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Snowflakes in the Global Services World
On June 24, 2014 In Thought Leadership
There is increasing skepticism and cynicism in the customer ranks in the hyper-competitive environment of the services world. As a customer commented to me, “Providers are like snowflakes. They all think they are unique, but they look just like everybody else. And if you put them under pressure, they all become the same thing.”
Infosys Divides in Two — a Bold Move
On June 19, 2014 In Thought Leadership
Infosys made headlines recently, announcing the separation of its products, platforms and solutions (PPS) business into a subsidiary called Edgeverve Systems. It’s a bold move, but in many respects it makes sense. Here’s my take on the implications and potential net result of the spinout strategy. As I explained in an article in The
New York’s Plan for Medicaid Services — and Why It Matters
On June 18, 2014 In Thought Leadership
A movement is underway in the state of New York that, if successful, could result in a seismic shake-up in the U.S. healthcare industry. In a contract now under bid for developing a new program for processing Medicaid claims, New York will shift to paying for Medicaid on a managed-care basis rather than the
The Industry-Wide Significance of Accenture’s PureApps Acquisition
On June 17, 2014 In Thought Leadership
Accenture recently announced its acquisition of PureApps, a UK-based Enterprise Performance Management (EPM) provider. Our understanding is that it’s a full-service provider for all Oracle Hyperion EPM and BA solutions. Nevertheless, PureApps is a small firm and the revenue won’t make a noticeable difference to Accenture. So why is Accenture buying PureApps? My opinion:
Why Hasn’t Cloud Had a Bigger Disruption on the Services Industry?
On June 10, 2014 In Thought Leadership
If you read the technology news in the press and social media sites, it’s apparent that we’re in the midst of a big sea of change in which the as-a-Service and public cloud models are transforming the services industry. HP and IBM’s travails and Oracle’s slowdown are laid at the feet of the SaaS
The Coming Disruption in BPO
On June 6, 2014 In Thought Leadership
We at Everest Group have been exploring robotics and understanding its potential. What we’re seeing is that it’s relatively easy and cheap to implement. Where it has been implemented to date, it results in somewhere from a 15-20 percent reduction in critical shared services or BPO functions, depending on the transactional nature of the
ERP Hits the Wall
On May 30, 2014 In Thought Leadership
The services industry is facing a big issue. The market for ERP implementation cycle and corresponding transformation projects has matured and is coming to an end. We can see the ERP decline in the reported results from IBM and Accenture and HCL. These three providers have had very big SI practices around large-scale ERP
It Stinks to be an Incumbent Service Provider
On May 27, 2014 In Thought Leadership
In our tracking of industry contracts and trends, we find that, in the infrastructure space, incumbent service providers now win recompetes 85 percent of the time. However, the ACV (annual contract value) is 27 percent less scope. This means that the incumbent must be able to add new new logos. The good news is
Cloud Places Service Providers on the Horns of a Dilemma
On May 20, 2014 In Thought Leadership
The Promised Land of SaaS and cloud models in the services world is clearly visible, but it’s frustratingly difficult for service providers to get there. The new models are the land for service providers’ growth and profits, but providers are finding it painful and frustrating as they try to move to the new models.
Let’s Talk About Me
On May 14, 2014 In Thought Leadership
American country music artist Toby Keith’s hit song “I Want to talk about me” reminds me of a phenomenon in today’s services world — too many providers’ conversations with customers are unproductive. Service providers are very eager to grow their revenue in their existing accounts. As the market matures, this is clearly the fastest,