Global In-house Centers Mature, Represent 25 Percent of $137 Billion Global Sourcing Market: Everest Group Report
GICs look to sophisticated end-to-end ownership, vendor collaboration and talent management to drive future growth.
Dallas, Texas (PRWEB) April 17, 2014
Overcoming the impediments of a global economic slowdown, global in-house centers (GICs) will continue to contribute to steady growth in the $137 billion global offshore services market, with new set-ups gaining momentum in the near future, predicts a just-released research report from Everest Group, an advisory and research firm on global services.
The report, “Global In-house Center Landscape Annual Report 2013,” documents the volatility during the last year within the GIC landscape, which accounts for 20 to 25 percent of the global sourcing market. Among the key changes observed in 2013 are a notable increase in the share of the GIC landscape dominated by larger firms (i.e., those with revenues exceeding $10 billion); increased GIC activity in the Banking, Financial Services and Insurance (BFSI) and telecom verticals; and the growth of set-ups in the Middle East and Africa (MEA) region.
In addition to providing insight into the size and growth of the GIC market as a whole, the report compares the GIC market in 2013 to the preceding two years and describes trends in the marketplace, offering a “deep-dive” into locations, vertical and functions. The report also outlines strategic priorities for GICs for the coming year. The research leverages Everest Group’s proprietary database—which tracks scale, verticals, functions, parent geographies and size, and center locations of more than 1,700 GICs throughout the world—as well as the company’s ongoing interactions with GICs and parent stakeholders.
“In recent years, we’ve seen the GIC landscape mature, with the dominant players and characteristics remaining steadfast, which makes the subtle shifts in the market and the evolution of more sophisticated value propositions all the more interesting,” said H. Karthik, vice president – global sourcing, Everest Group. “For example, a commonality emerging among mature GICs is that they often have a defined mandate to function as a Global Process Owner (GPO)—with end-to-end ownership of one or two large functions globally—and they are tasked with driving best practices beyond their own scope of work throughout the company as a whole.”
According to Karthik, other strategic endeavors for mature GICs include leveraging collaboration with vendors to deliver impact for the parent organization; seeking alignment with parent stakeholders on ways to add value beyond process-related contributions; and expanding the activities devoted to talent acquisition, development and retention.
Everest Group has produced graphics illustrating the key takeaways from the report;
these address the following topics and can be included in news coverage of the report with source attribution to Everest Group:
- GIC Growth: Slowing, but Steady;
- Technology, MDR, and BFSI Leading GIC Verticals;
- GIC Parent Geography is Changing;
- Share of New GIC Setups Expands Among Industries;
- Tier-3 Cities Saw Jump in GIC Activity in 2013; and
- GIC FTEs Highly Concentrated in Few Locations.
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 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.
For the original version on PRWeb visit: http://www.prweb.com/releases/everestgroup/GICannualreport/prweb11771841.htm