Service Providers Archive

Genpact’s Q4 Performance: A Cautionary Tale for All Service Providers

The past year was not kind to Genpact. Q4 results show it underperformed the S&P by 25 percent over the last six months and by 7 percent year to date. This is surprising given that Genpact is a great organization with a record of superb delivery and a history of great performance. Unfortunately Genpact

Cognizant Shows New Signs of a Market Maturing

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

What If CSC and HCL Get Brave?

CSC and HCL announced an alliance a few weeks ago, which is more of a go-to-market than structural change. But what if the twosome were to agree to a follow-on alliance to do something really big — something with huge industry and market consequences? It would be extremely brave and very risky. But it

The Ethical Dilemma of Service Provider Innovation

I must confess I look askance at how some services customers think. They want to keep their cake and eat it too. But it’s batty and preposterous to think you can have something both ways if the two ways conflict. We’re seeing schizophrenia in the marketplace. Customers look to the provider community for insight

We Don’t Get Innovation

The lack of innovation from service providers is a constant and mournful refrain echoing around the industry. This plaintive and mournful dirge reminds me of Sisyphus, who was cursed to endlessly roll a boulder up a hill, only to watch it tumble back down, never achieving satisfaction. Likewise, the unending efforts of service providers

HP’s Most Difficult Challenge Has Yet to Hit

To date the cloud has not been a major disruption in the traditional outsourcing market. Rather, cloud has attacked the rogue IT or departmental processing market. But we believe that this tide will now turn inward onto the enterprise space, where HP and other infrastructure players live. How will HP take on cloud disruption?

Will the Fed’s New Posture Have a Material Impact on the Global Services Industry?

After many years of reviewing and thinking through the implications, the Federal Reserve last week issued guidance to banks about the extent of their use of outsourcing. As The Wall Street Journal reported, the Fed raised red flags about state banks and bank holding companies using third-party service providers for information technology and bank

Murthy Prepares Infosys for Growth

When Infosys’ founder and former chairman N.R. Narayana Murthy returned in June, it was a clear sign that Infosys wanted him to guide the company in reinvigorating growth. But to do that, he would need to change the existing growth strategy. The new strategy that Murthy has adopted is now clear. He has decided

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