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Web 3.0 is the Next Trillion-Dollar Industry According to Banking, Financial Services Leaders—Everest Group

October 31, 2022

Report describes current BFSI uses cases, transformative potential, and challenges of the Web 3.0 industry, Metaverse, and Decentralized Finance; seven steps to prepare for the future of financial services.

DALLAS, October 31, 2022 — The future of financial services will be reshaped by exponential technologies such as Web 3.0, metaverse and decentralized finance (DeFi), and the evolution has already begun, according to Everest Group. Enterprises and service providers are anticipating these technologies will drive product innovation as well as new channel strategies and business models, fueling what could potentially be a trillion-dollar market opportunity.

Web 3.0 is a next-generation exponential technology based on blockchain and the third generation of internet in which users can exchange money and information in a secured, trusted, and open model with lower intermediary operations. It is also a critical building block to enhance and monetize various use cases of the metaverse, an immersive online world in which people use avatars to shop, work, socialize and play. DeFi is an evolving business model that leverages emerging technologies to build a connected yet decentralized financial system that offers services that are more accessible, resilient and transparent than centralized, middlemen-focused processes.

Leading enterprises are increasingly investing in Web 3.0 technologies and metaverse platforms. Additionally, customers are increasingly demanding revamped payments, sophisticated financial products, ease of access to credit, and smooth onboarding and advisory services.

“BFSI leaders recognize that these technologies—Web 3.0, metaverse and decentralized finance—are going to reshape their industry by transforming the way they interact and engage with customers,” said Ronak Doshi, partner at Everest Group. “And yet they are also cautious about role of intermediaries and decentralization as well as the speed with which policy makers can accommodate new business models with revamped regulatory approaches. Accordingly, we believe that this shift will be evolutionary rather revolutionary, driven by customer demands and pragmatic product innovation. The journey has begun, with many current applications and innovative proofs-of-concept underway.”

Everest Group provides numerous use cases of Web 3.0, metaverse and DeFi in the banking, financial services and insurance segments in its Market Report, “Future of Financial Services – Web 3.0, Metaverse, and Decentralized Finance.” This report highlights recent investments that big market participants have made in BFSI, how technology and service providers and enterprises can differentiate themselves in the market, Web 3.0 and metaverse use cases that BFSI firms can explore, and regulatory and security challenges in Web 3.0 adoption.

Everest Group advises enterprises to pay close attention to developments in this area and to engage in these strategic steps:

Understand the opportunities and threats that the Web 3.0 industry entails. Educate and engage retail and institutional investors on the benefits and pitfalls as they will soon seek advisory services around the potential of Web 3.0 and its allied technologies.
Focus on enabling the proliferation of new products that combine virtual reality (VR), non-fungible tokens (NFTs), and the human being’s desires for social connection.
Enhance technical and operational capabilities around cloud, blockchain, API and cybersecurity to generate business value from new channels and products.
Leverage Web 3.0 and metaverse to gain market share by expanding offerings to include cross-border settlements, wholesale payments, and decentralized brokerages to drive value from these investments through in-house development or FinTech partnerships.
Co-innovate with technology and IT service providers to leverage their skilled talent pool on next-generation technology to achieve economies of scale.
Adopt principles of interoperability to tap into the network effects of these emerging technologies.
Build talent and skills in your organization ahead of market demand to ensure rapid scaling of initiatives and not being impacted by shortage of talent.

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

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 “Commitment to Action” Recognized at Clinton Global Initiative September Meeting; Firm Pledges to Double Number of Impact Sourcing Workers by 2026 | Press Release

September 22, 2022

Everest Group commits to help organizations around the world dramatically increase the number of jobs provided to workers in marginalized communities and lift communities out of poverty through impact sourcing.

DALLAS, September 22, 2022 —At the Clinton Global Initiative September 2022 Meeting this week, former President Bill Clinton recognized Everest Group’s “Commitment to Action,” a proposal for “Enabling Inclusive Talent Models in the Global Services Industry.” Everest Group has pledged to dramatically increase the impact sourcing workforce—connecting hundreds of thousands of marginalized individuals to new jobs—by providing research and enablement tools, sharing best practices, and engaging enterprises, service providers, governments and non-governmental organizations (NGOs) in collaborative efforts. Everest Group’s Commitment to Action is to grow the impact sourcing market from its current level of 350,000 FTEs to half a million in three years.

