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Dilemma of Customers’ Increased Productivity or Service Providers’ Profitability

I previously blogged about the need for a new third-party services operating model that would be more productive and agile and focus far more on results. Though the industry was on the verge of moving to a new model, adoption was slow at first. Now, attraction for the move to a new model is

Enterprises Rethinking Approach to Third-Party Service Relationships and Contracts

After the initial need to cut costs during the COVID-19 pandemic economic impacts, many companies had a knee-jerk reaction and asked their service provider firms for discounts. As a result of those negotiations, customers now recognize that service relationships (and contracts) are far more complex than they realized. Read more in my blog on

Improve Productivity by Getting Better at Being Better

Companies spend time getting work done. Leaders focus attention on getting through the backlog and responding to today’s challenges. Teams focus on executing the work. Leaders evaluate teams on whether they completed the work, the quality of the work, whether it was timely, whether it pleased customers and whether it drove the desired results.

Services Industry Needs A Balanced Global Operating Model

As the labor arbitrage services model matured, the use of digital technologies and models five years ago had a significant impact on services delivered from third-party providers or offshore captives or GBS (Global Business Service) units. Adding the DevOps model into the mix had a profound effect. The result: we now need a new

Enterprise Operating Models Changing Third-Party Services Models

Third-party service providers and their clients face a new reality for 2021. Enterprises now have a new set of options that arise from the new digital technologies and associated operating models. These ways of processing IT work present a significant improvement over the established way of conducting work, offering better business results while being

Potential War For IT Talent In 2021

At Everest Group, we study a lot of forward-looking indicators, and we believe the service market prospects for next year are significant. In a recent blog, I talked about anticipating a robust market in the third-party services space in 2021. However, companies face a surplus of opportunities in the coming year at the same time as

Implications For IBM Customers From Company Split

IBM announced its intention to separate into two companies, and I blogged recently about some potential implications. It is still early days from the announcement, but there is no IBM announcement of a lead CIO or management team for the legacy spinout (“NewCo”). So, it is possible that IBM may be angling to sell

Biden Impacts On H-1B Visas And Outsourcing

From a services industry perspective, the main impact of a change from the Trump Administration to a Biden Administration in January 2021 will be the allowed degree of movement of global talent to meet the huge talent deficit in the US. As US businesses eventually come out of the COVID-19 crisis, we will see a

How To Manage Employees In A Work-From-Home Distributed Environment | Blog

The COVID-19 crisis, which sent most white-collar workers to work from home, changed the way people work. Over the past few months, it proved viable and even advantageous in many respects. We now face a permanent shift in how work is performed. It will be in a far more distributed environment than we ever

Third-Party Services Market Predictions For 2021

Having come closer to the end of the COVID-19 business crisis and now looking at the consequences for the third-party services market next year, I am increasingly optimistic that we will see an extremely strong year going forward. In fact, I believe it will be historically robust. Yet, COVID is still here, and the