Just days before we were due to publish our keynote annual UK SITS Market Trends & Forecast Report for 2016, the UK voted to leave the EU. We have included our ‘first response’ views about the potential impact of BREXIT on the key market segments (Software, IT Services; Business Process Services) and key vertical sectors (Financial Services; Public Sector) in this report. We are in the process of investigating the possible scenarios, and will be publishing additional sector- and segment-specific research shortly.
So in hindsight, it seems even more apropos – perhaps even ironic – that back in January we chose ‘Surfing the waves of disruption’ to be our theme for 2016.
Tsunami, more like!
When we launched the theme, we foresaw that the move to ‘digital’ would increasingly disrupt UK SITS (software, IT & business process services) market growth and profoundly re-map the supplier landscape.
Not only has this come to pass – there’s clearly much more to come.
In particular, the shift to digital has accelerated acceptance of public cloud infrastructure provisioning as a viable alternative to on-premise – and even ‘private cloud’ – enterprise computing environments. Indeed. Amazon Web Services grew by 45% in the UK last year (see our accompanying UK SITS Rankings 2016 report) and is now among the Top 20 suppliers of infrastructure services to the UK market.
As we project forwards, we believe that the shift to digital will set the legacy SITS market into decline by 2018, at which point growth will be entirely driven by cloud computing. Perhaps BREXIT will give legacy suppliers a little more breathing space – but surely it’s just delaying the inevitable.
UK SITS Market Trends & Forecasts 2016 is available for download now to subscription clients of the TechMarketView Foundation Service.
For further information, please contact our Client Services team.
Posted by HotViews Editor at '10:00'
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It’s among our most eagerly awaited reports – the winners in the UK SITS (software, IT services and business process services) market. And it’s out NOW.
Our brand new UK SITS Supplier Rankings 2016 Report reveals that Capita wears the crown as the leading supplier of SITS to the UK market for the third year running. But will it be able to hang on to the coveted top spot once the HPE-ES/CSC ‘spin/merge’ completes?
And now that Mumbai-based TCS has reached the Top Five – the first of the Indian Pure-Plays to get there – will they be able to nudge Accenture out of its long-held fourth slot?
All our brand new ranking tables can be found in the UK SITS Supplier Rankings 2016 Report available for download now by subscription clients of the TechMarketView Foundation Service.
This is the latest in a series of analyses giving TechMarketView subscription service clients our ‘first response’ of the potential impact on the UK software and IT services (SITS) market of the proposed spin-out of HPE’s Enterprise Services business and merger with CSC. The deal was announced on 24th May 2016 (see here) and is expected to close in March 2017.
Our first response assessed the impact on the UK SITS rankings in CSC & HPE-ES: First look at the UK rankings, which we then followed up with a deep dive into the UK Public Sector CSC & HPE-ES merger: the public sector effect.
In this latest report, TechMarketView Research Director John O’Brien assesses the merger’s likely impact on the UK business process services (BPS) market, including an analysis of how the proposed deal will impact the UK BPS rankings. BPS is particularly important to the pending CSC/HPE-ES merger – with both companies operating across the UK market – and the announcement coming just weeks after CSC closed its smaller, but strategically important acquisition of insurance BPS provider Xchanging (see here).
TechMarketView BusinessProcessViews and Foundation Service subscribers can download CSC/HP-ES merger: the UK BPS implications now. If you’re not yet a subscriber, please contact Deb Seth who will be happy to help.
Posted by HotViews Editor at '08:59'
Our eighth Public Sector Opportunities Bulletin is dedicated to opportunities in the health & social care markets. Fitting neatly with TechMarketView’s 2016 theme—Surfing the Waves of Disruption, all the pieces point to the potential for technology to disrupt the status quo.
Arguably the healthcare market is showing the biggest potential of all areas of the UK public sector SITS market when it comes to moving forward with its digital transformation. There are huge pressures on the NHS to reform; to react to increasing demands on the system as a result of a growing and aging population. The result is health organisations looking for an innovative way forward.
In this Opportunities Bulletin we highlight some early projects, pilots and test-beds, where we are starting to see the potential of digital technologies; those technologies range from the devices being used to monitor patients in real-time to the analytics tools being used to predict outcomes, enable early interventions and ultimately take pressure off the healthcare system. As we highlight throughout, it is early days, but the potential for further activity is clear, provided suppliers can offer a clear business case and short-term return on investment in these uncertain times.
PublicSectorViews subscribers can download the June Opportunities Bulletin from today here.
If your organisation doesn't yet subscribe to PublicSectorViews and you'd like to know more, please email Deborah Seth in our Client Services team for details.