***Watch former President Bill Clinton recognize Everest Group’s Commitment to Action***

Impact sourcing is when organizations intentionally hire and provide career development opportunities to people from marginalized communities while simultaneously meeting their business objectives. Impact sourcing workers come from groups that are economically disadvantaged, socially marginalized, under/unemployed, and/or have other unique factors which have excluded them from decent livelihoods. Women and unemployed youth form the largest segments of the impact sourcing workforce.

Globally, businesses are desperately looking for sources of talent that are highly engaged, stable and deliver quality work with low attrition rates. Meanwhile, governments and social development agencies are eagerly trying to enable decent work and livelihoods to lift economically excluded communities. The concept of impact sourcing arose at the intersection of these two needs.

Lifting Marginalized Communities and Fighting Poverty with Impact Sourcing

Everest Group’s Commitment to Action focuses on three stakeholder groups: employers or service providers, enterprises that buy their services, and enablers. Enablers are organizations that provide support and incentives by devising job-readiness programs and influencing policies and regulations. Everest Group pledges to promote and track the inclusive talent model of impact sourcing with robust research; provide enablement tools and how-to guides to employers and buyers; engage enablers; and share best practices.

***Learn more about Everest Group’s Commitment to Action***

“Everest Group has already enlisted support and pledge partnerships from more than 30 key global employers, service providers, and enabling organizations to join in a collaborative effort to improve lives through impact sourcing, and to find a way to double the number of impact workers in three years,” said Rita Soni, principal analyst for Impact Sourcing and Sustainability at Everest Group. “Being recognized as a Clinton Global Initiative ‘Commitment to Action’ and receiving the promotional support of the CGI will help us expand this network and ultimately impact more lives. Together we can bring jobs to the often overlooked—women, youth, those living in rural regions and forgotten towns, LGTBQ+ communities, people with disabilities, and others burdened by discrimination, inequity and/or systemic poverty. And the win-win-win is that our research proves that impact workers, employers and buyers alike are benefitting by working together.”

The CGI September Meeting brought together business, government, and philanthropic leaders to collaboratively take action to create a better future for a world that is hungry for hope. Among the topics addressed were global health challenges, climate change, transitions to clean energy, poverty, food insecurity, mental health and inequitable access to economic resources, healthcare, and education. Soni attended the event to share the firm’s research on impact sourcing and to encourage collaboration and participation in its impact sourcing initiatives.

About the Clinton Global Initiative (CGI)
Established in 2005 by President Bill Clinton, the Clinton Global Initiative (CGI), an initiative of the Clinton Foundation, convenes global leaders to create and implement solutions to the world’s most pressing challenges. CGI Annual Meetings have brought together more than 200 sitting and former heads of state, more than 20 Nobel Prize laureates, and hundreds of leading CEOs, heads of foundations and NGOs, major philanthropists, and members of the media. To date, members of the CGI community have made more than 3,700 Commitments to Action, which have improved the lives of more than 435 million people in more than 180 countries. For more information, visit clintonglobalinitiative.org and follow us on Twitter @ClintonGlobal and Facebook at facebook.com/clintonglobalinitiative.

Growth of Metaverse Increases Trust and Safety (T&S) Risks to Enterprises, Users | Press Release

September 8, 2022

Mitigating threats to user security, increased abuse, proliferation of objectionable content and financial fraud represents big opportunity for third-party T&S services market in the coming years.

DALLAS, September 08, 2022 — As enterprises apply their best creative and strategic thinking to how to take advantage of the metaverse, they should also address the heightened risks the metaverse will pose to employees, customers and corporate assets, according to Everest Group.

“The metaverse is attracting large investments from technology giants such as Google, Meta, Microsoft and Nvidia to make the virtual world a reality, and the applications hold unlimited economic and social potential for both good and bad,” said Rajesh Ranjan, partner at Everest Group. “As organizations develop their business strategies for the metaverse, trust and safety issues need to be among their foremost considerations. Enterprises may be able to adapt some best practices of today, but they will also need to address scenarios and use cases that are unique to the metaverse. Solving for those novel challenges will require a collaborative approach among enterprises, policymakers, academia, and T&S service providers to realize the full potential of metaverse as an immersive yet safe place for users.”

