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How Big is the Bright Spot in Nordics Global Services?

For the past two years, we’ve observed rapid adoption and market growth of outsourcing of global services in the Nordics. This is well-documented and a real bright spot for a number of global services companies. The question is: how long will this growth continue? At Everest Group, we believe the Nordics will behave much

Sea Change in Large Enterprises’ Cloud Strategic Intent

For five years we at Everest Group have tracked the cloud space in global services. Until this year, there was a lot of talk about cloud, but much true cloud adoption was driven in business units with large enterprises. CIOs basically sat out the game and watched the cloud’s performance. But since the beginning

Mobile Apps Start to Generate Real Revenue in Services

The mobile app space offers service providers the potential for new growth platforms. However, these are often small projects that are delivered quickly and are not a great revenue stream. But recent studies we came across reinforce our growing opinion that the mobile app space is changing. Mobile apps are costing more and taking

Internet of Things Opens Up Intriguing New Growth Opportunities for Service Providers

Code Halos: How the Digital Lives of People, Things, and Organizations are Changing the Rules of Business, by Cognizant’s Malcolm Frank, Paul Roehrig and Ben Pring, discusses the impact of the already huge and ever-increasing amounts of data surrounding individuals and our environment. The authors point out today many pieces of equipment or devices

The Downside of Transaction Pricing

Transaction pricing is a wonderful thing, a thing of beauty. We’ve seen payments companies and infrastructure companies delink labor from their pricing and harvest the benefits of this model. It’s the quintessential non-linear model. It sounds great. But there’s a danger. The problem with transaction pricing is that providers essentially commoditize their offerings. Never

A Rose by Any Other Name

Shakespeare said a rose by any other name would smell as sweet. However, what the eternal bard did not say but easily could have is that it would not have sold as well. The rose that’s catching fire now in the marketplace is as-a-service offerings. But service providers are confusing the market. As-a-service offerings

Service Providers Struggle Using Big Data and Analytics to Drive Growth

Observing service providers’ much talked about efforts to provide new levels of value and create new growth opportunities through big data and analytics reminds me of a quote often attributed to Yogi Berra, the great NY Yankees coach. “In theory it’s simple, in practice it isn’t.” Yogi captures, as only he can, the timeless

IBM Positioning for Dominance in Future of Infrastructure Services

I recently had the privilege to sit through a two-day session with IBM’s senior executive team in services. I’m someone who tries not to drink the Kool-Aid. Even so, I came away truly impressed by the work that IBM has done to position itself to be relevant and a major player in the future

Surprising Strong Profit Performance by Syntel and TCS Bodes Well for the Industry

The Q2 earnings reports for Syntel and TCS show not only a strong performance for both companies but, surprisingly, show stronger earnings growth than revenue growth. We’ve seen stronger earnings than revenue results with other providers in the past, but this is surprising. That’s because it reverses a trend the industry has been experiencing.

Accenture and IBM Playing from the Same Playbook in Shaping Their Future

Accenture appears to be picking up its pace of acquisitions and making a series of big moves. This is not a new tactic for Accenture; historically nearly every time you turned around there was another Accenture acquisition. But clearly the pace has quickened and the size of the acquisitions has increased. It’s important to