Posted by HotViews Editor at '09:11'
The latest edition of IndustryViews Venture Capital, our quarterly round-up of activity in the UK software and IT services venture capital scene, is now available for download by subscribers of the TechMarketView Foundation Service.
Posted by HotViews Editor at '06:52'
Avid HotViews readers will know by now that the fourth annual ‘Evening with TechMarketView’ on September 8 will be centred around our 2016 research theme ‘Surfing the Waves of Disruption’. The analyst presentations and dinner, in association with NetSuite, will once again be held at the prestigious Royal Institute of British Architects (RIBA) in Portland Place, London, and tickets are selling very quickly indeed.
Top of the agenda will be the disruptive trends and suppliers shaping the future of the UK software, IT services and business process services markets, including how these are likely to affect the UK financial services sector and UK public sector. Topics like automation, machine learning, the threat of AWS, the speed of the move cloudwards and of course Brexit, will be hotly debated by TechMarketView’s analyst team.
After the analysts have left the stage, there will be plenty of time for networking over drinks and a sumptuous three course dinner with your peers. We’re expecting a similar audience to the previous three years with around 250 ‘movers and shakers’ from the UK tech scene, for what has been described by previous C-level attendees as “the best networking event in the industry”.
The event typically sells out well in advance and places are filling up quickly. If you haven’t booked yet we’d advise you to do so soon to avoid disappointment. The details are as follows:
TechMarketView Presentation & Dinner 2016
Venue: Royal Institute of British Architects (RIBA), Portland Place, London
Date & time: Thursday 8 September 2016, from 6.30pm
Ticket price: £395+VAT per person for TechMarketView research subscription clients and £495+VAT per person for everyone else.
There are also a few tables of ten available at £3,950+VAT – ideal if you fancy bringing the team along or entertaining clients and prospects.
To secure your place, please click here to book or email tx2 events who are organising the event for us on firstname.lastname@example.org.
Other sponsorship opportunities
With its high calibre UK tech audience, the TechMarketView Presentation & Dinner 2016 also provides an excellent opportunity for organisations with an interest in the sector to raise brand awareness, demonstrate thought leadership and attract the attention of potential clients and partners. We are currently finalising the ‘Silver’ sponsorship packages – if you’d like further details, or to register your organisation’s interest in being considered as a potential Silver partner, please let us know as soon as possible by emailing TechMarketView director Tola Sargeant on email@example.com.
Posted by HotViews Editor at '17:22'
TechMarketView, in association with programme sponsors, MXC Capital, is delighted to announce the publication of the eighth Little British Battler Report in the series.
This report profiles the 12 companies that participated in our Little British Battler Day in April 2016:
These companies typify the highly innovative, UK-headquartered tech SMEs vying for attention in the local – and global – market.
Each company has been assessed by the TechMarketView team on its business fundamentals and market proposition, supplemented by an insightful SWOT analysis.
At the end of the report we list some of the salient themes that appeared in these SWOT analyses. We think these are common traits and characteristics among SMEs and suggest that CEOs of other small companies might want to check their own businesses against them.
Subscribers to the TechMarketView Foundation Service can download Little British Battler Report – LBB8 report by clicking the link. For further information, please contact our Client Services team at firstname.lastname@example.org.
Posted by HotViews Editor at '06:00'
Last month Indian Pure Play Tech Mahindra announced that it is acquiring Target Group, a privately-owned specialist provider of Business Process as a Service (BPaaS) in the management of loans, investments and insurance, see here. Over the past five years, this company has grown quickly to exploit its proprietary IP, central processing platform and customer relationships in this complex but growing niche. Target already has a growing pipeline from its business supporting mainstream lenders in the UK and from the expanding alternative lending market. Additional potential is being opened up in the management of loan portfolios.
Tech Mahindra’s acquisition of Target Group appears to offer benefits to both the acquirer and the acquired. Target group had been enjoying good success under its PE owners, but access to a bigger balance sheet and a greater pool of resource should accelerate its progress, enable it to expand geographically and drive higher long-term profitability. On the other hand, Tech Mahindra has bought a centre of excellence and a market position in a profitable, growing and differentiated sector of the competitive Financial Services market.
This report on Target Group, giving an overview of this interesting company and the background to the deal, can be accessed here.
If you don’t yet subscribe to FinancialServicesViews or to other TechMarketView research streams, please contact Deb Seth of our Client Services team
Posted by Peter Roe at '08:12'
We are absolutely delighted to announce that the fourth annual ‘Evening with TechMarketView’ in September will be brought to you in association with NetSuite. NetSuite’s cloud business software suite is used by over 30,000 companies to run mission critical business processes from accounting, procurement and HR through to marketing and sales, and we’re excited to have them as the Gold sponsor for our flagship event.
