Tag: Press Releases

Attrition Is Major Problem for Technology Service Providers | Press Release

Talent management has emerged as a major reason of enterprises’ dissatisfaction with IT services and technology providers, as attrition impacts project timelines, cost and quality.

 

DALLAS, June 29, 2022 — Although enterprise satisfaction with technology service providers improved 5% overall in 2021, talent management has emerged as the biggest reason for enterprises’ dissatisfaction, according to Everest Group.

Everest Group conducted 496 unique interviews with global enterprise executives in 2021 and determined that attrition is enterprises’ biggest pain point with respect to their technology service providers. Many executives shared that their providers are finding it hard to replace talent quickly and effectively, which negatively impacts project timeline, cost, and quality.

Enterprises are looking for IT services and technology providers that can ensure the following:

  • Talent availability, including a global presence, deeper bench strength, a wider talent pool and talent mapping.
  • Low attrition, with fast and effective replacement of talent when necessary.
  • Strong learning and development programs, including upskilling in digital technologies, onboarding of new hires and development of domain expertise.
  • Robust internal and external communication along with standardized documentation, which have become particularly important in the era of remote working.

 

“We found that enterprises’ overall satisfaction with their technology service providers improved again for the second year in a row, which is good news for providers, indicating they have fared well in terms of managing the implications of the pandemic and post-pandemic world,” said Pranati Dave, practice director at Everest Group. “However, talent management was cited as a pain point by a majority of the executives we interviewed and therefore is an important area of improvement that service providers must address.”

These findings and more are detailed in Everest Group’s recently published report, “Enterprise Pulse 2022: Solving the Talent Conundrum Around Availability, Attrition, and Reskilling of the Workforce.” This study summarizes the views of various enterprises on the capabilities of their technology service providers across information technology services. The report also captures quantitative and qualitative insights across enterprises’ digital agendas.

 

Additional Key Findings:

  • The proportion of satisfied customers of IT services (ITS) has increased from 70% in 2020 to 75% in 2021, making it the second year in a row where the proportion of satisfied customers has increased.
  • Satisfaction levels have seen an uptick across most geographies.
  • Enterprises are satisfied with their IT services and technology providers in terms of technical expertise, client management, flexibility of engagement and commercials, such as pricing structure and contract terms.
  • Enterprises are dissatisfied with talent management, lack of innovation and domain expertise. They want better reporting, knowledge transfer, standardization across long-term projects and talent retention.
  • About 50% of enterprises indicate automation, cloud adoption and data management as their top digital levers to achieve profitability and growth.

 

***Download a complimentary report abstract***

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our research also covers the technologies that power those processes and functions and the related talent trends and strategies. Our clients include leading global companies, service and technology providers, and investors. Clients use our services to guide their journeys to maximize operational and financial performance, transform experiences, and realize high-impact business outcomes. Details and in-depth content are available at www.everestgrp.com.

Talent Shortages, Supply Chain Challenges Will Fuel 16-18% Growth of Supply Chain Management Outsourcing Market | Press Release

Third-party providers such as Accenture, Genpact and TCS are playing pivotal roles in reimagining supply chain operations.

 

DALLAS, June 28, 2022 — As supply chain issues hamper global economies, Everest Group predicts that the market for supply chain management (SCM) business process services (BPS) will expand at a 16-18% compound annual growth rate between 2021 and 2023, after achieving a sharp post-pandemic recovery in 2021 to reach US $2.4-2.6 billion.

“In the Everest Group 2022 Key Issues Survey, enterprises identified their top two business constraints going into 2022 as, No. 1, ‘cannot find enough talent to run the business’ and, No. 2, ‘logistics are bottlenecked,’” said Shirley Hung, partner at Everest Group. “Both of these corporate issues are contributing to rapid growth in the outsourcing market for SCM business process services.”

Although the overall market for SCM BPS is expected to grow rapidly through 2023, after-sales services will grow the fastest (16-20%) as compared with other subfunctions—namely, make/manufacture (8-12%) and deliver (10-12%)—because of its direct impact on customer satisfaction, brand-image, and the top-line revenue of the organization. After-sales services FTEs have already grown significantly (9-12% between 2019 and 2021), as buyers increased outsourcing of the management of field services, warranties, and claims. This trend is expected to continue as enterprises remain focused on improving customer experience through personalization and customized offerings.

