We've now had time to go through the detail of Capita's first half results (see Capita continues to outperform 'the rest'). And while the headlines look very encouraging, there still remain some problem areas, particularly in insurance & benefits and workplace services, where the business is in serious decline.
IT services meanwhile remains a work in progress. But there are encouraging signs that recent contracts and acquisitions will help pull it back into real organic growth. Customer management and justice and secure services are the star performers across the group.
Subscribers to TechMarketView's research services can read the detailed analysis in UKHotViewsExtra here.
Posted by John O'Brien at '13:30'
Share this article
TechMarketView's latest Quarterly Research Summary is hot off the virtual press – you can download it here for a full round-up of all the reports published by the analyst team over the last quarter.
Q2 culminated in the release of one of our most hotly anticipated reports of the year, The UK SITS Supplier Rankings Report 2014. It's a must read for anyone wanting to find out who are the key 'movers and shakers' making headlines in the sector in 2014. Our other flagship report from the Foundation Service, UK SITS Market Trends & Forecasts 2014, has also just been published and is packed with everything you need to know about the changing shape of the UK SITS market.
The team has also been busy keeping abreast of the latest developments within their individual streams. In PublicSectorViews , research director Georgina O’Toole drilled into the UK Public Sector SITS Suppliers: Cyber Security Offerings and went on to cover one of the hot topics of the moment in UK Government G-Cloud: meeting its objectives?. Also in PublicSectorViews fellow research director, Tola Sargeant, gave us her views on the lessons to be learned from the NHS’ electronic appointment booking system, ‘Choose & Book’.
FinancialServicesViews research director, Peter Roe, published his report Finding the Winners in UK Payments, exploring the changes ahead for this rapidly expanding market. This report follows on from Hot Topics and Opportunities in the Banking Sector, in which he identifies key opportunities for growth in that area of the market.
BusinessProcessViews research director, John O’Brien, reports on the impact of outsourced analytics in his popular report, Outsourced analytics: an emerging opportunity for BPS providers. While in InfrastructureViews, research director, Kate Hanaghan, caught up with two of the big players, Vodafone and Computacenter. In Vodafone powers up its cloud and hosting business piece Kate gives us her views on their growth into hosting services. While in Computacenter outlines “growth plays” she reports on her meeting with CEO Mike Norris - read the full report to find out how they intend to cover target investments, growth and prospects.
Angela Eager, research director for ESASViews, outlines how the SaaS commerical model is evolving in her latest report Evolving the Saas Commercial Model. Angela also covers ESAS hot topic Big Data in Does the market need Big Data driven applications?
We've only had a chance to highlight a few key reports here, to download our full Quarterly Research Summary, whether you’re a subscriber or not, click here.
If you’ve not yet succumbed to the temptation to subscribe to one of our in-depth research streams and you'd like more information, email Deborah Seth on our Client Services team for details of our 2014 subscription packages.
Posted by HotViews Editor at '00:00'
A few days ago the Cabinet Office issued a tender seeking a Crown Hosting Service (CHS) provider. The tender seeks a private sector partner to take a majority shareholding (up to 75% less one share) in ‘DatacentreCo’, a new private company to be established by the Cabinet Office to provide Data Centre Colocation Services (data centre space and the related services necessary to provide the operating environment for physical computing infrastructure). The operating environment has to be capable of housing computing infrastructure initially handling OFFICIAL security classification information (essentially up to IL3 Confidential under the old security classifications, and representing the vast majority of Government data) but potentially SECRET and TOP SECRET. Any successful provider will be required to provide the infrastructure from at least two separate locations.
The framework contract is expected to be awarded in 2015. The founder clients of CHS are expected to be DWP, the Home Office and the Highways Agency (see Highways Agency awards more ‘Tower’ contracts). There is a four year period during which Government departments and other Public Sector bodies can enter into call-off agreements. The value of the framework is put at between £50m to £700m.
In UKHotViewsExtra Georgina O'Toole considers the implications of this contract for the UK Government ICT strategy and for hosting and datacentre providers to UK Government. TechMarketView subscribers can read 'New Crown Hosting Service: the implications' now. If you are not yet a subscriber please contact Deb Seth to find out more.
Posted by Georgina O'Toole at '10:14'
Eligible TechMarketView subscription service clients can download IndustryViews Corporate Activity Q2 2014 to read our quarterly summary of the UK software and IT services corporate activity scene, including significant trade acquisitions and private equity deals.
Posted by HotViews Editor at '07:54'
The good news is that 2014 should turn out to be a better year for suppliers of software and IT services (SITS) to the UK market than 2013 – in fact, even better than we had forecast this time last year. Indeed we expect the UK SITS market to grow by 2% in 2014 – about 25% faster than we expected a year ago – adding over £850m of net new spend.
