As businesses navigate a rapidly evolving technology landscape, sustainable IT has become a key focus for organizations to minimize their environmental impact. IT infrastructure is a significant emission source, making sustainable practices essential. Advanced technologies, such as generative AI, bring new challenges with their intensive energy demands for high-performance computing and storage. Adding to the complexity, organizations must address hidden emissions, particularly Scope 3 emissions from public and hybrid cloud solutions, which are difficult to measure and manage.

Addressing these challenges requires collaboration with credible IT service providers who can implement innovative strategies to reduce emissions, optimize IT estates, and enhance operational efficiencies. Sustainable IT is no longer a peripheral concern but a business imperative for organizations to balance environmental stewardship with technology advances. Enterprises must select partners who integrate sustainability principles in IT solutions and offer IT decarbonization, sustainable software development, sustainable digital workplace, and circular IT services.

• Sustainable IT Services PEAK Matrix® Assessment 2025

  

  In this report, we explore the current sustainable IT services market, highlighting the trends and key drivers shaping demand-supply dynamics. The report analyzes 21 sustainability IT service providers based on their service focus, key IP/solutions, domain investments, and demonstrated market proof points.

  Scope

  • All industries and geographies
  • This assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading sustainable IT service providers, client reference checks, and an ongoing analysis of the sustainability services market

  Contents

  In this report, we

  • Explore the sustainable IT services market
  • Examine key factors and technologies shaping the sustainable IT services market
  • Analyze buyer adoption trends
  • Assess sustainable IT service providers’ capabilities

  READ ON

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

As we embark on a new year, our team of analysts working within the Experience, Sustainability & Trust service line looks at the 5 key themes and trends that we can expect to drive the sustainability technology and IT Services market in 2025. 

Reach out to discuss this topic in depth. 

1.Green computing will become integral to decarbonization strategies 

As national and local decarbonization strategies move towards implementation, green and sustainable computing, as well as energy efficient hardware and software, will become integral to achieving those objectives. Enterprises will include green computing initiatives and transition to energy-efficient equipment as part of their broader decarbonization commitments. We expect green data centers that consume less electricity and edge computing models to become more pervasive, as decarbonization approaches embed green computing. 

Aiming to reduce 50% of its Scope 1, 2, and 3 emissions by 2030, Google has already taken measures to reduce emissions across its operations and power some of its offices and data centers using carbon-free energy*.  

Unilever, in its Climate Transition Action Plan, has also committed EUR150 million to decarbonize its manufacturing program, which includes improving its electrical efficiency by installing more efficient equipment and controls, and transitioning to sustainably sourced biofuels. 

2.Circular economy practices of waste reduction and reuse & recycle will become mainstream 

In an effort to reduce costs, appease scrutinizing investors and comply with local regulations, companies will increasingly adopt circular economy practices, emphasizing resource efficiency optimization and waste reduction through better management.  

Increased attention on designing and producing sustainable products with longer lifecycles, coupled with measures to reuse and recycle materials and components, will also reduce the environmental impact of products and services.  

Microsoft, for example, achieved 89.4% reuse and recycle rates of servers and components across all cloud hardware in FY2023.  

Adopting packaging innovation, Unilever has designed 72% of its plastic packaging portfolio to be easily recycled, such that it avoids emissions at end-of-life incineration. Furthermore, it is collaborating with the World Economic Forum and the Ellen MacArthur Foundation to identify refill-reuse solutions for consumers. 

3.Emerging technologies such as Artificial Intelligence (AI) will create new use cases for sustainability and climate action

Much has already been written and said about the potential of artificial intelligence (AI) across industries. It is, however, interesting to observe the emergence and adoption of AI across sustainability.  

From monitoring and identifying ways to reduce a company’s carbon footprint to optimizing energy consumption in smart cities, from enabling precision agriculture to increase yield to predicting climate disasters, AI is playing an instrumental role in advancing sustainability use cases.  

As an example, Sipremo, a Brazilian startup, has used AI to predict the location and timing of climate disasters, along with the type of disaster that will occur. This helps businesses, governments, and communities better prepare for impending adverse climate events.  

