Thought Leadership Archive
Shedding Light on Proposed High-Wage Immigration Changes
On February 13, 2017 In Thought Leadership
Although US immigration reform is front and center in the media since the Trump administration took office, the US Congress has debated the need to change immigration legislation for years and has introduced significant proposals since 2013. An integral component is the H-1B work visas heavily used in the global services industry. Right now,
Don’t Overlook This Cost-Effective Alternative to Offshore Services
On February 13, 2017 In Thought Leadership
On a worldwide basis, companies are pausing efforts or taking a step back from globalization. In Europe, this is most evident in recent months with Brexit in the UK. In the United States, it is most evident in the proposals underway in Congress and the White House for H-1B visa reform, rising trade barriers,
Powerful Wave of Digital Services Has a Classic Snarl for ROI
On February 13, 2017 In Thought Leadership
The world of business strategies is changing for U.S. businesses. All eyes are now on the bottom-line cost and productivity improvements achievable through digital technologies such as automation, analytics, robotic process automation (RPA), cognitive computing and cloud, along with their associated digital business models. The same is true with third-party service providers — all
Cost Impact of Immigration and Visa Reform to US Customers Using Offshore Services
On February 10, 2017 In Thought Leadership
Most US organizations have substantially used offshore service providers in IT and business process outsourcing (BPO) to drive cost reduction. But there is currently a great deal of discussion in Congress and the Trump Administration – as well as actions taken by Executive Orders in the last seven days – about changing the H-1B
IT Future Shifts from Labor Arbitrage to Productivity
On February 7, 2017 In Thought Leadership
The labor arbitrage/offshoring model is powerful and relatively simple — compared to investing in productivity for U.S. workers over the past couple of decades. Perhaps your company is like most enterprises in America, having opted for this strategy to achieve cost savings. I believe it’s important to recognize that the arbitrage/offshoring model took companies’
Significance of Services Market Consolidating
On January 12, 2017 In Thought Leadership
I’ve been blogging about the services market consolidating in the provider/delivery space. We’re seeing it with iGate, Dell and others. We believe that activity will accelerate. Here’s what’s new and significant: we’re also seeing it in the adjacent spaces of sourcing advisory and research. In the heyday of the sourcing advisory space in the
What Will You Do When Trump Tweets at You
On January 11, 2017 In Thought Leadership
For the first time in many years, US companies clearly face a real change in sentiment and political risk in sending or keeping work offshore. It’s clear that the new Trump administration combined with other secular forces (Brexit and the U.S. presidential campaign rhetoric, for example) signals a step back and pause in globalization.
Services Industry at Inflection Point in 2017
On December 9, 2016 In Thought Leadership
As I recently blogged, 2016 was a disappointing year for the services industry as discretionary spend was not robust and growth in labor arbitrage services is now flat. I see an industry desperate for growth in 2017. Here is what I believe will happen. I think we’ll see more acceleration in adoption of the
Cognizant’s Cash Choice is a Lesson for All Service Providers
On December 1, 2016 In Thought Leadership
Cognizant is now in a position where it must make important choices, and by extension, most service providers are likely to face the same situation soon. Elliott Management, an activist investor, took a position in Cognizant. When Elliott compared Cognizant’s performance to other benchmark companies in the services industry, it determined that Cognizant is
2016: The Disappointing Year in the Services Industry
On November 21, 2016 In Thought Leadership
As many executives are focusing on the changes that may occur in their business in 2017, I think it’s important to take a moment to review what happened in the services industry in 2016. At the outset of this year, we at Everest Group believed the U.S. economy would continue to grow and that