DALLAS, Nov. 27, 2020 /PRNewswire-PRWeb/ -- Despite
the pandemic, more than 70% of the Global 1000 executives are still
optimistic about meeting or exceeding 2020 growth targets,
according to Everest Group. By rapidly recalibrating business
models and quickly adopting work-from-home strategies, the world's
largest global enterprises have largely overcome the Q2 setbacks
experienced when the pandemic took hold.
These findings are from recent Everest Group research conducted
in partnership with the Global Technology & Business Services
Council (GT&BSC). Everest Group surveyed more than 320 senior
enterprise stakeholders from Global 1000 companies for their
thoughts about 2020 performance and their sentiments about growth
prospects, investment priorities and challenges expected for
2021.
Seventy-two percent (72%) of respondents indicated that their
organizations had achieved a better-than-expected (30%) or
as-expected (42%) financial performance in 2020. This optimism is
reflected across geographic regions. In comparison, one year ago,
long before COVID-19 became a pandemic, the percentage of
respondents who felt as optimistic about 2019 performance was only
slightly higher (79%).
In November of 2019, 21% of respondents were pessimistic about
meeting their annual growth objectives. The percentage of
respondents that reported 'a tough year' in 2020 rose to only
28%.
"What is remarkable about our survey of Global 1000 enterprises
in 2020 is that most enterprises are optimistic about meeting the
growth predictions made this time last year—long before the
pandemic became the overriding and oppressive theme of the year,"
said Michel Janssen, chief research
officer at Everest Group. "In that particular sense, that sense of
optimism—and with a few industries as notable exceptions—the
business world has not changed much in the past year, and that's
quite astounding.
"To be sure, most industries succumbed to a temporary shock in
Q2 as coronavirus spread across continents, but many—the majority
even—were able to quickly recalibrate," said Janssen. Companies
immediately went into risk management mode, looking to ensure that
their services providers were going to survive. They also
challenged their outsourcing partners to drive cost savings and
assist the organization with process improvement. By rapidly
adapting to work-from-home, online commerce and other new business
models and investing in digital transformation, Global 1000
industries have proven themselves resilient and are surviving 2020
in far better shape than expected. For this reason, we predict that
we'll see enterprise growth burst out of the gate in the second
half of 2021 if the efficacy of COVID-19 vaccines attains the 95%
mark as hoped."
***Virtual Keynote Address: Monday,
November 30, 6 am CST
(12 pm UTC 0)***
The results of this research will be presented at the opening
keynote session of the inaugural conference of the GT&BSC by
Janssen as well as Everest Group's Jimit
Arora, partner, and Amy Fong,
vice president. The keynote — "A Revised Vision – Recalibrating for
Resiliency" — will address the impact of COVID-19 on countries and
the global economy, demonstrate the role of innovation in times of
crises and opportunity, and advocate for the need for greater
leadership and cross-regional collaboration than ever before. The
keynote will be followed by an "Analyst Debate" featuring
Eric Simonson, managing partner of
Everest Group, and several other analysts discussing the future of
global technology and business services industry around the
world.
For more information and free registration, visit GT&BSC
Conference Series & Research Launch.
Additional Highlights from the 2021 Enterprise Key Issues in
Global Sourcing Study
- 'Recovery from the pandemic' now makes the top 5 list of
enterprises' key challenges for 2021 in #2 position, usurping
'regulations in key markets (trade wars, tariffs, etc.),' which
placed #2 for 2020 but fell out of top 5 contention for 2021.
- 'Driving customer acquisition' and 'implementing technology'
appeared in the top 5 list of critical areas of innovation for the
next 1-2 years.
- Enterprises increasingly identify data availability, spending
levels and digitalization as key levers to increasing business
resiliency.
- With increased digitalization—further accelerated by
COVID-19—cloud and cybersecurity emerged as top
digital/next-generation capability priorities.
- Hiring for 2021 will be significantly muted across geographies
and functions, with the exception of Global Business Services (aka
Shared Services) organizations.
- Enterprises are significantly less concerned about
talent/skills shortage now than they were in 2018, but the shortage
of candidates with next-generation skills is still highly
challenging.
About GT&BSC
The Global Technology & Business Services Council is an
alliance of the leading regional associations around the world,
representing the interest of the global technology and business
services industry. Its purpose is to promote the industry for
growth by sharing best practices and thought leadership for the
benefit of all its members and their clients and employees. The
GT&BSC will lobby stakeholders to secure the best interests for
its members. All members of the Council have signed up to the
Industry code of conduct. https://gtbsc.org
About Everest Group
Everest Group is a consulting and research firm focused on
strategic IT, business services, engineering services, and
sourcing. Our clients include leading global enterprises, service
providers, and investors. Through our research-informed insights
and deep experience, we guide clients in their journeys to achieve
heightened operational and financial performance, accelerated value
delivery, and high-impact business outcomes. Details and in-depth
content are available at http://www.everestgrp.com/
Media Contact
Andrea Riffle, Everest Group,
954-801-8474, andrea.riffle@everestgrp.com
Twitter, LinkedIn
SOURCE Everest Group