While the metaverse—an interconnection of virtual worlds providing immersive social experiences—is still at a nascent stage, it is expected to grow exponentially in the coming years, opening new possibilities for enterprises, including trade in digital assets such as cryptocurrencies and non-fungible tokens (NFTs), immersive marketing, enhanced customer experience, improved employee training, and live virtual events. However, as the metaverse expands, enterprises will have to deal with new trust and safety (T&S) challenges, such as the abuse of virtual avatars and the safety of virtual assets. Organizations will need to come up with risk mitigation policies to make the metaverse a safe space for users.

Everest Group has shared its research and recommendations in “Taming the Hydra: Trust & Safety in the Metaverse.” In this study, Everest Group explores the potential trust and safety challenges that enterprises face in the metaverse and recommend metaverse risk mitigation strategies to help tackle them. The report also explores the impact of the metaverse on the third-party T&S market.

Everest Group offers metaverse risk mitigation strategies for T&S risks, including:

Abuse of virtual avatars, including invasion of personal space, impersonation, harassment, assault, bullying, stalking and spying.
Concerns around data privacy and user safety, including personal and sensitive information such as user habits and physiological characteristics.
Safety of virtual assets from financial crimes and identity theft.
Well-being of content moderators who may face physical and mental health hazards from prolonged exposure to VR headsets and content.
Regulatory ambiguity, especially policy gaps with respect to the definition of ownership, data privacy and user interactions.

Implications for the Third-Party T&S Services Market

Enterprises are increasingly outsourcing T&S services to match exponential growth in user content, and as the metaverse expands, the T&S services market will surge as well. Currently, T&S services is among the fastest-growing segment of the Business Process Services market, expected to reach US$15-20 billion by 2024. The market is expected to grow 35-38% through 2024 and accelerate to 60-68% growth beyond 2024 as technology and infrastructure advances beyond the nascent stage.

In this dynamic market, T&S service providers have the opportunity to leverage their expertise to proactively help enterprises develop risk mitigation strategies. The growth potential of the metaverse T&S market will attract new service providers, spur specialization, and give rise to ecosystem partnerships to address the complexity of policy advisory, technological expertise, process acumen, and localization of services that the evolving metaverse will demand.

Everest Group Publishes Inaugural Ranking of Top Global Business Services Employers | Press Release

August 30, 2022

Mondelez, Microsoft and SAP among Top GBS Employers across India, The Philippines and Poland.

DALLAS, August 30, 2022 — Everest Group today released the results of its inaugural ranking of top Global Business Services (GBS) employers across India, The Philippines and Poland. Everest Group’s Top GBS Employers™ rankings provide an “outside-in proxy” on how prospective candidates perceive employer companies.

In this first-of-its-kind study, Everest Group has analyzed the employer brand perception of more than 200 leading GBS organizations across India, The Philippines and Poland.

Mondelēz International, Microsoft and SAP rank among the Top 3 in two geographies. Google appears twice among the Top 5.

“Talent is the differentiating factor that enables organizations to survive uncertainties and thrive in intense competition,” said Rohitashwa Aggarwal, vice president at Everest Group. “In the ongoing war for talent, maintaining a positive brand image is of quintessential importance. GBS organizations need to understand what components most contribute to employer brand perception in local talent markets and how to strengthen their brand to attract and retain the best and brightest. Leading global GBS organizations can leverage insights from our Top GBS Employers report and our Talent Performance Framework to optimize their talent management strategies and build future-proof talent models.”

Topping the 2022 list of Top GBS Employers in India are these 10 organizations:

Google
Mondelēz International
Microsoft
Bank of America
SAP
JPMC
P&G
Target
American Express
Novartis

Topping the 2022 list of Top GBS Employers in The Philippines are these 10 organizations:

Henkel
SAP
JPMC
Telstra
P&G
SunLife
Wells Fargo
American Express
Chevron
3M

Topping the 2022 list of Top GBS Employers in Poland are these 10 organizations:

Mondelēz International
Microsoft
SAP
Standard Chartered
Google
Cisco
Bayer
AstraZeneca
ING Group
P&G

***Download a complimentary copy of the 2022 Everest Group Top GBS Employers™ list and analysis***

***LinkedIn Live Event: “Who Are the Top GBS Employers?”***

Thursday, September 15, 6:30 AM CDT: Join the Conversation

Rohitashwa Aggarwal, vice president of GBS Research and Advisory at Everest Group, and Shweta Mohanty, vice president and head of HR for SAP, India, will discuss Everest Group’s inaugural analysis of the Top GBS Employers across leading GBS markets, including India, the Philippines, and Poland, and what the top GBS employers are doing to set themselves apart.

