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HP Enterprise Services: Getting into its Stride in EMEA
Jul 07, 2014, by Rachael StormonthIn March, after attending HP’s annual analyst event in Boston, we wrote a short piece on how HP Enterprise Services is building its “Advise, Transform, Manage” Positioning (see: http://bit.ly/U0oJ8p) Last week, we attended the HP EMEA analyst event in London, where the key theme was the “One HP” approach to market. NelsonHall’s interest is HP’s Ent[...]
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Uplifting Service: How NIIT Technologies is Positioning for Growth
May 23, 2014, by Rachael StormonthNelsonHall recently attended a NIIT analyst and advisor event in London. If we compare NIIT’s recent topline performance with some other IT services providers who report in Rupees, its revenue growth in FY 2014 of 14% (to Rs. 23,050m, or just below $400m) is on a par with Wipro (16%) and Hexaware (17%: of a similar size to NIIT, with Rs. 22,853m revenue in CY 2013), and far ou[...]
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NTT DATA Inc: at the Forefront of the "One NTT DATA" Initiative; Looking for Further Expansion
May 02, 2014, by Rachael StormonthNTT DATA Moves Away from Holding Company Approach to Be More Region-Centric as it Pursues International Growth NTT DATA Inc. recently held its first ever analyst day in Boston. For those readers who may not be fully up to date of where NTT DATA Inc. fits into the NTT DATA organization: NTT DATA Inc. is the North American subsidiary of Japanese-headquartered NTT DATA, the largest IT services [...]
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Xerox Services Margins Take Big Hit: Problems at Nevada the Main Culprit
Apr 23, 2014, by Rachael StormonthLet's start with some positive takeaways about the performance of Xerox Services in Q1: The commercial healthcare BPO business experienced “strong” revenue growth and margin improvement ITO revenue was up 4.4% y/y and also saw margin improvement Document outsourcing was up 0.8%. Overall BPO revenue declined 1.9%, impacted by the runoff of the student loan contra[...]
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Atos Managed Services: Strong Progress on Margin Improvement; Further Acquisition Will Be the Key to Future Growth
Apr 03, 2014, by Rachael StormonthNelsonHall recently attended an Atos analyst summit which provided a follow-up to the 2014-6 three-year plan first outlined last November (see our blog “Atos Unveils 2016 Financial Objectives”). As a reminder, the financial targets for IT services are: 2014-2016 CAGR of 5% with half of this growth to come from acquisition A 100 to 200 bps improvement in adjusted operating margi[...]
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HP Enterprise Services: How it is Building its “Advise, Transform, Manage” Positioning
Mar 11, 2014, by Rachael StormonthNelsonHall recently attended an HP analyst summit in Boston, where our interest was focused on developments at HP Enterprise Services (HP ES). HP ES has room to breathe again, but the next few years will be at least as tough as the last two have been. Financial progress to date against turnaround program In its FY 2013 (ended October 31, 2013), the ‘Fix and Rebuild’ year of its t[...]
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Genpact: Slow Progress on Transformation Strategy in 2013 - Unveils Next Phase of Plan
Feb 07, 2014, by Rachael StormonthGenpact has just released Q4 and full year 2013 results. In terms of revenue performance, Q4 was back to double digit y/y growth, albeit at just 10.0%. Global Client revenues were up 13.3% y/y, but this the lowest Global Client growth rate for some time. Full year 2013 Global Client revenue growth of 16.4% was led by the BFSI, Life Sciences and Hi-Tech verticals. Q4 2013 operating margin was[...]
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Infosys' Last Quarterly Results Before Arrival of New CEO: Any Surprises?
Jul 11, 2014, by Rachael StormonthWhat do Infosys’ Q1 FY 2015 results indicate about its current performance and its general health as a new CEO arrives? (a full breakdown of the results are available here) Revenue growth of 7.1% was in the 7% to 9% guided range for the full year, albeit at the low end. This was the third quarter in a row of decelerating growth, in both reported and constant currency gro[...]
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Serco: More Bad News, But Beginning to Grasp the Nettles
Jul 08, 2014, by Rachael StormonthLast week Serco Group provided an update on its H1 2014, at the start of its close period before the results on August 12, 2014. Overall performance is in line with the guidance for H1 2014 given in the market update two months ago, of Adjusted revenue of ~£2.4bn, broadly flat y/y on an organic basis A significant y/y decline in margins, with an improvement expected in H2. [...]
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What Does its Selection of CEO Indicate for Infosys?
Jun 13, 2014, by Rachael StormonthYesterday, Infosys ended a period of speculation and announced it had appointed its next CEO and MD, Dr. Vishal Sikka, who had resigned early last month from SAP, where he was a former board member. Dr. Sikka’s selection as Infosys' next CEO had been touted by the Indian press soon after the news of the resignation of BG Srinivas, who many had felt had been one of the two top [...]
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CGI: Good Progress on Logica Integration, Now Focusing on Transformation... Where Next?
May 30, 2014, by Rachael StormonthNelsonHall recently attended CGI’s global analyst event in London. The key messages in CEO Michael E Roach’s keynote were the success with which CGI is executing on its "Buy and Build" profitable growth strategy and that the expected benefits of the merger are now becoming more visible. At the same event last year, CGI indicated some of the measures it was applying to impr[...]
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IBM Launches IBM Cloud Business Solutions, Led by GBS
May 29, 2014, by Rachael StormonthIBM announced today a new portfolio of cloud-based offerings called IBM Cloud Business Solutions. Now the last three words don’t in themselves give away too much as to exactly what is on offer - but IBM is taking assets from across IBM Group, including consulting services from GBS, pre-built assets from IBM Research, IBM software, advanced analytics, and cloud infrastructure delivered v[...]
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TCS Makes Timely Move for Rapid Growth in Japan
Apr 21, 2014, by Rachael StormonthTCS has announced that it has signed an agreement with Mitsubishi Corporation (MC) to merge TCS Japan, IT Frontier Corporation (ITF), MC’s 100% owned IT subsidiary, and Nippon TCS Solution Center (NTSC) as a single new entity in which TCS will have a majority 51% stake and MC 49%. The transaction is expected to close by end June 2014. The new entity will have over local 2,400 employe[...]
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TCS Looks to FY 2015 with Confidence, Infosys Still on Multi-Year Journey: Some Key Differences
Apr 17, 2014, by Rachael StormonthTCS and Infosys have both now reported their Q4 and full FY 2014 results. A quick look at their respective revenue numbers (not to mention margins, utilization and attrition rates) highlights very significant difference in performance across geographies, service lines and industries, with TCS surging ahead across the board, in many of them at a level that is simply breath-taking. [...]
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Capita-Led Consortium Selected by MoD as Preferred Bidder for £400m DIO Contract
Mar 10, 2014, by Rachael StormonthA Capita-led consortium has been selected by the U.K. Ministry of Defence (MoD) as preferred bidder for a ten-year contract with a potential LTV of £400m to be the strategic business partner to the Defence Infrastructure Organisation's (DIO, the MoD's property and services provider). Services to be provided by the consortium include manageme[...]