Tag: service provider

Record Net Employee Addition by TCS, Accenture in Last One Year | In the NEws

Information technology giants Tata Consultancy Services (TCS) and Accenture reported record net employee addition in the last one year with over a lakh increase in headcount by each, indicating strong demand and business momentum in the coming quarters. Employee addition is one of the key measures indicating the business outlook.

According to Yugal Joshi, Partner at Everest Group, a global research firm, hiring is indeed a strong indicator of demand. However, service providers do not reveal their hiring trends globally, but are generally focused on India.

Read more in The Hindu Business Line

Outsourcing Pricing: 3 Pitfalls and 2 Unknowns Enterprises Need to Know in 2022 | Webinar

EXPERT PANEL

Outsourcing Pricing: 3 Pitfalls and 2 Unknowns Enterprises Need to Know in 2022

April 12, 2022 |
9 am CDT | 10 am EDT | 3 pm BST | 7:30 pm IST

The market for outsourced services has changed drastically in the past twelve months. With the talent shortage shaping up to be a long-term dilemma that will likely last years, compounded with industry uncertainty brought on by the Ukraine war, enterprises are navigating uncharted territory.

Watch this expert panel to discover three critical outsourcing pricing pitfalls that enterprises should watch for now and two unknowns to be aware of throughout 2022.

Our experts address the following questions:

  • What key elements will ensure that pricing-related uncertainties can be managed correctly in 2022?
  • What unknowns should enterprise buyers keep in mind for 2022?
  • What are the pricing pitfalls that enterprises should avoid?

Who should attend?

  • CIOs
  • CTOs
  • CDOs
  • IT executives
  • IT strategy leaders
  • BPO department leaders
  • GBS leaders managing IT and BPO outsourcing contracts

The Top 10 IT Outsourcing Service Providers | In the News

Everest Group’s annual ranking of the top IT service providers saw some movement this year compared to last, but one thing that remained unchanged was Accenture’s place at the top of the list. In fact, it was the sixth year in a row that the $50.5 billion firm was recognized as the overall leading service provider of the year.

“Knocking Accenture down a peg or two is easily the biggest challenge for other players in the industry,” says Abhishek Singh, Partner with Everest Group.

Read more in CIO

Why North American Investors Are Flocking to This Israeli Cyber Stock | In the News

HUB Cyber Security Limited, an Israeli company that develops confidential computing solutions for businesses and agencies, is on the cutting edge of cyber-defense technology. The company has a first-mover advantage in a niche market of the rapidly growing confidential computing market.

According to Everest Group, the market opportunity for confidential computing will reach US$54 billion by 2026, growing at a compounded annual growth rate (CAGR) of close to 100% in the best-case scenario.

Read more in FX Street

Talent Crunch Pushes up Pricing of Time and Material Projects for IT Firms | In the News

The IT services industry is facing a severe demand and supply imbalance for talent. This, in turn, has led to an increase in pricing by 15% for time and material (T&M) projects where clients pay only for time and resources spent.

During the height of the pandemic, many companies pushed their service providers to reduce pricing and so, some hikes are a reversal of that too, said Yugal Joshi, Partner at Everest Group, a global research firm.

Read more in The Hindu Business Line

 

Seasonal Impact: Indian IT to Post 2-4% Sequential Revenue Growth in Jan-March | In the News

Despite robust demand for technology transformation across sectors, Tier 1 Indian IT players are likely to post moderate sequential growth for the January-March 2022 quarter, owing to seasonality and inflationary pressures in the US and Europe.

Talent constraints will continue to impact Indian service providers with some stability in attrition rates. However, the exposure to Russia-Ukraine impacted delivery geographies will have an impact on forward-looking point of views on delivery,” Prashant Shukla, Vice President at Everest Group, said.

Process Mining Market in the Multiverse of Acquisitions: Celonis Buying PAFnow and Microsoft Enters with Minit Deal

Process Mining Market in the Multiverse of Acquisitions: Celonis Buying PAFnow and Microsoft Enters with Minit Deal

Over the past week, two major acquisitions in the process mining market are drawing attention to this fast-growing space. What does it mean, and will other giants follow? Read on for our expert analysis of the latest deals and implications for this market.

The spotlight is back on the process mining market after we saw two big acquisition announcements last week. First, Celonis announced the acquisition of Process Analytics Factory (PAFnow), a leading process mining product built atop Microsoft Power BI and a “Major Contender” in Everest Group’s Process Mining PEAK Matrix® 2021. Within a couple of days, Microsoft signaled its entry into the space with the acquisition of Minit, a Leader and a Star Performer in our 2021 assessment.

