Tag: talent

5 Tips for Surviving Outsourcing Inflation | In the News

September 8, 2022

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.

Read more in CIO

 

The Top GBS Employers™ in India, The Philippines, and Poland – Discover Why They Are the Top Global Business Services Companies for Talent | Blog

August 30, 2022

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.

 See the Report

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.

The top global business services companies selected across India, The Philippines, and Poland

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.

Why GBS organizations need this information today

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.

How are the top global business services companies being ranked?

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.

The top ten across India, the Philippines, and Poland

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:

  • Across India, the overall top GBS employers are Google, Mondelez, Microsoft, Bank of America, SAP, JPMC, P&G, Target, American Express, and Novartis
  • In the Philippines, the overall top GBS employers are Henkel, SAP, JPMC, Telstra, P&G, SunLife, Wells Fargo, American Express, Chevron, and 3M
  • And in Poland, we saw Mondelez, Microsoft, SAP, Standard Chartered, Google, Cisco, Bayer, AstraZeneca, ING Group, and P&G come through as the top GBS employers

See the full report for a complete view into the rankings in the different regions.

Key takeaways from the research

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

Picture1 4

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.

Tackling Technology Talent Management to Ensure Continued Enterprise Satisfaction | Blog

August 24, 2022

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.

What do enterprises want from their IT service and technology providers?

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:

  • Partnerships – Enterprises are looking for IT service and technology providers to transcend from being services and technologies providers to strategic partners they can have balanced and forward-looking relationships with
  • Innovation and collaboration – They want partners to collaborate with them more often and bring new and innovative ideas to the table. Customers are looking for openness from providers about what they can and cannot do so they can jointly decide the best way forward
  • Transparency – Customers seek transparency and flexibility in project management, delivery, and commercials. They expect their IT service and technology providers to showcase high levels of customer-centricity and be responsive and proactive
  • Technology skills – As enterprises around the world pump up their technology modernization efforts, they want providers to combine their technical and domain expertise in delivering services powered by new-age digital themes like cloud modernization, automation, Artificial Intelligence (AI)/Machine Learning (ML), etc. contextualized to enterprises’ business landscape and challenges

Enterprise satisfaction state

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:

Picture1 2

Technology talent management – a key enterprise concern

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:

Picture2 1

How to move forward   

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.

Talent management framework

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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?

Elevate Your GBS Employer Brand: Lessons from Top Employers | Webinar

August 23, 2022
ON-DEMAND WEBINAR

Elevate Your GBS Employer Brand: Lessons from Top Employers

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 are the top GBS employers? What are the factors impacting GBS brand perception as an employer in key markets?
  • How can companies evaluate their brand perception from employees’ perspectives? How does it vary for GBS talent and technology talent?
  • What are the top employee grievances?
  • What initiatives do best-in-class organizations employ to enhance overall brand perception?

Who should attend?

  • GBS executives
  • GBS strategy leaders
  • HR leaders
  • Talent acquisition leaders
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Rohitashwa Aggarwal
Vice President
Bharath M Refresh gray square
Bharath M
Practice Director
Agarwal Anish
Anish Agarwal
Practice Director

Related Content 

Tech’s Offshore Hiring Has Gone into Overdrive | In the News

August 12, 2022

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.”

Read more in Wired

Solving the Need to Cut Costs in IT and Engineering Services in a Recession

August 8, 2022

Every large firm in North America, Europe, and the industrialized world is going through a fundamental transformation to emulate how tech companies operate. We’re early in this transition, but this new way of operating and competing is so fundamental that it will continue even during a recession. The demand for IT and engineering services won’t slow and will far exceed other industry sectors, even in a recession. Although this is comforting for companies selling tech products and services, it poses a number of dilemmas for other companies.

Read more in my blog on Forbes

US Staffing Industry: A Sea of Opportunities Among the Thunderstorms | Blog

August 3, 2022

With the continued talent shortage creating demand for contingent workers, staffing firms are experiencing new opportunities to expand and diversify their services. Many are joining forces to seize growth, as seen by a flurry of mergers and acquisitions in this dynamic space. To learn more about the challenges, opportunities, and outlook for the US staffing industry, read on.    

The US staffing industry and contingent workforce have become integral to the economy. Driven by the unique employee recruitment environment over the past year with the Great Resignation and dramatic labor pyramid shifts, staffing firms are being presented with new growth opportunities as they help fill the talent gap.

On the back of strong economic growth in 2021, the staffing industry grew significantly. However, this momentum is expected to drop off due to a myriad of internal systemic challenges and increased competition from traditional and non-traditional players.

Despite the anticipated slowdown, the market is still expected to remain above pre-pandemic levels as enterprises increasingly turn to the contingent workforce in the next 12 to 18 months, according to Everest Group’s Future of Work 2021 survey.

