CSC 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[...]

On 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[...]

Capgemini Group recently briefed on its R&D services/product engineering testing capabilities in its Sogeti High Tech subsidiary. Background Sogeti High Tech (SHT) is a subsidiary of Sogeti (itself a subsidiary of Capgemini). It provides product engineering services (PES)/R&D services. The company has a background in servicing key aeronautic sector clients. The company has expanded i[...]

Virtusa recently briefed NelsonHall on its Pegasystems application testing IP and service offering, and specifically the newly launched ADOPT testing framework, which illustrates the growing maturity of testing services offerings. Virtusa was founded in 1996 and is headquartered in Westborough (Massachusetts) with large delivery facilities in India and Sri-Lanka. The company largely provides ap[...]

KPMG recently announced its intention to acquire Towers Watson's Human Resources Service Delivery (HRSD) practice to strengthen its global HR transformation capabilities, including Workday implementations. The acquisition is expected to close by end of Q3 2015. This is a wise move, given the high growth rate of Workday. Although Workday does not break out its financial results between [...]

NelsonHall recently caught up with the management of SQS to discuss its recent acquisitions and its plans in North America. SQS has this month completed the acquisition of Trissential, a U.S.-based firm operating in the Mid-West, with headquarters in Chicago. The company had 2014 revenues of $32.3m, a PBT of $1.6m, and headcount of 130. Why Trissential? Unlike its two previous acquisitions&n[...]

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 spent two weeks in India, focusing on latest developments in software testing and digital transformation services. We met with Capgemini Group’s Testing Global Service Line (TGSL), the group’s software testing practice (across Capgemini and Sogeti) and discussed key topics including its push towards cross-client shared service centers, and IP development (with the r[...]

NelsonHall has recently completed a series of visits in India, addressing a number of topics including software testing, application management and digital transformation services. NelsonHall met with software testing pure-play, Cigniti Technologies, now the largest of all India-based testing pure plays. The company has a headcount of 1,600, ahead of Maveric Systems (~1,200) and QA Infotech (~8[...]

Accenture Federal Services (AFS) is to acquire Agilex Technologies, a privately-held provider of digital solutions for the U.S. federal government based in Chantilly, VA. Terms of the transaction were not disclosed.  The acquisition will enhance Accenture’s digital capabilities in analytics, cloud and mobility for federal agencies. It also will add agile delivery expertise. Agilex br[...]

TCS has briefed NelsonHall on the recent launch of its DevOps related IP, Non-Production Environment Tracking and Release Automation (NETRA). With NETRA, TCS Assurance Services Unit (ASU), the main testing unit of TCS, is pursuing its strategy originated with Intelligent Testing Systems (ITS) to develop broad-reaching IPs, encompassing open source software, COTS, and TCS-developed accelerators.[...]

This 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[...]

Tech Mahindra recently updated NelsonHall on its performance engineering (TMPE) capabilities.  The comments below complement an article on TMPE we wrote in January (see here). TMPE, part of Tech Mahindra’s Testing Services practice, is in high growth mode, having increased its headcount from 450 in early 2014 to 800 currently. Much of this growth has been driven by cross-sell[...]

NIIT Technologies recently briefed NelsonHall on its testing capabilities. Headquartered in Noida, NIIT Technologies had FY 2014 revenues (ending March 31, 2014) of ~$389m, with an operating margin of 15.2%.  H1 FY 2015 revenues were ~$189m. Headcount at the end of H1 FY 2015 was 8.7k. The company is an unusual Indian Outsourcing Service Provider (IOSP) with a specialization i[...]

Tech Mahindra Testing Services (TMTS) has updated NelsonHall on its DevOps capabilities. TMTS continues to work with CA Technologies around this offering, largely around service virtualization (SV), application release management (ARA) and together with other ISVs/open source software around agile testing/continuous integration (CI). (For more information on the offering, please refer to the pr[...]

NelsonHall recently met with SQS top management and discussed key priorities in the short, mid- and long-term. Short-Term: India and Delivery Network A short-term priority remains the integration and development of the former Thinksoft Global Services, now SQS India BFSI. The acquisition of Thinksoft increased SQS’ headcount in India to 1.9k or 54% of the overall global headcount. S[...]

Virtusa recently briefed NelsonHall on its gamification approach within its software testing offering. Virtusa is a fast growing offshore (India and Sri Lanka) oriented service provider. Its FY 2014 (year ended March 31, 2014) revenues were $397m, a growth of 19%. This followed growth of 20% in FY 2013 and 27% in FY 2012. The company has just over 8k employees. Founded in 1996 and headquartered[...]

Tech Mahindra has launched Virtualized Mainframe Testing (vMT), a new service that offers clients savings on their mainframe application development and testing costs, especially for applications that are on a maintenance and enhancement/release mode. vMT mostly focuses on reducing consumption of MIPS. In the context of mainframes, reducing MIPs usage is a key lever for lowering costs, as IBM m[...]

This week Wipro held its first analyst day in the U.S. in over 18 months. During this time, Wipro has conducted a strategic review of its approach to the market, and decided to change its method of engaging clients and prospects.    First CEO TK Kurien opened by describing Wipro’s view of the market: Enterprises were created prior to the current digital era. As a[...]

Visa has announced it is assessing whether to sell its investment in mobile payment software developer and transactions processor Monitise. Visa formed an alliance with Monitise in 2009 to provide Visa with mobile platform development services. The agreement runs through 2016. As part of the agreement, Visa made a capital investment in Monitise and received 14.4% of the company's equity. Ov[...]