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  • March 23, 2015
    Introduction Renewals and recompetes provide an opportunity for non-incumbent players to expand their wallet share amidst disruptive factors such as saturation, slowing growth rate, and newer and more agile competitors. It also allows buyers a chance to a make course correction based on lessons learned during the lifetime of the just-concluded engagement and adjust sourcing strategy to suit the current business environment. In particular, buyers of Application Services (AS) with long-term multi-tower engagements are driving the productivity agenda hard and are not averse to looking at alternative service providers to counter the declining productivity levels. Over US$76 billion worth of ITS and BPS contracts are up for renewal in the 24 month period starting April 1, 2015. This report explores trends in such upcoming renewals. Scope Analysis of ITS and BPS contracts nearing end of term Deep dive into analysis of ITS renewals with a focus on application services and bundled contracts Content The report ‘Upcoming Contract Renewals – Application Services’ includes data and insights, specific to deals nearing end of term, expanding upon the following: Analysis of ITS and BPS deals (deal volumes, contract sizes, and durations) nearing end of term by buyer geography and buyer industry Trends in AS and bundled deal renewals by buyer industry, buyer geography, and service provider category Analysis of application services contract renewals by scope (viz. development, maintenance, ERP implementation, ERP maintenance, and system integration) across geographies
  • July 08, 2015
    Introduction Enterprises are rapidly adopting Agile methods for application development. However, they are also realizing that in spite of application development becoming Agile, they are unable to deliver applications faster or within budget to their customers. DevOps models are expected to address this problem. DevOps will involve all the stakeholders engaged in developing, testing, and managing applications from the beginning of the application lifecycle. This will reduce time-to-market, cost of quality, and process efficiencies. Everest Group’s annual research indicates that despite the willingness of the enterprises to deploy DevOps model, they are unsure of the capabilities that service providers possess in order to be a partner in this journey. In addition to that, the research also provides fact-based perspectives on buyer adoption by geography, industry, and revenue size. It analyzes major trends that are shaping the application services market and the outlook for the next year. It also sizes the IT services market in terms of application services and consulting services. Scope IT service market size (split across applications, consulting, infrastructure service, geography, and industry verticals) Market share of leading IT service providers in applications, consulting, and infrastructure services Application Services (AS) buyer adoption trends across geography, industry verticals, and revenue size Key trends shaping the AS market (move from Agile to DevOps and the challenges) Outlook for 2015-2016 Contents This annual research deep dives into the application services landscape. It provides data-driven facts and perspectives on the overall market. The research covers AS adoption trends, demand drivers, next-generation services such as, Agile and DeveOps. The research analyzes buyer challenges, trends shaping the market, and also provides an outlook for 2015-2016 for the broader IT services as well as application services market. For example, the section on “AS Overview” analyzes the following: Deal trends (new vs. renewals) Deal size and duration Scope of services (e.g., application development, maintenance, and consulting) Pricing trends Delivery locations
  • Jan. 01, 2016
    What are the PEAK Matrix Service Provider of the Year Awards for IT Services? In 2015, Everest Group published 26 PEAK Matrix IT services evaluations featuring 59 service providers across all evaluations. To recognize consistent top performers across PEAK Matrix assessments, this year we are introducing the PEAK Matrix Service Provider of the Year awards. Why the PEAK Matrix Service Provider of the Year Awards for IT Services? Everest Group PEAK Matrix evaluations are a valuable resource for IT services buyers to evaluate, compare, and contrast key service providers in the global services space. These assessments offer service provider selection guidance, as well as nuanced insights into these providers’ strategies for key business lines, geographies, and technologies. While there are service providers that feature as Star Performers, Leaders, Major Contenders, or Aspirants on individual evaluation categories, there are some that exhibit consistent leadership and top performance across many different categories. As today’s enterprises navigate the complex landscape of next-generation and legacy technologies, a global business footprint and a complex provider portfolio, the PEAK Matrix Service Provider of the Year Awards help them to identify the best of the best – service providers with strong broad-based capabilities and successful services strategies that align well with the evolving enterprise IT demand. How are the PEAK Matrix Service Provider of the Year awards evaluated? We use the following evaluation criteria to determine the Service Provider of the Year awards: ITS Top 20 list: We build the list using a consolidated score reflecting points received on individual evaluations based on tiered scores for Star Performer, Leader, Major Contender, and Aspirant positions Individual category awards: We base these awards on the count of “Leader” or “Star Performer” positions across the category evaluated
