The PEO Industry in Transition, by Benjamin Gordon, BGSA CEOBenjamin Gordon
Benjamin Gordon and BGSA write about how the professional employer organization (PEO) industry is evolving. Benjamin outlines mergers, acquisitions, investments, transactions, and strategic change underway in the PEO sector.
This revision presentation provides an overview of the topic of emerging markets. It highlights some examples of how businesses have pursued a growth strategy in emerging markets and also how developed economies have seen investment coming in the opposite direction. A brief overview of the methods and benefits/drawbacks of international expansion is also provided.
The PEO Industry in Transition, by Benjamin Gordon, BGSA CEOBenjamin Gordon
Benjamin Gordon and BGSA write about how the professional employer organization (PEO) industry is evolving. Benjamin outlines mergers, acquisitions, investments, transactions, and strategic change underway in the PEO sector.
This revision presentation provides an overview of the topic of emerging markets. It highlights some examples of how businesses have pursued a growth strategy in emerging markets and also how developed economies have seen investment coming in the opposite direction. A brief overview of the methods and benefits/drawbacks of international expansion is also provided.
Stretagies that fit Emerging Markets,
International Business Strategies which are suitalbe for developing countries to attract the international investors
IBM Global Business Services -- Strategies for succeeding in the new economic...IBMElectronics
"IBM Global Business Services, through the IBM Institute for Business Value,
develops fact-based strategic insights for senior executives around critical public and private sector issues."
Stretagies that fit Emerging Markets,
International Business Strategies which are suitalbe for developing countries to attract the international investors
IBM Global Business Services -- Strategies for succeeding in the new economic...IBMElectronics
"IBM Global Business Services, through the IBM Institute for Business Value,
develops fact-based strategic insights for senior executives around critical public and private sector issues."
Over the last year or so, there has been much talk about another impending recession and how it could impact channel management. The recession theory is based upon historical trends, which suggest business cycles tend to last around five to seven years each. That means every five to seven years we experience some sort of a recession.
HCLT Whitepaper: Insurance~ The market will contract not collapseHCL Technologies
The insurance market will surely contract, but it will not collapse. Consumers and companies will still require risk management - albeit, the number of buyers are fewer. Some of the now marginal mid-tier and small carriers may be acquired, or simply fail. Prices will flatten, and rate increases will be needed to raise capital, but the size will be restrained by the contracting economy. However, most insurance industry leaders think that we will be in that contraction through the first half of 2010. With that return to expansion, the industry will still be confronted with the challenges/ opportunities discussed in my last two missives - expanded demand for more sophisticated products and
the need for time-to-market agility while managing losses and expenses.
IMAP Financial Services sector Leaders: Jonathan Dalton and Khelan Dattani share insights into the global Financial Services sector. They look at how and why the COVID pandemic affected certain geographies and subsectors more than others and the subsequent impact on deal volumes and valuations. They identify the key areas of growth and common trends driving activity across the globe and examine why the sector is becoming increasingly attractive to PE investors, pinpointing opportunities for buyers and sellers.
Mergers & Acquisitions are often used as part of a
company's globalization strategy, for both intra-regional and international deals. However, substantial number of them fail. Read more to find out the challenges or visit us at: http://www.verityconsult.com
Study to understand the management strategies of new multinationals from the ...Charm Rammandala
The purpose of this study is to understand how the emerging multinational companies from emerging economies such as BRIC countries, Middle East and developing countries like Thailand and Malaysia challenging the traditional multinational companies who have strong roots to developed countries. Using various strategies and business models such as alliances, joint ventures and in some cases wholly owned subsidiaries, newly emerging multinationals have made their presence felt in the world market. This study will take an in-depth look in to the management strategies in place to overcome the barriers and accelerate the growth.
Vox Artis, Voice of Experts - Next & Best Practices in Global SourcingNiketa Chauhan
Excellence in global sourcing is the key to enterprise services, enterprise transformation, and aligning that transformation to drive competitive advantage to companies.
Global Services Conference 2012 @ NYC in ImagesNiketa Chauhan
The only conference where over 30 speakers, over 60 buyer of services, over 30 influencers and over 20 service providers were all under one roof @ GSC2012, NYC!
One should expect modest, guarded growth in outsourcing this year. Organizations will want to do it cheaper and better, but face minimal disruptive change - Ed Nair, Editor, Global Services
Welcome to the next generation of the services economy — where we have technology and business processes enmeshing with each other on a global scale — to unlock business value.
The one stop resource on global outsourcing destinations. The destinations compendium 2011 brings together the myriad dynamics of outsourcing locations in one place complete with research, data, and expert opinions.
“In the past, the choice was between cost savings and transformation. Now you have to do both; it is a model of continuous improvement re-
engineering never stops.”
Outsourcing and offshoring of HR presents many opportunities and challenges, what is needed is for more HR professionals to have outsourcing business skills (namely process, operations, project management) and for more outsourcing professionals to have a greater understanding of HR issues and its impacts.
Hundred best companies they are; chosen through a rigorous methodology that evaluates each company across multiple dimensions, measured both quantitatively and qualitatively
Contact Center Industry: Where Do You Go From Here?Niketa Chauhan
Contact Centers and the Challenge of Social Media - Our cover story this month focuses on the new directions of growth
for the contact center industry.
Client priorities are shifting and there is no consistent correlation of the benefits of outsourcing to business impact. This is the opportunity for India to reinvent and innovate once again.