Another AI-led startup, Eugenie.ai, has embedded AI in its emissions-tracking platform that combines satellite imagery with data from machines and processes and helps companies track, trace, and reduce their emissions by 20-30%.  

In addition to these environmental use cases, we expect social ones to emerge as well. Unbiased Generative AI (gen AI) can promote diversity in hiring, reduce biases from seeping through, create more equitable workplace, and improve social outcomes. Key stakeholders in the gen AI ecosystem – technology providers, service providers, and enterprises – have a crucial role to play in influencing sustainability outcomes. 

4.The “skills gap” will drive demand for ESG professionals, particularly for regulatory compliance

We predict that the social impact of sustainability will be visible through the pronounced ‘skills gap’. As more regulators tighten the grip on companies to demonstrate their sustainability commitments, the talent gap for professionals with background and experience across these evolving frameworks will widen.  

This is already witnessed globally – the 11.6% growth in global demand for green talent is almost twice the 5.6% growth in talent supply. This trend is expected to continue until at least 2030, when one in five jobs is expected to lack the required talent.  

Current demand for ‘green’ skills is high in areas of pollution and waste prevention, renewable energy generation, sustainable finance, environmental audits, environmental policy, and sustainable procurement. Particularly in Europe, the changing regulations and the ongoing energy transition are driving up the demand for such professionals with skills pertaining to climate change and/or sustainability, notably in the UK, Ireland, Norway, and Switzerland. 

Diversity, Equity, Inclusion, and Belonging (DEIB) is another area that warrants more attention. This year, inclusive recruitment will be crucial, from a social standpoint, to address commonly observed biases in technology (gen AI) adoption. We expect increased regulatory interventions through policies and consultation papers to help stakeholders navigate the uncertainties currently engulfing this space. 

5.Climate tech investments will create financial asset classes and broaden capital allocation opportunities 

Driven by regulatory pressures and consumer demand for sustainable products and services, companies are investing in climate technologies. This is leading to the development of innovative solutions to tackle climate-related challenges and is also opening investment opportunities for sustainable finance. 

Continued investments in green hydrogen, battery technology, sustainable fuels, green built environments, and nature conservation, to name a few, are expected to push forward technology innovations and create opportunities for environmentally sustainable financial investments.  

IBM, for instance, uses AI-driven material discovery to identify molecular structures for carbon dioxide (CO2) separation membranes, leading to cost-effective CO2 emissions capture and storage.  

From an investment perspective, climate bonds** surpassed a cumulative volume of US$5.1 trillion in the first half of the year (H1) of 2024, suggesting growing volumes of capital allocated to climate technologies and environment-friendly objectives.  

This is already evident in the social impact sector – the orange asset class has emerged to advance gender equity for prosperity, peace, and planetary resilience. We expect this trend to become more pronounced, particularly as global events in 2024 such as COP16 (biodiversity) in Colombia and COP29 (climate change) in UAE emphasized the importance of climate finance and ‘finance for good’. 

What does this mean for us? 

What do these trends and predictions mean for you as a stakeholder in this space? What are the implications for enterprises and service providers? How can we be better prepared for 2025? 

As an enterprise: 

• Invest in building capabilities internally or hiring skilled professionals to help with accurate reporting on sustainability initiatives for regulatory compliance 
• Identify opportunities across your supply chain for emissions reduction, waste and pollution prevention, reuse and recycling, and technology adoption 
• Conduct competitive benchmarking exercises to map yourself against industry peers and identify opportunities for improvement 
• Collaborate with industry associations, development organizations, and government agencies on industry-level initiatives

As a service provider, software/technology provider, or consulting/advisory firm:

• Bridge the skills gap by providing enterprises with qualified skilled professionals with strong domain knowledge of evolving regulations (e.g., the Corporate Sustainability Reporting Directive (CSRD) in Europe) to help them report accurately on their sustainability initiatives. 
• Build competencies for internal initiatives and conduct pilots and Proofs of Concept (PoCs) within the organization. Leverage successful initiatives as case studies to demonstrate expertise to clients on specific sustainability programs. 
• Conduct research on sustainable Information Technology (IT) and energy efficiency initiatives to identify investment opportunities that cut across multiple facets of sustainability (e.g., circular economy principles to reduce e-waste) 

If you found this blog interesting, check out our blog focusing on Boosting Project Readiness In Technology Talent: A Comprehensive Framework For Developing Project-Ready Workforce | Blog – Everest Group, which delves deeper into another topic relating to this service line. 

