Headcount growth decelerated, revenue declined even faster as vendors felt the whiplash of pandemic-induced downturn

Headcount growth decelerated, revenue declined even faster as vendors felt the whiplash of pandemic-induced downturn

Overview

The 14 vendors benchmarked in TBR’s Global Delivery Benchmark continued to hire and acquire resources, albeit at a much slower rate in 1H20 than in 1H19 due to COVID-19, a trend we expect to accelerate in 2H20.

As vendors went into damage-control mode amid the pandemic, most deployed proven legacy cost rationalization methods, including layoffs, salary freezes and limited SG&A spend to protect profitability.

COVID-19 has accelerated digital transformation-related opportunities around cloud, AI and cybersecurity, demanding vendors develop right-skilled and right-sized benches to provide support beyond technology excellence.

The Global Delivery Benchmark provides efficiency comparisons, assessments and insights into global delivery strategies and investments across 14 leading IT services firms. The research highlights overarching resource management market trends, discusses implications to operations from increased labor automation and examines disruptors that shape new business models and KPIs.

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