  • Feb. 29, 2016
    Introduction Enterprises are beginning to challenge the traditional engagement models and deal constructs as newer mechanisms of pricing and consuming services emerge. While larger service providers are investing in expanding their solutions portfolio, they are getting challenged by newer and more agile competitors that want to grab a larger wallet share. Renewals and recompetes provide an opportunity for these newer players to make their presence felt amidst disruptive technology changes. Buyers, on the other hand, can also correct their course based on lessons learned during the engagement and adjust their sourcing strategy to suit their changing business environment. In particular, buyers of Application Services (AS) with longer, multi-tower engagements are pushing the productivity agenda and are not averse to considering alternate service providers to derive the most value. Over US$68 billion worth of ITS and BPS contracts are up for renewal in the 24-month period beginning January 01, 2016. This report explores trends in such upcoming renewals. Scope Analysis of ITS and BPS contracts nearing end of term Deep-dive into analysis of ITS renewals with a focus on application services and bundled contracts Content The report “Upcoming Contract Renewals – Application Services” includes data and insights specific to deals nearing end of term, expanding upon the following: Analysis of ITS and BPS deals (deal volumes, contract sizes, and contract durations) nearing end of term by buyer geography and buyer industry Trends in AS and bundled deal renewals by buyer industry, buyer geography, and service provider category Analysis of AS contract renewals by scope (viz. development, maintenance, ERP implementation, ERP maintenance, and system integration) across geographies
  • May 27, 2016
    Introduction Enterprises have realized that in order to become truly digital, they need to develop a holistic applications and infrastructure strategy, with DevOps as the pivotal enabler. However, as they try to scale up their adoption of Agile and DevOps principles, they are riddled with challenges that hinder further adoption. This also limits organizational agility to become digital owing to the lack of cultural change, process obsolescence, and technology misalignment. Everest Group’s annual research indicates that though enterprises are keen to adopt DevOps principles, most organizations struggle with them and require hand-holding on their journey. However, this has not resulted in higher engagement with service providers, as providers themselves are scaling up their portfolio to meet this demand. The research also provides fact-based analysis of buyer trends by geography, industry, and revenue size. It also analyzes major trends impacting the application services market and provides an outlook for the year. Scope IT services market size (split across applications, consulting, infrastructure services, geography, and industry verticals) Market share of leading IT service providers in applications, consulting, and infrastructure services Application Services (AS) buyer adoption trends across geography, industry verticals, and revenue size Key trends shaping the AS market (lack of DevOps hindering digital adoption among enterprises) Outlook for 2016-2017 Contents This annual research delves into the application services landscape to provide data-driven facts and perspectives on the market. It covers AS adoption trends, demand drivers, and enterprise challenges with iterative methodologies such as Agile and DevOps. The research also analyzes market trends across geographies, industries, and buyer sizes, and provides an outlook for 2016-2017. For instance, the section on “AS Overview” analyzes the following: Deal trends (new deals vs. renewals) Deal size and duration Scope of services (e.g., application development, maintenance, and consulting) Pricing trends
  • Sep. 07, 2016
    Introduction The Healthcare and Life Sciences (HLS) industry has been subject to significant turbulence on account of a gamut of factors including escalating costs, widespread regulatory amendments, changing business models, and evolution of the patient-centric paradigm (with the emergence of mobile computing, social media platforms, “anytime-anywhere” information access, and self-service channels). This combination of disruptive and legacy factors has driven HLS firms to adopt new technologies, while also revamping their existing systems, processes, and interfaces. As the technology mandate for HLS enterprises evolves, so does their relationships with their IT service providers. This, in turn, is driving the need for relevant research and market intelligence on demand and supply trends in HLS IT services across the three major market segments – payer, provider, and life sciences. Everest Group’s HLS IT research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to IT services in the healthcare and life sciences vertical. In this report, we analyze the capabilities of 22 IT service providers specific to the global life sciences sector. These service providers are mapped on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success. We focus on: IT application market trends in life sciences The landscape of service providers for life sciences IT application services