But we temper this good news with the view that, in real terms (i.e. eliminating the effects of inflation), the UK SITS market will barely grow over the next few years. In fact, by 2017 we expect that the UK SITS market will only be the same size as it was in 2012 although at the headline level the market will appear to be 12% larger.
But whichever way you want to look at it, the ‘pie’ may be getting a little bigger, but the fight for a slice will be just as fierce – if not fiercer.
In our keynote UK SITS Market Trends and Forecast 2014 report published today, we explain how the Race for Change theme that we introduced at the beginning of the year (see Predictions 2014—Race for Change) is playing out. This is a race in which we predicted that all suppliers—especially large-scale ‘generalists’—will be compelled to pick up pace in order to meet increasingly demanding requirements from their customers, while confronting more specialised—and usually cheaper—niche competitors and startups. Those suppliers that can’t keep up will fall by the wayside.
In UK SITS Market Trends and Forecast 2014, we look at the trends and opportunities in the key market segments (Enterprise Software, Application Services, Infrastructure Services, and Business Process Services) and in two key verticals – Public Sector and Financial Services – which together are responsible for half the market spend. Plus we include our highly respected estimates for the size and growth of the UK SITS market, also available as an XL download.
UK SITS Market Trends and Forecast 2014 complements our recently published UK Software and IT Services Rankings 2014 report, in which we rank the leading suppliers of software and IT services to the UK market. Together, these reports give suppliers and other ‘stakeholders’ in the UK SITS market the essential foundation to understand which way the market is heading and who is leading the race.
UK SITS Market Trends and Forecast 2014 and UK Software and IT Services Rankings 2014 are available for download now for eligible TechMarketView subscription service clients. If you are not yet on the racetrack, then contact Deborah Seth on our client services team who will lead you to the starting gate.
Posted by HotViews Editor at '10:05'
WANdisco bagged another Big Data customer during Q2 as a wholesale logistics technology provider to the pharmaceutical industry signed up. That meant Big Data revenue was $100k for the quarter – it may not be much but it is progress. Management also said a number of pre-contract evaluations were progressing and it expects a “significant proportion’ of these to convert to subscription contracts but the end of the year. Every little helps in a market where adoption in conservative and revenues are low – see our analysis on WANdisco and the Big Data market here. The pipeline may be starting to flow but we’ll remains cautious until the conversions are made.
The established Application Lifecycle Management (ALM) side of the business had a slight but unusual blip with bookings slightly off at 9% growth ($3.3m vs. $3.1m) as some large customers delayed purchasing decisions but there was activity in terms of new customers and renewals. Across the whole company (i.e. ALM and Big Data), bookings growth was up 11% yoy.
The company also signed a partnership with Oracle to participate in its Big Data appliance programme. As we said in the research piece referenced above, WANdisco needs to up its game in the partner stakes.
Posted by Angela Eager at '07:34'
Separating wishful thinking from the market reality is a perennial task in the UK SITS industry, particularly in emerging areas. In the latest research from the ESASViews research stream we look at dual UK/US HQ’d software infrastructure provider WANdisco and how it is progressing in the Big Data market but also use it as a lens to examine the broader Big Data sector (remembering that the term Big Data is now a shorthand for complex, distributed data sets and new approaches for using data). The market is still a good distance away from becoming mainstream, with challenges to overcome on the way, not least ‘marketingware’ and misunderstanding. Subscribers can access WANdisco and the Big Data market here. If you’d like to find out how to subscribe drop an email to Deborah Seth.
Posted by Angela Eager at '20:10'
The second quarter of 2014 has been a busy period in the UK SITS market keeping our team of research analysts occupied, with them often being called upon for their expert opinion by the media (and clients alike!). Here's just a snapshot of some of the coverage reported to date:
At The Financial Times FinancialServicesViews research director, Peter Roe, is quoted on the drop in share prices at Monitise in Monitise shares fall on revenue warning. While TechMarketView company chairman, Richard Holway, comments on the varying success of Kickstarter in Internet joker tickles crowdfunding taste buds with potato salad. Richard is also quoted on the sale of UK semiconductor company Wolfson to American rival Cirrus Logic in Former UK tech champion Wolfson to be bought by US rival. Elsewhere in the Financial Times, ESASViews research director, Angela Eager, gives her reasoning for the mixed fortunes of Blur Group in Blur Group shares plunge 45% on revenues warning.
In The Times Richard gets plenty of coverage giving his invaluable opinions on firstly the departure of Twitter's chief operating officer in Another star departs as Twittersphere’s brightness fades, then also Markit's relocation to the US in Markit does its research and decides to list in US. The Times also quotes him on the Wolfson deal and the effect it'll have on the company in their article Wolfson shares soar as Cirrus Logic swoops in. Also in The Times - BusinessProcessViews research director, John O'Brien, proffers his opinion on Capita buying up AMT-Sybex in Tech sector veteran delighted as Capita steps in with £105m for AMT-Sybex.
