Maturity of Enterprise Direct Sourcing Approaches for Talent Acquisition | Market Insights™
October 27, 2022
Direct Sourcing Approaches
Direct Sourcing Approaches
Everest Group’s Arkadev “Arko” Basak and Krishna Charan will join this webinar panel to discuss the direct sourcing technology’s potential to act as a gateway to total talent acquisition (TTA).
The panel will discuss:
Thursday, October 20, 2022, at 10:00 am CST, 11:00 am EST, 3:00 pm GMT
Live, virtual event
Arkadev “Arko” Basak
Partner, Everest Group
Krishna Charan
Practice Director, Everest Group
Saleem Khaja
COO, WorkLLama
Kevin Poll
SVP, Strategy and Business Development, WorkLLama
Joss O’Brart
Vice President Sales, Europe, WorkLLama
In an Everest Group study, 23% of respondents ranked talent shortage as their number-one business challenge in 2022.
Business leaders worldwide are bracing themselves for a possible recession. With increasing cost pressures and talent challenges, what do enterprises need to know to navigate a looming downturn, and could the demand for technology talent be easing up?
Business leaders worldwide are bracing themselves for a possible recession. With increasing cost pressures and talent challenges, what do enterprises need to know to navigate a looming downturn, and could the demand for technology talent be easing up?
In this webinar, our experts will discuss the latest demand and supply trends, reveal new location hotspots, uncover key strategies best-in-class companies are deploying to position themselves for success, and deliver their predictions for the next 12-24 months.
Questions our experts will answer:
Who should attend?
Outsourcing’s business value has long centered on labor arbitrage. While outsourcing partnerships have become more strategic, getting costs down remains a significant draw of the sourcing model. But outsourcing costs have been driving higher for months. A chief factor in this is an unprecedented talent shortage.
“It’s hard to get people, and it’s hard to retain them,” says Amy Fong, Partner in Everest Group’s Sourcing and Vendor Management practice.
Workers employed by Philippine-based global business service (GBS) organizations report relatively higher satisfaction across all parameters than their Polish and Indian counterparts, according to a report by global research firm Everest Group.
Everest Group’s Top GBS Employers™ across India, Poland, and the Philippines report illustrates the top global business services companies selected for best work environment and job satisfaction rating by employees. Read on to discover what the workforce looks for when choosing an employer and view the complete list.
As the battle to find the right talent and skillsets resumes, GBS employers must build an exemplary brand to stand out among their peers to attract and retain top talent. The talent shortage worldwide is here for the foreseeable future and is a constraint against growth goals. Developing and implementing a talent strategy should be at the top of any employer’s priority list. One tactic that many are turning to is closely tracking and honing their brand, or how talent perceives them in their local market.
Developing a solid brand perception will not only address the talent shortage challenge but also help draw in a strong and resilient workforce, so organizations will survive uncertainty and thrive in intensely competitive environments. The top global business services companies are incorporating the key components and top requirements that talent are gravitating towards – work environment, compensation, career development, and diversity – and are critical in building employer brand perceptions and meeting evolving workforce expectations.
Everest Group analyzed the employer brand perceptions of 200+ leading GBS organizations across India, Poland, and the Philippines to discover what a top employer brand perception encompasses, view the full report. The study examined multiple dimensions, including compensation, career progression, senior management, work-life balance, culture and values, and diversity.
This first-of-its-kind study also analyzes the performance of each of the top global business services companies in the local talent markets based on attrition rates, joiner-exit ratio, and overall employee satisfaction ratings.
Finally, we assessed what top global business services companies are doing to differentiate themselves in talent markets, targeting the most desired themes from talent: work environment, compensation, career development, and diversity.
Workforce expectations have transformed dramatically over the past few years, and organizations have to evolve their employer brands to meet those expectations. The pandemic brought about the work-from-home (WFH) era, dispelling many negative notions around WFH, and set a standard of work-life balance, flexibility, and autonomy that employers must deliver. Our research shows that over half of today’s organizations expect over 40% of their employees to continue working from home or in a hybrid style over the next two years or so.
