Global In-house Centers Account for One-Fourth of Rapidly Growing Global Sourcing Market – New Everest Group Report
Dallas, Texas (PRWEB) April 15, 2015 -- The global sourcing market witnessed rapid growth in 2014 and reached US$150 billion. The Global In-house Center (GIC) model continued to be an integral component of this evolution and accounted for 25 percent share—US$35-40 billion— in the global services market.
India and the Philippines continue to lead the GIC activity, but other locations such as Latin America and Middle East and Africa (MEA) are emerging as promising geographies.
In addition to diversifying geographically, the GIC model has also been adopted across various verticals and functions. Technology and MDR (manufacturing, distribution and retail) firms comprising a considerable share of market, and emerging technologies such as social, mobile, analytics and cloud (SMAC) leading to higher adoption of GICs in information technology and business process functions.
These results and other findings are explored in a recently published Everest Group report: “Global In-House Center (GIC) Landscape Annual Report 2015.”
***Download a complimentary 10-page preview of the report*** (Registration required.) This preview summarizes report methodology, contents and key findings and offers additional resources.
The full report provides a deep-dive into the GIC landscape and an analysis of the GIC trends in 2014, comparing them with the trends in last two years. The research also brings out key insights into the GIC market across locations, verticals and functions. It concludes with an assessment of the hybrid sourcing constructs.
***Supporting Quotes***
“The GIC landscape experienced healthy growth in 2014, and several interesting trends emerged in the 2014 GIC landscape data,” said H. Karthik, Everest Group partner. “In terms of location trends, India—which accounts for almost half of the GIC market—reported upticks in 2014, as did Latin America and MEA, which are emerging as promising geographies. Also, activity in Tier-1 locations revived after falling significantly in 2013.”
“In terms of vertical trends, a key finding was the emergence of conglomerates, hospitality, media and entertainment, legal and leasing sectors,” said Sakshi Garg, practice director at Everest Group. “The most significant functional trend was the growth of HR functions in GICs across leading verticals in 2014 as compared to the previous year.”
*** Download Publication-Quality Graphics ***
High-resolution graphics illustrating key takeaways from these reports can be included in news coverage, with attribution to Everest Group. Graphics include:
• GIC Landscape Infographic
• Market Insights
-GICs are about a quarter of the growing global services market.
-US share of the global GIC market declines as other geographies increasingly adopt the model.
-Business process services are the most common GIC function…and growing.
-GIC global activity heatmap
-Hybrid sourcing constructs
-8 key delivery locations comprise ~90 percent of the GIC FTEs
***Additional Resources***
• Blog: GICs are Here to Stay! Getting Bigger, Better, and Brighter
• Report: Global In-house Center (GIC) Annual Report 2014
• Report: Global In-house Center (GIC) Landscape in India – Three Decades of Value Creation for Global Enterprises, Geared Up to Deliver More (2014)
• Report: Global In-house Center (GIC) Landscape in BFSI Sector – High Adoption for Business Process Services, Will IT Services Follow the Trend?
About Everest Group
Everest Group, an advisor to business leaders on the next generation of global services, has a worldwide reputation for helping Global 1000 firms improve performance by optimizing back- and middle-office business services. Through 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. Visit research.everestgrp.com.
Andrea M. Riffle, Everest Group, http://www.everestgrp.com, +1 954-801-8474, [email protected]
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