***On-Demand Webinar: “Elevate Your GBS Employer Brand: Lessons from Top Employers***

Everest Group presents the results of its Top GBS Employers study and shares what top GBS employers are doing to set themselves apart. Watch this webinar to learn what factors impact brand perception as a GBS employer, how brand perception varies for GBS talent and technology talent, and what organizations can do to address employee grievances and enhance their overall brand perception among potential employees.

“It’s great to be recognized among the world’s Top GBS Employers across regions,” said Sindhu Gangadharan, SVP & MD, SAP Labs India, Head, SAP User Enablement. “SAP’s innovations for half a million customers are fueled by its talent powerhouse. As a leading product organization that doesn’t have a public-facing product, a unique and attractive talent branding strategy is imperative to onboard the best minds and elevate our innovation quotient to help the world run better and improve people’s lives.”

“It is truly a proud moment to be identified as a top GBS employer in India,” said Shweta Mohanty, VP – Head of HR, SAP, India. “We place immense importance on providing best-in-class experiences for our employees, built around empathy. The last two years have reinforced the value of being truly inclusive and focusing on ‘moments that matter.’ And this includes providing the best candidate experience to all our prospective employees. What differentiates us is that we constantly personalize our practices and processes by consciously using technology for a diverse 12K+ employees in India.”

Key Takeaways:

Across all markets assessed (India, the Philippines and Poland), employees place a strong emphasis on compensation, work-environment, and career development, and these factors have the most impact on employer brand perception.
The influence of work flexibility (e.g., the option to choose one’s working model, work schedule flexibility, etc.) on job satisfaction ratings is increasing across geographies. Diversity & Inclusion, while important, are creating limited impact on the overall employer brand perception of GBS organizations as of now.
Both fresh and experienced technology professionals exhibit a strong preference for TMT (technology, media and telecom), HLS (healthcare and life sciences), and BFS (banking and financial services) GBS organizations, mainly driven by a perception of better career opportunities (e.g., robust training programs, opportunities to work on latest IT stacks) in those segments.
The workforce employed by Philippines-based GBS organizations reports relatively higher levels of satisfaction across all parameters as compared to their Polish and Indian counterparts.
No significant correlation exists between the age and/or size of a GBS organization and its employee satisfaction ratings across geographies.

Everest Group’s analysis spans multiple brand dimensions, including compensation, career progression, senior management, work-life balance, diversity, culture and values. The study also analyzes the performance of each of these GBS organizations in the local talent markets based on the prevailing attrition rates, joiner-exit ratio and the overall employee satisfaction ratings. By design, this analysis is based on publicly available information only, with an intent to capture the perception of prospective employees about top GBS organizations.

Beroe Partners with Everest Group to Offer Deep Insights into Global IT Services and BPO Markets | Press Release

August 11, 2022

Beroe Inc, a global SaaS-based procurement intelligence and analytics provider, announced its partnership with Everest Group, a global research firm focused on strategic IT, business services, engineering services, and sourcing. The partnership will enable Beroe to further strengthen its intelligence offering with category-leading market and supplier research.

Beroe will integrate Everest Group’s research on supplier identification, monitoring, and locations for key technology and process outsourcing-related categories onto the Beroe LiVE.Ai platform. Procurement teams will be able to access Everest Group’s rich research around Supplier identification (including PEAK Matrix® summaries), service provider spotlights, and location-specific analysis on Beroe’s AI-powered intelligence platform, Beroe LiVE.Ai.

“We are delighted to be partnering with Everest Group and extending its unmatched research insights with procurement teams around the globe. Our partnership with Everest Group will add greater depth to our intelligence offering on Beroe LiVE.Ai,” said Beroe Inc Chief Executive Vel Dhinagaravel.

Beroe LiVE.Ai is an AI-powered intelligence platform tailored for procurement and sourcing professionals – providing market intelligence, supplier risk information, category benchmarking, cost models, market monitoring dashboards, and supplier discovery.

“We’re excited to support Beroe customers through Beroe LiVE.Ai. Everest Group brings robust market intelligence gathered over 30 years of research on complex services markets and providers,” said Amy Fong, Partner, Sourcing and Vendor Management Programs, Everest Group. “Partnering with Beroe will extend this research to a broader group of sourcing organizations and power better decision making and competitive positioning for category managers and their stakeholders.”

