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Atos North America: Back to Growth
Nov 01, 2019, by Rachael StormonthWhat a difference a year makes. Atos recently held its second North America business event in Dallas, just under a year since completing its acquisition of Syntel. Last year’s event focused on the newly formed Atos-Syntel organization in North America, and also on how, with a new CEO in place, North America was starting to address some legacy problems and to manage a situation where a[...]
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Advance 2021: The Road Ahead for Atos
Mar 01, 2019, by Rachael StormonthIt is a decade since Thierry Breton assumed the mantle of CEO and Chairman at Atos, his arrival marking the end of a troubled period for the company. In that time, the company has improved its profitability (when he arrived, its operating margin was just 4.8% and all service lines were experiencing a deterioration in profitability, so his ambition of a double-digit margin seemed ambitious). Al[...]
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BearingPoint Looks to Evolve Advisory Model Under New Managing Partner
Dec 06, 2018, by Rachael StormonthNelsonHall 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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Atos-Syntel: Boosts Atos North America Portfolio; a Transformation Lever for B&PS Business Globally
Dec 05, 2018, by Rachael StormonthL to R: NelsonHall's David McIntire, Rachael Stormonth, Andy Efstathiou, and Dave Mayer NelsonHall recently attended an Atos North America event in Dallas which focused on the newly formed Atos-Syntel organization in North America. Earlier this year we noted that Atos in the U.S. was still a work in progress (see here). The event was held just days after its acquisition of Sy[...]
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TCS Business 4.0: Emphasizing Location-Independent Agile & Machine-First Delivery Model
Nov 29, 2018, by Rachael StormonthA year ago, following a TCS analyst event in Boston, the theme of which was Business 4.0: Intelligent, Agile, Automated, and on the Cloud, we wrote about how TCS’ new service line structure has been designed to support the company’s emphasis and positioning around Business 4.0 (see the blog here) Underpinning its positioning around Business 4.0, over the past year TCS has been e[...]
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Atos Acquiring Syntel: Fills Hole in North America; Has Potential to Transform B&PS Business Globally
Jul 23, 2018, by Rachael StormonthThis week started with the announcement by Atos of its intended acquisition of Syntel for $41 a share, a total consideration of around $3.57bn including Syntel’s net debt of $201m, in an all-cash deal. Syntel being acquired is not a total surprise: the company has faced some challenges recently, and in the previous four weeks its share price had been going up strongly (from $31.61 a s[...]
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Tech Mahindra’s Blueprint for Next Gen IT Services
Jun 01, 2018, by Rachael StormonthReaders of the NelsonHall Quarterly Updates on Tech Mahindra over the last two years will be aware of initiatives that have taken place to turn around the LCC business it acquired, and also of recent investments such as a minority stake in Altiostar. This blog looks at some of the other sectors in which Tech Mahindra operates, and at some broad developments around service delivery. [...]
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Verticalization & Localization Driving Strategy at NIIT Technologies
May 24, 2018, by Rachael StormonthNelsonHall recently attended NIIT Technologies’ analyst and adviser event in London, and we were keen to get an update on developments at the company since the arrival of Sudhir Singh as CEO. We were aware that the last two quarters have seen a significant increase in the number of large deal signings (five, compared with two in H1 FY18), also that there have been a significant number of[...]
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DXC Spins Off U.S. Federal Business: What Does This Mean for Rest of U.S. Public Sector Business?
Oct 12, 2017, by Rachael StormonthI have just looked back at a blog I wrote last May when the news broke of the DXC/HP ES tie-up. Here is an extract: “There is the question of the U.S. federal business that HPE ES will bring in, a market that CSC has only just exited. Will it play a part in the newco? Overall, U.S. public sector would account for around 11% of the newco, way below CSC’s non-compete threshold.[...]
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Infosys Confluence 2017: So Nia and Yet So Far
May 27, 2017, by Rachael StormonthNelsonHall recently attended the Infosys Confluence customer event. Last year the theme was covered in the interlinked motifs of Automation, Innovation, and Education (see here). This year, the theme evolved to ‘Unlimit’, which on the surface is more outward facing. We were not looking so much for an update on developments at Infosys over the last year (we cover thes[...]
