We’ve now been through the detail of Capita’s FY13 results. Looking at the headlines you’d be forgiven for thinking all is going swimmingly, with 15% topline growth, 8% organic growth, and double-digit margins (see Capita hits 8% organic growth).
However, looking under the covers points to inconsistency across Capita's various divisions. Some areas like justice and secure services and customer management are growing at a rapid rate thanks to recent big wins and acquisition activity. Meanwhile, other others divisions, like IT services, insurance & benefits and health & wellbeing are either displaying sluggish growth, or even declines. At the same time, group margins continue to be put under pressure.
This highlights real 'diversity of performance' within Capita's business - a growing theme across the broader UK SITS supplier landscape.
Subscribers to TechMarketView's Foundation Service and BusinessProcessViews research stream can read the full analysis of the performance and prospects for the UK's leading BPS supplier here.
Posted by John O'Brien at '07:30'
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Today we launch a new report for subscribers to our very popular InfrastructureViews research stream. “How the leading Infrastructure Services players are fighting for their place in the cloud market” is authored by Kate Hanaghan, Research Director for the stream.
Many areas of the traditional IT services market are either declining or growing very slowly. Meanwhile, cloud services are growing double digits. The as-a-service model is creating opportunities for enterprise and government buyers to re-think how they buy infrastructure services and from whom. However, even in two years’ time, we estimate that the total cloud market will still only account for 14% of the total Software and IT Services (SITS) market. For suppliers, that means a large slice of their revenue stream will still be tied up in slow-growing (or declining) infrastructure services contracts. At the same time, they must create new offerings, redefine their positioning and adapt to a different type of commercial model.
This report looks at how the Infrastructure-as-a-Service (IaaS) market is shaping up, and the role of private cloud and orchestration. It also examines the margin challenges for suppliers and assesses the cloud offerings and relative positions of the Top 10 infrastructure services suppliers in the UK.
If you also subscribe to our newest research stream, FinancialServicesViews, you will also be interested in Cloud Services in the UK Financial Services Sector. To subscribe to any of our research streams, please contact Deb Seth.
Posted by HotViews Editor at '08:33'
In the latest research from ESASViews we delve into the world of front office digitisation to assess market appetite. What is clear is that organisations are making budget available to build their digital capabilities, although investment is still project-based for the most part. However, established suppliers risk ceding opportunities to specialists like digital agencies and emerging providers if they fail to modernise their technology and go-to-market models.
In ‘Capturing the digital front office opportunity’, there are two critical messages for established ESAS suppliers. Rebranding traditional technology is not enough to secure digital contracts - new forms of engagement and experience-centric applications are needed. Secondly, seizing the digital transformation opportunity requires stubborn internal silos and traditional execution processes to be broken down. The report provides insight into how some of today’s leading players like Accenture, IBM and Capgemini are adapting to the digital challenge and the developments and directions all suppliers should be keeping tabs on.
If you are an eligible TechMarketView subscriber you can read the report here, otherwise please contact Deborah Seth for details about our subscription packages.
Posted by Angela Eager at '18:28'
Last week, Steria announced its FY13 results. For multiple reasons, the UK business stole the show (see 'A promising year ahead for Steria'). Though organically revenue declined by 1.4% to €691.5m, this was the most positive result of Steria’s major geographies; France declined by 5.6% and Germany by 1.6%. In addition, the UK performance rebounded in Q4 with 5.5% growth, notably driven by public sector. With a 10% operating margin, the UK now accounts for 40% of Group revenues and 63% of Group operating margin.
Steria’s performance in FY14 will be significantly boosted by the Cabinet Office SSCL deal (see Steria & SSCL: a pivotal deal). In UKHotViewsExtra, Georgina O’Toole considers the performance of Steria UK in FY13, the importance of the SSCL contract, and the FY14 outlook. If you are not yet a subscriber, please contact Deb Seth to find out more.
Posted by Georgina O'Toole at '14:10'
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