Vendor Analysis
published on Nov 23, 2023
Report Overview:
NelsonHall's Quarterly Update for Q3 2023 consists of 33 pages, and tracks and compares the financial performance of tier-one IT service vendors.
Who is this Report for:
NelsonHall's Quarterly Update for Q3 2023 is a new NelsonHall product that tracks and compares the financial performance of tier-one IT service vendors. It explains each vendor’s financial performance for the latest quarter and compares it with competitors across several financial items (e.g., CC revenue growth, revenue growth in North America and EMEA, in Financial Services, and EBIT margin).
Scope of this Report:
The report provides an analysis of the performance of Accenture, Capgemini, CGI, Cognizant, DXC, IBM Consulting, HCLTech, Infosys, TCS, and Wipro, across:
- Reported y/y revenue growth in the past five quarters
- Constant currency (CC) y/y revenue growth in the past five quarters
- North America revenue growth (y/y, CC) in the past five quarters
- EMEA revenue growth (y/y, CC) in the past five quarters
- Financial Services revenue growth (y/y, CC) in the past five quarters
- EBIT margin in the past five quarters
- EBIT margin and CC revenue growth in Q3 2023
- Full-year guidance.
For each vendor, the QU includes, where available:
- An analysis of revenue growth, EBIT margin, and bookings
- Metrics by geography, vertical, and service line.
Key Findings & Highlights:
- In Q3 2023, CC y/y revenue growth continued to decelerate across vendors. For most vendors it was in the 2% to 5% range, regardless of geographic and vertical footprint specificities
- IBM Consulting saw strongest topline growth in Q3, boosted by a regular flow of tuck-in acquisitions
- CGI has slowed down after a strong performance fueled by tuck-in acquisitions and large deals
- Three vendors are trailing: Cognizant, DXC, and Wipro; all three are undergoing transformation plans. DXC and Cognizant appear to have stabilized; Wipro continues to underperform against its peers.