Setups of Global In-house Centers Peaks in 2014—New Everest Group Report
Dallas, Texas (PRWEB) February 16, 2015 -- Global In-house Center (GIC) set-up and expansion activity reached a five-year high in 2014 with new center set-ups and expansions steadily increasing in Q4 compared to Q3. The upward trend was punctuated with announcements by well-known companies such as Amazon, Dell, Mercedes-Benz and Micromax.
Europe accounted for more than one-third of the GIC activity, with 11 GIC setups and expansions, including a Dell facility in Dublin, Ireland, and three Amazon logistics centers in Poland. Seven GIC set-ups and expansions in Latin America were announced, including an Amazon facility in Costa Rica and a Telefonica research and development center in Sao Paulo, Brazil.
However, overall demand for outsourced services remained sluggish, with Q4 marking a 3 percent decline from the previous quarter. Interestingly, the market growth in the last few quarters was led by buyer geographies other than North America and Europe.
Recent employee layoffs by leading providers IBM and TCS created a stir in Q4. Although the number of layoffs was frequently overstated amid speculation and rumor, these restructuring incidents do indeed point to the industry’s urgent need of massive reskilling in the IT services area, a trend likely to be emulated industry wide in 2015.
These findings and more are discussed in the report, Market Vista™ Q4 2014. The Market Vista Q4 2014 report provides data and analysis highlighting the key trends and developments in the fast-evolving global offshoring and outsourcing market. The report focuses on outsourcing transactions, location trends, and service provider developments.
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Everest Group experts reviewed the highlights of the Market Vista Q4 report during a recent webinar, “Global Services Developments in Q4 2014 and 2014 Year in Review.” The webinar, available for free viewing, covers the following topics:
• Global services market highlights for 2014 (covering outsourcing trends, GIC activity, location activity, and service provider developments)
• Five key global services predictions for 2015
Hosted by Everest Group CEO and founder Peter Bendor-Samuel as well as H. Karthik, partner, and Salil Dani, vice president, the webinar also features market predictions for 2015 and the implications of those predictions for stakeholders.
*** Supporting Quote ***
“The global services market in 2014 glimmered with indications of recovery, but sluggish incremental demand for outsourcing will continue in 2015, as the nature and quality of demand remains unsettled,” said Salil Dani, vice president at Everest Group. “On the other hand, we’re also seeing leading providers taking bold, proactive steps to retool their talent base for future demand, a trend that is wise but quite disruptive in the marketplace. Another potentially disruptive trend that needs to be carefully observed during 2015 is around the true impact of service delivery automation on cost competitiveness of locations.”
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High-resolution graphics illustrating key takeaways from these reports can be included in news coverage, with attribution to Everest Group. Graphics include:
• Quarterly outsourcing activity declined in 2014 while GIC activity increased
• GICs popping up (or expanding) all over
• Sri Lanka: a top destination for F&A services
*** Additional Resources ***
Webinar Deck: How Can Global In-house Centers Prove Their Value?
Blog: The Truth in IBM and TCS Layoffs and What it Means to Services Industry Customers and Providers
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 http://www.everestgrp.com and research.everestgrp.com.
Andrea M. Riffle, Everest Group, http://www.everestgrp.com, +1 954-801-8474, [email protected]
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