Organizations buy services from a wide variety of service providers — ranging from managed services for IT applications and infrastructure, contingent labor to supplement gaps in skills and availability, cloud services, business process services, and more. We at Everest Group looked at the administration of these contractual relationships and discovered that most organizations leave
Companies today hold all business functions to a mandate for innovation. Innovation should create business value (a better experience for employees, customers, and partners). It should create agility and speed. It should make business functions more easily adaptable, easier to change. And it should also lower the cost of the functions over time. The
Which pricing mechanism should your company choose when buying third-party services? What is the optimal contract length? And what is the best way to manage switching costs? These questions are even more important today than in the past because the services industry is switching to new pricing mechanisms for digital services. Understandably, these changes
Retail bank’s strategic implementation illustrates new third-party services trend. Why would a large retail bank with access to the largest, most sophisticated systems integrators and fintech firms in the world opt, instead, for a relatively small boutique service provider to build one of its most important systems? This “David vs. Goliath” story caught my
As their enterprise clients move to digital business models, which are clearly superior in productivity, business alignment and speed, legacy service providers seek to shift their offerings to the new digital world too. Seems like a great match, right? So, what’s the problem? The problem is the service providers are accustomed to a very
The management squabbles of Infosys occupied headlines this year, culminating when CEO Vishal Sikka resigned in August. The same day, the company brought former co-founder and ex-CEO Nandan Nilekani in as non-executive chairman of the board, and I blogged that Infosys was taking a big step toward stability. Nilekani declared in a post-earnings conference
Companies frequently ask us at Everest Group if the benefits a devops team can be delivered in a distributed labor model. In other words, can a company configure a devops team to operate with part of the team in one onshore location and other part of the offshore or in a different onshore location?
India’s service providers are slowly coming to grips with the decline of the arbitrage model and the shift to digital models. The digital era brings the providers three challenges regarding talent. Over the next three to five years they will need 30-40 percent fewer people than they needed for arbitrage-based work. Second, digital talent
The management squabbling, blaming and furor that played out publicly in the news for months before and since last week’s resignation of Infosys CEO Vishal Sikka is enough to cripple any business. It seemed the firm faced a daunting uphill battle to move beyond the instability and uncertainties the infighting caused and to identify
There’s a new threat on the horizon for advertising agencies. Leading successful service providers including Accenture, Deloitte, KPMG, IBM, McKinsey and PwC are acquiring advertising companies. Why should you take note of this movement if you’re not in the advertising business? Because it serves as a warning for other industries: digital platforms are starting