More and more employees today are also choosing to work for companies that not only have sustainability goals and strong culture and values but adhere to diversity, equity, inclusion, and belonging (DEIB) practices, which ensures employees have equal opportunities and ultimately feel more valued.
And at the top of the list, employees want to work for organizations that offer career paths, opportunities for upskilling, and fair compensation.
The Top GBS Employers™ rankings provide an outside-in proxy on how prospective candidates pursuing tech and ops careers perceive employer companies – helping firms baseline their employee value propositions (EVP) effectiveness vs. their immediate peers.
Recent employer perception studies have been too broad, with no specific view capturing tech talent’s concerns. This analysis is based on publicly available information, including Glassdoor, Indeed, and LinkedIn, and the latest feedback capturing prospective employees’ perceptions about top GBS organizations. The rankings from the report provide a comparative snapshot of leading firms’ market perceptions among the tech and ops workforce. We ranked each GBS employer on employee satisfaction grade, compensation and benefits, work environment, career opportunities, and diversity and inclusion focus and investment.
By assessing the ratings and feedback from popular public sites and critical sources for employees conducting employer research, we narrowed down the top ten in India, the Philippines, and Poland:
See the full report for a complete view into the rankings in the different regions.
Throughout every market assessed, it’s clear that compensation, work environment, and career development are among the top sought-after aspects when choosing a new employer and have the most impact on employer brand perception.
Employers with the highest rankings offer relatively high entry-level compensations and robust training, set benchmarks to allow for pay increases, perform salary corrections, and have opportunities for fast-track promotions, especially at lower experience levels. High-ranking companies also offer flexibility and options for remote work and the chance to work across teams for cross-functional exposure. Other perks among the highest ranked employers are opportunities to work on the latest tech stacks and develop techno-functional and behavioral skills, along with good 401K matching and health insurance options, market-competitive benefits, and decent paid time off.
Employers that incorporate these practices will significantly increase their overall employer brand perception and discover more success in finding and retaining talent.
Top global business services companies can also leverage Everest Group’s Talent Performance Framework to optimize their talent management strategies and build future-proof talent models.
Exhibit one: Everest Group’s Talent Performance Framework
To learn more about Everest Group’s Top GBS Employers or to discuss the Talent Performance Framework, reach out to [email protected] or Contact us.
Also, join us for our Conversations with Leaders LinkedIn Live series, a part of Everest Group’s GBS Leadership Exchange, Episode 3 | Who Are the Top GBS Employers?, featuring GBS executives who have shown significant leadership and innovation in GBS. In this session, Rohitashwa Aggarwal, VP of GBS Research and Advisory at Everest Group, and Shweta Mohanty, VP and Head of HR for SAP, India, will discuss the Top GBS Employers, and what they are doing to set themselves apart.
Post-pandemic, enterprises have given IT service and technology providers high marks for improving commercial models and customer-centricity, but talent management is emerging as a major concern. Customers want their providers to ensure resource availability, improve employee quality, and manage attrition – all during the Great Resignation and current labor shortage. Discover a framework for effective talent management in this blog.
Emerging from the pandemic, IT service and technology providers’ enterprise satisfaction ratings increased for the second consecutive year, moving up from 70% to 75% last year, according to our IT Services Enterprise Pulse Report 2022.
After enduring the turmoil and uncertainty of the pandemic, enterprises surveyed said they valued IT service and technology providers’ efforts to adapt to sudden enterprise demand shifts, take a more customer-centric approach, and offer flexible and transparent commercial relationships.
However, talent management – or attracting, selecting, and retaining employees – has emerged as a key pain point for enterprises, along with the lack of value-add and innovation from providers.
Providers need to resolve their technology talent management issues to ensure continued growth in enterprise satisfaction levels going forward and prevent workforce issues from negatively impacting their customers’ project timelines, costs, and quality.