Assessment of the service providers on a number of capability-related dimensions Implications for life sciences IT application buyers and service providers Scope of the analysis Industry: Life sciences (pharmaceuticals, biotechnology, and medical devices) Services: Multi-year and annuity-based application services Geography: Global Sourcing model: Third-party ITO transactions; excludes shared services or Global In-house Centers (GICs) Contents This report is structured across three key sections, each containing insights into the life sciences IT applications service provider landscape: Executive summary Summary of key messages Key takeaway: Buyer feedback for service providers Implications for key stakeholders Life sciences IT application services market trends Performance | Experience | Ability | Knowledge (PEAK) Matrix for life sciences IT application services Mapping of life sciences IT application service providers on the Everest Group PEAK Matrix Analysis of individual service provider capabilities in the life sciences IT application services space along the following dimensions: Delivery capability Scale Scope Domain investments and innovation Delivery footprint Buyer satisfaction Market success Commentary on the specific characteristics of PEAK Matrix clusters (Leaders, Major Contenders, and Aspirants) Profiles of life sciences IT application service providers covering the following aspects: General overview of the provider’s life sciences IT application services business – scale, overall focus, and extent of adoption of the provider’s life sciences IT application services business across enterprise segments and geographies Overview of the provider’s life sciences IT application services business – overall portfolio of services and relative focus across service lines Assessment of the provider’s life sciences IT application services delivery capability, domain investments & innovation, key solutions, and key partnerships Strategic focus areas and market success for life sciences IT application service areas
  • Sep. 22, 2016
    The Healthcare and Life Sciences (HLS) landscape has been subject to significant turbulence on account of a gamut of factors including escalating costs, widespread regulatory amendments, changing business models, and evolution of the patient-centric paradigm (with mobile computing, social media platforms, “anytime-anywhere” information access, and self-service channels). This combination of disruptive and legacy factors has driven HLS firms to adopt new technologies, while also revamping their existing systems, processes, and interfaces. As the technology mandate for HLS enterprises evolves, so do their relationships with IT service providers. This, in turn, is driving the need for relevant research and market intelligence on demand and supply trends in HLS IT services across the three major market segments – payer, provider, and life sciences. Everest Group’s HLS IT research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to IT services in the healthcare and life sciences vertical. In this report, we analyze the capabilities of 23 digital IT service providers specific to the global life sciences sector. These service providers are mapped on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success. We focus on: Digital IT market trends in life sciences The landscape of service providers for life sciences digital IT services Assessment of the service providers on a number of capability-related dimensions Implications for life sciences digital IT buyers and service providers Scope of the analysis Industry: Life sciences (pharmaceuticals, medical devices, biotechnology, and other life sciences) Services: Digital IT services Geography: Global Sourcing model: Third-party ITS transactions; excludes shared services or Global In-house Centers (GICs) Contents This report is structured across three key sections, each containing insights into the life sciences digital IT service provider landscape: Executive summary Summary of key messages Key takeaway: Buyer feedback for service providers Implications for key stakeholders Life sciences digital market trends Performance | Experience | Ability | Knowledge (PEAK) Matrix for life sciences digital IT services Mapping of life sciences digital IT service providers on the Everest Group PEAK Matrix Analysis of individual service provider capabilities in the life sciences digital IT services space along the following dimensions: Delivery capability: Scale Scope Domain investments and innovation Delivery footprint Buyer satisfaction Market success: Commentary on the specific characteristics of the PEAK Matrix clusters (Leaders, Major Contenders, and Aspirants) Profiles of life sciences digital IT service providers covering the following aspects: General overview of the provider’s life sciences digital IT services business – scale, overall focus, and extent of adoption of the provider’s life sciences digital IT services business across enterprise segments and geographies Overview of the provider’s life sciences digital IT services business – overall portfolio of services and relative focus across service lines Assessment of the provider’s life sciences digital IT services delivery capability, domain investments & innovation, key solutions, and key partnerships Strategic focus areas and market success for life sciences digital IT service areas Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report. Membership(s) Healthcare & Life Sciences IT Outsourcing
  • Jan. 01, 2017
