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It’s Hard to be Humble When You’re Perfect in Every Way

We’ve noted several instances in our research and consulting practices where providers’ behavior reminds me of an old Mac Davis song. The lyrics proclaim that he no longer has a girlfriend but he never gets lonesome because he treasures his own company and that it’s hard for him to be humble because he’s perfect

Cognizant Finds the Secret to Growing a Services Business Faster

Service providers often ask Everest Group for advice on how to grow their business faster. We usually find that their starting-point perspective has a pitfall. They fall for the seduction of new logos. The problem with this growth strategy is that it’s very difficult to win a brand new customer without “privilege.”  Privilege is

Is There Anything Providers Can Do to Change the Growth Trajectory of the Labor Arbitrage Industry?

There is an inconvenient truth in the global services industry: The growth rates in labor-arbitrage-based businesses are diminishing. Tied to that fact is an even more inconvenient truth: Service providers have overreached in moving to outcome-based platform models to compensate for the drop in arbitrage growth rates. Labor arbitrage is not going away. But

What I Learned at Cloud Connect: The Cloud Is Moving to a Different Level

My first impression when I recently attended this year’s Cloud Connect conference is that there is a significant increase in interest in all things cloud, as there were more attendees than at last year’s conference. What impresses me most as I reflect on the case studies and insights discussed at the event is the

Infosys Moves On, But There Are Chilling Immigration Reform Implications for Others in the Industry

The U.S. federal government this week announced a settlement agreement with Infosys with a record fine of $34 million — a penalty Infosys agreed to pay in settlement of the investigation related to its I-9 paperwork errors and H1-B and B-1 visa matters. There is both good news and bad news in this settlement.

The Biggest Losers in the Service Provider World

I talked recently with one of the biggest losers among service providers. They had just been through a competitive RFP process as the incumbent provider. They worked tirelessly to martial the firm’s resources to get both the external and internal sale and get executives lined up. Their sales team was engaged. There were a

Just Like CSC and Dell, Sell Your Truck While It’s Still Running

When Bobby Pinson recorded his country & western song “Don’t Ask Me How I Know” dispensing bits of wisdom, I’m sure he didn’t realize he was providing advice to service providers. But my favorite line in the song is also great advice for today’s BPO providers — “Sell your truck while it’s still running.”

A Win-Win-Win Model Attracts Attention in Global Services Market

Whether you are a service provider or a buyer of services, you can benefit significantly from a relatively new delivery model in the services ecosystem — outsourced in-home services. Why is it attractive? The in-home model leverages the labor arbitrage idea but applies it in a different way for even greater benefits. Over the

What’s Reinvigorating EPAM, Syntel and Virtusa?

Over the last five years the story of growth in the global services industry has been one of the rich getting richer. In fact, the larger tier-one firms, especially Cognizant and TCS, are growing faster than the marketplace. But I think it’s more notable, at this time when markets are maturing and growth is

What You Need to Know about the Convergence of Systems Integration and Application Outsourcing Services

Are the systems integration (SI) and application outsourcing (AO) spaces converging? We’ve been asked this question numerous times. It does appear that in the large-company buying group that there is a trend to combine SI and AO services. By combining them, customers seek to reduce or eliminate the premium pricing on their SI services,