Vendor Analysis
published on Jun 06, 2017
Report Overview:
This NelsonHall vendor assessment analyzes VirtusaPolaris' offerings and capabilities in Digital Transformation Services.
Who is this Report for:
NelsonHall’s Digital Transformation Services Vendor Assessment for VirtusaPolaris is a comprehensive assessment of VirtusaPolaris’ digital transformation services offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for digital transformation services
- Vendor marketing, sales and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the digital transformation sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of VirtusaPolaris’ digital transformation service offerings, capabilities and market and financial strength, including:
- Analysis of the company’s offerings and key service components
- Revenue estimates
- Identification of the company’s strategy, emphasis and new developments
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s strengths, weaknesses and outlook.
Key Findings & Highlights:
Virtusa was founded in 1996 and is headquartered in Massachusetts, U.S. Initially, it focused on working with product companies, providing product development capabilities, and incorporating an engineering mindset into application development.
Virtusa is a high growth company, experiencing over 20% revenue growth in each of the past five years. It appears to be focusing on size and scale over high profitability: its operating margin in FY16 was 7.5%, below the operating margin of traditional India-centric vendors.
In March 2016, Virtusa closed its acquisition of Chennai based Polaris for ~$270m. VirtusaPolaris combined Polaris' banking and financial services application development and management business with Virtusa's banking and financial services industry segment experience, and expects to realize over $100m of revenue synergies in the three years following the close of the acquisition.
VirtusaPolaris positions its digital transformation services against the perceived objectives of its clients. Specifically, it positions its offerings in terms of achieving the following objectives: customer experience, operational excellence and business innovation.
VirtusaPolaris' headcount as of December 31, 2016, was 17,500, down 726 from 18,226 at the end of CY 2015. NelsonHall estimates that ~3k of its headcount is focused on digital transformation services.
VirtusaPolaris utilizes 21 delivery centers to deliver its services, including its digital transformation services.