The talent shortage will be another one of the key drivers for organizations looking to increase their SCM BPS outsourcing. According to enterprise buyers surveyed for the Everest Group 2022 Key Issues Study, 32% of buyers said they intended to move an average of 19% of their work outside of their organization to address talent shortage issues.

“We are certainly seeing shifts in buyers’ priorities as enterprises are more open today than ever before to outsourcing strategic, judgment-intensive supply chain processes such as supply/demand planning,” said Hung. “Also, enterprises are increasingly seeking third-party providers to support the adoption of digital technology solutions such as control towers and planning platforms to enable supply chain visibility and inventory planning. Service providers are playing a pivotal role in catering to this new demand by expanding their capabilities through in-house investments in technology and talent as well as through inorganic routes.”

The Everest Group SCM BPS PEAK Matrix® Assessment 2022 lists the top service providers in the market as Accenture, Genpact and TCS. These Leaders consistently stand out as the top providers across geographies and major industries.

These findings and more are detailed in Everest Group’s recently published report, “Supply Chain Management (SCM) BPS State of the Market Report 2022 – Increasing Role of Third-party Providers in Reimagining Supply Chain Operations.” This research provides comprehensive coverage of the SCM BPS market and analyzes it across dimensions such as adoption trends, buyer objectives, provider landscape, and the evolving market situation.

 

***Download a complimentary report abstract***

 

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our research also covers the technologies that power those processes and functions and the related talent trends and strategies. Our clients include leading global companies, service and technology providers, and investors. Clients use our services to guide their journeys to maximize operational and financial performance, transform experiences, and realize high-impact business outcomes. Details and in-depth content are available at www.everestgrp.com.

Everest Group Unveils 8th Annual Business Process Services Top 50 | Press Release

ADP, Teleperformance, Accenture, Concentrix and Sitel Group take Top 5 spots among world’s largest third-party BPS providers

 

DALLAS, June 1, 2022 — Everest Group today released the eighth 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 is now valued at more than US$225 billion. The ranking is based on 2021 revenues and year-on-year growth.

Topping the 2022 list of leading BPS providers are these 10 service providers:

  1. ADP
  2. Teleperformance
  3. Accenture
  4. Concentrix
  5. Sitel Group
  6. Paychex
  7. TELUS International
  8. Conduent
  9. Genpact
  10. TCS

 

***Download a complimentary copy of the 2022 Everest Group BPS Top 50 list and analysis***

 

BPS (also referred to as business process outsourcing or BPO) started as a cost optimization concept focusing on “non-core” and “back-office” business processes. Today BPS permeates the entire business process value chain, addressing a wide variety of business objectives.

 

Everest Group estimates there are more than 250 service providers with more than US$50 million in revenues offering BPS around the globe. Some are pure-play BPS providers, while others offer business services as part of a broader portfolio (including IT services, consulting, technology products, etc.). Some are focused on a particular domain or geography, while others are broad-based. Some are listed, while others are privately held.

 

“In this year’s listing, we see several interesting trends,” said Rajesh Ranjan, partner at Everest Group. “First, as we predicted, 2021 was a great year for the BPS industry, with Top 50 providers growing at 12.5 to 13% versus 1 to 2% in 2020. Providers that managed the COVID crisis well and continued to invest in next-gen capabilities anchored around the BPS 4.0 value proposition grew significantly above the market average. This also meant we saw considerable volatility in the rankings, with over 50% of the listed providers’ rankings shifting by five or more positions, compared to 42% last year. Secondly, IT-BPS providers grew faster than pure play BPS providers (14.9% vs. 11.8%), partly due to greater prevalence of integrated IT-BPS deals. We encourage enterprises to look to the Everest Group BPS Top 50 list if they are seeking scaled-up providers, and service providers in the industry can refer to the list to know where they stand in relationship to their peers in the market.”

