiency does not align with a contract that needs to drive growth,” says Jimit Arora, partner in Everest Group’s IT services research practice.

IAOP’s Outsourcing World Summit® 2018 — February 18-21 | Event

January 2, 2018

Everest Group is once again exhibiting at The IAOP Outsourcing World Summit 2018, IAOP’s annual global gathering. The event is taking place at the Renaissance Orlando in Orlando, Florida, February 18-21, 2018.

Chief Research Guru Michel Janssen will lead an Educational Partner session titled Achieving the Best-of-the-Best RPA Results: Learn What It Takes. The session will be held on Tuesday, February 20 from 4:00 p.m. – 4:45 p.m. Michel will also be joined by Peter Quinn, Former Managing Director of Automation for SEI Investments, who will share his success stories and lessons learned with RPA.

About the presentation: Human nature makes us want to know what the best are thinking about doing. However, while interesting, these findings do little to help move our own organizations forward in the use of RPA. In this session, you’ll get an exclusive preview of just released Everest Group research that details the capabilities the most successful organizations – Pinnacle Enterprises™ – have leveraged and the RPA journey they have taken to realized superior business outcomes. This analysis is based on research that directly compares and correlates business outcomes with the capabilities required to achieve those results. You’ll walk away armed with the comparative information you need to start designing a roadmap to be competitive today – and in the future.

Also at OWS18, Eric Simonson, Managing Partner, Everest Group, will present an overview of the outsourcing industry, setting the stage for the Voice of the Customer session on the morning of Monday, February 19.

In addition, Partner Cecilia Edwards will participate in the breakfast panel discussion on Tuesday, Februarty 20 titled Strong Teams and Alliances Make Strong Organizations. The session is designed help attendees understand how to best support each other in the workplace, get the work done, and maintain a culture of safety and support for every employee. Attendees will leave with ideas for how to check themselves, be a voice for others, and strengthen teams through clear communication.

Additionally, Cecilia will participate on the panel Diversity is Great, Inclusion is Greater #weinclude on Tuesday evening. The session will discuss and define the concepts of diversty and inclusion separately and why the combination of both will create an enviable culture.

If you’re attending IAOP OWS18, plan to stop by booth #58, to talk with our analysts, consultants, and executives. We’ll also have a professional photographer at our booth who will take complimentary headshots for anyone who would like an updated corporate or LinkedIn photo.

To set up a meeting with us before, during, or after the conference, please contact Research Senior Vice President, Alan Wolfe.

Peoplestrong Altify HR 2018 — Jan 19 | Event

January 1, 2018

Research Practice Director Arkadev Basak will be a key speaker at Peoplestrong’s Altify HR 2018 event in Gurgaon, India.

About the event
AltifyHR is the place to experience the next in the world of work. Join in for an exciting day where you can meet HR Tech enthusiasts, learn how to overcome business challenges, and engage with the latest technologies at one of its kind experience zone. With exciting keynote sessions, analyst interactions, and live demos, we can certainly assure that you’ll be touched with the power of a connected world and will leave with more than just new connections on LinkedIn.

When
January 19, 2018

Where
The Oberoi
Gurgaon, India

Speaker
Arkadev Basak, Practice Director, Everest Group

Learn more and register

Announcing our inaugural conference: Everest Group Engage, The Pragmatic Edge: Designing Your Future. Learn more.

Tag: outsourcing