The latest news continues the hot trend of new tech developments and strong M&A activity in this space with companies from different technology universes, such as automation (UiPath), process orchestration (Appian), and big tech (SAP, IBM), entering the process mining market through acquisitions.

With its critical role in accelerating digital transformation and enabling continuous process optimization, process mining is becoming integral to the intelligent automation solution ecosystem. Additionally, owing to increased solution awareness and technology maturity, it has been one of the fastest-growing markets in the intelligent automation space over the past few years, making it very attractive for potential acquisitions.

This year’s acquisition frenzy started in January with iGrafx, a process management provider, announcing the acquisition of the France-based process mining specialist Logpickr. And it hasn’t stopped yet.

Let’s take a look at what the two latest deals could mean.

Celonis further strengthens its market position with PAFnow

Celonis has been the leading technology provider in the process mining market with over a 60% market share. Its Execution Management System (EMS) combines process mining and automation technologies to help enterprises reveal and fix process inefficiencies. The platform offers the capability to ingest data in near real-time from information systems, applications, and user desktops. Celonis Process Data Engine supports process intelligence through capability modules such as Execution Graph to visualize interconnected processes spanning multiple systems and departments, Process Simulation to perform what-if analysis, and Knowledge Models to manage and share process insights.

The acquisition of PAF brings a host of technical capabilities and business opportunities which can help Celonis to:

  • Expand its reach to Microsoft Power BI’s large customer base and user community
  • Integrate Celonis EMS platform with the Microsoft ecosystem, including the broader Power platform and Office 365
  • Improve the ease of getting started with Celonis as an embedded capability within the Power BI platform
  • Provide users the ability to access process mining insights through Microsoft Power BI dashboards

Celonis would also benefit from a capability standpoint through PAFnow’s:

  • Strong technical team with a similar vision for continuous process improvement
  • Pre-built connectors with Microsoft Power BI
  • Content Packs that include data extractors, pre-defined data models, and pre-configured reports for specific processes, applications, and queries

Acquiring PAFnow is part of Celonis’ strategy to enable global companies across industries to leverage the Celonis EMS solution with the Microsoft solution ecosystem to optimize their business processes.

Microsoft’s acquisition of Minit shows process mining is on its way to becoming part of something bigger

Tech giant, Microsoft has been showing keen interest in the intelligent automation space over the past few years, starting in 2019 when it added various Robotic Process Automation (RPA) features to Flow, its automated workflow service, and rebranded it as Power Automate. In 2020, it acquired a leading RPA provider, Softomotive, to mark its seriousness in the RPA space and improve its market positioning. Microsoft emerged as a “Major Contender” in Everest Group’s Robotic Process Automation (RPA) PEAK Matrix® 2021 for its Power Automate solution.

Earlier this year, Microsoft launched its in-house task mining solution with plans to later launch a process mining solution. Microsoft has been quite aggressive on most intelligent automation technology fronts, including RPA, Intelligent Document Processing (IDP), task mining, and now process mining.

Microsoft announced its acquisition of Minit, an Amsterdam-based leading process mining provider, last week for an undisclosed amount. Minit focuses on transforming the way enterprises analyze, monitor, and optimize their processes, helping them uncover opportunities to improve process performance and increase operational efficiency.

The tech company brings a host of capabilities to enhance the value proposition of Microsoft’s intelligent automation offering. These capabilities include automated process discovery and rework detector for process visualization, AI-powered root-cause analysis and process compare for conformance checking, custom metrics for process monitoring, and AI-powered simulation for performing what-if analysis.

This acquisition will further empower Microsoft to help its customers drive operational excellence by providing greater visibility into their business processes, allowing them to perform automated process analysis, and enabling them to drive process improvement initiatives. Microsoft’s entry is not only expected to play a key role in democratizing process mining technology, but it might also impart downward pricing pressure on other process mining providers as it did with its entry into the RPA market with its Power Automate solution.

Key Implications and the process mining market outlook

We expect these deals will result in the following benefits:

  • Improved awareness and greater adoption of process mining: Process mining technology will reach a much broader audience because of these acquisitions. The focus of these providers in integrating process mining platforms with Business Intelligence (BI) tools will help establish a clear distinction between process mining and BI and improve market understanding of how these technologies complement each other. This also will help educate the market on the potential of process mining technology and boost familiarity among enterprises
  • Increased evolution of the mining provider landscape: While Celonis continues to command a large process mining market share, Microsoft’s entry will put pressure on the existing players and also on future deals. Several process mining providers, including Celonis, have technology partnerships with Microsoft. These partnerships will likely continue, and clients will be given the flexibility to choose, as co-opetition is becoming increasingly common in the enterprise software space. The acquisitions would nudge other process mining providers to develop partnerships/integrations with BI providers to extend their ecosystem and fuel growth.

