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BT Merges Global & Enterprise Units to Simplify GTM and Save Costs
Jan 13, 2023, by Dominique RaviartA New Focused Division BT has announced the merger of its two ICT services units, Global and Enterprise, into a new division, BT Business. The new division will have pro-forma revenues of £8.5bn and an EBITDA of £2bn. The current CEO of Global will lead BT Business. With this move, BT wants to unify its B2B market and focus its capabilities on connectivity, u[...]
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Infosys Cobalt Cloud Focuses on Transformation, Security & Sustainability
May 16, 2022, by Dominique RaviartNelsonHall recently attended the ‘Infosys Cobalt World Tour’ conference in New York and, as the world begins to open up again, it was great to engage with Infosys executives face-to-face. Infosys presented its Cobalt Cloud strategy and use cases to increase awareness of the benefits to the marketplace and highlighted that its cloud approach is focused on achieving busi[...]
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Whishworks Expands from MuleSoft Heritage to Whole Salesforce Service Ecosystem for Coforge
May 05, 2021, by Dominique RaviartCoforge, the former NIIT Technologies, recently briefed NelsonHall about its Salesforce capabilities. In 2019, the company acquired Whishworks, which became the foundation of its Salesforce activities. Whishworks, one of MuleSoft’s top five strategic partners globally, services clients across sectors, with BFSI being its most significant target market. London-headquartered W[...]
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Cognizant Focuses on Growing its Salesforce Practice while Verticalizing Capabilities
Oct 30, 2019, by Dominique RaviartWe recently talked with Cognizant’s Salesforce Consulting & Solutions Group (CSG) unit, recently set up in Europe. The unit reflects ongoing investment by Cognizant in its Salesforce capabilities, with a more vertical focus, accommodating Salesforce’s growing product portfolio. CSG complements the capabilities of Cognizant Interactive and Cognizant Consultin[...]
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HPE Unveils Pointnext Brand to Refocus its IT Services Capabilities
Apr 18, 2017, by Dominique RaviartWe recently talked to HPE Technology Services (TS) about its recent Pointnext branding campaign. Despite the divestment of its Enterprise Services unit, HPE has retained very significant IT services capabilities, provided through Pointnext. Technology Services is a sizable unit with FY16 revenues of ~$7.9bn (for the period ending 31 October 2016), and has a headcount of 25k across 80 countries[...]
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Dell Services: the Glue for "One NTT DATA" In North America
Nov 03, 2016, by Dominique RaviartDell Services is a strategic acquisition, though an expensive one Yesterday, NTT DATA Inc. closed its acquisition of Dell Services, seven months after its initial announcement. The acquired entity, now called NTT DATA Services on an interim basis, has some obvious benefits. For example, it: More than doubles NTT DATA Inc.’s revenues from $1.7bn to over $4bn Significantly s[...]
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Rio 2016: How Atos is Helping the IOC Redeploy its Budget from Run to Digital
Jul 08, 2016, by Dominique RaviartFour 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[...]
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M&A Activity (Part 3): Further Scale and Digital Remain Priorities in 2016
Mar 31, 2016, by Dominique RaviartIn 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 [...]
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M&A Activity in 2015 (Part 2): Few Vendors Acquire in Digital; IaaS Industry Consolidation Begins
Jan 04, 2016, by Dominique RaviartThis is the second of three articles examining M&A activity in IT services during 2015. Last time we looked at how M&A activity was being driven by $10bn to $15bn vendors. This time we take a look at M&A around newer service offerings and digital transformation. The firms that are acquiring capabilities in digital services are vendors in good financial health that have mostly alre[...]
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IT Outsourcing: Flat Growth is the New Growth
Jul 08, 2014, by Dominique RaviartIn the world of IT services, professional services, e.g. consulting, systems integration and application development, are a cyclical business. Spending growth – or decline – depends very much on GDP growth, corporate moral and investment intentions. Professional services growth has varied since on a quarterly basis, since 2008, between -8% to +9%, on a worldwide basis. IT outsourcin[...]
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Sopra To Acquire Steria to Grow International Presence and Expand into BPO
Apr 08, 2014, by Dominique RaviartSopra Group is to acquire Steria for an all-share transaction valuing Steria at €722m. The acquisition is presented as a merger of equals. Sopra's rationale for the acquisition includes: Expanding its geographical presence from France to the U.K., Germany and Norway Gaining a new service portfolio in BPO services and IM. Sopra is to launch a public exchange [...]
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Atos Unveils 2016 Financial Objectives
Nov 15, 2013, by Dominique RaviartAtos has unveiled its Ambitions 2016 plan in whch it has detailed how two of its key service lines (Managed Services and Systems Integration) will evolve over the next three years. Managed Services Managed Services (MS) is planning to grow at a 5% 2013-2016 CAGR with a slight organic growth. The unit has stabilized (organic growth 2011: +1.7% ; 2012; +2.4%;[...]
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IBM Cloud Computing: Hybrid, IoT, Cognitive ... and Video
Jun 27, 2016, by Dominique RaviartNelsonHall recently attended a cloud computing event hosted by IBM, its first such event in Europe since it introduced a new segment structure at its investor briefing in February. With this new structure in place, plus the recent addition of revenue disclosures for cloud from each segment, we were interested in the extent to which IBM is combining its relevant cloud capab[...]