 

Other highlights:

  • The Top 5 leaders in terms of revenue were ADP, Teleperformance, Accenture, Concentrix and Sitel Group.
  • The Top 5 fastest growing companies year-on-year were Tech Mahindra, TELUS International, Majorel, Teleperformance and Comdata.
  • Top risers (companies whose position in the list advanced the most) include Comdata, Allegis Global Solutions, IBM, Iron Mountain and HGS.

 

The Everest Group BPS Top 50 is based on both revenues and year-on-year growth. Revenues comprise 75% of the composite score used for ranking. Growth comprises 25% and has two sub-parameters: absolute growth (measured as change in BPS revenue in US$ million and accounting for 12.5% of the composite score) and percentage growth (measured as percentage change in BPS revenue and accounting for the final 12.5% of the composite score).

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our research also covers the technologies that power those processes and functions and the related talent trends and strategies. Our clients include leading global companies, service and technology providers, and investors. Clients use our services to guide their journeys to maximize operational and financial performance, transform experiences, and realize high-impact business outcomes. Details and in-depth content are available at www.everestgrp.com.

Impact Sourcing Delivers Winning Business Trifecta: Competitive Edge, Talent Advantage, Positive Social Impact—Everest Group | Press Release

Everest Group research validates growing business case for impact sourcing—offering enterprises alternative talent sources while making this world a better place to live in.

 

DALLAS, May 12, 2022—Impact sourcing is a proven approach to gain a competitive business edge and talent advantage while creating a positive social impact, according to Everest Group. Newly released research from Everest Group indicates that employers investing in impact sourcing are reporting long-term cost savings, reliable service delivery, improved brand equity, positive social and environmental impacts, easy access to untapped talent, and a stable, engaged workforce with a low attrition rate. Everest Group predicts demand for impact sourcing will continue to rise globally, driven by spiking attrition rates, growing talent demands, and high talent costs currently being observed in the outsourcing industry.

“Everest Group encourages enterprises to prioritize impact sourcing,” said Rita Soni, principal analyst for Impact Sourcing and Sustainability at Everest Group. “Based on our research and the feedback we receive from enterprises that are already actively engaging in the impact sourcing ecosystem, impact workers offer a competitive and cost-effective alternative to traditional outsourcing engagements. Impact sourcing workers deliver a reliable quality of service and, in many cases, very unique and valuable talents and perspectives. This is not to mention the benefits that accrue to the hiring organization from corporate citizenship, societal contributions and shared value among customers and investors.”

Impact sourcing refers to intentionally hiring and providing career development opportunities to people from marginalized communities while meeting business objectives such as:

  • Fulfilling Corporate Social Responsibility (CSR), Environmental Social Governance (ESG), and diversity, equity, inclusion, and belonging (DEIB) objectives of both the business and their clients.
  • Leveraging the uniqueness of the target marginalized group, such as detail orientation of youth on the autism spectrum or diversity of perspective for Artificial Intelligence (AI) and Machine Learning (ML) data services.

Impact sourcing workers comprise employees from economically disadvantaged groups, socially marginalized groups, under or unemployed groups, and other groups with unique factors of employability.

Currently, the impact sourcing market is approximately 350,000 FTEs worldwide.

  • The majority of impact workers (85-87%) are being employed by the large traditional outsourcing service providers, either directly for specific project requirements or as a part of their inclusive hiring initiatives. The remaining impact workers (13-15%) are employed by impact sourcing specialists.
  • Impact sourcing specialists prioritize the inclusive talent model and help enterprises meet business objectives (mentioned above) while maintaining service quality and cost at parity with traditional Business Process Outsourcing (BPO) and Information Technology Services (ITS) service providers.
  • Although the market size for impact sourcing specialists is small, revenues for this segment achieved a compound annual growth rate of 28% between 2019 and 2021. For impact sourcing specialists, Asia Pacific leads as the key impact sourcing location (58% of global FTEs), followed by Africa (17%), North America (11%) and Latin America (7%).
  • Unemployed youth (in the age group of 20-30 years) form the backbone (68%) of the impact sourcing workforce.
  • Women represent 52% of the impact sourcing workforce in contrast to representing 25-35% for traditional service providers. Single mothers, women who have lost their families, and victims of war and migration have become the breadwinners for their families. They want to be independent, and the impact sourcing industry is helping them to achieve this goal.
  • While North American enterprises are at the forefront of collaborating with impact sourcing specialists, firms in emerging markets such as the Middle East and APAC have been proactive in engaging with specialists in recent years. Specialists here provide services across industries ranging from BFSI, healthcare, hi-tech to e-commerce, retail and agritech.

