Last week was another busy one for TechMarketView. John O’Brien, our research director for business process services (BPS), launched a major new report Business Process Services: UK Market Trends & Forecasts 2011, outlining our views on how ‘platform-based’ business process services - otherwise known as Business Process as-a-Service (BPaaS), will erode the traditional lift-and-shift BPO market over the next few years - see Cloud adoption accelerating in UK BPS market. Microscope and Computing were the first to pick it up.
We published three UKHotViewsExtra reports exclusively for our Foundation Service subscribers. Our managing partner Anthony Miller caught up with 2e2’s CEO, Terry Burt in 2e2 makes three (update) about his plans to take a ‘hiatus from M&A’, and also with Bernard Edwards, co-founding chairman of ‘enterprise portfolio governance’ software firm Salamander in Salamander gets in the MOOD. Meanwhile in Osborne unlocks Government data, director Tola Sargeant explored chancellor George Osborne’s plans to make the UK “the world leader in open data” following his speech at the Google Zeitgeist event.
Richard Holway had a busy week giving his comments on the LinkedIn IPO. (See LinkedIn Fireworks) $9b for a company with revenues of c$250M? Ummm… You might have seen his comments on Channel 4 News on Thursday, or you can read Nic Fildes’ report in The Times - The Social Network Stampede or Anthony’s comments in City AM LinkedIn surges 109% on Day One.
Tola’s comments on the ‘troubled’ NHS IT Programme NAO delivers damming verdict on NPfIT were reported in Computer Weekly’s Is the NHS National Programme for IT terminally ill?, and in ComputerWorld, MP to fight expedited signing of CSC NPfIT deal.
Posted by HotViews Editor at '07:12'
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Vangent is not yet a ‘household’ name in the UK public sector or healthcare software and IT services market. Indeed, even veterans of the UK SITS market might struggle to place the US-headquartered business process services firm despite the fact that it’s been active in the UK market since 2003 and has a number of successful contracts in the UK public sector. But Vangent is determined to raise its profile in the UK and is aggressively targeting new business opportunities, particularly in local government and healthcare. In both markets it’s on the lookout for potential SITS partners.
For those of you who aren’t familiar with Vangent, it is a publicly listed, $762m (FY10) company that derives a good 90% of its revenue from the US government. The group’s International revenues were just $50m in FY10 - we estimate the UK business accounted for around £25m of that. FY11 UK revenue should be boosted by a recent short-term contract with a UK government agency, which should help it reach £50m in the UK this year.
We’ve known Vangent since the days when it was Pearson Government Solutions, part of the same family as the FT and Edexcel. It gained its independence from Pearson and re-branded as Vangent in 2007 when it was acquired by Veritas Capital, but its core proposition remains broadly the same. It focuses on providing end-to-end business process services with a strong information management and front of office requirement. In the US, its track record with government and healthcare clients is hard to argue with. Key US contracts include running the ‘1-800-Medicare’ beneficiary contact centre used by 47m people; operating the Department for Education’s Financial Student Aid Programme and most recently conducting half of the 2010 US Census.
Vangent’s UK business is less high profile. Customers we are allowed to name include Southwark Council, with whom it signed a flagship £100m+ BPO deal in 2004 and BECTA, with whom it worked on the Home Access Programme. Vangent’s future ambitions include using its US experience to take a share of the UK healthcare market. The most logical place for it to start would be with centrally run projects requiring front office BPO and/or data reporting and analysis. As with its central and local government work, we suspect Vangent will find that building a business in UK healthcare is a slow business. But it’s encouraging that it’s already bidding on a couple of large upcoming contracts, including the GP Payment Calculation Service procurement being run by Connecting for Health where it is shortlisted alongside Accenture, Capgemini and TCS.
For a more in depth view of Vangent in the UK, subscribers to TechMarketView’s Foundation Service can read our latest CompanyViews note, Vangent: Bringing US experience to the UK, which is already available to download. If you’d like more information on becoming a subscriber please contact Deborah Seth.
Posted by Tola Sargeant at '06:00'
According to our latest analysis, the UK BPS market is set to grow rapidly over the next few years with compound annual growth of 7% between 2010 and 2014 - making it the fastest growing area of the established UK Software and IT services (SITS) market.
Within the BPS market there will be winners and losers however. Traditional ‘lift-and-shift’ BPO is coming under pressure as organisations increasingly adopt business process platforms such as life and pensions (L&P), human resources and revenues and benefits (R&B) administration systems that are more flexible, repeatable and provide increasing levels of automation. The emergence of the cloud is the catalyst for many of these changes, and it will encourage organisations to seek ‘platform-based’ business process services - otherwise known as Business Process as-a-Service (BPaaS) – as an alternative to the out-dated lift-and-shift model.
Subscribers to TechMarketView's BusinessProcessViews service can read our views on how the BPaaS market is likely to evolve over the next few years, and why it is destined to be the next big thing in the sector, along with the all-important UK BPS market size and forecasts, in our new report Business Process Services: UK Market Trends & Forecasts 2011.
