Blog

Specialist High Value Providers are reshaping the World of Outsourcing

0
0

0
0
0

specialist high valueBy Mark Atterby. The demand for BPO and outsourcing services remains steady, but anti-incumbency, shorter deals, emerging markets and disruptive technologies are on the rise and reshaping the future. Specialist high value providers are eroding the position of some leading provides.

BpaaS (Buinsess Process as a Service) allows smaller providers to provide more nimble and tailored solutions to the market, addressing specific industry needs and delivering the benefits of outsourcing to smaller organisations. According to a recent report from Everest Group the trends shaping the market

  • A strong “anti-incumbency” sentiment among buyers, particularly with respect to technology and business process outsourcing
  • Shorter deal duration as buyers exercise a preference to unbundle IT services
  • Increasing traction from emerging markets in industries such as insurance, oil and gas, and manufacturing
  • Increasing adoption of disruptive technologies such as cloud, mobility, analytics, and robotic automation
 

Everest provided their findings in their Market Vista™ Q2 2014. “In the first half of 2014, the competitive intensity of the global outsourcing industry took its toll on some leading providers, as they lost market share to specialists in vertical markets such as insurance, manufacturing and healthcare,” said Salil Dani, practice director at Everest Group.

“We expect this competitive intensity to continue, with an anti-incumbency sentiment fueled by factors such as underwhelming service delivery, an anticipation of next generation needs by sophisticated buyers, a preference to unbundle IT services and aggressive service provider investments to absorb switching costs.


September 29, 2014
Comments

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

9 + 8 =