I’ve been blogging about why certain companies such as Accenture, ADP, and TCS are such successful service providers. In contrast, let’s look at HP and examine why it’s breaking up. I’ve explained in prior blogs that the most successful companies have six operational elements aligned, as shown in the Everest Group assessment framework below.
I’ve blogged extensively on how the industrialized arbitrage market is maturing rapidly. One of the many frustrating aspects of a maturing services market is that a dominant portion of procurements for larger opportunities come through RFPs. These RFPs require sophisticated and elaborate responses with large deal teams and solutioning teams working at the provider’s
Analytics has been a bright spot in the services world, particularly for the Indian service providers as their analytics practices have grown faster than the rest of their organizations. They often are able to command premium pricing in this space, and it holds the tantalizing promise of transforming other service lines such as ITO,
In reviewing the DeepDive Equity Research report for Q1, it’s clear that this year’s first quarter was a bit of a disaster for the services industry. Contrary to industry expectations at the beginning of the year, the report evidences that growth is decelerating. What happened to the expectations? This report heralds what I’ve been
CSC announced it is splitting into two companies. One will provide service to commercial and government organizations worldwide; the other will serve the U.S. public sector businesses. What are the implications for the services industry? CEO Mike Lawrie has been running CSC’s turnaround. The story line he drove was that he would first drive
Over the last few weeks, we saw “bad news” about massive layoffs at IBM (100,000) and TCS (25,000), two of the industry’s largest services companies and market leaders. Those numbers proved to be overstated, but clarification on the real numbers isn’t what’s important. The numbers distract from the real issue. Attention-grabbing news headlines and
The contact center outsourcing (CCO) marketplace is mature. It’s a large market, and companies across a wide number of industries and geographies use the services. The market is now $70-75 billion, which is approximately 20 percent penetrated by third-parties vendors and 80 percent by in-house captives. Now that this space is mature, what will
In its latest quarterly earnings report, Cognizant recently guided to slower growth than they achieved last year. Although it is usual for Cognizant to be conservative in its guidance, it is still notable that it is sanguine about repeating last year’s strong performance in what most regard as an improving economy. Cognizant has been