In this video blog, Rachael Stormonth, NelsonHall's EVP Research, discusses the birth of DXC Technology. Financial information on the combined company can be found here. NelsonHall's reaction to the news of the acquisition at its announcement can be found here.[...]

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[...]

  NelsonHall recently attended a session in London with HPE Enterprise Services (HPE ES) and Microsoft for an update on their Cloud Productivity & Mobility (CPM) partnership based on Windows 10. HPE ES shared its vision of the end-to-end ‘Modern Enterprise’, using Windows 10 to enable it to manage and offer a consistent user experience across the entire organization.[...]

Four years ago, at the time of the London 2012 Olympics and Paralympic Games, NelsonHall reported on the work Atos does for the International Olympic Committee (IOC) though its Major Events unit. See our previous commentary here. This week we visited its center in Barcelona to get an update on the work it is doing for the Rio Games starting next month, The Olympic Games remain a fantastic o[...]

Yesterday evening provided what was possibly the biggest surprise in the IT services industry for some time: the news that Hewlett Packard Enterprise (HPE) is spinning off its Enterprise Services business via a Reverse Morris Trust (RMT) to HPE shareholders, for the business to be able to merge with CSC in a tax-efficient manner. Firstly, here are a few of the details of the transaction, which [...]

At Atos’ recent industry analyst event in Boston, the first time it had held such an event in the U.S., we expected the focus would be its expanded presence in the U.S. following its acquisition of Xerox’s ITO business last June, with an update on the integration, and plans for further development in the U.S. But this was a global rather than a regional event, and Atos had much more to[...]

In December 2015, we published two blogs about M&A activity in the IT services industry in 2015 (here are the links for Part 1 and Part 2). This blog examines M&A activity in IT services in Q1 2016 and sets our expectations for the rest of this year. In short, 2016 started off with a bang, with two very large IT services acquisitions announced in the first [...]

Self-service has long been part of the customer service mix, dating back to user manuals, and progressing to the first IVRs, website FAQs, and experience sharing communities such as Amazon Help. Even though self-service support has a wide range of benefits and savings for consumers and businesses, its adoption has been slow – due partly to technological limitations, and to a tendency to use [...]

When you imagine how manufacturing companies might be making use of the Internet of Things (IoT), chances are the first image that comes to mind is of factory robots. These and SCADA systems have been providing remote monitoring and management systems for many years, well before the term IoT was coined. And, as you’d expect, manufacturers are integrating IoT-based solutions into their M2M sy[...]

This is the first in a series of blogs looking at various aspects of the Internet of Things (IoT) market. Here I take a look at the use of IoT in the connected vehicle space, and at the shape of market potential. IoT can be used to build connected vehicle systems to enable: Vehicle-to-vehicle communication so that vehicles can update each other on road conditions, allow vehicles to proper[...]

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[...]

NelsonHall recently attended the Hewlett Packard Enterprise (HPE) “Empowering the Customer to Win in the Digital Age” event hosted by HPE BPS. The theme was strongly around digital and empowering organizations to own the (increasingly digital) interface between customers, suppliers, and employees. In support of this theme HPE is investing heavily in automation, both in its own platform[...]

Webhelp recently entered the Turkish CMS outsourcing market with the acquisition of Callpex, a move that is set to bring an additional €20m (~$20m) in annual revenue against its global revenue of ~$648m (2014 NelsonHall estimate). Callpex has 2,000 employees and 40 clients, and will bring with it logos in the BFSI, telecom, travel and automotive sectors, primarily in the domestic market. Thes[...]

IT security has never been more important, with levels of cybercrime continuing to climb and the adoption of cloud, mobile and IoT technologies increasing organizations’ ‘attack surface area’.  With organizations gathering more data than ever via digitization and big data, and attackers finding ever more sophisticated ways of targeting them, both the depth and breadth of att[...]

Summary: While 2014 was a “transformational year” for Atos MS and Worldline businesses, Atos’ C&SI business has also been reinventing itself. 2014 saw good progress against nearly all of the unit’s three year financial targets Atos C&SI has been making substantial investments to strengthen its capabilities to support clients in their digital transformation a[...]

HP Enterprise Services has announced Q2 FY 2015 results, for the period ending April 30, 2015: Revenue was $4,817m, down 15.5% y/y, and down 10% in constant currency (CC), reflecting key account run off and weakness in EMEA Segment earnings before taxes (EBT) were $194m, a margin of 4.0%, up 143 bps y/y. Q2 FY 2015 revenue by service line (with y/y revenue growth) was: [...]

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[...]

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[...]

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[...]

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[...]