Most importantly, talent management and attrition have become key focus areas for enterprises, and they want their IT service and technology partners to ensure talent availability, invest in learning and development, and manage attrition. Enterprises surveyed said they expect their partners to ensure that the right talent with the right skills is available to them at the right time and place.
They also desire:
These might sound like big desires, but providers have been doing a good job delivering on most of them. Let’s take a look at the current state of enterprise satisfaction.
IT service and technology providers have fared well in helping enterprises navigate through the post-pandemic world and meet their business objectives like cost reduction. Enterprises are satisfied with client management, commercials, and technical expertise and are increasingly viewing providers as strategic partners.
Here’s how the scores have improved:
Despite the many positives, IT service and technology providers are struggling to manage attrition and ensure talent availability and quality, making their partners unhappy. While enterprises recognize that IT service and technology providers are trying to improve their talent management, a lot more needs to be done.
Even before the pandemic and Great Resignation, enterprises were worried about their IT service and technology providers’ talent management initiatives, and the recent turn of events has made this lack of focus more glaring and detrimental to enterprises’ business objectives.
In our survey, companies said they expect their partners to ensure that the right talent with the right skills is available to them at the right time and place – and that’s no small feat.
While the talent management issue is impacting enterprises across industries and geographies, it is more prominent in Banking, Financial Services, and Insurance (BFSI), and manufacturing as resource availability and retention are major problems.
Enterprises in the Middle East and Latin America have been the most vocal about their dissatisfaction with providers over technology talent management. In a separate Everest Group study, Technology Skills and Talent: Reimagining Talent Acquisition and Management with Technology Platforms, we found that the project readiness quotient of the talent pool in skills such as Artificial Intelligence (AI), SAP HANA, Oracle Cloud, and security is considerably low with a significant spike in demand for critical roles in data and AI, security, and cloud.
Enterprises want their partners to ensure talent availability, invest in learning and development to improve quality, and manage attrition by ensuring employee retention and faster replacement of exiting talent, as shown below:
As IT service and technology providers struggle with managing attrition, ensuring resource availability, and improving the overall quality of talent, enterprises suffer because it affects project timelines, cost, and quality.
IT service and technology providers need to adopt a continuous workforce planning model keeping in mind the factors that impact talent demand and supply. They also must take a holistic approach to manage attrition by being employee-centric and investing in learning and development to improve employees’ effectiveness.
With the framework illustrated above, IT service and technology providers can solve the talent availability, attrition, and reskilling conundrum and ensure the high levels of enterprise satisfaction seen post-pandemic last going forward.
To explore more on your talent management strategy, read our IT Services Enterprise Pulse Report 2022, or reach out to us at [email protected], [email protected], and [email protected].
You can also discover key strategies best-in-class companies are deploying to position themselves for success in our webinar, Planning for a Recession: Is the War for Tech Talent Finally Over?
Access the on-demand webinar, which was delivered live on August 23, 2022.
Who are the top GBS employers? To find out, we launched a first-of-its-kind study analyzing the employer brand perception of 200+ leading GBS organizations in India, the Philippines, and Poland across multiple dimensions.
For this study, we evaluated the performance of the GBS organizations in their local talent markets, spotlighting attrition rates, growth trends, and overall employee satisfaction ratings. In addition, we correlated the success achieved by GBS organizations in each talent market with the perception of their GBS brand as a preferred employer. The study was conducted for GBS organizations at an overall level and specifically for technology talent.
Join this on-demand webinar as we dive into the results of the study and shed light on what top GBS employers are doing to set themselves apart from the rest.
What questions will the on-demand webinar answer for the participants?
Who should attend?
Companies that once battled to hire employees close to home are now turning to Latin America and other markets for talent.
Many new hires are coming from countries like the Philippines, Argentina, Brazil, and India. While tech companies have long sought out those markets to cheaply staff call centers, content moderator positions, and IT departments, they are now following talent to fill open roles on any of their teams. “We used to think of this as a cost arbitrage story—you hire in Mexico or India because it’s cheaper,” says Jimit Arora, Partner at Everest Group. “Now I see this as a talent arbitrage story. You go where the talent is.”
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