About Beroe

Beroe is a global SaaS-based procurement intelligence and analytics provider. We deliver intelligence, data, and insights that enable companies to make smarter sourcing decisions – leading to lower cost, reduced risk, and greater profits. Beroe has been a trusted source of intelligence for more than 15 years and presently partners with 10,000 companies worldwide, including 400 of the Fortune 500 companies. For more information about Beroe Inc., please visit https://www.beroeinc.com/.

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.

Media Contacts:

Debobrata Hembram ([email protected])
Jennifer Fowler, Cathey Communications ([email protected]) for Everest Group

Attrition Is Major Problem for Technology Service Providers | Press Release

June 29, 2022

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***

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

June 28, 2022

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***

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

June 1, 2022

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:

ADP
Teleperformance
Accenture
Concentrix
Sitel Group
Paychex
TELUS International
Conduent
Genpact
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).

Internet of Things Services Market Will Double by 2020 | Press Release

January 24, 2017

Accenture, Atos, HCL Technologies and IBM are named Leaders in Everest Group inaugural PEAK Matrix™ list of top Internet of Things service providers

Given the huge potential of the Internet of Things (IoT)—most of which is yet to be realized—enterprises are making significant investments in partnership with key service providers to explore new growth areas. As a result, Everest Group expects that the IoT services market will more than double in the next three years, reaching US$18 billion by 2020.

Enterprises are exploring ways that IoT can be used to achieve higher efficiency, enable data-driven decision-making and develop new revenue opportunities through customer-centric products and services.

**Read more about how enterprises are “Seizing the IoT Opportunity”**

With enterprises and service providers considering IoT as their next big opportunity, Everest Group has identified intriguing trends that are emerging from the current adoption pattern:

Eighty-seven percent of enterprises are optimistic about the returns on their investments in IoT.
The percentage of IoT projects moving from pilot to production has jumped four-fold from 2014 to 2016.
All industries are gearing up for IoT adoption, with manufacturing leading the way with 36 percent of IoT adoption across all industries.
Developing a strong partner ecosystem is extremely complex and requires disruptive vision.

“Enterprises are increasingly adopting IoT to improve operational efficiency and create disruptive business models,” said Chirajeet Sengupta, vice president at Everest Group. “A number of players across the IoT stack are making huge investments to grab a larger share of the pie, but most fall short on expectations of a transformation partner. Service providers can use this opportunity to draw on their engineering and services expertise and embrace new engagement models to help enterprises with long-term innovation.”

The current use cases of IoT are dominated by the need of enterprises to drive operational efficiency. However, we do expect enterprises to leverage IoT to fundamentally transform their business going forward. In fact, Everest Group has identified four distinct classifications of enterprises based upon the business objectives they hope to accomplish through their IoT initiatives:

Engagers: Engagers represent 17 percent of IoT adopters; these enterprises drive IoT adoption largely for customer engagement and creation of experiences.
Optimizers: Optimizers (63 percent) adopt IoT mainly to solve operational issues and improve internal efficiencies.
Integrators: For Integrators (14 percent), the objective of IoT adoption is growth for the entire enterprise ecosystem.
Innovators: IoT adoption by Innovators (6 percent) results in transformative disruption and “unthinkable” business models.

“Enterprises should adopt IoT across all categories, which will lead to new revenue streams and adoption of new business models,” added Sengupta.

Announcing the IoT Services Market Leaders

In its inaugural Internet of Things PEAK Matrix assessment, Everest Group explores the vision, services suite, scale of operations and domain investments of 16 IoT service providers. Everest Group has identified the following Leaders, Major Contenders and Aspirants:

Leaders: Accenture, Atos, HCL Technologies and IBM
Major Contenders: Cognizant, EPAM, HPE, L&T Infotech, NTT DATA, TCS, Tech Mahindra and Wipro.
Aspirants: CGI, Infosys, Luxoft and Prodapt

***Download Complimentary 4-page PEAK Matrix™ Preview Here***

Trends in the IoT services market as well as detailed insights into each of the 16 providers listed above are provided in the 92-page report, “Internet of Things Services — PEAK Matrix™ Assessment and Market Trends — IoT: Bigger Than the Hype.” A preview report is available for complimentary download here.

