In today’s competitive landscape, innovation centers have become indispensable for forward-thinking organizations. But how many of these centers deliver real, transformative outcomes? For enterprises and service providers navigating this terrain, the question isn’t whether to invest in innovation centers, but how to maximize their value to ensure they serve as catalysts for meaningful business transformation.

Innovation centers are more than just places for experimentation – they are strategic engines driving the future of business success. They must evolve to address challenges, deliver value, and stay at the forefront of disruption.

At Everest Group, we’ve examined how innovation centers are transforming into engines of strategic advantage. Based on our latest research, we see clear opportunities – and challenges – for businesses looking to leverage these centers to stay ahead of the curve. Let’s dive into the key insights and guidance that can help shape your future strategy.

Learn more in my blog on Forbes

How can businesses seize opportunities as the technology services industry emerges from its longest deceleration in years?

Every year begins with questions about what lies ahead, and 2025 is no exception. As we stand at the cusp of what appears to be a pivotal year for technology services, it’s critical to assess where we are and where we’re headed.

Are we emerging from the longest deceleration in recent memory, or are we merely pausing before the next wave of challenges? More importantly, what strategies will define success in this shifting landscape?

Learn more in my blog on Forbes

The move into digital operations caused companies to expand their capex and opex budgets to invest in automation, digital technologies, as well as modernization and the move to the cloud during the last 10-15 years. They are now in a mature state in the digital world and have been investing at an almost torrid pace to deliver even greater value. As I have explained in previous blogs, they have ongoing demand for more investments to continually evolve their tech stacks and business operations almost in lockstep.

We are now in a broad labor shift. And it is not just because of the Great Resignation (or Great Reshuffle) where millions of people resigned from their jobs after the COVID-19 pandemic. The current talent shortage is acute in STEM skills such as engineering, data management, and analytics; but it also includes shortages of blue-collar and white-collar workers such as truck drivers, call center agents, and manufacturing skills. And it will get much worse. Companies must take a more systematic approach and build mechanisms for hiring now so they can succeed despite this challenge.

After witnessing a hazy macro environment for five straight quarters, India-centric IT services firms saw green shoots in the first quarter of this fiscal. While experts were still uncertain about the continuity of tech spending, Q2 (July to September) earnings belied the doubts of the naysayers.

Peter Bendor- Samuel, CEO of Everest Group, said that the BFSI sector is witnessing a rebound following the post-COVID slump. “BFSI typically leads other industry segments, so this is an encouraging sign for the rest of the IT industry,” he said.

Enterprises are all in on AI. They want their models to run in production environments smoothly and with as high performance as possible to obtain a high return on investment. However, even with all the advanced models available in the market, teams continue to struggle with deployment issues.

Last year, Peter Bendor-Samuel, the CEO of Everest Group, estimated that 90% of the gen AI pilots started will not make it to production.

Read more at: VentureBeat

India’s IT industry appears to be staging a recovery from a deep slowdown, driven by an increase in discretionary spending, particularly in the financial services vertical and the North America market.

The optimism expressed by leading Indian IT firms is mirrored by analysts, who see an uptick in hiring and upward guidance revisions as indicators of a brighter outlook ahead.

“We are witnessing a rebound following the post-COVID slump. Early signs emerged earlier this year, and now there’s significant conviction that this recovery is real,” Peter Bendor-Samuel, CEO of consulting and research firm Everest Group, said, referring to the BFSI sector. “BFSI typically leads other industry segments, so this is an encouraging sign for the rest of the IT industry.”

Major Indian IT companies are optimistic about FY25 revenue growth, with increased hiring and revised forecasts. However, Q3 may present challenges due to seasonal factors and rising wage costs impacting margins.

Everest Group CEO Peter Bendor-Samuel stated that “The growth in headcount is somewhat driven by firms positioning themselves to be able to grow, but also due to balancing out the pull-back we have seen over the last year.” Read more in mint.

Europe was a bright spot for the Indian IT industry’s growth when its chips were down. But as North America has started gaining traction for the IT services industry, the other side of the pond has begun to show signs of softness for many of the top IT companies.

Peter Bendor-Samuel, CEO of research firm Everest Group, said Europe is facing a decelerating economy. “Firms are pulling back hard on discretionary spend and looking to delay large projects.”

IT and technology services companies are eyeing to expand and double down investments into emerging/rest of the world (RoW) markets including India, Japan, Middle East, and Latin America, among other countries in 2025; as core markets like the US and Europe continue to grapple with macroeconomic uncertainties.

Read more about what Everest Group CEO Peter Bendor-Samuel had to say on the topic at: Money Control