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Feb 02, 2015, by Rachael Stormonth
“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[...]
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Feb 02, 2015, by Rachael Stormonth
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[...]
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Jan 28, 2015, by Dominique Raviart
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[...]
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Jan 19, 2015, by Gary Bragar
By Amy Gurchensky, Liz Rennie, Gary Bragar
2014 was a busy year for HRO with ~60 partnerships, mergers and acquisitions combined. We now take a look at what to expect in 2015 and beyond for each HRO service line, including service offerings, market developments, and growth.
MPHRO driven by continued shift to cloud-based platforms
The Multi-Process HRO (MPHRO) market will grow with a mi[...]
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Jan 16, 2015, by Andy Efstathiou
Tech Mahindra has agreed to acquire SOFGEN to enhance its core banking systems integration (build, run, operate) capabilities. The acquisition is expected to close by the end of March.
Swiss-headquartered SOFGEN is a specialist in Avaloq and Temenos platforms and also has capabilities in TCS BaNCS and Misys. SOFGEN has 450 employees, including >70[...]
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Jan 14, 2015, by Dominique Raviart
NelsonHall, the leading global BPO and IT outsourcing analyst firm, has today launched a new tool to assist strategic sourcing managers in assessing vendor capability in Application Outsourcing (AO) services.
This NelsonHall Vendor Evaluation and Assessment Tool (NEAT) is now available to NelsonHall clients, and is also available for a period free-of-charge to buy-side organizations through Nel[...]
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Jan 12, 2015, by Dominique Raviart
Tech Mahindra recently updated NelsonHall on its performance engineering (TMPE) capabilities. The comments below complement an article on TMPE we wrote in January (see here).
TMPE, part of Tech Mahindra’s Testing Services practice, is in high growth mode, having increased its headcount from 450 in early 2014 to 800 currently.
Much of this growth has been driven by cross-sell[...]
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Jan 12, 2015, by NelsonHall Analyst
I recently visited San Pedro Sula, Honduras, with CMS vendor Alorica. This nearshore America delivery location offers a low cost, educated workforce with strong native neutral Spanish delivery, as well as emerging support for English and Portuguese. The country is in the process of making English its official second language.
Honduras, and specifically the city of San Pedro Sula, have battled n[...]
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Jan 08, 2015, by Dominique Raviart
NIIT Technologies recently briefed NelsonHall on its testing capabilities.
Headquartered in Noida, NIIT Technologies had FY 2014 revenues (ending March 31, 2014) of ~$389m, with an operating margin of 15.2%. H1 FY 2015 revenues were ~$189m. Headcount at the end of H1 FY 2015 was 8.7k.
The company is an unusual Indian Outsourcing Service Provider (IOSP) with a specialization i[...]
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Dec 19, 2014, by Rachael Stormonth
In the early hours of this morning, Atos announced it is acquiring the IT outsourcing business of Xerox. Full details of the acquisition are here.
Atos is ending 2014 with a bang. Having completed the integration of Siemens IT Solutions & Services pretty darned quickly (certainly far faster and more effectively than naysayers would have predicted), it has proceeded this year to the car[...]
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Dec 19, 2014, by Rachael Stormonth
Accenture Q1 FY 2015 results are out today: 7.3% reported net revenue growth to $7,896m, operating margin at 15.0%. Full details are here.
Accenture CEO Pierre Nanterme opened the analyst call referring to an “excellent” first quarter and saying “I am extremely pleased with our results”.
And here’s why:
The 10% topline growth in local currency is the best [...]
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Dec 17, 2014, by Gary Bragar
Last week, U.S.-based Intuit acquired U.K.-based Acrede to expand into global payroll services. Terms of the acquisition were not provided except that closing is expected by Q1 2015.
Inuit provides business and financial services, including accounting services to small and mid-size U.S. companies. Prior to the acquisition Intuit provided payroll solely to the U.S., and it will now be able to pr[...]
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Dec 12, 2014, by Dominique Raviart
Tech Mahindra Testing Services (TMTS) has updated NelsonHall on its DevOps capabilities.
TMTS continues to work with CA Technologies around this offering, largely around service virtualization (SV), application release management (ARA) and together with other ISVs/open source software around agile testing/continuous integration (CI). (For more information on the offering, please refer to the pr[...]
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Dec 08, 2014, by Dominique Raviart
EVRY has announced its largest shareholders, Posten Norgen and Telenor Business Partner Invest are to sell their shares (representing a combined 70.24% of capital) to Apax Partners. Apax Partners has secured an additional 3.15% of EVRY shares from Folketrygdfondet (Norway’s government pension fund) and is to launch a NOK 16 per share all-cash public tender. The tender values EVRY at ~$6[...]
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Dec 02, 2014, by Dominique Raviart
NelsonHall recently attended Luxoft’s first ever analyst event in New York.
Luxoft is a young company - it was founded in 2000 - that is enjoying very fast growth (20%-25% depending on the year). For its FY 2015 it has guided on revenue growth of at least 28% (of which 25% organic) and an adjusted EBITDA margin in the 17% to 19% target range.
Luxoft is targeting $1bn in annual revenues[...]
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Dec 01, 2014, by NelsonHall Analyst
NelsonHall, the leading global BPO and IT outsourcing analyst firm, has today launched a new tool to assist strategic sourcing managers in assessing vendor capability in Property & Casualty Insurance BPO for the automotive sector.
The NelsonHall Vendor Evaluation and Assessment Tool (NEAT) for P&C BPO in the automotive sector is now available to NelsonHall clients, and is also available[...]
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Nov 25, 2014, by Dominique Raviart
NelsonHall recently met with SQS top management and discussed key priorities in the short, mid- and long-term.
Short-Term: India and Delivery Network
A short-term priority remains the integration and development of the former Thinksoft Global Services, now SQS India BFSI. The acquisition of Thinksoft increased SQS’ headcount in India to 1.9k or 54% of the overall global headcount.
S[...]
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Nov 24, 2014, by Gary Bragar
On November 20, 2014 Xerox announced its acquisition of Intrepid Learning Solutions learning services to expand it learning services portfolio and capability.
Intrepid Learning Solutions brings in capabilities that include:
Consulting services, including development of learning strategies, measuring their effectiveness and benchmarking
Course curriculum design and development[...]
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Nov 21, 2014, by NelsonHall Analyst
In the last twelve months we have more customer management services (CMS) BPO investment in South Africa, including
Webhelp setting up centers in Cape Town and Johannesburg with an agent headcount approaching 1,000
Capita transitioning part of its O2 support to Cape Town in the form of a ~1,400 seat operation.
One (of many) attributes that make South Afr[...]
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Nov 18, 2014, by Gary Bragar
NelsonHall, the leading global BPO and IT outsourcing analyst firm, has today launched a new tool to assist strategic sourcing managers in assessing vendor capability in Managed Service Programs outsourcing (MSP) as it relates to contingent workforce management. Also available is NelsonHall’s first MSP market analysis report, “Targeting Managed Service Programs”.
NEAT Vendor E[...]