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Mar 17, 2015, by Gary Bragar
The Twittersphere has been buzzing recently with opinions on the compliance of global Human Capital Management (HCM) technologies, with commentators debating the relative merits of different approaches, and discussing key topics such as localization gaps and the breadth of language support.
Vendors are making moves to improve their HCM delivery to address these and other issues, and in 2015 the[...]
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Mar 09, 2015, by Dominique Raviart
At Cognizant’s European analyst event in Berlin, the topic of digital transformation and in particular its Horizon 3 services dominated discussions. Horizon 3 services now represent a NelsonHall estimated 10% of revenues (~$1.0bn in 2014). Horizon 3 includes new services such as digital services as well as new business models and new sectors/new geographies.
Digital Transformation
Cogn[...]
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Mar 02, 2015, by Andy Efstathiou
In Capgemini’s recent North America analyst conference, the company provided a compelling description of how its approach in North America has developed recently, together with examples of how this has succeeded, and shared its vision and a roadmap for the next few years. Confidence about prospects for 2015 is high.
Capgemini’s 2014 revenues in North America were €2,230m, a gro[...]
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Feb 27, 2015, by Rachael Stormonth
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[...]
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Feb 27, 2015, by NelsonHall Analyst
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[...]
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Feb 23, 2015, by NelsonHall Analyst
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%.
[...]
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Feb 23, 2015, by Rachael Stormonth
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[...]
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Feb 19, 2015, by Andy Efstathiou
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[...]
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Feb 19, 2015, by NelsonHall Analyst
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[...]
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Feb 19, 2015, by Gary Bragar
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[...]
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Feb 17, 2015, by Rachael Stormonth
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[...]
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Feb 16, 2015, by NelsonHall Analyst
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[...]
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Feb 09, 2015, by Rachael Stormonth
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[...]
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Feb 09, 2015, by Rachael Stormonth
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[...]
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Feb 09, 2015, by John Willmott
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[...]
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Feb 05, 2015, by Andy Efstathiou
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[...]
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Feb 05, 2015, by NelsonHall Analyst
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 [...]
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Feb 04, 2015, by Rachael Stormonth
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,[...]
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Feb 03, 2015, by Rachael Stormonth
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%[...]
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Feb 02, 2015, by Dominique Raviart
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.[...]