These acquisitions demonstrate an increasing trend of process mining becoming an integral part of bigger enterprise platforms and could also fuel more future M&A activities. Other process mining providers that are embedded in BI platforms might become good acquisition targets. The recent series of acquisitions is a testimony to process mining technology’s potential and reaffirms investors’ confidence in this market

With process mining becoming a crucial component of the intelligent automation ecosystem, the market is rapidly growing, garnering attention from all parts of the world. These acquisitions could trigger other big enterprise tech giants like Oracle, ServiceNow, and Salesforce to make similar moves, making this an exciting time.

It also will be interesting to see whether the tech leaders can drive their large client bases to use their process mining offerings and challenge the dominance of pure-play process mining providers. On the other hand, if these tech giants plan to leverage the acquired process mining capabilities solely for in-house platforms, enterprises may continue to prefer pure-play providers for cross-platform use cases.

To discuss the outlook and opportunities in the process mining market, contact us.

Also, if you’re interested in learning about our in-depth coverage of the digital workplace, check out our webinar, Top Strategies for Creating an Employee-focused Digital Workplace.

Metaverse eCommerce: The Next Logical Step in the Evolution of Immersive eCommerce

Metaverse is here to stay, and it’s going to play a significant future role in how we experience brands virtually. Industry giants are investing big in this space, and it is creating new opportunities for service providers to build feature-packed solutions for their customers entering the Meta world. Read on to learn about the potential and pitfalls of Metaverse eCommerce and why gaining a first-mover advantage is critical.

Digital commerce owes its maturity to the ever-evolving technology ecosystem – starting with the first online dial-up transaction on a modified television to a plethora of innovations over the past decade like mobile commerce, voice search, and social commerce. Emerging concepts such as gaming commerce and recommerce or reverse commerce are further defining the ecosystem.

Digital commerce is also witnessing an era of hyper-personalization powered by Artificial Intelligence (AI). According to Everest Group research on the Top 15 Start-ups Redefining Shoppable Experiences, 70% of the start-ups in the ecosystem are leveraging AI to offer enhanced solutions.

Enterprises are offering immersive buying experiences through Augmented Reality and Virtual Reality (AR/VR). To continue progressing on this trajectory, technological alignment is inevitable for a futuristic eCommerce strategy, and the next logical step for attaining this is Metaverse.

Defining metaverse and its significance in eCommerce

metaverse

Exhibit 1: Definition of Metaverse

In simple terms, Metaverse is an extension of technologies such as AR, VR, blockchain, cryptocurrency, and social commerce coming together to form a virtual world, where customers can shop, play games, and socialize with friends.

Popularized by video games and fiction novels, the idea of Meta has been around since the early 90s, but recently, the industry has become extremely bullish on Metaverse primarily due to two major contributors. Firstly, technologies backing the concept of Meta (blockchain, crypto, and affordable VR) have attained significant headway in the past decade. Secondly, the idea has gained mainstream momentum because industry giants such as Facebook (Meta), Google, and Microsoft are pouring huge investments into Meta-platforms. Experience management leader, Adobe, has also put its best foot forward towards the Meta world by offering tools specific to 3D content creation, experience delivery, asset management, and commerce.

The Meta wave began in the early 2000s with games like Second Life and World of Warcraft, which were based on centralized economies where the value of owned assets was limited to those games. Aiming to overcome this deficiency, Decentraland came into existence in 2020. This platform offered a decentralized economy, where along with building virtual worlds, trading assets, and hosting events, users could transfer purchases to other Meta platforms like The Sandbox. Although the latest version of Meta provides numerous opportunities for users, we are still far away from creating an Omniverse like the movie “Ready Player One.”

Despite the technology being in its infancy, Metaverse holds significant potential in the digital commerce space. In the current 2D eCommerce model, information is consumed rather than experienced, restricting brands from creating physical connections with users.

Metaverse can solve this problem to a very large extent. In Meta-commerce, shoppers can truly experience a company’s culture, design, and branding elements. This will create huge brand differentiation beyond what is currently limited to logos and banners.

Although the technology backing Metaverse is still at a nascent stage, it holds immense potential to build an immersive commerce platform where products will come alive and personalized customer engagement will create brand loyalists.

