Mar 07, 2017, by Rachael Stormonth
In our blog last November (see here) at the time of NTT DATA Inc.’s closure of its acquisition of Dell Services, we summarized that Dell Services was a strategic but expensive acquisition for NTT DATA, and that while the former Perot Systems did not thrive as part of Dell, now it is part of NTT DATA Services it is back to being a services pureplay, also that the appli[...]
Feb 02, 2017, by Rachael Stormonth
WNS has just closed its acquisition of Denali Sourcing Services. An investment of around $40m, funded primarily with long-term debt, this is WNS’ largest acquisition in a decade (since that of Marketics Technologies, which enhanced its ability to offer offshore analytics services in 2007). And it is paying over 2x revenues for Denali Sourcing Services. So this is more than a tuck-i[...]
Jan 25, 2017, by Rachael Stormonth
NelsonHall analysts are regular bloggers, and while you might be familiar with a number of them, you might not be aware of the full range of topics that NelsonHall analysts blog about. We thought it was an opportune time to look back and pick out just a few of the many blog articles produced last year from different corners of NelsonHall research to give readers a flavour of the scope of our cover[...]
Jan 10, 2017, by Rachael Stormonth
“We connect the physical and the digital worlds”
This current slogan for the Swiss Post Group is very relevant for its Swiss Post Solutions (SPS) subsidiary as it looks to fundamentally change the nature of its business from paper-based document management to digital workflow management.
SPS is one of the larger companies globally offering both inbound document mana[...]
Oct 05, 2016, by Rachael Stormonth
Atos (which some years ago was at risk of itself being consolidated), is today one of the more effective consolidators in the IT services industry, with impressive experience of taking on challenging low-margin (or loss-making) businesses and turning them around in super quick time.
Last week, just 14 months after its acquisition of the IT outsourcing business of Xerox Corp, Atos [...]
Oct 04, 2016, by Rachael Stormonth
HCL Technologies’ (HCL) twitter hashtag for its recent adviser and analyst event in Sweden was #HCLBigLeap, which led us to expect to hear some big news items. The jam-packed sessions did provide an overview of many recent and current developments – but the big news item was finally disclosed in an individual blog the following day (more of which later).
We heard from many clients a[...]
Jul 12, 2016, by Rachael Stormonth
Genpact recently hosted an advisor/analyst session at its new Innovation Center in Palo Alto. So why is a BPO specialist opening a center in Silicon Valley? Genpact is using the center as a hub for the development (and showcasing) of platform-based digital assets aimed at mimicking the industry disruptors by being based on standardized, simplified operating models and distributed tec[...]
May 31, 2016, by Rachael Stormonth
In August 2015, we asked ‘Is CGI Ready to Pull the Acquisition Trigger?’It’s been four years CGI’s last big acquisition (Logica), and CGI watchers are still waiting to see what big move CGI will make next. Here I take a look at what’s driving CGI’s growth plans, and what we should expect next.
As a consolidator, CGI positions on taking a long-term strategic v[...]
May 25, 2016, by Rachael Stormonth
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 [...]
May 23, 2016, by Rachael Stormonth
Next year will mark Capgemini’s 50th anniversary, and it is looking to its U.S. operations to spearhead a reinvention as a next generation IT and business process services provider, one where it positions as an innovator that is bold and capable of acting at speed in helping clients optimize and disrupt the way they do business. This is reflected in an aspirational statement for th[...]
May 09, 2016, by Rachael Stormonth
Since his appointment as CEO of Infosys, a key message of Dr. Vishal Sikka has been that automation and AI are about the ‘amplification’ of the human, and that this has been true of technology for centuries. Here is one of many similar bold visionary statements made during his early months: “we see an opportunity to launch a great human revolution, where we are able to achieve mu[...]
May 04, 2016, by Rachael Stormonth
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[...]
Feb 16, 2016, by Rachael Stormonth
Last week, Cognizant released results for Q4 and full year 2015. At first glance, results looked strong. Q4 revenues were $3,232.5m, up 17.9% y/y, up 16% in CC, and adjusted operating margin was 19.6%, up 18 bps y/y and in the middle of the company's target range of 19%-20%.
If we look at Q4 2015 revenue performance in Cognizant’s two largest vertical groups:
Financial Services,[...]