Richard Holway is quoted on the state of Outsourcery's 'frothy' stock in The Telegraph article Dragons' Den's Piers Linney keeps feet on ground and head in the cloud. While in The Independent Richard comments on Samsung in Samsung lowers profit forecast amid increasing competition.
In other media Richard moves from print into broadcasting with a guest appearance on BBC Scotland Radio when he is again asked about the Wolfson sale. Listen to the interview here.
In other press publications Angela is quoted in Information Age on Network performance and bandwidth critical to cloud success and managing partner, Anthony Miller, offers his opinion on Quindell in Law Gazette article Quindell fights back after investor’s note sends shares tumbling. And Peter Roe makes an appearance in City AM, sharing his knowledge on Monitise in Analyst Views: What is your reaction to Monitise’s last revenue growth downgrade.
This is just a snapshot of the coverage by our highly regarded team of analysts here at TechMarketView. For further updates on our press coverage visit our new In The Press webpage which gives a full listing of news and quotes from the TechMarketView team.
If you haven’t already done so, now is the time to book your place at TechMarketView’s 2014 event, Race for Change: An Evening with TechMarketView, sponsored by Telecity.
Join us at BAFTA, London, on Wednesday September 17 to hear the TechMarketView analyst team, led by our Chairman Richard Holway MBE and Managing Partner Anthony Miller, share views on the trends and suppliers shaping the UK software, IT services and business process services market. Last year’s inaugural event was a huge success and this year’s, which builds on our 2014 ‘Race for change’ theme, promises to be an equally high profile date in the UK tech calendar.
After the analysts’ presentations, there’s an opportunity to quiz the speakers and mingle with your peers at a drinks reception. Then sit down to a sumptuous dinner in the magnificent surroundings of BAFTA in Piccadilly to continue the debate and network with senior colleagues from across the UK SITS sector. The audience is set to include CXOs and senior managers from a broad spectrum of suppliers and end users in the sector.
Tickets cost £395+VAT for TechMarketView subscription clients and £495+VAT for everyone else. You’ll find more details on the evening on the Events pages of our website. Last year’s event was a sell out, so don’t miss your chance to be there in September 2014.
Book your place now by clicking here or by contacting Tina Compton at techUK who is organising the event for us (email tina.compton@techUK.org).
Posted by HotViews Editor at '15:54'
We had a fascinating meeting with Web Technology Group (WTG) this week. Subscribers will remember that WTG was one of our inaugural Little British Battlers in February 2012 (LBBs – see Little British Battlers: First Report). But what a difference a couple of years make. The Group now has a fresh management team, a new strategy and changing fortunes.
According to new CEO James Steventon, this is just the beginning. He is returning the company to its roots – back to being a services provider. In addition, WTG is launching a new managed platform-as-a-service (PaaS) offering, which it will brand ‘Do Cloud Right’.
TechMarketView subscribers can find out more, including our views on the company’s current positioning and strategy, in UKHotViewsExtra.
Posted by Georgina O'Toole at '12:20'
Spending on Software and IT Services in the Insurance sector represents around 40% of the total within Financial Services. Insurance companies now have to deal with the issues of increased complexity in their operations, tougher regulation and the need for greater agility and improved handling of data, both operational and customer-related.
We believe that these pressures will intensify, with the regulator demanding greater resiliency in both balance sheets and IT, customers expecting better user experience and a more personalised approach and competitors forcing the pace. To keep up, many insurers, particularly the large Tier 1 companies need to make some big decisions about their core systems and how they adopt new ideas.
This report refreshes the Heat Map for this sector and provides an overview of the crucial issues that suppliers to this important and dynamic sector need to bear in mind as they compete for attention and share of wallet.
Subscribers to FinancialServicesViews can access this report here. Please contact Deb Seth of our Client Services team to enquire about this research stream.
Posted by Peter Roe at '08:21'
Capita has become the leading supplier of software, IT and business process services (SITS) to the UK market, the first UK-headquartered company to head the rankings in a quarter of a century.
Five years after displacing IBM at the top of the UK SITS league table through its acquisition of EDS, HP finally ceded its crown. No UK-headquartered company has headed the rankings since the 1980s when players like Logica, Thorn EMI (with Software Sciences and Datasolve), ICL and Hoskyns vied for the top spot. Not one of these companies exists today – bar Capita!
At current course and speed, Capita looks set fair to head the UK rankings for some years to come.
Eligible TechMarketView subscription service clients can download the brand new UK Software and IT Services Rankings 2014 report right now to see our complete list of rankings for the UK SITS market and its constituent parts.
Posted by HotViews Editor at '10:00'
T 01252 781545
Website Terms & Conditions
The TechMarketView name and logo are registered trademarks of TechMarketView LLP
® | © Copyright TechMarketView 2007- 2014
You can change your cookie settings at any time but parts of this (and other sites) may not work as a result.