Brands advocating metaverse are already pioneering virtual commerce

Envisioning the macro future implications of a single worldwide Metaverse, forward-looking brands have already started creating virtual commerce experiences at the company level. Here are some examples:

  • DRESSX – Designers and fashion enthusiasts can enter their Metaverse and create clothes from scratch. Users can try clothes on through their avatars and convert their fashion non-fungible tokens (NFTs) into actual garments
  • Gucci Garden Metaverse and Louis The Game – Gucci and Louis Vuitton have each launched their own NFTs where everyone has the freedom to create and modify their apparel
  • Charlotte Tilbury Virtual Beauty Gifting Wonderland Users can connect with make-up artists in virtual rooms to discuss their skincare concerns and also invite friends to help them find the right product through an integrated video feature in the same session

Potential challenges in realizing metaverse

Metaversechart

Exhibit 2: Challenges pertaining to Metaverse implementation

To make Metaverse a reality, several challenges need to be overcome. These include:

  • Consistent user experience and interoperability – A singular global decentralized Metaverse with shared data, computation, and bandwidth can only be achieved with collaboration between several global parties. Unless features are aligned and intellectual property is shared, we’ll never get a true Metaverse
  • Dearth of skilled talent – Talent for developing design tools and headless systems for businesses to prepare their stores for different media and virtual formats is in high demand and short supply
  • Cybersecurity and privacy – Metaverse users could experience incidents related to fake NFTs and malicious smart contracts that access personal data and crypto-wallets. Since personalized virtual experiences will create an endless need for countless customer data points, industry giants will likely prioritize competitive advantage over user data privacy

 Along with these obstacles, challenges related to hardware, use-case identification, slow adoption, lack of capital, a fragmented tech landscape, unpredictable Return on Investment (ROI), and legal implications will surely make it difficult to turn the virtual world into a reality.

But on the brighter side, the foundational infrastructure is already in place in the form of a sophisticated global blockchain network, ergonomic VR design, scalable AI, and last-mile internet connectivity in most parts of the world. Therefore, Meta is no longer a far-fetched dream. And with most industry giants strategically investing in the concept, the challenges associated with it will get mitigated very soon.

Opportunities for eCommerce service providers in this meta wave

This new world is pushing IT service providers, consulting firms, and design agencies towards attaining Metaverse eCommerce capabilities. These industry players will be able to add several new digital service offerings through Metaverse. A few of these services include:

  • Metaverse consulting – With Pwc buying land in The Sandbox, it is evident that consulting firms will play a pivotal role in the world of Meta. Enterprises entering Metaverse will need significant hand-holding and a relevant knowledge base about the concept to formulate their Meta-business strategy. Consulting firms can leverage their expertise to advise and direct clients who wish to embrace Meta with its full range of challenges
  • Metaverse applications – Exclusive applications will be required for users to interact with the Meta world for virtual shopping. IT providers will need to build development expertise in the AR/VR technology stack to deliver these capabilities
  • Design and NFT – Design agencies will be essential for creating 3D models of virtual artifacts in the Meta world. Along with that, designers also create NFTs that play an extremely vital role in the Meta economy. Therefore, Metaverse will bring a plethora of lucrative business opportunities for design agencies around the world
  • NFT marketplaces – With the increasing popularity of cryptocurrencies, from digital paintings to Twitter hashtags, NFTs are being bought and sold everywhere. Since sellers will have the power to tokenize everything in Metaverse, a marketplace that supports NFT transactions through blockchain will be needed. Because of this, demand for IT service providers specializing in the NFT marketplace and blockchain development technology will rapidly increase

An exciting future

Brands are already implementing core technologies essential for Meta in silos. Soon, we will witness their integration to create an alternate world full of endless possibilities.

Metaverse is here to stay, and it will bring a multitude of opportunities for service providers to build feature-packed solutions for their customers entering the Meta world. Enterprises need to seize the first-mover advantage now by swiftly evaluating the future impact of Metaverse on their businesses.

Discover more about how organizations are increasingly finding ways to incorporate elements of the metaverse in our blogs: Enterprise Metaverse: Myriad Possibilities or Problems for the Hybrid Workplace? and Metaverse: Opportunities and Key Success Factors for Technology Services Providers.

To further discuss Metaverse eCommerce opportunities, contact us.

2022 Contract Renewal Highlights – Information Technology (IT) Services

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What’s Your Baseline? Enterprise Architecture & Business Process Management Demystified | Podcast

Everest Group Vice President, Amardeep Modi, joined the “What’s Your Baseline?” podcast to sit down and discuss Everest Group and his role, and share an insider view of Everest Group’s research, including:

  • Everest Group’s scope of strategic research insights and differentiators
  • How analysts identify trends and topics for their research
  • How Everest Group’s PEAK Matrix® report is created

Tune in to the podcast on Spotify

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