Exhaustion is a major problem for technology service providers – Everest Group

Everest Group

Talent management was cited as a sore point by the majority of executives we interviewed, and is therefore an important area for improvement that service providers need to address.

Although business satisfaction with technology service providers has improved overall by 5% in 2021, talent management is emerging as the biggest cause of business dissatisfaction, according to the Everest Group.

Everest Group conducted 496 unique interviews with global business leaders in 2021 and found that depletion is the biggest sore point for businesses in terms of their technology service providers. Many executives said that their suppliers find it difficult to replace talent quickly and efficiently, which negatively affects the timing, cost and quality of the project.

Businesses are looking for providers of IT services and technologies that can provide the following:

  • Talent availability, including a global presence, a deeper bench, a wider range of talent, and talent mapping.
  • Low wear, with quick and efficient replacement of talent when needed.
  • Strong training and development programs, including advanced training in digital technologies, introduction of new employees and development of experience in the field.
  • Robust internal and external communication, along with standardized documentation, which became especially important in the era of remote work.

“We have found that the overall satisfaction of companies with their technology service providers has improved again for the second year in a row, which is good news for suppliers, which shows that they have done well in managing the effects of the pandemic and post-pandemic world.” said Pranati Dave, practical director at Everest Group. “However, talent management was cited as a sore point by the majority of executives we interviewed, and is therefore an important area for improvement that service providers need to address.”

These and other findings are described in detail in the recently published report of Everest Group “Pulse of the Enterprise 2022: Addressing the problem of talent around the availability, depletion and retraining of the workforce.” This study summarizes the views of different companies on the capabilities of their technology service providers for IT services. The report also covers quantitative and qualitative insights into enterprise digital programs.

Additional key findings:

  • The share of satisfied customers in IT services (ITS) has increased from 70% in 2020 to 75% in 2021, making it the second consecutive year in which the share of satisfied customers has increased.
  • Satisfaction levels are rising in most geographies.
  • Businesses are satisfied with their IT service and technology providers in terms of technical expertise, customer management, commitment flexibility and advertising, such as pricing structure and contract terms.
  • Businesses are dissatisfied with talent management, lack of innovation and experience in the field. They want better reporting, knowledge transfer, standardization in long-term projects and talent retention.
  • About 50% of businesses cite automation, cloud hosting and data management as their best digital levers for profitability and growth.

*** Download additional summary of the report ***

About Everest Group

Everest Group is a research firm focused on strategic IT, business services, engineering services and procurement. Our research also covers the technologies that power these processes and functions and related trends and talent strategies. Our clients include the world’s leading companies, service and technology providers and investors. Customers use our services to manage their travels, to maximize operational and financial results, to transform experiences and to achieve high-impact business results. Details and in-depth content are available at http://www.everestgrp.com.

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