These findings and more are included in Everest Group’s recently published “State of the Market” report, “The Growing Need for Inclusive Talent Models: Learning from Impact Sourcing Specialists.” The report examines the impact sourcing ecosystem, business delivery models, drivers and challenges; details the impact sourcing specialist provider landscape; and shares case studies and buyers’ satisfaction across a variety of evaluation criteria.

***Download a complimentary abstract of the report here.***

About Everest Group

Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our research also covers the technologies that power those processes and functions and the related talent trends and strategies. Our clients include leading global companies, service and technology providers, and investors. Clients use our services to guide their journeys to maximize operational and financial performance, transform experiences, and realize high-impact business outcomes. Details and in-depth content are available at www.everestgrp.com.

Everest Group Identifies ‘Top Employers for Tech Talent’ Among Largest US Enterprises | Press Release

Everest Group’s new rankings reveal top US employers by industry based on their perceived ability to recruit and retain highly coveted software engineers and other tech talent.

 

DALLAS, May 10, 2022— With the IT skills gaps widening and demand for talent consistently outpacing supply, competition among U.S. employers for top tech talent is stiff. Everest Group today launched its new ranking of top employers for tech talent, identifying which US companies are perceived to be the best tech employers by virtue of their work environment and the job satisfaction of their employees.

For the inaugural edition of Everest Group’s Top Employers for Tech Talent™, the research firm has ranked the largest US-based companies (based on overall scale and market share) within each of three industries—Technology (Top 20), Financial Services (Top 30), and Insurance (Top 20). The top 10 employers in each industry are listed below.

  • Also join Everest Group for a LinkedIn Live event—Top Employers for Tech Talent – Who is Winning the Tech Talent War?— on Wednesday, May 18, at 10 am CDT. Everest Group experts will share critical insights into what today’s tech workforce truly wants and what potential employers could be overlooking. Special guest Karl Sprules, head of Global Technology and Operations, AllianceBernstein (No. 1 on the Financial Services ranking), will discuss the culture and environment that AllianceBernstein has created to recruit and retain tech talent.

Top Employers for Tech Talent—Technology

  1. NVIDIA
  2. Intuit
  3. ServiceNow
  4. Netflix
  5. Salesforce
  6. Google
  7. Adobe
  8. Microsoft
  9. Meta (formerly Facebook)
  10. Apple
 

Top Employers for Tech Talent—Financial Services

  1. AllianceBernstein
  2. Capital One
  3. Capital Group
  4. Fidelity
  5. TD Bank
  6. BlackRock
  7. Franklin Templeton
  8. U.S. Bank
  9. Edward Jones
  10. KeyBank
 

Top Employers for Tech Talent—Insurance

  1. New York Life
  2. Liberty Mutual
  3. Travelers
  4. Northwestern Mutual
  5. American Family Insurance
  6. Marsh & McLennan
  7. Prudential
  8. Nationwide
  9. Hartford
  10. State Farm
 

“With the demand for technical talent higher than ever, our clientele among the Fortune 500 are keenly interested in how best to recruit and retain their most valuable assets, and benchmarking against the leaders is one of the best ways to develop successful strategies,” said Jimit Arora, partner at Everest Group and leader of the research practice serving Enterprise IT leaders. “With the launch of Everest Group’s Top Employers for Tech Talent report, we’re providing a snapshot of market-leading employers across a variety of industries and shining a spotlight on organizations who are perceived by their tech employees as successfully creating the culture, trust and environment they want and need in an incredibly competitive race to hire and retain the best of the best.”

About Everest Group

Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our research also covers the technologies that power those processes and functions and the related talent trends and strategies. Our clients include leading global companies, service and technology providers, and investors. Clients use our services to guide their journeys to maximize operational and financial performance, transform experiences, and realize high-impact business outcomes. Details and in-depth content are available at www.everestgrp.com.