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NTT DATA Services: First Look at the Newly Married Couple
Mar 07, 2017, by Rachael StormonthIn 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[...]
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NelsonHall’s Blogging Year: A Selection From 2016
Jan 25, 2017, by Rachael StormonthNelsonHall 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[...]
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Capgemini Looks to U.S. for Makeover as it Prepares for 50th
May 23, 2016, by Rachael StormonthNext 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[...]
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Infosys: Getting Ahead with Zero Distance, Going Deep with MANA
May 09, 2016, by Rachael StormonthSince 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[...]
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Atos Aims for Digital Edge in IT Infrastructure Management
May 04, 2016, by Rachael StormonthAt 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[...]
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Looking Below the Covers of Cognizant's Recent Soft Guidance
Feb 16, 2016, by Rachael StormonthLast 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,[...]
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Want to Succeed in Agile? Learn from Rugby!
Oct 08, 2015, by Rachael StormonthOne 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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Immediate Takeaways from Infosys Confluence 2017 (vlog)
May 30, 2017, by Rachael StormonthIn this video,Rachael Stormonth, NelsonHall’s EVP Research, reports from the Infosys Confluence 2017 event in SanFrancisco. [...]
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NelsonHall on DXC Technology Launch (vlog)
Mar 31, 2017, by Rachael StormonthIn 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.[...]
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Cohesive Portfolio & North America Central to Atos' 2019 Ambition
Mar 17, 2017, by Rachael StormonthAtos’ recent analyst and advisor day in Boston provided further details around the company’s three-year (2017-2019) growth ambitions that the company unveiled in November 2016. In a nutshell, Atos is targeting: CC/CS revenue growth of 2%-3% per annum (2016: +1.8%) An adjusted operating margin in the range of 10.5%-11.0% by 2019 (up from in 9.4% 2016). More he[...]
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Capita’s Offer to Xchanging: How it Makes Sense
Oct 19, 2015, by Rachael StormonthOn October 14, the Xchanging board recommended a final cash offer by Capita of 160p per share. The offer, valuing Xchanging at ~£412m, represents a premium of ~44% to the closing price on October 2, 2015 (the last business day before the start of the offer period), 52% to the prior three-month average price and 64% to the one-month average price. Capita states it believes the acquis[...]
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CSC to Acquire Fixnetix To Offer Front Office As-a-Service Utility Offerings to Capital Markets Sector
Aug 13, 2015, by Rachael StormonthAlong with its Q1 FY 2016 results today (see here) CSC has announced its intended acquisition of Fixnetix, a London-based provider of front-office managed trading solutions with 120 employees and offices in London, New York, Boston, Chicago and Tokyo. Founded in 2006, VC-backed Fixnetix provides and operates specialist trading infrastructure for ultra-low latency trading. It claims its iX-[...]
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Cognizant Q2 Results: Onwards and Upwards In Spite of Health Net Merger
Aug 07, 2015, by Rachael StormonthCognizant Q2 2015 results: Revenues were $3,085.1m, up 22.6% y/y, and up 25.5% in CC EBIT margin was 17.7%, down 171 bps y/y but up 50 bps sequentially Adjusted EBIT margin was 19.8%, down 122 bps y/y, but the same as in Q1 Non-GAAP operating margin, which excludes stock-based compensation expense and acquisition related expenses, was 20.2%, slightly above the target range of 19% to 20[...]
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Infosys Q1 Results: Promising Start to FY16, But Very Early Days in the 2020 Journey
Jul 27, 2015, by Rachael StormonthInfosys Q1 FY 16 results: Revenues were $2,256m, up 5.8% year-over-year (y/y) as reported, up 10.9% in constant currency and up 4.5% sequentially Operating income (EBIT) was $541m, a margin of 24.0%, a y/y decrease of 115 bps, and a sequential decrease of 173 bps. See here for the full results "I’m very pleased with our overall performance for the quarter” sai[...]
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WIPRO Q1 FY16: Work In PROgress?
Jul 26, 2015, by Rachael StormonthKey features of Wipro Q1 FY16 results: [...]