DALLAS, Sept. 14, 2021 /PRNewswire-PRWeb/ -- In its latest quarterly report on the global outsourcing industry, Everest Group revealed a series of both minor upticks and slight declines in Q2 2021, with the industry holding steady overall and demonstrating a marked improvement over the same period in 2020.
Notable Trends in Q2 2021:
- The demand for managed network infrastructure services experienced an uptick, with enterprises working to centralize their business activities and merge data from multiple locations by increasingly adopting cloud services.
- In Q2 2021, GBS setups for the manufacturing industry increased in offshore locations, with China being the most leveraged location to develop electric vehicle-based capabilities.
- The shares of Central & Eastern Europe (CEE) and Rest of Nearshore Europe (RONE) continued to rise in terms of new center setups. Additionally, activity in the MEA region experienced a significant uptick in Q2 2021. Within onshore locations, activity in Western Europe recovered as the pandemic's impact eased.
- There has been a steady increase in the revenues and operating margins of service providers. The operating margin (12.8%) in Q1 2021 was at its peak in the past one year.
Everest Group's Market Vista Report
In its newly published report, "Market Vista™: Q3 2021," Everest Group highlights the key trends and developments in the fast-evolving global offshoring and outsourcing market. The study captures the key developments across outsourcing transaction trends, health of Global Business Services centers, location risks and opportunities, and service provider developments. The report includes assessments of 29 leading service providers, including 4 engineering services providers.
Q2 2021 Global Services Highlights:
- Overall global outsourcing demand fell slightly in Q2 2021, recording 412 transactions as compared to 439 in Q1 2021; however, outsourcing demand witnessed a marginal increase compared to the same quarter last year.
- Setups of Global Business Services centers in Q2 2021 increased significantly in onshore locations but remained similar in offshore/nearshore locations in comparison to Q1 2021.
- Digital services continued to dominate transaction activity, driven by cloud-based deals. Fifty percent of digital deals in Q2 included cloud services.
- Business process outsourcing (BPO) transactions increased significantly in Q2 2021, whereas IT outsourcing (ITO) and engineering transactions declined.
- North America witnessed a decrease in transactions, particularly in ITO, while the United Kingdom reported higher transaction activity, particularly in BPO, in Q2.
Key Service Provider Developments:
- Revenue for most global and offshore heritage service providers experienced a rise on a sequential basis.
- Merger and acquisition activity increased in Q2 2021 as compared to Q1 2021. Similarly, alliances also experienced a slight uptick.
- Setups of delivery centers by service providers saw a decline in Q2 2021 as compared to the previous quarter.
***Download a complimentary abstract of the report here.***
About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com
Media Contact
Andrea Riffle, Everest Group, +1 (954) 801-8474, [email protected]
Taylor Walker, Everest Group, 6145817938, [email protected]
SOURCE Everest Group
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