Posted by John O'Brien at '15:29'
We recently reported on Huddle’s signing of a commercial agreement with UK Government (see Huddle set to give Microsoft a run for its SharePoint money). Huddle is a cloud based enterprise collaboration and content management platform provider, formed in 2006 by Andy McLoughlin (now EVP Strategy) and Alastair Mitchell (now CEO). Huddle promotes its collaboration and content management platform as a viable alternative to Microsoft’s SharePoint.
Press reports of the announcement were accompanied by claims by Huddle that UK Government could save more than £100 million by replacing Microsoft SharePoint with Huddle’s cloud-based collaboration and content management platform. We were somewhat sceptical about the level of savings being mooted. However, when we spoke to Huddle’s CEO and co-founder, Alastair Mitchell, he put the figure at a much higher £287 million. A figure, which, he states has been jointly identified by Huddle and UK Government – we suspect by the Efficiency & Reform Group in support of its cloud computing strategy.
TechMarketView subscribers can read more about Huddle as well as our analysis of its positioning in UK Government in our latest research report: 'Will Huddle displace Microsoft in UK Government?'
Posted by Content Editor at '07:55'
Last week saw the publication of two interesting pieces of research from TechMarketView. Our Managing Partner, Anthony Miller, analysed a relatively quiet quarter for UK software and IT services (SITS) stocks in his latest Industry Views Quoted Sector Review. And John O’Brien, the research director leading our BusinessProcessViews research stream, examined the strategy of UK-focused offshore SITS provider Mastek, as it prepares to begin selling direct to market rather than only via partners such as Capita and BT.
Our media coverage has also been wide and varied with TechMarketView analysts getting numerous mentions in the press over the last couple of weeks. For example, Chairman Richard Holway was quoted in Microscope on Cisco’s woes, and in Silicon.com on the importance of outsourcing to the UK economy. ComputerWorld UK quotes Anthony Miller’s views on BT’s results, while Computing quotes him extensively on the outlook for India-based players in the UK market. And CIO Magazine and ComputerWorld carry TMV director Tola Sargeant’s views on CSC’s contract negotiations with the NHS - this is something that we’re bound to be talking about again this week with the National Audit Office set to report on the National Programme for IT in the NHS again on Wednesday.
Posted by HotViews Editor at '20:28'
Mastek, the UK-focused offshore software and services provider, is preparing to launch a new data privacy platform called Kameleon that will see it begin selling direct to market, rather than via a select network of partners such as Capita, Focus Solutions, Thales, and BT. We met up with Barry Yard, Mastek’s UK MD who took over the helm in August 2009 and is leading this change in direction. Yard is an IT industry veteran whose career spans 25 years from chief executive of the South West of England NHS IT services organisation, to UK President of EDS eSolutions (now HP), and latterly executive director at Siemens where he led the £2bn outsource with the BBC.
TechMarketView Foundation Service clients can read our analysis of Mastek’s opportunities and challenges in CompanyViews here.
Posted by John O'Brien at '07:39'
TechMarketView Foundation Service clients can find the latest quarterly edition of IndustryViews Quoted Sector here. This issue includes a look at the relative performance of EMIS, Digital Barriers and Promethean World, which IPO’d just over a year ago. These were the first (and last!) UK ‘tech’ (we use the term loosely) IPOs since October 2007. Plus you’ll find our regular round-up of the stock performance of the key software and IT services players on the UK and international scene – it doesn’t necessarily make for uplifting reading!
Posted by HotViews Editor at '10:20'
TechMarketView is looking for an Infrastructure Services Analyst
In the two years since TechMarketView launched, we have succeeded in becoming one of the most influential analyst firms in the UK. Around 10,000 of the most senior people in the UK SITS sector rely on their daily dose of HotViews. Already our subscribing clients (i.e. those who pay us real money) represent over 50% of the UK market by revenue and include the leaders like HP, BT, and Microsoft.
As our client base has grown, so has our team of highly-regarded analysts. We are now looking to grow the team further by recruiting a senior analyst to lead our Infrastructure Services research. We are looking for someone who can demonstrate a solid understanding of the intricacies of the infrastructure services market as well as a knowledge of the key suppliers. We would welcome applications from persons with previous analyst experience, as well as from those with a journalistic background, or with experience of working within the IT services industry.
All TechMarketView employees have a passion for excellence. As a TechMarketView analyst you will be expected to demonstrate this passion when meeting with senior executives from the leading IT services companies, when presenting at industry and client events, and when writing informed and robust opinion pieces for HotViews and for our subscription services. As our lead infrastructure services analyst, you will also be expected to understand our clients’ research requirements and develop a research plan accordingly. This is a senior appointment. Clearly you’ll need all the communication, organisational, management and technical skills required to operate at this level.
In return, we can offer a really attractive package, the convenience of a virtual working environment and a unique career and personal opportunity to be a part of a small team helping to grow TechMarketView in the future.
Either contact or email your CV to firstname.lastname@example.org.
Posted by HotViews Editor at '07:03'
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