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Jun 29, 2023, by Rachael Stormonth
IBM Consulting recently held a two-day analyst event for its European business (a significant region for IBM Consulting). Against an ongoing backdrop of uncertainty for client organizations in many sectors, the tone overall is quietly confident, buoyed by recent client wins and progress in a number of internal initiatives.
At a similar event seven months ago, there were clear emph[...]
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Jan 10, 2023, by Dominique Raviart
We recently talked to Tata Elxsi, the engineering and R&D services vendor headquartered in Bangalore, India. We discussed where the adoption of AR/VR is currently among enterprises, how the metaverse differs from AR/VR, and which B2B use cases enterprises will prefer in the short to medium term.
The current demand for virtual reality (VR) is primarily driven by the gaming indu[...]
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Dec 14, 2022, by Rachael Stormonth
We recently attended Infosys’ EMEA CONFLUENCE flagship client event and found the company quietly bullish about recent and projected performance in the region.
Europe remains a growth market for Infosys
Salil Parekh made it clear some years ago that he wanted to grow Infosys’ business in Europe, and the results are there to see.
Europe now accounts for [...]
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Nov 28, 2022, by Rachael Stormonth
In its Q3 FY22, TCS delivered its sixth consecutive quarter of organic growth around the 15% mark. Despite the uncertain macroeconomic background, TCS has a strong pipeline for at least the next two quarters and has yet to see any softening in the market. For example, it was expecting some softening in Europe in the September quarter but instead achieved both increased revenue growth[...]
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Feb 12, 2021, by NelsonHall Analyst
As the rapid rise of the pandemic demonstrated in early 2020, a company’s ability to react and respond to the changing business environment is a critical capability. Even prior to the pandemic, a NelsonHall survey of ~1k IT service buyers showed ~60% placing high importance on increasing the agility of existing core productions applications. Companies are looking for agility in[...]
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Apr 23, 2019, by NelsonHall Analyst
In recent years, many IT services firms have been aggressively acquiring new capabilities in creative areas such as design.
One of the key challenges they face in acquiring such firms is managing what can be a significant culture gap between the flexibility of small creative firms and the regimented, industrialized nature of a global IT services firm. Successful acquisitions strik[...]
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Dec 06, 2018, by Rachael Stormonth
NelsonHall recently attended BearingPoint’s analyst event in Lisbon. As it starts its second decade with a new Managing Partner (Kiumars ‘Kiu’ Hamidian, only the second in the company’s history), the strategy that has served BearingPoint well in its first ten years is now evolving in ways that reflect significant developments in the nature of the consulting ma[...]
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Nov 01, 2018, by Rachael Stormonth
We have delayed the publication of this event note until after Capgemini’s Capital Markets Day this week, when Capgemini confirmed its mid-term ambitions of 5-7% organic growth and an operating margin of 12.5-13%.
“In Shape and On the Move” were among the first few words of COO Thierry Delaporte’s closing address at Capgemini’s global analyst and adv[...]
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Apr 18, 2018, by Rachael Stormonth
NelsonHall recently attended the Atos global analyst event in Boston, where we were keen to get an update on topics including:
Atos’ strategy for growth in North America, which has new leadership following a rather disappointing 2017
Recent developments and short-term priorities for offerings in the Digital Transformation Factory.
It appears to us that, nearly three years af[...]
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Oct 16, 2017, by Dominique Raviart
DXC Technology recently held an analyst day in the U.K., its first since being ‘born’ on April 1. It is still early days for this young organization and the integration continues (though there was little mention of this at the event). In its recent investor calls, DXC Technology has emphasized actions to strip out costs, apply financial discipline, and invest in next[...]
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Jan 17, 2017, by Dominique Raviart
M&A activity in IT services is set to take a new direction in 2017. Here, I reflect on M&A activity by the largest IT services vendors in 2016, with its emphasis on mega deals, and look ahead to 2017, which is set to be the year of digital & security tuck-in acquisitions.
Large M&As in 2016: IT Conglomerates and Defense Firms Divest IT Services Arms
Large-scale M&am[...]
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Nov 03, 2016, by Dominique Raviart
Dell Services is a strategic acquisition, though an expensive one
Yesterday, NTT DATA Inc. closed its acquisition of Dell Services, seven months after its initial announcement.
The acquired entity, now called NTT DATA Services on an interim basis, has some obvious benefits. For example, it:
More than doubles NTT DATA Inc.’s revenues from $1.7bn to over $4bn
Significantly s[...]
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Aug 23, 2016, by Ivan Kotzev
On 22nd August, Teleperformance announced the acquisition of interpretation services provider LanguageLine Solutions (LLS) for $1.52bn.
LanguageLine was founded in 1982 and is headquartered in Monterey, California. In 2015 it had revenues of $388m and adjusted EBITDA of $147m, and the company is expected have revenues of between $400m and $450m in 2016. It has ~8k interpreters, 92% of whom&[...]
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Jan 04, 2016, by Dominique Raviart
It is three years since Tech Mahindra finalized its merger with Satyam, a challenging journey of 18 months, to diversify its client base from BT (29% of revenues in Q3 FY 2013), the telecom services overall and from Europe (its then largest vertical by far, representing 46% of revenues). At the Tech Mahindra indicated several ambitious targets for CY 2015:
Reaching $5bn in annual revenues by[...]
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Jan 04, 2016, by Dominique Raviart
Reflecting slightly improved macro-economic conditions, 2015 was an active year for M&A activity in the IT services industry. The largest acquisition - for some years - was that of IGATE by Capgemini. And there was a large number of small to mid-sized transactions.
When analyzing this active M&A activity, several findings are striking:
In spite of all the intensive discu[...]
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Jan 04, 2016, by Dominique Raviart
This is the second of three articles examining M&A activity in IT services during 2015. Last time we looked at how M&A activity was being driven by $10bn to $15bn vendors. This time we take a look at M&A around newer service offerings and digital transformation. The firms that are acquiring capabilities in digital services are vendors in good financial health that have mostly alre[...]
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Oct 08, 2015, by Rachael Stormonth
One recurring theme in recent conversations with CIOs has been their increasing interest in DevOps and their recognition of the importance of having the right culture. In fact, three C words: Culture, Collaboration, Communication. The general feeling is that if Agile is difficult, distributed Agile is challenging – and DevOps requires organizational rethinking. But, they agree[...]
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May 20, 2015, by Dominique Raviart
CSC has announced a planned break up by October 25 2015 into two firms: CSC U.S. Public Sector (FY 15 revenues: $4.1bn) and CSC Global Commercial ($8.1bn, also includes non-U.S. public sector). See here for details:
The announcement ends a long period of speculation over the posssible sale of CSC's North American Public Sector unit[...]
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Apr 09, 2015, by Dominique Raviart
NelsonHall recently met with the management of Atos to discuss the acquisitions of Bull and Xerox ITO and the progress being made by Atos in adopting Indian offshoring. Note that this meeting took place before Atos' Consulting & Systems Integration analyst day.
Bull: Is An Expanded Portfolio Relevant?
With its acquisition of Bull, Atos has acquired an IT firm with a significant level[...]
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Apr 08, 2015, by Dominique Raviart
This week NelsonHall held its quarterly IT Outsourcing (ITO) Index webcast to report on the latest developments in ITO contract activity and present an analysis of spending activity for IT services, professional services (i.e. consulting and systems integration) and ITO.
Background
ITO Index data shows a steady (but non-linear) decline in Total Contract Value (TCV) from 2002 onwards. The lev[...]