The headline for the second quarter in global services seems to be 'slow and steady improvement.’
Dallas, TX (PRWEB) August 12, 2013
The global services market remained stable in Q2 2013, both in terms of outsourcing transactions and Global In-House Center (GIC) activity, according to a new report issued by Everest Group, an advisory and research firm on global services.
While gradual economic recovery and improving business confidence in Europe led to revival of outsourcing demand there, a slower-than-anticipated market recovery was reflected in the financial performance of both traditional global and offshore-centric service providers groups.
The report, Market Vista: Q2 2013, documents increased maturation of the GIC model, although the number of new set-ups and expansions was lower compared to last year. Existing GICs continued to focus on delivering value beyond cost savings, a trend that has been evident in other Everest Group research this year.
Register Today For the Market Vista Q2 2013 Webinar
On Wednesday, August 14, 2013 at 9:00 am CDT, Everest Group experts will discuss global services developments in the second quarter and offer forward-looking view for the remainder of the year. The webinar will also address two special topics:
- changes in Latin American locations between 2012 and 2013
- the impact of appreciating currency on global services market in the Philippines
Location activity continued to remain low in Asia compared to the first quarter. Q2 witnessed new delivery center set-ups in Eastern Europe and Latin America by players to invest in capacity ahead of demand.
The report also found that steadily improving economic conditions in United States and Europe are likely to lead to recovery of the global sourcing market. However, regulatory reforms could have a significant impact on the extent of this recovery and the continued evolution of sourcing models.
The Market Vista report provides data and analysis highlighting trends in the global offshoring and outsourcing market, including the health of GICs, location risks and opportunities, and service provider developments. Contents of the report include:
- Outsourcing and offshoring deal trends by function, geography, industry, buyer type, etc.
- GIC market assessment, including recent set-ups, expansions, and divestitures
- Details on major outsourcing deals
- Details on renewal/restructuring activity and new contracts signed in the quarter
- Location risks and opportunities
- Fact base, including operating cost, wage inflation, attrition, and sustainability of arbitrage, for leading cities in Latin America
- Twenty leading service providers assessed on financial performance, changes in geographic footprint, alliances, capability enhancements, and M&A events
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“The headline for the second quarter in global services seems to be ‘slow and steady improvement’,” said Eric Simonson, managing partner, research at Everest Group. “We’re seeing service providers and buyers navigate slowly improving global economic climate by thoughtfully placing their bets to place capacity in markets they believe are likely to bounce back first, and they’re investing in new tools and models to offer value beyond cost once the turnaround is in full swing.”
About Everest Group
Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting, original research and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies and management approaches. Established in 1991, Everest Group serves users of global services, providers of services, country organizations and private equity firms, in six continents across all industry categories. For more information, please visit http://www.everestgrp.com and research.everestgrp.com.