For large transformation projects, the services world has locked itself into a world permeated with high dead deal costs, wasted solutioning, and long transitions of nine to 18 months where the client sees low value and tries to get the provider to absorb the cost as well as expensive consultants and legal fees for
I blogged last year about the growing anti-incumbent bias in the services industry. That’s not to say that clients are biased against incumbent providers, but there are more clients who want to switch out providers than there used to be. This is true across every segment of global services (applications, infrastructure and BPO). We
At Everest Group, we’ve heard industry rumors that Infosys CEO Vishal Sikka – formerly on SAP’s Executive Board and global lead for products and innovation – recently hired two former SAP executives based in Silicon Valley. This move comes on the heels of Sikka planning to invest in startups in Silicon Valley. What does
Every service provider is looking for the one, simple thing they need to do to change their growth trajectory. They think they may need to change their messaging or perhaps they should incorporate automation into their finance and accounting offering. Or they think moving from FTE-based pricing to transaction-based pricing will grow their business.
Singer/songwriter Lyle Lovett wrote a song with the line “If I were the man you wanted, I would not be the man that I am.” With apologies to Lyle Lovett, I think this is a very appropriate line when applied to IT infrastructure services today. Clients’ changing expectations of their incumbent IT infrastructure service
Tech Mahindra has run the gauntlet of stabilizing after its acquisition of the corrupt-ridden Satyam. The fully integrated companies have a unified leadership team, the client base is satisfied and stable, and Tech Mahindra has a robust brand. The provider is now turning its focus to growth. When Satyam imploded through a well-documented set
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.”
Industry buzz says companies can realize more value via outsourcing by moving away from the FTE or contract labor model and opting instead for managed services. The FTE model is dead, they say. But don’t believe everything you hear. The managed services model in outsourcing sounds great. It beckons with reduced costs and the
It’s earnings season for the outsourcing industry. So far, we’re seeing mixed results: modest growth in most companies (including Accenture, IBM, Infosys and Wipro ) and strong growth in a few. Notably, Cognizant and TCS are pulling away from the pack. Or as my old running coach would say, they are showing the competition