As Enterprises Scale Their Contingent Workforce, Vendor Management System (VMS) Market Will See 7-10% Growth by 2023 | Press Release

Broader awareness of VMS benefits and rising demand for holistic digital solutions are paving the way for surge in VMS adoption.

Following a year of stagnation in 2020 (declining 3%), the market for Vendor Management Systems (VMSs) is expected to bounce back and grow at a faster pace (approximately 7 to 11% by 2023) than in pre-COVID times, according to Everest Group.

A Vendor Management System (VMS) is a software application that helps manage and procure contingent talent or the non-permanent workforce. VMS providers typically charge enterprise buyers a fee as a percentage of managed spend.

VMS continues to be an important technology solution for enterprises globally, especially as enterprises increasingly leverage contingent workers as part of their workforce. In recent years, VMSs have not only enhanced the features and functionalities of core technologies, but also expanded the scope of services delivered to other areas within Contingent Workforce Management (CWM), such as direct sourcing and services procurement.

Currently, temporary labor, sourced through staffing agencies, accounts for 60-70% of spend under management by VMS providers. However, changing employment requirements and increasing preference for contingent workforce is leading to a rise in other categories, such as services procurement or statement of work (currently 20-25%) and independent contractors or freelancers (currently 10-15%). Everest Group expects these other segments to be major growth drivers of VMS in the future.

Other Key Trends in the VMA Market
While buyers expect to achieve all three benefits—cost, operational and business impacts—from VMS adoption, they are currently the most satisfied with the operational impacts delivered by their VMSs. A majority of enterprise buyers praise their VMSs for ease of use, but enterprises also seek improvement with respect to analytics capabilities and reporting functions.

Spurred to innovate, VMS vendors are working to develop end-to-end candidate management capabilities, including compliance and shift management; leverage next-generation artificial intelligence (AI) and machine learning (ML); develop strategic partnerships with other vendors; and provide holistic insights leveraging multiple data sources.

These findings are explored in Everest Group’s newly published report, “Vendor Management System (VMS) State of the Market Report 2021: Keeping Pace with Rapidly Evolving Buyer Expectations.” In this report, Everest Group provides comprehensive coverage of the 2020 VMS market and sheds light on the future trajectory of VMS.

The report includes the Everest Group PEAK Matrix® for VMS, an assessment of the capabilities and market impact of 18 VMS providers. Beeline, PRO Unlimited, SAP Fieldglass and VNDLY are classified as Leaders.

Market Highlights:

  • Healthcare; manufacturing; and banking, financial services and insurance (BFSI) are the leading adopters of VMSs, accounting for more than 50% of market share in terms of active deals.
  • Engineers/IT and blue-collar job roles together account for more than 70% of market share.
  • The small and mid-sized market dominates with two-thirds of the market share, with activity rising rapidly across all buyer sizes.
  • Single-country deals dominate the VMS market currently; however, multi-country deals saw an increase in 2020 and are expected to increase further.
  • North America is the largest (64%) and most mature of VMS geographies, followed by EMEA (27%), Asia Pacific (7%) and Latin America (1%).

***Download a complimentary abstract of the report here.***

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com

Serious Talent Shortage Deepens in Software Product Engineering, the Fastest Growing Segment of $1.27 Trillion Global Engineering Spend—Everest Group

Tremendous talent shortage anticipated as adoption of next-generation technologies—including cloud, AI/ML, IoT, analytics, cybersecurity, and AR/VR—grows exponentially over the next few years.

Everest Group reports that although a talent shortage exists across the overall engineering, research and development (ER&D) landscape, the supply crunch is much more pronounced for emerging skills, such as cloud engineering, artificial intelligence and machine learning (AI/ML), internet of things (IoT), analytics, cybersecurity, and augmented reality and virtual reality (AR/VR). According to Everest Group, the exponential growth in the adoption of these next-generation technologies over the next couple of years will cause a huge supply shortage in the software product engineering world.

Enterprises globally spent US$1.27 trillion on engineering in 2020, and more than one-third of that spend was on software product engineering. Software product engineering has been the fastest growing segment of engineering spending over the last four years and was the only segment to witness positive growth in 2020, even as overall global engineering spend declined by 2%. Contributing to sustained software engineering spending are commercial software sellers and internet companies as well as enterprises seeking to augment existing products with software-driven features and functionalities.

