Monthly Archive:: May 2015

Automation Feeds Desire for Onshore Services

There’s a lot of rethinking going on in North American businesses in light of new technologies. In Everest Group’s conversations with clients and in round table discussions we’ve been holding in the industry, we find that these mature companies believe automation gives them the ability to bring their work back on shore. After more

How Service Providers Can Illuminate Clients’ Path to Transformation

One of the biggest issues facing executives today is that they see the need to change their organization through automation, analytics, or other big ideas that are clearly vetted, but they struggle to drive the change. Their organization is reluctant or frightened to change, much like horses in a steeplechase race that shy at

Services Sales through the Looking-Glass

Lewis Carroll is famous for his novel, “Through the Looking-Glass, and What Alice Found There.” In this whimsical world, everything starts out as familiar things but, on examination, turn out to be nonsense. It puts me in mind of many service providers’ sales pitches. Perhaps my favorite part of the Looking-Glass novel is Jabberwocky,

CSC Splits Itself Apart

CSC announced it is splitting into two companies. One will provide service to commercial and government organizations worldwide; the other will serve the U.S. public sector businesses. What are the implications for the services industry? CEO Mike Lawrie has been running CSC’s turnaround. The story line he drove was that he would first drive

80/20 Stands on Its Head in the Services Industry

The mantra of 80/20 (80 percent offshore, 20 percent onshore) has been the war cry for the services industry for the last 10 years. It has stood for the absolute sweet spot for a services player, particularly in terms of maximum leverage of offshore talent. This has been the most profitable space. Providers that

Lessons from IBM

Have you noticed how few service providers have the ability maintain a market leader role when the market changes to favor new technologies, or new service models? It’s very difficult to make this shift, and I’ve seen very few companies achieve the shift – let alone do it three times. Just one. Wow! If

Which Service Provider Will Be Acquired Next?

Capgemini’s announcement that they have an agreement to acquire iGate is the most recent evidence that the consolidation pace in the services market is picking up. Slowing growth, collapsing margins, and availability of capital with interest rates close to zero are only intensifying the M&A activity. How will the consolidation happen? And which service

EPAM Defies the Odds in Global Services Market

EPAM, a midsize, $800+ million service provider, is growing faster than the market. And it’s achieving this notable status in a mature application space where others have struggled and also in a services world that favors scale and size. What is its secret for beating the odds and seemingly defying gravity? At first glance,

Groundbreaking Rio Tinto and Accenture As-a-Service IT Deal

Rio Tinto, a global diversified mining company, recently announced a groundbreaking initiative they are undertaking with Accenture. This can best be described as moving Rio Tinto’s enterprise IT function into an as-a-service model. Game-changing benefits permeate this deal, and it’s an eye-opener for enterprises in all industries. Let’s look at what Rio Tinto gains