In the product engineering domain, software remains the largest expenditure, continuing its upward momentum in the face of recessionary pressures, geopolitical conflicts, talent shortages, and delayed enterprise decision-making. Despite these macroeconomic challenges, several key factors are driving software R&D’s evolution. These include a shift toward platform-based business models, AI- / gen AI-augmented secure products’ increased adoption, a strong focus on sustainability, and a heightened emphasis on customer and developer experiences. As enterprises navigate these transformative trends amid economic uncertainty, their expectations from providers are evolving. They now seek strategic partners that can offer not just engineering talent, but also cost savings, speed, and innovation. This report, the fifth edition of Everest Group’s Software Product Engineering Services PEAK Matrix® Assessment, evaluates 37 engineering service providers, positioning them on the PEAK Matrix&® framework and offering enterprise sourcing considerations. Scope Industry: Software Product Engineering Services (SPES) Geography: global The study is based on RFI responses from providers, interactions with their SPES leadership, client reference checks, and an ongoing analysis of the SPES market Contents In this report, we examine: Everest Group’s PEAK Matrix® evaluation of SPES providers The characteristics of Leaders, Major Contenders, and Aspirants Providers’ key strengths and limitations, market impact, and vision and capabilities Membership(s) Software Product Engineering Services Sourcing and Vendor Management

As we move into 2024, business leaders stand at the intersection of uncertainty and opportunity. Macroeconomic and geopolitical landscapes, coupled with cost and margin pressures, pose potential speed bumps to the growth of global services in 2024. Watch this webinar where our expert analysts presented the successes, challenges, and transformative trends that defined the global services industry in 2023 and discussed the opportunities that lie ahead for business leaders in 2024. Attendees gathered valuable insights to shape a forward-looking strategy for their global services delivery and learnt successful approaches adopted by enterprises and service providers, including service delivery locations, sourcing strategy (in-house/GBS vs. outsourced), deal trends, talent strategy, and cost optimization strategy. What questions did the webinar answer for the participants? How did the global services industry perform in 2023? What are the key trends and outlook for the global services market in 2024? What are the observed trends across service delivery location strategies for enterprises and service providers? How are sourcing strategies (in-house/GBS vs. outsourced), enterprises’ leverage of service providers, and the nature of deals expected to evolve

In this webinar, we explored the 2022 global sourcing market, looking at key developments and overall growth trends for the service provider and GBS markets. Additionally, we looked at the changes in location strategies adopted by service providers globally and the emerging trends in these locations. We also discussed the impact of the expected economic slowdown on the market’s overall workforce strategy and offered recommendations to service providers, focusing on which trends to monitor, the importance of sustainable workforce strategy, and the relevance of cost in location decision-making. What questions did the webinar answer for the participants? How has the global service market evolved in 2022, and what are key developments across leading global service providers? How has the location strategy for service providers changed in the past couple of years? How will the expected macroeconomic slowdown impact the war on talent? What are some of the key steps service providers should take as they face the economic slowdown?

Technology services have become critical for enterprises to ensure continued engagement and superior user experiences for customers. While the COVID-19 pandemic impacted global economies and affected most industries and verticals, it proved to be a blessing in disguise for technology-led R&D services, which grew manifold due to digital enablement across all businesses. In fact, digital transformation led to faster adoption of emerging technologies (such as AI, ML, blockchain, and 5G) among enterprises and consumers globally. Therefore, it is vital for market participants (enterprises, GBS organizations, and service providers) to continue to introduce and leverage these new avenues in their wider service delivery constructs in a sustained manner. To remain competitive and sustainable, market stakeholders will also have to review their location strategies and develop a delivery portfolio that aligns with the blueprint of their digital transformation go-to-market strategy. This Everest Group handbook will support market participants looking to identify the right location/s to support technology services delivery. It highlights the relative attractiveness of leading global locations for supporting technology services based on a holistic and multi-faceted assessment. The handbook examines technology services’ delivery attractiveness along three broad dimensions: Talent pulse: an assessment of market maturity, entry, and employed talent-related attributes for technology services Financial feasibility: an assessment of a location’s financial attractiveness for delivering technology services from an operating cost perspective Enablers: a study of enabling drivers – such as infrastructure, digital readiness, start-up ecosystem, and the business environment – essential for technology services delivery Scope The handbook analyzes the attractiveness of 20 locations for technology services delivery, including software, quality assurance, data services, and exponential technology skills clusters, across major geographies and industries Industry: global sourcing, engineering services Geography: global Contents In this report, we examine the attractiveness of 20 locations for technology services delivery and help market participants select: The locations that have the right set of skills and talent availability The locations that are financially feasible to sustain operations The locations that provide the best operating and business environment to set up delivery centers We also carry out a comparative assessment of locations to help build an optimized delivery portfolio. Membership(s) Locations Insider™ GBS/SS Talent Excellence Engineering Services Sourcing and Vendor Management