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The New CSC Targeting Topline Growth Within 3 Years: Is Organic Growth Possible?
Nov 17, 2015, by Dominique RaviartCSC has just laid out the financial targets of the standalone business which will retain the CSC moniker when the U.S federal company, CRSA, breaks off. As well as CSC’s global commercial business, it includes non-U.S. public sector businesses (~$700m revenues in FY15). In its FY15 (ending March 31, 2015) this part of CSC achieved revenues of $8.1bn, and an adjusted operating margin[...]
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NelsonHall Remains Cautious about ITO Spending in 2015 Despite 40% Increase in Q1 Bookings
Apr 08, 2015, by Dominique RaviartThis 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[...]
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ITO Spending Growth Dips Slightly & Bookings Flat in 2014, but Expect Improvement in 2015
Jan 28, 2015, by Dominique RaviartThis 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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IBM Aligns its SAP and Oracle Capabilities Around Mobility, Big Data and Cloud Computing
Nov 12, 2014, by Dominique RaviartIBM recently held its annual IBM Alliances event, focusing on SAP and Oracle (other major IBM-wide partners include Microsoft, Infor, Cisco, Juniper Networks and Citrix). IBM Alliances manages major relationships with technology vendors that cross several IBM service lines, e.g. GBS, GTS, Systems & Technology, and Software. Those seven major partnerships are significant and command ~15% of ove[...]
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ITO Spending Growth Dips Slightly & Bookings Flat in 2014, but Expect Improvement in 2015
Oct 30, 2014, by Dominique RaviartThis 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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Wipro ServiceNXT: Early Successes in Helping Win Large IT Outsourcing Deals
Aug 21, 2014, by Dominique RaviartWipro has updated NelsonHall on its ServiceNXT initiative. ServiceNXT aims to increase productivity in both IT infrastructure management and application management contracts. ServiceNXT is based on: Usage of Wipro IP and recommended COTS tools across the client’s operation for various tasks including ITSM, change management, demand management, problem management Analytics, based on d[...]
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Tieto Q2 2014 Revenues: Product Development Business Remains Problematic
Jul 18, 2014, by Dominique RaviartTieto's Q2 2014 revenues were €386.4m, down 7.3% y/y, and down 1.3% y/y at constant currency. (for full details see here) Q2 2014 revenue (and growth both on an actual and CC/organic basis) by service line was: Managed Services: €132m (+5%, +9%). Half of the CC organic growth this quarter resulted from hardware reselling as part of a large IT infrastruct[...]
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Sopra To Acquire Convertible Bonds of CS to Strengthen Capabilities in Engineering Services
Jun 06, 2014, by Dominique RaviartSopra and CS Communication & Systèmes, a French IT services vendor, have announced a multi-tiered agreement: CS is to proceed to a €12m convertible bond issuance (maturity 5 years, conversion price per share: €3.6; interest rate: 4%; delivery: July 2014). As part of this issuance, Sopra agreed with DUNA & Cie, th[...]
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Atos to Acquire Bull to Strengthen Big Data, Security and Cloud Capabilities
May 26, 2014, by Dominique RaviartAtos is to acquire France-headquartered technology vendor Bull for €620m in an all cash transaction. Atos offers €4.9 per Bull share, a premium of 22% over May 23’s closure price of €4.01. The offer is conditional on Atos receiving 50% and 1 shares. The largest shareholders of Bull, Crescendo Industries and Pothar Investments, which own a 24.2% stake in Bull, ha[...]
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Amazon Launches Packaged Virtual Desktop Offering Amazon WorkSpaces
Dec 06, 2013, by Dominique RaviartAmazon Web Services has launched Amazon WorkSpaces, a public cloud-hosted standard virtual desktop offering. The offering mirrors the IaaS Amazon EC2 offerings of Amazon Web Services, with shared IT infrastructures, multi-tenancy, fast provisioning and opex models. Amazon Workspaces features include: A choice of different CPUs, memory, storage Storage is attached to each virtu[...]
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Atos to Float Worldline by Mid-2014
Nov 15, 2013, by Dominique RaviartAtos has unveiled its financial objectives for its Worldline unit. The company is to float Worldline by mid-2014, while keeping a majority stake in the company. Proceeds from the IPO are to finance organic growth and especially acquisitions. Financial objectives for the 2013-2017 period include: Revenue growth of 5% to 7% (2013-2017 CAGR) all organic (2012 revenues €1,066m, +5%; 2013[...]
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Capgemini Elaborates on its SAP- and Amazon- Based MDM Offering
Oct 07, 2013, by Dominique RaviartCapgemini Group, through its Mobile Solutions (MS) unit, has briefed us on its recent mobile device management (MDM) offering, called Mobile Secure, launched with SAP and Amazon Web Services in May 2013 Capgemini MS has designed this offering to be as affordable as possible: the offering is marketed at a price of €1/$1.11 per device per month. It is based on SAP Afaria (acqu[...]