DALLAS (PRWEB) February 13, 2018 -- Everest Group’s predictions that 2017 would see continued market slowdown and technology-led disruption in sourcing were right on the money. Growth of outsourcing services slowed in 2017 and, for the first time ever, digital-focused outsourcing deals surpassed traditional transactions in Q4 2017.
Other key market trends witnessed in 2017 include:
- New Global In-house Center (GIC) setups recorded an all-time high activity due to increased preference for insourcing next-generation services.
- Location activity was led by Asia Pacific and Central and Eastern Europe. Q4 2017 recorded an all-time high activity in Middle East and Africa driven by setups in Israel.
- Leading service providers made several investments (e.g., expanding onshore presence, exploring opportunities for inorganic growth, and upskilling/reskilling talent) to remain competitive in the market.
So, what does 2018 hold for the sourcing industry?
On Thursday, February 15, at 9 a.m. CST, Everest Group experts, including CEO Peter Bendor-Samuel, Salil Dani, H. Karthik, Michel Janssen, and Eric Simonson, will host a complimentary webinar to review 2017’s industry shifts and share their predictions for 2018.
***Register for the Complimentary Webinar***
The webinar—“Q1 2018 Market Vista™ Briefing: 2017 in Review & 2018 Predictions”—will cover the key forces and metrics defining the market, including trends in outsourcing, digital adoption, and the Global In-house Center (GIC) market, as well as insights into location activity in offshore and nearshore geographies.
Research analysts will also provide findings from the Market Vista™ quarterly report series. The most recent report, Market Vista: Select Findings Q1 2018, was released yesterday and covers key developments in Q4 2017, such as:
- Transaction activity increased in Q4 2017, with 365 deals compared to 350 in Q3 2017.
- GIC market activity increased in Q4 2017 for offshore and nearshore locations, with 46 new setups, four expansions and no divestitures.
- Location activity in Q4 2017 was higher compared to the previous quarter, driven by significant growth in Nearshore Europe; activity in tier-1 locations was marginally higher than tier-2 cities.
- Most service providers reported sequential growth in revenue.
- The share of digital-focused global sourcing transactions increased from 47 percent in Q3 to 61 percent in Q4 of 2017, eclipsing transactions for pure traditional services. Half of all GIC setups during this period were digital focused, with analytics and automation being the primary areas of investment. Service providers focused on digital services in 79 percent of alliances, mergers and acquisitions during Q4, with an emphasis on cloud, automation and analytics.
“As reflect throughout 2017, outsourcing transaction activity in Q4 was driven by an increased adoption of digital services, and we are certain the trend will continue in 2018 as more enterprises move beyond pilot projects to large digital programs,” said Michel Janssen, chief research guru at Everest Group. “This continuing trend will have implications for all stakeholders – and will only be buoyed by positive economic factors and other geopolitical dynamics at play.”
***Download a complimentary abstract of “Market Vista: Select Findings Q1 2018”.***
About Market Vista™
Market Vista —a subscription-based service of Everest Group—provides the research, analysis and insights that enable Global Sourcing professionals to navigate the complexity of today’s sourcing market and make informed and impactful decisions. Market Vista research includes developments related to service providers, locations, processes and sourcing models, as well as a comprehensive outlook of the fast-evolving global offshoring and outsourcing market.
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at http://www.everestgrp.com.
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Contact:
Andrea M. Riffle, Everest Group
andrea.riffle(at)everestgrp.com
Robert Cathey, Cathey Communications for Everest Group
+1-865-386-6118
robert(at)cathey.co
Andrea Riffle, Everest Group, http://www.everestgrp.com, +1 954-801-8474, andrea.riffle@everestgrp.com
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