To discuss these 2025 predictions and other insights from our research on current and future STS trends and evolutions, please reach out to Siddharth Muzumdar (siddharth.m.ext@everestgrp.com) and Arpita Dwivedi (arpita.dwivedi@everestgrp.com) 

Key: 

* Google’s definition of renewable energy sources, which includes carbon capture and storage technologies  

** Include green, social, sustainability, and sustainability-linked bonds 

In today’s fast-paced business landscape, sustainability is vital for corporate strategies and operations. Organizations evaluate their financial performance, commitment to ethical practices, and impact on society and the environment. As stakeholders demand greater transparency and accountability, the need for effective ESG data management has surged. This shift highlights the importance of integrating sustainability into core business practices.

Stringent regulatory frameworks, such as the Global Reporting Initiative (GRI) and the International Financial Reporting Standards (IFRS), compel companies to disclose their sustainability practices comprehensively. These regulatory mandates also fuel the growing emphasis on ESG data management. With increasing scrutiny from regulators and heightened public awareness of environmental issues, effective ESG data management has become essential for companies to meet compliance requirements and enhance their operational efficiencies.

• ESG Data Management Platform PEAK Matrix® Assessment 2024

  

  What is in this PEAK Matrix® Report

  In this report, we assess 26 ESG data management providers’ capabilities, including their platform capabilities, key IP/solutions, domain investments, and market positioning. The report equips organizations with the insights to select the right ESG data management solutions tailored to their unique needs. It empowers companies seeking to advance their sustainability initiatives and drive meaningful operational change.

  Scope:

  • All industries and geographies
  • This assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading ESG data management platform providers, client reference checks, and an ongoing analysis of the ESG data management platform market.

  Contents:

  In this report, we:

  • Evaluate ESG data management platform market trends
  • Examine key factors and technologies shaping the ESG data management platform market
  • Analyze buyer adoption trends
  • Compare providers’ key strengths and limitations

  READ ON

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

WATCH THE LINKEDIN LIVE ON-DEMAND

Evolving dynamics in the tech talent market have led to an unprecedented talent and skills shortage, leaving enterprises lacking for choice in niche and specialized role fulfillment.

To discuss the potential role of technology in alleviating the talent market volatility, our experts Ronak Doshi, Partner, and Arpita Dwivedi, Practice Director, sat down with panelists Somnath Chatterjee, CEO of Prismforce, and Agnieszka Porebska, CEO of Talent Alpha, in a LinkedIn Live session. They talked about the art of the possible: how using technology can play a critical role in helping workforce strategy leaders optimize their talent supply in the face of shortage.

Attendees will understand where investments in the talent supply chain can be utilized to source human capital for current and future business needs, and the technology that can be used to secure the flow of qualified talent for an agile and adaptable workforce that lasts.

During this in-depth LinkedIn Live, we discussed:

• The key challenges that workforce leaders face in the talent supply chain
• The significance of skill-based workforce management in navigating the evolving talent landscape to propel growth and secure a competitive advantage
• The role of AI-powered technology platforms in driving talent supply chain agility

WATCH THE WEBINAR ON-DEMAND

Sustainability has emerged as a critical imperative across industries amid growing concerns about climate change, resource depletion, and social inequalities. As enterprises near their commitment deadlines, they are looking to partner with leading sustainability enablement service providers for their tech, industry, and ESG domain expertise.

Sustainability enablement service providers offer instrumental solutions; however, knowing which provider to choose can be complex. Enterprises need partners who can not only address their immediate sustainability needs but also align with their long-term strategic objectives.

