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Years of Plenty Followed by Years of Starvation for RIM Service Providers
On November 17, 2014 In Thought Leadership
Right now Remote Infrastructure Management (RIM) service providers are enjoying explosive growth as they take share from asset-heavy players. The labor arbitrage market is disintermediating or successfully attacking the traditional asset-heavy infrastructure space. But in every boom are the seeds of undoing. It reminds me of the story of Joseph in the Biblical book
Sales Strategy Shift in the Cloud Services Market
On November 13, 2014 In Thought Leadership
The fact that enterprises are making a strategic intent shift to cloud and as-a-service models changes more than the service delivery model. It also changes the value proposition and therefore causes implications for provider’s sales strategies. For starters, the focus turns away from the provider’s capabilities. Sure, those capabilities are still important. But with
Goldilocks-Sized Service Providers
On November 11, 2014 In Thought Leadership
Businesses today actively seek — and happily find — a different kind of service provider. Like the fairy tale Goldilocks sizing choices among the three bears, they find some providers are too large, some are too small, but others are just right. The just right players are growing spectacularly. But I believe it’s mainly
Implications for the Application Development Outsourcing Market from Strategic Intent to Cloud
On November 3, 2014 In Thought Leadership
The current enterprise shift in strategic intent toward cloud services has major implications for the outsourcing market. I’ve blogged about the implications for the infrastructure outsourcing market. Clearly the strategic shift will also affect application development outsourcing. We see three major implications for this market. Everest Group is working with large enterprises as they
IBM Takes Steps to Ensure It Will Be Relevant for the Future
On October 30, 2014 In Thought Leadership
IBM is taking some bitter medicine right now in its series of divestments. Big Blue recently exited the chip manufacturing business by spinning off that division to Globalfoundries. The move comes on the heels of having exited its server business and voice and transaction BPO business. There’s a lot of media attention to “IBM’s
Implications of the Enterprise Strategic Intent Shift toward Cloud
On October 29, 2014 In Thought Leadership
Since the beginning of 2014 Everest Group has seen a real shift in large enterprise CIO organizations in their strategic intent toward cloud services. What are the implications on the traditional infrastructure outsourcing market from this strategic intent? Timing First, we expect that this shift will not happen overnight. As organizations work on their
The 40-40 Rule of Disruption in Global Services
On October 27, 2014 In Thought Leadership
Everest Group research has analyzed the impact that automation will have on the services industry. Our opinion, which we refer to as the 40-40 Rule, is that 40 percent of all outsourcing contracts are ready to be impacted by automation and the average impact in the amount of labor to do the work will
Global Services and Politics
On October 22, 2014 In Thought Leadership
It’s a sign of the times. Understandable and predictable. But unfortunate. The Massachusetts Democratic gubernatorial candidate and the media are hammering Republican opponent Charlie Baker for an outsourcing award presented in 2008 to Harvard Pilgrim Health Care and service provider Perot Systems. Baker was Harvard Pilgrim’s CEO at the time, and the turnaround from
How to Stand Out in a Crowded Global Services Market
On September 25, 2014 In Thought Leadership
As industry analysts we at Everest Group listen to endless PowerPoint deck presentations from service providers. They should provide information about what separates a provider from its competitors. But in reality, they just all merge together and lose relevance. Providers need to focus on a little less talk and a lot more action. Here
Why Germany’s Global Services Market Is Not Like the Nordics
On September 23, 2014 In Thought Leadership
In a recent blog I shared Everest Group’s prediction about the short-term nature of the global services market in the Nordics. Germany is also a bright star in the global services arena. However, in contrast to the Nordics, we believe Germany’s market will not mature quickly. Germany is relatively early on in its adoption