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Industry Research : Global Sourcing Industry Recovers Slightly in Q3 But Braces for Year-end Slowdown with Second Wave of COVID-19

#contactcenterworld, @everestgroup

Everest Group reports that global sourcing activity picked up in Q3 2020 as the initial effects of the pandemic temporarily eased and countries reopened for business. However, the industry is bracing for another slowdown as the second wave of the COVID-19 pandemic takes hold across the world.

Global IT, business process (BP) and engineering services providers saw some growth in Q3 as demand for digital transformation and cost optimization increased dramatically and supply and demand disruptions eased for a majority of players. Trade agreements, tax cuts and subsidies by governments across countries also provided some relief for both enterprises and service providers.

Q3 saw the number of outsourcing transactions increase by 8%, the setups and expansion of Global Business Services centers increase by 41%, and onshore setups almost double. Although acquisition activity remained the same, alliance activities increased significantly from 51 to 61.

However, despite the recovery, delays in renewals of new projects and cancellations of ongoing outsourcing projects have posed serious challenges to service providers, and many opted for mass layoffs to maintain desirable operating margins. Challenges continue to loom for global services providers as economic instability and uncertainty about the second wave of COVID-19 are anticipated to mount over the next quarter and into the early part of 2021.

Service providers are exploring cost-saving opportunities in the short and long term. For example, some companies are looking to save costs by closing selected centers and allowing a part of the workforce to work from home permanently.

These findings and more are shared in Everest Group’s Market Vista: Q42020 report. The Market Vista™ report 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 GBS centers, location risks and opportunities and service provider developments.


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Highlights from the Market Vista: Q4 2020 Report

- Medium-term deals are witnessing an increasing traction since the start of the year, owing to enterprises’ resistance to investing in large-scale transformation. Also, demand for systems integration services is rising as enterprises are going for applications and vendor portfolio consolidation.

- Re-opening of businesses and reduction in restrictions led to recovery in the overall location activity, primarily driven by the Central and Eastern Europe (CEE) and Rest of Northern Europe (RONE) regions. Also, activity in onshore locations increased significantly for enterprises driven by technology and communications firms establishing Engineering, Research and Development (ER&D) centers in the U.S. and United Kingdom.

- Deals for Banking, Financial Services and Insurance (BFSI), government, and technology & communications verticals were the highest among all industry verticals.

The consolidated revenue for both offshore-heritage and global providers declined 5% in Q2 as compared to Q1 2020 and reduced by 2% compared to Q2 2019.

#contactcenterworld, @everestgroup

Posted by Veronica Silva Cusi, news correspondent
Source: https://www.prweb.com


About Everest Group:
Company LogoEverest 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.
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Today's Tip of the Day - Don’t Over Glamorise Your Job Adverts

Read today's tip or listen to it on podcast.

Published: Friday, December 11, 2020

Printer Friendly Version Printer friendly version

2021 Buyers Guide Payment Services

 
1.) 
Branch

Branch Employer Payments Platform - Earned Wage Access
Give employees instant access to a portion of their earned wages before payday! Branch helps businesses modernize their payment methods to empower working Americans. Earned wage access—with no-fee banking and access to a digital wallet and free debit card—are just some of the tools in our fast, free, and flexible platform. With Branch, businesses streamline existing payroll processes, save money, and provide faster payments and free digital banking to their employees—no pre-funding or capital required.

2.) 
Eckoh

CallGuard, ChatGuard,
Securing payments for on-premise or remote agents for telephone, IVR, web, mobile, Chat and Chatbot.

A patented technology that is flexible way to take secure, PCI DSS compliant payments via live agents over the telephone, web, Chat, Chatbot, or IVR. No sensitive data enters the contact centre environment so, agents do not see, hear, store or record any card or personal details.

CallGuard can be deployed in various ways to fit the way your contact centre works. The solution can de-scope all, or parts, of your contact centre from the scope of PCI DSS compliance and works just as well for on-premise or home/remote working agents.

ChatGuard makes payments in Chat PCI DSS compliant and...
(read more)

3.) 
PayGuard

PayGuard®
Award-winning PCI compliance phone and multi-channel payment application.

PayGuard® is easy to deploy, very easy for agent to use from the office/contact centre or from home and is affordable.
 

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