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Significance of Services Market Consolidating

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

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

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

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

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

How to Work with Your Service Provider in a Consumption-Based Pricing Model

I’ve blogged several times in the past three years about the benefits of switching to a consumption-based pricing model for services, especially the benefit it delivers in shaving off operational costs. In this model, companies pay only for what they use instead of paying for over-capacity. We see customers’ desire for consumption-based pricing coming

Three Disruptions in Business Services

Whether your company is a service provider or a consumer of business services, you’ll see dramatic change in 2017. This is our 25th anniversary at Everest Group, and reviewing the past 25 years of the services industry got me thinking about where services are taking businesses for the next few years. I’ve seen substantial

CFOs Must Improve Communication About Resources for Developing Apps

The most important investments companies are making right now are around technology. And that’s no wonder. Digital opportunities within application services alone prove successful in achieving efficiency, growth and enablement. It’s so easy to book a business reservation or check in with your flight on your smartphone, for instance. And it’s easy to communicate

How Digital Technology is Changing the Status Quo in Services

What business wouldn’t want a 700% improvement in developer productivity or a big reduction in testing time or reduced time to market? The move to digital technologies carries the promise of dramatic transformation. With digital technologies, companies can do things that they have never done before. Digital is not a matter of delivering existing

The Services Industry is Changing in Radical Ways

The times they are a changing, as the old Bob Dylan song said. In a recent post, I blogged about the dramatic changes we’ll see in the services industry over the next two or three years. Let’s look at two more forces driving industry change. A major force is the maturity of the labor