Additionally, the fear of a looming economic downturn and associated layoffs will further add to contingent talent demand because enterprises will not want to invest in full-time hiring with the uncertainty.

Given such rapid fluctuations in the market, staffing firms must navigate various challenges to sustain their growth trajectory, including:

    1. Rise of alternate sourcing channels: As contingent talent gains hold, enterprises are increasing investments in advanced contingent workforce management solutions and alternate sourcing channels. The current lack of sophistication in leveraging contingent workers will likely prevent any single alternate channel from threatening the staffing industry’s business. However, enterprises are looking at the entire gamut of hiring approaches such as direct sourcing and gig platforms to broaden their search scope and meet talent requirements. This increased competition in the staffing space, coupled with higher penetration of Managed Service Providers (MSPs), who aim to reduce supplier costs and draw their fees from supplier margins, will impact traditional suppliers’ or staffing firms’ net fee incomes
    2. Lack of differentiation and commoditization: The staffing industry globally and especially in the US, has two unique characteristics.
        • Staffing firms do not enjoy an exclusive relationship with associates. Associates/candidates typically have relationships with multiple staffing firms and have next to no switching costs.
        • Clients release a requisition to several staffing firms simultaneously. Price and speed of execution play a significant role in winning business.

      The combination of the above factors results in commoditization and difficulties in creating and sustaining differentiation in a highly fragmented industry with low entry barriers

    3. Cyclical and uncertain business: The staffing business is cyclical, and growth is linked to broader economic growth. While some market segments/roles may be resilient to changes in the business environment, the overall industry is vulnerable to business cycles. Leading economic indicators suggest the possibility of a recession in the future, which would impact the staffing industry’s growth

 

While current market conditions present a significant number of challenges and disruptions for staffing firms, many of these obstacles can be pre-empted if staffing firms begin to differentiate themselves.

While staff augmentation is largely commoditized, going up the value chain is one of the main ways through which staffing firms can differentiate themselves. Staffing firms can also invest in areas such as associate upskilling/reskilling, technology integration with services, and Diversity, Equity, and Inclusion (DE&I) to stand out. Based on their historic growth and penetration levels, staffing firms may explore opportunities to diversify across the following areas

  • Geography: Expansion across new domestic and international geographies
  • Industry: Expansion across new sectors and clientele
  • Skill categories: Expansion across new and adjacent skill categories
  • Solutions: Building capabilities to offer high-value solutions beyond staff augmentation, such as managed services

The staffing industry has been very dynamic in recent years, with service providers expanding their capabilities and diversifying their portfolios, both organically and inorganically. Service providers have been quick to capitalize on the opportunity offered by the pandemic and moved quickly to expand their capabilities and portfolios via mergers and acquisitions. Some of the most interesting and significant developments include:

    1. ManpowerGroup, a workforce solutions firm, acquired Ettain group, a staffing firm focusing on IT, healthcare, and digital creative managed services, to bolster its global IT staffing and managed services brand, Experis. The deal is expected to improve ManpowerGroup’s strength in delivering IT staffing services to financial services and healthcare clients
    2. Adecco Group, a staffing and talent advisory firm, acquired AKKA, an engineering and R&D staffing firm, to bolster its high-tech services brand, Modis. AKKA and Modis will jointly form Akkodis to strengthen its capabilities as a digital solutions provider in the smart-industry market
    3. Motion Recruitment Partners, an IT talent solutions firm, acquired MATRIX Resources, an IT staffing and managed services firm, to bolster its specialized IT staffing business. This acquisition will enable MRP to expand into six new sales markets. It also acquired The Goal, an IT staffing provider, to strengthen its presence with federal government clients
    4. Kelly Services, an IT, science, and engineering staffing firm, acquired Softworld, a specialty IT staffing firm, to add new high-tech skill categories as well as to deepen its presence in industries such as financial services, healthcare and life sciences, aerospace, defense, and retail
    5. Swoon, a US-based staffing firm, acquired Grapevine Talent Acquisition, an executive search firm, to expand into niche industries such as sensors and controls, pharmaceutical, petrochemical, biotechnology, satellite agriculture, linear components, and process instrumentation
    6. Digital Intelligence Systems (DISYS), a global staffing and managed services firm, acquired Signature Consultants, an IT staffing, managed services, and consulting firm, to deepen its IT staffing capabilities and expand into new North American clients.

 

Thus, the staffing space continues to provide opportunities for staffing firms to diversify their portfolios into new geographies, skill categories, and managed services solutions through M&A activity. As the economic environment is frequenting between crest and trough, the staffing industry will continue to remain dynamic. Additionally, fears of looming recessions and funding freezes across industries will offer a unique opportunity for well-capitalized staffing providers to pursue M&A targets at attractive valuations.

To discuss the US staffing industry and contingent talent, contact [email protected], [email protected], and [email protected].

Learn more about workforce changes, read the blog, Deconstructing the Future of Work Trends.

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