As enterprises navigate application modernization to drive agility, resilience, and business alignment, they face a key hurdle: a scarcity of talent with niche skills. Capabilities in areas such as cloud-native development, low-code platforms, microservices, DevOps, and legacy application modernization are high in demand but short in supply. Rising attrition, wage inflation, and the rapid obsolescence of technical skills further intensify this talent gap, creating significant execution risks for large-scale transformation programs. In response, organizations are increasingly seeking IT providers with mature and forward-looking talent development strategies tailored to application services’ evolving needs. Providers are making proactive investments to build future-ready talent pipelines by combining traditional learning approaches, digital platforms, and hands-on training. In line with future-of-work principles, many are embedding AI readiness into their workforce strategies, ensuring teams are equipped to work alongside intelligent tools and automation. At the same time, they are focusing on integrating Gen Z talent by reshaping workplace culture, communication, and learning experiences to align with their digital-native expectations. To sustain long-term capability, providers are also enhancing employee engagement and retention through personalized career paths, continuous learning opportunities, and inclusive, purpose-driven work environments. In this report, we assess 29 IT service providers featured on the Talent Readiness for Next-generation Application Services PEAK Matrix®. The research will help buyers select the right-fit application service provider for their needs, while application service providers will be able to benchmark themselves against each other. Scope All industries and geographies This assessment is based on Everest Group’s annual RFI process for the calendar year 2025, interactions with leading application service providers, client reference checks, and an ongoing analysis of the application services market Contents In this report, we evaluate: 29 application service providers featured on Everest Group’s Talent Readiness for Next-generation Application Services PEAK Matrix® The characteristics of Leaders, Major Contenders, and Aspirants from a talent readiness perspective Providers’ key strengths and limitations

The global services market is highly dynamic and evolving rapidly. This transformation is reflected in the shift in priorities from cost arbitrage to automation. Third-party providers are reassessing their market positions and refining their growth strategies. As enterprises explore sourcing models to unlock additional value, evaluating new technology offerings and different pricing models is imperative. Everest Group’s Provider Snapshots offer a holistic and integrated view of leading providers to aid strategic decision-making for providers and enterprises in this dynamic market. These reports provide a fact-based view of leading providers across dimensions. Scope In addition to leveraging our research expertise of over 30 years, provider snapshots are based on the following information sources: PEAK Matrix® reports Proprietary databases Company filings Contents In this report, we analyze providers across the following parameters: Overview: a snapshot of providers’ financial performance, industry presence, geographic spread, function focus, and key industry clients Delivery footprint and headcount: graphical representation of providers’ delivery presence and headcount worldwide Key public announcements: a summary of important public announcements in the last year

As enterprises adopt hybrid work across a multi-generational workforce, each with unique needs and priorities, they are redefining their workplace strategies to align with the future of work. In this evolution, Microsoft’s Modern Work offerings such as Teams and other Office 365 applications have instrumental in revolutionizing enterprise communication and collaboration tools, thereby enhancing employee engagement and productivity. Further, in their quest for providers who can deliver effective Modern Work solutions and navigate the pillars of Employee Experience (EX), productivity, and cost optimization, enterprises are increasingly recognizing the value of Microsoft Modern Work specialist service providers This report explores the scope of Microsoft Modern Work and highlights how specialist service providers in this space are carving out their niche by expanding capabilities, adjusting strategies, and offering expertise across key segments: collaboration and productivity, desktop and virtualization management, converged communications, enterprise mobility, and employee enablement. Scope All industries and geographies Contents In this report, we study: The digital workplace evolution and provider landscape Key benefits of engaging with Microsoft Modern Work specialists service providers The top 10 specialist service providers in each segment of Microsoft Modern Work services Membership(s) Service Optimization Technologies (SOT) Sourcing and Vendor Management