Watch this webinar as our sustainability experts presented the detailed profiles and capabilities of twenty-five sustainability enablement technology and services providers featured on the Sustainability Enablement Technology Services PEAK Matrix® and key trends to follow.

What questions has the webinar answered for the participants?

• What are the key challenges enterprises face across geographies and industries in their sustainability journeys?
• What are the demand themes in the market that sustainability leaders across the globe are following to accelerate their path to building purpose-driven organizations with sustainability at the core of all business operations?
• What are the key trends shaping the sustainability enablement services market?
• Who are the leading service providers, and what capabilities should clients assess to identify the right service provider for their organization?

Who should attend?

• CEOs, CIO/CTOs, COOs, CPOs, Chief Sustainability Officers
• Global sustainability heads
• Head of climate and sustainability services portfolios

In today’s business environment, sustainability has evolved from a mere buzzword to a vital imperative for enterprises across diverse industries. This shift is driven by escalating concerns over climate change, resource scarcity, and social disparities, compelling businesses to lessen their environmental footprint and actively contribute to societal well-being. To address these challenges, sustainability enablement technology and services have become indispensable tools, providing instrumental solutions to navigate the complexities of sustainability initiatives. These technologies encompass various applications, including renewable energy, supply chain optimization, and waste reduction strategies.

Despite the growing recognition of sustainability’s significance, enterprises face significant hurdles in integrating sustainable practices into their operations. The lack of tangible market proof points, coupled with the ongoing evolution of standards and best practices, presents a formidable challenge to decision-making. Enterprises struggle to identify partners that can meet their immediate sustainability needs while aligning with long-term strategic goals. Successfully navigating this complex landscape requires careful deliberation and informed decision-making. Enterprises must select partners that provide innovative solutions and demonstrate a dedication to sustainability principles and values. By doing so, businesses can effectively navigate sustainability challenges while driving positive environmental and social impact.

• Sustainability Enablement Technology Services PEAK Matrix® Assessment 2024

   

  What is in this PEAK Matrix® Report

  In this report, we explore the current state of the sustainability enablement technology services market, examining the trends and key drivers shaping demand-supply dynamics. The report also provides a detailed analysis of the sustainability-enabling capabilities of 24 providers based on their service focus, key Intellectual Property (IP) / solutions, domain investments, and demonstrated market proof points.

  Contents: 

  In this report, we:

  • Explore the sustainability enablement technology services market
  • Examine the key factors and technologies shaping the sustainability enablement technology services market
  • Outline our perspective on buyer adoption trends and explore 24 sustainability enablement technology service providers’ capabilities

  Scope:

  • All industries and geographies
  • This assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading sustainability enablement technology service providers, client reference checks, and an ongoing analysis of the sustainability services market

  READ ON

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

To combat the technology talent shortage and improve project readiness, technology firms are investing in comprehensive initiatives across the talent management value chain, including learning and development platforms, niche partnerships, and other strategies. Explore how Everest Group’s 3A framework can help firms assess, acquire, and activate project-ready talent at scale. Reach out to speak with us further on this topic.

With rapid technological advancements and an acute specialized talent shortage, IT firms increasingly recognize the importance of developing technology talent internally. As a result, they have accelerated developing comprehensive learning and development (L&D) frameworks backed by robust tech-driven learning solutions to upskill/reskill technology talent. These strategic investments are aimed at ensuring future readiness and resilience to technology disruptions.

However, even after these focused L&D investments, organizations still struggle to build a sustainable pool of project-ready resources. According to the Talent Readiness for Next-generation IT Services PEAK Matrix^® Assessment 2023, IT service providers reported the lack of project-ready resources as a critical barrier in building a future-ready workforce.

Recent excessive hiring by technology firms has resulted in large benches with lower-quality talent unprepared to be deployed in client projects. Firms continuously train their benches on emerging and in-demand technologies while optimizing talent-sourcing strategies to improve project readiness, particularly in the entry-level talent pool. However, they still face several key bottlenecks in enhancing the project-readiness quotient, as illustrated below:

Solving the project-readiness puzzle: The 3A framework focused on Assess-Acquire-Activate.