    What are the PEAK Matrix Service Provider of the Year Awards for IT Services? In 2016, Everest Group published 21 PEAK Matrix IT services evaluations featuring 73 service providers across all evaluations. To recognize consistent top performers across PEAK Matrix assessments, we publish the PEAK Matrix Service Provider of the Year Awards. This is the second edition of the PEAK Matrix Service Provider of the Year Awards. Why the PEAK Matrix Service Provider of the Year Awards for IT Services? Everest Group PEAK Matrix evaluations are a valuable resource for IT services buyers to evaluate, compare, and contrast key service providers in the global services space. These assessments offer service provider selection guidance, as well as nuanced insights into these providers’ strategies for key business lines, geographies, and technologies. While there are service providers that feature as Star Performers, Leaders, Major Contenders, or Aspirants on individual evaluation categories, there are some that exhibit consistent leadership and top performance across many different categories. As today’s enterprises navigate the complex landscape of next-generation and legacy technologies, a global business footprint and a complex provider portfolio, the PEAK Matrix Service Provider of the Year Awards help them to identify the best of the best – service providers with strong broad-based capabilities and successful services strategies that align well with the evolving enterprise IT demand. How are the PEAK Matrix Service Provider of the Year awards evaluated? We use the following evaluation criteria to determine the Service Provider of the Year awards: ITS Top 20 list: We build the list using a consolidated score reflecting points received on individual evaluations based on tiered scores for Star Performer, Leader, Major Contender, and Aspirant positions Individual category awards: We base these awards on the count of “Leader” or “Star Performer” positions across the category evaluated
  • Feb. 07, 2017
    As a sign of outsourced IT and BPO services maturity, Everest Group has observed contract benchmarking clauses being diligently invoked at regular intervals. Over the years, a corresponding proliferation in benchmark providers has also been observed that promise to help evaluate and optimize contracts. However, the focus of most benchmarking / contract review exercises tends to be on the directly “visible” levers such as resource unit rate cards and delivery mix alignment. There are a number of levers that remain hidden and are often ignored, resulting in untapped optimization potential. This viewpoint outlines some of the common obscure “choke points” that buyers need to be aware of, in order to avoid significant value leakage in contracts. CONTENTS This report provides an overview of the typical optimization levers that remain “hidden” in contracts, resulting in significant untapped optimization potential. The key sections of this viewpoint include: Factors causing value leakage in outsourcing contracts Typical sources of these choke points Proposal vs. solution approach Lack of contract “right sizing” Misaligned productivity charter Inequitable contract T&Cs Conclusion Key questions addressed by this research are: What are the typical factors that remain hidden in IT and BPO contracts, resulting in value leakage? What are the typical sources of these choke points? How can buyers avoid the negative impact of these choke points?
  • March 17, 2017
    The rising dissatisfaction among enterprises with respect to traditional issues such as project management, execution, and pricing as well as lack of meaningful innovation, coupled with disruptive factors such as saturation, slowing growth rate, and new and more agile competitors, has led to the creation of ample opportunities for non-incumbent players to expand their wallet share. This research provides a detailed analysis of renewals coming up in the next two years with a focus on application services. Additionally, the report also provides key considerations for service providers for deal renewals in order to strategize their approach towards renewals in the face of increasing discontent among enterprises. The objective of the report is to provide a 360-degree view of the renewal market with a focus on application services including bundled deals to understand key renewal trends across geographies, industries, functions, and service provider categories. Apart from key trends, the report aims to address key enterprise considerations for deal renewals to enable service providers understand the true enterprise pulse. Scope of the analysis The analysis in this research is based on Everest Group’s “Transaction Intelligence Database”, the most comprehensive organized record of publicly-announced outsourcing deals. The key considerations for deal renewal have been derived from structured interviews with 130+ enterprises that were shared as references by the service providers during the various assessments undertaken by Everest Group across applications, digital, cloud, and infrastructure services over 2016. Contents The research focuses on innovation in Application Services and includes: Analysis of ITS and BPS deals (deal volumes, contract sizes, and contract durations) nearing end of term by buyer geography and buyer industry Trends in AS and bundled deal renewals by buyer industry, buyer geography, and service provider category Analysis of AS contract renewals by scope across geographies Key considerations for service providers for improving deal renewal success rates Membership(s) Application Services