*** Download Publication-Quality Graphics ***

High-resolution graphics illustrating key takeaways from this report can be included in news coverage, with attribution to Everest Group. Graphics include:

Internet of Things Adoption is Led by “Optimizers”
The Internet of Things Technology and Services Provider Ecosystem
Internet of Things Adoption Trends
Internet of Things and the Transformation Agenda
Internet of Things Adoption: A Definitional Framework

About the PEAK Matrix™

The Everest Group PEAK Matrix is a proprietary framework for assessing the relative market success and overall capability of service providers based on Performance, Experiences, Ability and Knowledge. Each service provider is comparatively assessed on two dimensions: market success and delivery capabilities. The resulting matrix categorizes service providers as Leaders, Major Contenders, and Aspirants. Companies that demonstrate strong upward movement in successive reports are recognized as Star Performers. Everest Group recently announced a recalibrated methodology, in which innovation, intellectual property and technology take center stage.

Life & Pensions Insurance BPO Market Expected to Grow 10-12 Percent as Political Climates Stabilize | Press Release

December 15, 2016

‘Outsourcing is one of the most effective options L&P insurers are pursuing to make their operations cost effective.’

The global life and pensions (L&P) insurance business process outsourcing (BPO) market will grow at 10-12 percent in the next few years, reaching US$2.3 billion by 2017, according to Everest Group, a consulting and research firm focused on strategic IT, business services and sourcing. As political environments in the US and United Kingdom stabilize, new contract signings are expected to experience revival. Also, contracts worth approximately US$450 million will be up for renewal over the next three years.

Amid political uncertainties in the United States (due to the presidential election) and the United Kingdom (due to Brexit), the year 2015 witnessed a lower number of new contract signings compared to 2014; nevertheless, the market continued to expand steadily, driven by scope expansion of existing contracts.

In the future, evolving buyer demands will shape the market as buyers seek more efficient operations—both for cost control and compliance reasons—and more sophisticated digital services for consumers. In response, service providers will differentiate themselves by offering efficient platforms for policy administration, strengthening capabilities around digital customer acquisition, and leveraging robotic process automation (RPA). (Everest Group reports that RPA can yield incremental cost reduction that can range anywhere from 15 percent for offshore operations to as high as 45 percent for onshore operations.)

“Outsourcing is one of the most effective options L&P insurers are pursuing to make their operations cost effective,” said Skand Bhargava, practice director, Business Process Services, at Everest Group. “Outsourcing also helps insurers strengthen their presence in the digital space in order to meet the demands of the modern-day consumer.

“Buyers are looking for one-stop solutions, so service providers with the capabilities to offer end-to-end coverage of the value chain will gain momentum. In addition, buyers are looking beyond just the bottom-line impact and are focusing on top-line performance. Service providers that can help buyers improve their top-line and act as business-transformation partners will remain differentiated in the market.”

These results and other findings are explored in a recently published Everest Group report: “L&P Insurance BPO – Annual Report 2016: Breaking New Grounds.”

This research examines the global non-voice, third-party L&P insurance BPO market. It provides detailed analysis of market size and growth, solution characteristics, emerging trends and the service provider landscape.

Other key findings in the report:

North America and the United Kingdom continue to be key geographies in the L&P insurance BPO market, with the majority of growth coming from the North American region.
Increasing adoption of automation, along with higher adoption of platform-based solutions within L&P insurance contracts, is reducing the FTE-intensive play in rule-based processes such as policy servicing.
Providers are strengthening capabilities around value-added services such as RPA, digitalization and analytics via organic and inorganic routes.
Regulators across the globe have been enacting a spate of laws, thereby causing a massive upheaval in the insurance sector. Insurance companies need help in setting up the systems required to support compliance with these regulations, which creates an opportunity for insurance BPO providers.
Adoption of outsourcing continues to increase among small- and mid-sized buyers, driven by two key reasons: (1) small- and mid-sized buyers typically lack technology platforms for L&P insurance operations, and (2) small- and mid-sized buyers seek cost-effective solutions for running operations in order to remain competitive in the market.
Small- and mid-sized buyers now account for more than half of the contractual activity in the L&P insurance BPO market, both by the number of contract signed and by the average contract value (ACV) of signed contracts.
Policy servicing and reporting continues to account for the bulk of processes managed by service providers. Claims process remains the second most dominant portion.

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