The global services market is highly dynamic and evolving at a rapid pace. This is reflected in the shift in priorities from cost arbitrage to automation. Third-party providers are continually assessing their market position and refining their growth strategies. As enterprises explore various sourcing models to uncover additional value, it is imperative to evaluate new technology offerings and different pricing models. Everest Group’s Provider Snapshots offer a holistic and integrated view of leading providers to aid strategic decision-making for both providers and enterprises in this dynamic market. These reports provide a fact-based view of leading providers across multiple dimensions. Scope In addition to leveraging our research expertise of over 30 years, the provider snapshots are based on the following sources of information: PEAK Matrix® reports Proprietary databases Company filings Contents In this research, we analyze providers across the following parameters: Overview: a snapshot of providers’ financial performance, industry presence, geographic spread, function focus, and key industry clients Delivery footprint and headcount: graphical representation of providers’ delivery presence and headcount worldwide Key public announcements: a summary of important public announcements in the last one year

The global services market is highly dynamic and evolving at a rapid pace. This is reflected in the shift in priorities from cost arbitrage to automation. Third-party providers are continually assessing their market position and refining their growth strategies. As enterprises explore various sourcing models to uncover additional value, it is imperative to evaluate new technology offerings and different pricing models. Everest Group’s Provider Snapshots offer a holistic and integrated view of leading providers to aid strategic decision-making for both providers and enterprises in this dynamic market. These reports provide a fact-based view of leading providers across multiple dimensions. Scope In addition to leveraging our research expertise of over 30 years, the provider snapshots are based on the following sources of information: PEAK Matrix® reports Proprietary databases Company filings Contents In this research, we analyze providers across the following parameters: Overview: a snapshot of providers’ financial performance, industry presence, geographic spread, function focus, and key industry clients Delivery footprint and headcount: graphical representation of providers’ delivery presence and headcount worldwide Key public announcements: a summary of important public announcements in the last one year

Economic uncertainties influenced global Engineering Research and Development (ER&D) spending in 2023, with enterprises prioritizing caution and cost control over rapid innovation. Despite the headwinds, enterprises spent on themes such as AI integration, generative AI exploration, next-generation technologies, and green initiatives. Heightened customer demand for intelligent, sustainable, and interconnected products drove this shift, motivating enterprises to allocate resources toward R&D activities in new areas. In this research, we analyze the global ER&D market, focusing on the top 200 enterprises with the highest ER&D spend across 10 industries. Our study reveals that global business spending on ER&D activities increased by 7.14% in 2023, reaching US$1.5 trillion, with the enterprises featured in this report accounting for 51% of the spend. Scope Geography: global Industries: Internet Service Vendor (ISV) and internet, automotive, consumer electronics, semiconductors, industrial products, telecom equipment providers, aerospace and defense, medical devices, telecom service providers, and compute and storage Contents In this report, we examine: ER&D trends and priorities for the top 200 enterprises across 10 industries ER&D spend growth, enterprises’ ER&D spend intensity (ER&D spend as a percentage of revenue), and key investments and initiatives Membership(s) Engineering Research and Development Software Product Engineering Services Sourcing and Vendor Management

This Snapshot is available only to Outsourcing Excellence and CX Excellence members. For information on membership, please contact us The global services market is highly dynamic and evolving at a rapid pace. This is reflected in the shift in priorities from cost arbitrage to automation. Third-party providers are continually assessing their market position and refining their growth strategies. As enterprises explore various sourcing models to uncover additional value, it is imperative to evaluate new technology offerings and different pricing models. Everest Group’s Provider Snapshots provide a holistic and integrated view of leading providers to aid strategic decision-making for both providers and enterprises in this dynamic marketplace. These reports provide a fact-based view of leading providers across multiple dimensions. Scope In addition to leveraging our research expertise of over 30 years, the provider snapshots are based on the following sources of information: PEAK Matrix reports® reports Proprietary databases Company filings Contents In this research, we analyze leading providers across the following parameters: Overview: a snapshot of providers financial performance, industry presence, geographic spread, function focus, and key industry clients Delivery footprint and headcount: graphical representation of providers delivery presence and headcount worldwide Key public announcements: a summary of important public announcements in the last one year