HP recently announced a major (multi-billon) 10-year IT infrastructure management services contract with Deutsche Bank’s wholesale banking division (which accounts for around 50% of the DB Group revenues). HP Enterprise Services (HP ES) will deploy HP Helion, providing data center services on-demand including storage, platform and hosting – activities formerly essentially done in-ho[...]

What a difference a year makes for EXL. It entered 2014 under the cloud of the loss of two contracts, including the unfortunate termination Travelers (which had accounted for nearly 10% of total revenues in 2013) because of inappropriate behavior by an employee. So it started the year facing significant revenue headwinds. A year later, EXL delivered full year 2014 revenues that beat revise[...]

STARTEK has announced results for Q4 2014 and full year 2014. Q4 2014 Revenues were $64.2m, up 1.2% y/y LBIT was $1.5m, a negative margin of 2.4%, down 98 bps y/y. Full year 2014: Revenues were $250.1m, up 8.1% LBIT was $4.9m, a negative margin of 2%, up 72 bps. Q4 revenue contribution from largest clients was: T-Mobile: 30.6% AT&T: 19.6% Comcast 15.7%. [...]

Capgemini’s CEO Paul Hermelin describes himself as “very encouraged” by 2014 results; the group has exceeded guidance for: Topline growth: guided on 2-4% organic, delivered 3.4%, accelerating to 5.5% in Q4 Net margin, guided on 0.3 to 0.5 pts improvement, delivered 0.7 pts to 9.2%. Capgemini should read 10% margin by early 2016 Organic FCF: guided at above €55[...]

Worldline, which IPOd in May 2014, has announced results for full year 2014 and has presented its views on the payments market, its business roadmap, and its successes to date. The results, below, are subject to adjustment when Worldline files its financial reporting statements in late March: Revenues were €1,149m, up 2.8% y/y  Operating margin be[...]

Learning outsourcing contracts continue to be driven by client needs to reduce their administrative burden and focus on their corporation’s strategic objectives. And talent development is high amongst client business priorities where HR can make a significant impact, being a leading driver for clients outsourcing their learning services. NelsonHall’s most recent learning BPO (L[...]

Barely two months into the year and there has been lots of activity across the benefits administration market, including new contracts, contract expansions, and M&A activity.  Contracts have come out of the U.S. and Europe, including the U.K. and the Netherlands. U.S. activity has come from both the private and public sectors, with deals ranging from as few as 800 employees to mor[...]

Infosys is to acquire Panaya, a vendor of automation technology for enterprise software management, for $200m in cash. Panaya is a privately held company backed by hi-tech VC firms including Benchmark Capital, HPV and Battery. The transaction is expected to close before March 31. Founded in 2005, and formerly known as ChangeSoft Technologies, Panaya is based in Ra’anana, Israel and h[...]

Germany’s fiscal success story presents an interesting value proposition for the local customer management services (CMS) BPO market. Real GDP in Germany grew by 1.5% in 2014 and current forecasts indicate that, driven by a strong labor force, high consumption and favorable energy prices, Germany should be able to maintain this level of growth through 2015 and accelerate to around the 2.0% m[...]

A strong end to 2014 for Cognizant, with the disruption of Q2 results (due to client specific issues) now a fading memory. Q4 2014 revenues were up 16.4% y/y, up 13% y/y excluding Trizetto. And non-GAAP operating margin of 19.4% was within its targeted range. Q4 2014 revenue breakdown by vertical (and actual revenue growth) was: Financial services: $1,121m (+12.4%), with strong gr[...]

Accenture Federal Services (AFS) is to acquire Agilex Technologies, a privately-held provider of digital solutions for the U.S. federal government based in Chantilly, VA. Terms of the transaction were not disclosed.  The acquisition will enhance Accenture’s digital capabilities in analytics, cloud and mobility for federal agencies. It also will add agile delivery expertise. Agilex br[...]

Analysis of NelsonHall’s U.K. outsourcing contracts for 2014 shows that outsourcing is becoming more sophisticated in a number of key areas across both service delivery and contracting. Within service delivery: The role of Cloud was increasingly evident with for example the first HR BPO contracts based on Workday software emerging in BPO and IaaS contracts in support of SMEs becoming c[...]

Q4 2014 results from the top five U.S. headquartered securities services firms indicate that revenue growth for securities and custody services is slowing down. The two largest global custodians, BNY Mellon and State Street, along with Citibank, reported revenue decline in calendar year Q4 2014. The figures below show change in securities services revenue versus the prior quarter (q/q[...]

By Amy Gurchensky, Liz Rennie and Gary Bragar With total HRO service growth in the high single digits in 2014, service providers are growing both organically and inorganically to meet clients’ needs. The primary reasons for M&A and partnerships across HRO service lines were to enhance service delivery capability (60%) and support geographic expansion (40%). Here we take a closer look [...]

Overall IBM Group revenues in 2014 declined 6% (-1% in CC and excluding divestitures). However, IBM is in the midst of a major adjustment of its portfolio. In line with this, the company is reporting $25bn in revenues (and 16% revenue growth) in 2014 (out of a total of $92.8bn) from its "strategic imperatives". IBM's acquisition of Softlayer, where it continues to invest strongly,[...]

CGI CEO Michael Roach describes Q1 FY 2015 results as “strong”– and yet revenue was down in every region apart from the U.K. (putting aside the 0.9% CC growth in APAC to CDN$108.7m).  The 169% book-to-bill ratio achieved this quarter looks a lot less impressive when the CDN$2bn renewal with Bell Canada is excluded, when the global book-to-bill goes down to 90%[...]

“A lot has happened in the last 90 days and overall we're pleased with where we ended the year. We're reporting solid results that in some places exceeded expectations” Ursula Burns. Q4 summary: Services revenue was $2,725m, up 1.5% y/ y, and up 3% in constant currency: BPO CC growth was 4% (up from 2% in Q3) with growth in commercial healthcare payer, electronic[...]

TCS has briefed NelsonHall on the recent launch of its DevOps related IP, Non-Production Environment Tracking and Release Automation (NETRA). With NETRA, TCS Assurance Services Unit (ASU), the main testing unit of TCS, is pursuing its strategy originated with Intelligent Testing Systems (ITS) to develop broad-reaching IPs, encompassing open source software, COTS, and TCS-developed accelerators.[...]

TCS Globally: High Market Cap, High Brand Value With over $15bn in revenues in CY 2014 (and FY 2015 revenues likely to be in the region of $15.5bn) TCS is not only one of the largest, fastest growing and most profitable service providers but is now also a top 5 IT services player (*) on the global stage. And TCS is also the most profitable of the Top 5, with an EBIT margin currently tracking at[...]

This week NelsonHall held its quarterly IT outsourcing (ITO) Index webcast. We have conducted these calls for the last six years to monitor developments in ITO from a quantitative perspective. When we introduced the Index, ITO had largely moved from full outsourcing to a selective outsourcing approach, and Indian vendors were deploying their land and expand strategy with the occasional one-off meg[...]