Vendor Analysis
published on Mar 04, 2024
Report Overview:
NelsonHall's Quarterly Update for Q4 2023 consists of 33 pages, and tracks and compares the financial performance of tier-one IT service vendors.
Who is this Report for:
NelsonHall's Quarterly Update for Q4 2023 is a new NelsonHall product that tracks and compares the financial performance of tier-one IT service vendors. It explains each vendor’s financial performance for the latest quarter and compares it with competitors across several financial items (e.g., CC revenue growth, revenue growth in North America and EMEA, in Financial Services, and EBIT margin).
Scope of this Report:
The report provides an analysis of the performance of Accenture, Capgemini, CGI, Cognizant, DXC, HCLTech, IBM Consulting, Infosys, TCS, and Wipro, across:
- Reported y/y revenue growth in the past five quarters
- Constant currency (CC) y/y revenue growth in the past five quarters
- North America revenue growth (y/y, CC) in the past five quarters
- EMEA revenue growth (y/y, CC) in the past five quarters
- Financial Services revenue growth (y/y, CC) in the past five quarters
- EBIT margin in the past five quarters
- EBIT margin and CC revenue growth in Q4 2023
- Full-year guidance.
For each vendor, the QU includes, where available:
- An analysis of revenue growth, EBIT margin, and bookings
- Metrics by geography, vertical, and service line.
Key Findings & Highlights:
- In Q4 2023, revenues of most vendors (TCS, CGI, Accenture, Capgemini and Infosys) continued to decline with growth ranging between -1% and +2%
- IBM Consulting and HCLTech were the exceptions, both achieving CC growth above 4%
- Three vendors are trailing: Cognizant, DXC, and Wipro; all three undergoing transformation plans:
- Cognizant and DXC are stabilizing (DXC at a low level)
- Wipro continues to underperform against peers, partly due to slowness in activity at Capco.