Global Services Digital Magazine - January IssueNiketa Chauhan
Virtualization and cloud computing has brought utility back into the discussion though neither of them are a precondition for a utility-based model of IT delivery.
Global Services LIVE! is the world’s first compilation of success stories in ITO and BPO. It is a year-long program published quarterly for service providers to showcase their best projects.
1. The Growth Story
Revenue growth rates across the industry fell to modest levels
by Ed Nair
T He 2010 GS100 survey participants repre-
sents about $73 B in revenues. This is a sig-
nificant measure though it is the aggregate of
companies of different sizes and therefore diverse
customer types. According to a recent report by
tion on projects, subcontracted programming and
others. Clearly, this was neither the year for such
companies to get work from companies with ma-
ture outsourcing practices nor it was the year to get
work from companies who were venturing out to
TPI, the Forbes Global2000 companies collectively outsource the first time.
spent $71B in annualized contract value on out- There are many bright spots of excellence
sourcing in 2009. amongst companies in the revenue range of $10M
Since the companies in the GS100 survey repre-
sents a diverse set of companies, it would be useful
Revenue Growth
to look at growth patterns across different catego-
ries of company sizes. The average industry revenue Category 2008 (in $M) 2009 (in $M) Growth %
growth rate is 15.7 % over 2008. $1M to $10M 48 55 14
It was decidedly a bad year for upstarts in the out- $10M to $100M 1,237 1,393 12.6
sourcing industry represented by companies with $100M to $1B 12,298 12,917 5
annual revenues of less than $ 10M. Many of these $1B+ 49,810 58,999 18.4*
companies have very narrow specializations or they Total 63,393 73,364 15.7
offer undifferentiated services like staff augmenta- *due to merger between Stream and eTelecare. Leaving this outlier, the growth rate is 3.5%
12 GlobalServices www. globalservicesmedia.com GS100-2010
2. Special Report
to $100M. Such companies have the critical mass $1M-$10M $10M-$100M $100M-$1B $1B+
and the ability to aggregate resources into one or
North America 60 62 52 57
more areas of specialization- often in areas like ap-
Latin/ South
plication development, product development, low 4 5 7 5
America
footprint infrastructure services like desktop man-
EMEA 18 25 29 27
agement, and others. These companies often look
for opportunities to scale up. In 2009, this group of Asia 14 7 9 10
companies that traditionally enjoyed high growth Japan 1 0 1 0
levels had to settle in for tapered down growth of Australia 3 1 2 1
12.6 %.
Companies in the revenue range of $100M industry average growth rates (XChanging, Wipro,
to $1B, a wide swath of revenue, make the most HCL Technologies), a few of them posting single digit
promising group. These service providers are large growth figures (Genpact, TCS, Infosys, nCO, CSC,
enough to handle almost two-thirds of the market CGI) and a few of them posting declines in revenues.
opportunities (in terms of scope, contract sizes, The geographical revenue splits for companies
etc.) and they are small enough to concentrate their across all categories are nearly uniform. It shows
efforts, seek leadership, and innovate. While these that north America continues to be the most im-
companies have the ambition to scale up to $1B portant market followed by europe. Asia and Latin
and are constantly seeking growth new opportuni- America are emerging markets partly due to local
ties, they also go through the excruciating pains of companies serving the domestic market ( and many
growing up. Unfortunately, these are also the com- of them are represented here) and the rest due to
panies who get stuck in the ‘mid-tier conundrum’. large companies by foreign companies. For exam-
The year was the toughest for this group: a growth ple, a Chinese provider like neusoft handling the
rate of 5 % due extreme price pressure, unwilling- domestic Chinese market or an IBM Global Services
ness from companies to hand out projects with new handling strategic outsourcing for an Indian bank
scope, clients rationalizing their vendor portfolio, would have higher revenues in Asia.
and a depressed demand from verticals like finan- Despite being the largest market, the share of
cial services, telecom, retail, and CPG amongst oth- north America in 2009 has come down from what it
ers that were the mainstay verticals for companies was in 2008. This is due to the combined effect of the
in this category. relative but temporary softness of the US market and
Amongst the larger companies ( above $1B) the the geographic de-risking strategies employed by ser-
growth rate of 18.4% that we see is an anomaly that vice providers. especially, many of the Indian vendors
stems from one outlier- the merger between Stream ramped up focus on the european market (which in
Global Services and eTelecare. Read the growth rate 2009 seemed more stable) because of the softening of
here as a very modest 3.5 %. Such a growth rate comes demand from US financial services segment and the
on the back of a few of the vendors posting above mid-year rupee-dollar fluctuations. GS
Top 5 Fastest Growing Companies Top 5 Fastest Growing Companies
$10M to $100M $100m- $1B
No. Company Country No. Company Country
1 Bleum Inc. China 1 Hildebrando Mexico
2 Corbus USA 2 Aegis Limited India
3 Transactel S.A Guatemala 3 CPM Braxis Brazill
4 eClerx Services Limited India 4 VanceInfo Technologies China
5 Globant Argentina 5 ITC Infotech India
Notes:
1. Company revenues and revenue growth rates are not published as per GS100 survey guidelines. Revenue growth rates reflect both organic and inor-
ganic growth but excludes internal reorganization of business units that may lead to an upsizing of the company.
2. Fastest growing companies are listed for company sizes $10M-$100M and $100M-$1B only because revenue growth in these two categories are better
evidence of companies’ quest for growth.
GS100-2010 www. globalservicesmedia.com GlobalServices 13