• Assess – Effectively assessing project readiness is as critical as embedding it in the L&D journey. Most technology firms lack a dedicated project readiness assessment framework. Developing a robust framework to evaluate and identify gaps in workforce project readiness is crucial.

The framework must be holistic and able to evaluate granular-level details specific to a particular role, project, and service line. It must include all skill types, including technical skills, domain expertise, cognitive and interpersonal skills, and related attributes such as proficiency level and experience.

Additionally, it’s critical to move beyond the conventional metrics of gauging project readiness, such as certifications and skill tags to digital readiness quotient.

“We have invested in an in-house tool designed for conducting technical assessments of trainees. Customized assessments are created in the tool based on the skill matrix, and trainees are evaluated using these assessments to assess their level of upskilling. The assessments include scenario-based and coding questions to evaluate conceptual and hands-on expertise of candidates.” – Leading IT service provider

• Acquire – Leading organizations are strategically shifting their focus on developing technology talent at early stages. By adopting a train-hire-deploy talent acquisition model, companies aim to build project-ready pipelines. Here are some initiatives top firms are using to acquire project-ready resources:
  • Forming in-depth alliances with academic institutions to focus on building talent from the ground up through tailored learning content, internships, apprenticeships, dedicated courses, or degree programs targeted at industry-relevant and in-demand skills
  • Creating pre-onboarding programs with learning content and hands-on practice modules in simulated environments to prepare freshers for a streamlined transition and integration
  • Partnering with training firms to acquire specialized talent equipped with niche or next-generation skills

“We have an exclusive job program for individuals looking for full-time jobs after high school, thereby making them financially independent. This is a hybrid training program focusing on the overall education and personality grooming of students to make them job-ready.” – Leading Indian IT service provider

“We currently have seven master’s programs running across six premier institutes in India to channelize the talent generation in the IT industry. We have handstitched the curriculum interventions and provide internship opportunities to students, which eventually leads to conversion to FTE.” – Leading global system integrator

• Activate – In addition to traditional learning interventions, firms should promote on-the-job learning opportunities such as peer learning forums, collaboration and knowledge-sharing platforms, and sessions to exchange expertise on niche topics, projects, accounts, and roles.

Further, firms can explore strategic partnerships with specialized technology providers to build and integrate tailored learning exercises into their L&D ecosystem. This may include hands-on projects that mimic real-world scenarios, customized simulated environments, and labs specific to particular use cases or industries.

“We partner with multiple providers of advanced-level technology programs who design and deliver training in boot camps as well as virtual instructor-led training (ILT) mode for training in higher order competencies. They also provide cloud labs along with the program, apart from personalized subject matter expert (SME) guidance. In fiscal year 2023, 33% of our deep-skilled learners were deployed in projects where they could use their new skills” – Leading Indian IT service provider

Following are some examples of the partnerships leveraged:

Future outlook

The sharp decline in the project-readiness quotient of the workforce in recent times and the ever-evolving client expectations have led technology firms to take holistic measures to ensure they have sustainable pipelines of ready-to-deploy talent.

To effectively tackle the issue, firms must continue adopting proactive measures to enhance the project-readiness quotient. These approaches can include comprehensive assessment frameworks, optimized talent sourcing strategies, and establishing a balanced L&D ecosystem.

Firms with robust workforce strategies that strongly emphasize project readiness will   be better positioned to build and sustain scalable project-ready pipelines – giving them a competitive edge in the talent crisis.

To gain further insights into how leading service providers are transforming their workforce strategies to extensively focus on enhancing project readiness and technology talent, contact Arpita Dwivedi arpita.dwivedi@everestgrp.com, Amit Anand amit.anand@everestgrp.com, and Abhigyan Kumar abhigyan.kumar@everestgrp.com.

Watch the webinar, Locations and Workforce Strategy 2024: Insights, Trends, and Key Priorities, for trends shaping 2024’s workforce and locations strategies.

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