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Steria - Application Outsourcing

Vendor Analysis

by Dominique Raviart

published on Feb 21, 2014

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Report Overview:

Paris-headquartered Steria is a provider of IT and BPO services. The company had 2012 revenues of €1.82bn (~$2.37bn). Q1-Q3 2013 revenues were €1,317m.

Who is this Report for:

NelsonHall's Application Outsourcing Vendor Assessment for Steria is a comprehensive assessment of Steria's application outsourcing offerings and capabilities designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for application outsourcing services
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the application services, application support and maintenance sectors.

Scope of this Report:

The report provides a comprehensive and objective analysis of Steria's application outsourcing 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:

After the acquisition of Xansa, Steria launched its Application Portfolio Management (APM). APM is both a service line and service offering. APM, as a service line, is part of the four horizontal industrial service lines of Steria, along with software testing, infrastructure management and BPO. The purpose of industrial service lines is to

  • Offer a factory-based service to clients, based on standard tools and business processes as well as invest in automation tools
  • Support sales team on large bids
  • Create and coordinate service offerings.

In July 2012, Steria launched an enhanced version of its application management offering, RightApps Management (RightApps). RightApps Management has several goals:

  • Positioning Steria more clearly on the multi-year application management contracts side including consulting, maintenance & support and embedded systems integration work. The previous brand, APM tended to position Steria more on the consulting side than on execution
  • Differentiating Steria with an outcome service-based pricing model.

Since 2012, Steria has put further work into its AM offering::

  • Further deepened its offerings and capabilities with underlying tools and frameworks
  • Developed an adjacent offering, Right Apps Modernization, addressing opportunities to transform legacy applications, preferably as part of multi-year AM contracts or as standalone projects of their own
  • Coordinating AM activities from a commercial perspective, with software testing and IT infrastructure management.

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