In its newly published report, “Reaching New Frontiers in Experience-centricity and Resilience –Software Product Engineering Services State of the Market Report,” Everest Group examines the dynamics of global software product engineering services trends prevalent among leading service providers. It includes an overview of the software product engineering market and an in-depth view of outsourcing in this space.

Selected Highlights:

  • Overall enterprise spend for software product engineering has been growing at a robust pace, reaching approximately US$410 billion in 2020.
  • The supply crunch in the software engineering talent market is leading to a price war, where enterprises are having to pay a premium rate to access talent skilled in emerging software engineering themes.
  • The talent shortage in emerging skillsets is also compelling enterprises to explore non-traditional locations to access talent. As a result, nearshore locations have steadily been gaining prominence for talent sourcing.
  • Cloud engineering has emerged as the biggest spend area for enterprises, with more activity around cloud-native engineering, platformization, carve-outs of legacy products and verticalized solutions.
  • The software product engineering services market (i.e., outsourcing) has grown at a rate of 16% over the past year to reach approximately US$23.5 billion, which is 5.7% of the overall enterprise spend.
  • The hi-tech verticals continue to hold a large share of the services market, while the geography split reveals North America to be the largest location.

***Download a complimentary abstract of the report here.***

Talent Shortages in Software Product Engineering

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com

Sourcing of Application Services Management Grows Steeply Among Smaller Enterprises —Everest Group

Optimizing applications is a mandate for enterprises of all sizes, but enterprises seek more business value from sourcing engagements.

Enterprises with revenue less than US$5 billion have witnessed a steep increase in adoption of application services (AS), increasing from 55% to 79% in the last two years, according to Everest Group. The growing share of smaller enterprises in AS engagements reinforces the fact that optimizing the application estate has become a universal mandate. The COVID-19 pandemic has also forced many smaller enterprises to undertake modernization initiatives to remain resilient in the wake of another black swan event.

Although AS engagements take the top spot (more than 70%) in an IT services market expected to grow by 5-7%, most enterprises consider application management to be a necessary evil and the sourcing of application management to be solely a cost take-out function. According to Everest Group’s most recent poll of enterprise buyers of application services, enterprises believe service providers have not been able to add value to application management initiatives beyond cost-take out; value addition received the lowest score among assessment criteria. The key value-add benefits enterprises desire from their AS engagements include the following:

  1. Enable better experience for customers
  2. Increase scalabilty and resiliency of existing applications
  3. Facilitate advanced analytics and forecasting capabilities
  4. Increase security, reduce risk and adhere to compliance

To help organizations derive more business value from application services, Everest Group proposes a model that enterprises can use to drive transformation in their AS function. The “Business Value Orchestrator Platform” views application management as one part of a broader initiative comprising other technology towers, operating models, service management solutions, delivery enablement, and next-generation sourcing.

The model is described in detail in Everest Group’s newly published State of the Market Report, “Application Services – Transform Application Management to Drive Digital Success.” In this report, Everest Group also examines the market trends in the AS market, including IT services market size; AS buyer adoption trends across geographies, industry verticals and revenue sizes; and key trends shaping the AS market.

Selected Report Highlights:

 Though enterprises plan to adopt cognitive capabilities in application management functions, only 16% have adopted it thus far. The key challenge is the unavailability of suitable mature AI solutions.

  • Sixty percent of enterprises are integrating site reliability engineering (SRE) with application management.
  • With incumbent application management service (AMS) providers unable to drive more value, enterprises are willing to work with challengers. Everest Group sees nearly 20% of AMS engagements now being signed with challenger service providers rather than incumbents.
  • Discrete application services engagements continue to form 71% of the IT services market.
  • Enterprises continue to prefer short-term AS engagements (less than three years). The proportion of short-term engagements has risen over the last two years from 23% to 36% of all engagements.
  • AS engagements in the North American market continued to decline in comparison to other geographies, but Everest Group expects the North American market to grow faster than other regions as the market recovers from pandemic influences.

***Download a complimentary abstract of the report here.***Application Services

About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com

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