On September 10, Everest Group hosted a webinar titled, "Impact of COVID-19 Beyond WFH: The Future of Delivery and Locations Strategies." It’s no secret that COVID-19 has been one of the most significant disruptors of our time – and global services delivery has not escaped the impact. In this webinar, we move beyond commiseration and conjecture and provide a fact-based view of the already-visible effects of the pandemic based on our extensive tracking of outsourcing deals, new global business / shared services centers, location-specific trends, and service provider developments. Our experts will take a deep dive into the implications of these developments on your future delivery and locations strategies, such as key changes to delivery portfolios, trends in onshoring vs. offshoring, locations portfolio consolidation vs. diversification, rise in large scale hubs vs. small scale centers, and adoption of a remote / work from home delivery model. The webinar will also provide perspectives on how your organization can benefit from a design-principles-led locations portfolio approach to account for the increasing complexity of locations decisions.

On August 28, Everest Group hosted a webinar titled, "Key Trends Shaping and Disrupting the Landscape of Global Services Locations." Multiple forces are driving unprecedented disruption of existing service delivery locations, including disruptive technologies, intensifying competition for talent, evolving customer preferences, pressure on growth and margins, and geopolitical and macroeconomic uncertainties. In the face of these challenges, enterprises are significantly transforming their service delivery organizations – a critical part of which is their delivery locations portfolio strategies. During this interactive session, industry peers and Everest Group experts covered top strategic trends shaping global delivery locations strategies. Attendees heard first-hand perspectives from senior industry practitioners on key likely disruptions (e.g., automation, platforms, agile) for service delivery portfolios expected in the next 2-3 years, and how they plan to tackle these challenges to ensure survival and sharpen competitive advantage. The 60-minute session also addressed the following: How have large enterprises reoriented their portfolio strategies more intentionally and used design principles to address challenges brought about by change? What have been their experiences, challenges, and lessons in this journey? What disruptions are likely to impact locations portfolio strategies in the next 2-3 years, and how are enterprises planning to tackle them?

The offshore locations landscape is evolving rapidly. It is critical that Global Sourcing Managers have an up-to-date view to effectively evaluate and compare locations. The Global Locations Database provides current data to enable fact-based comparative assessment of offshore locations. To support ease of analysis, the database is delivered in a user-friendly MS Excel spreadsheet format. Scope The Global Locations Database includes: Cost of operations for IT and non-voice BPO services Current wage inflation rates Current attrition rates New delivery centers set up in the last 12 months The database tracks 23 leading offshore destinations, including: Prague Poznan Jaipur Brno Mexico City Pune Budapest Monterrey Bangalore Bucharest Buenos Aires Manila Sofia Sao Paulo Guangzhou Bratislava Rio de Janerio Shanghai Warsaw Santiago Kuala Lumpur Krakow San Jose   The Global Locations Database can be purchased individually, or as part of a Market Vista Membership for little to no premium. In addition to database access, Market Vista includes data-rich quarterly reports and upwards of 10 topical research briefs on specific themes related to global sourcing.

Executive Summary The global services market continues to evolve with increasing complexity in the nature of its work and service delivery. While aggressive adopters leverage multiple offshore, nearshore, and onshore locations for service delivery, nascent and second-generation adopters are increasing the scale and complexity of their global services delivery. With usually more than just a few locations to manage, companies look towards organizing their delivery geographies as a tightly integrated network, which they manage and optimize for service delivery. While companies acknowledge that such an arrangement provides multiple benefits, there are certain myths associated with the structure of GDNM and its implementation. Our experience of supporting global organizations indicates that market realities are often markedly different from most of the prevalent myths. Decision makers need to be aware of these realities so that they can make an objective and fact-based decisions, in context of their company’s location portfolio. This viewpoint describes the concept of GDNM along with the various stages of its evolution. The document also provides a glimpse of the common myths associated with the network model and the associated realities. The viewpoint concludes with a suggested plan for implementation of GDNM in their organizations.