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Last updated on April 24, 2014 at 5:50 EDT

Hiring at Professional Services Companies Hits an Inflection Point: Revenue will Increase and Innovation will Slow Hiring Demand

May 2, 2013

According to Technology Business Research Inc.´s (TBR) 2013 Global Delivery Market Landscape report, investment in process innovation and automation has reached an inflection point, where the automation of service delivery is tangibly reducing the headcount required by services companies to support new business.

Hampton, NH (PRWEB) May 02, 2013

According to Technology Business Research Inc.´s (TBR) 2013 Global Delivery Market Landscape report, investment in process innovation and automation has reached an inflection point, where the automation of service delivery is tangibly reducing the headcount required by services companies to support new business. This evolution further affects vendor performance as service providers submit lower-priced bids to capitalize on reduced salary overhead. While end users adopt services benefits in greater numbers, revenues are ultimately impacted as total deal sizes contract. The 2013 Global Delivery Market Landscape (GDML) report illustrates in detail how 14 large professional services organizations are performing across service lines, geographies and other KPIs in light of these market dynamics.

“We believe the inflection point to services staff hiring gains will be at least partially offset through process innovation driving services on a nonlinear growth trajectory, suggesting a slower hiring pace in future quarters,” TBR Senior Analyst Ramunas Svarcas said. “This will vary by workflow and opportunity area depending on where process investments have been focused. BPO represents an area where we do not expect to see rapid hiring acceleration going forward due to the low-cost nature of the service and the continued customer demands for cost take out in contract renewals.”

The detailed report segmented vendors into three areas (Systems Integrators, Systems Integrators with support and maintenance, and India-centric providers), benchmarked vendor performance and revealed a strong resurgence from the India-based providers. In the GDML, research indicates how and why these vendors are best positioned to benefit from this inflection point and how they are investing in onshore hiring of experienced professionals to improve their customer-facing interactions. This position heralds a renewed challenge to the multinational service providers covered in the report.

“India-centric vendors created the global delivery market for low-cost, process-centric professional services over a decade ago. The build out of process excellence for cost take out and to generate more revenue while holding the line on employee hires plays to their core strengths,” TBR Analyst Bryan Belanger commented. “Some MNC firms, notably IBM, have similar process excellence, but India-centric vendors will threaten laggards that are slow to retool operations and instill process best practices.” Belanger continued, “India-centric vendors are also able to take the margin advantage process excellence provides them and invest it, as they are doing now, in building out high-cost, onshore consultative labor pools.”

The 2013 Global Delivery Market Landscape is available now. The report features in-depth qualitative and quantitative profiles of Accenture, Atos, Capgemini, Cognizant, CSC, Dell Services, HCL Technologies, HP Services, Infosys, IBM Global Services, TCS, T-Systems, Wipro ITS and Xerox Services.

For more information please contact Alison Crawford, senior marketing manager, Technology Business Research Inc., at alison.crawford(at)tbri(dot)com or at 603.929.1166.

ABOUT TBR

Technology Business Research Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and professional services vendors. Serving a global clientele, TBR provides timely and accurate market research and business intelligence in a format that is uniquely tailored to clients´ needs. TBR analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis.

TBR has been empowering corporate decision makers since 1996. For more information please visit http://www.tbri.com.

For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/5/prweb10676986.htm


Source: prweb