Human-based service delivery vendors’ talent management strategies and revenue growth will be tested amid COVID-19

Headcount growth surpassed revenue growth, a trend we expect to continue, albeit at a lower pace as vendors stall hiring due to COVID-19

The 14 vendors in TBR’s Global Delivery Benchmark continued to hire and acquire resources ahead of revenue growth in 4Q19 as they geared up to address buyer demand for scaling digital transformation (DT) initiatives. Developing certified talent supporting Agile-based service delivery helps vendors build and solidify trust with enterprises seeking to optimize and/or modernize IT operations through next-generation technologies. While vendors will continue to act as price-competitive solutions brokers by developing teams at on-site and nearshore locations that can split the work and either execute on delivery or collaborate with offshore teams for support, the global pandemic will likely dampen buyer sentiment around DT spend, impacting vendors’ hiring initiatives in 1H20. Workplace management and security are two bright spots in in-demand skills during the pandemic.

TBR’s Global Delivery Benchmark documents vendor performance; attrition and utilization rates; and market, growth and profit drivers of 14 of the largest systems integrators globally.

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