As avid HotViews readers will know, this year’s Presentation & Dinner will be centred around our 2016 research theme ‘Surfing the Waves of Disruption’. Top of the agenda will be the disruptive trends and suppliers shaping the future of the UK software, IT services and business process services markets, including how these are likely to affect the UK financial services sector and UK public sector. Topics like automation, machine learning, the threat of AWS and the speed of the move cloudwards, will be hotly debated by TechMarketView’s analyst team.
With its high calibre UK tech audience, the TechMarketView Presentation & Dinner 2016 also provides an excellent opportunity for organisations with an interest in the sector to raise brand awareness, demonstrate thought leadership and attract the attention of potential clients and partners. We are currently finalising the ‘Silver’ sponsorship packages – if you’d like further details, or to register your organization’s interest in being considered as a potential Silver partner, please let us know as soon as possible by emailing TechMarketView director Tola Sargeant on email@example.com.
Posted by HotViews Editor at '08:00'
The Microsoft acquisition of LinkedIn (see here) has the multiple angles of a polyhedron but there are three that we think are particularly interesting, from Microsoft’s perspective and because of the impact on the wider market. Social sales, HRM and connected data stand out as significant aspects of the transaction. TechMarketView subscribers can read our thoughts on these in HotViewsExtra in Microsoft-LinkedIn: first thoughts on implications.
Posted by Angela Eager at '10:18'
Telecoms service providers are being forced to radically change their business models as revenue from fixed voice minutes shrinks and forces a wholesale shift to IP telephony.
Many have moved to supplement their portfolio with a broader IT service sell - including data connectivity, mobile, security and cloud hosting services - but the market remains fiercely competitive as suppliers fight for customers at home and abroad.
In this Company Snapshot research note, we examine London-headquartered Alternative Networks to assess its service portfolio and performance. Subscribers can read it here.
If you would like to become a subscriber, please contact Deb Seth.
Posted by Martin Courtney at '09:58'
On 24th May, we learnt of the proposed spin-out of HPE's Enterprise Services business and merger with CSC. The deal is expected to close in March 2017. Our first response was published in the UKHotViewsExtra article entitled CSC & HPE-ES: First look at the UK rankings. We also promised to look in more detail at the potential impact.
In this latest research note - CSC & HPE-ES merger: the public sector effect - PublicSectorViews and Foundation Service clients can read TechMarketView Director, Georgina O'Toole's analysis of the prospects for the combined CSC/HP-ES business in the UK public sector. The report includes detailed analysis of how the proposed deal will impact the UK public sector SITS rankings. Subscribers will also find a review of the public sector businesses of both companies across each of the public sector subsectors, encompassing central government, defence, health, police and local government. An interesting picture emerges, which will have implications for all those competing in this market.
TechMarketView subscribers can download CSC & HPE-ES merger: the public sector effect now. Anyone else should contact Deb Seth to find out how to get access.
Posted by HotViews Editor at '19:01'
Some of the most significant recent changes to the way of work have been driven by employees. Specifically, it was employees that brought their own devices to work, introduced certain SaaS-based tools, raised expectations around device performance and upped the pressure on their employers to mobilise their work experience. Generally speaking, centrally managed IT has fought this process rather than welcomed it because it goes against guidelines, increases security/compliance risks, causes more work for IT support and so on. As a result, many organisations are now left with a ‘mish-mash’ of IT and communications (i.e. both sanctioned and ‘shadow’), and in most cases an environment that is still not user-centric and even more problematic to manage.
We believe IT departments should be encouraged to create an end user experience that is far more than just fit for purpose and that IT services suppliers should be endeavouring to help customers deliver an experience to users that goes beyond their expectations. This is now a possibility, based on available/emerging technology. But many CIOs are still fighting the tide of change, rather than recognising this as an opportunity to transform user and organisational productivity.
In “The Connected Workplace: Enabling an experience beyond expectations”, Research Director, Kate Hanaghan, examines the trends, opportunities and challenges in developing a workplace experience fit for the 21st Century.
The report is available now for subscribers to InfrastructureViews. If you do not currently subscribe and would like to, please contact Deb Seth.
Posted by HotViews Editor at '09:39'
First half results out today from Alternative Networks show the impact of the new roaming tariffs on its Mobile business. Overall revenue was down 4% to £69.3m, with Mobile revenue specifically down 7% (now 27% of total revenue), reflecting the reduction in roaming usage by customers. Profits were also hit, with adjusted EBITDA down 27% to £7.5m. The company is hoping that negotiations with carriers and an increase in mobile users (+9% in H1) will help counter the longer-term impact of the new roaming tariffs. Fixed line revenue was also down 7%.
Alternative Network's Advanced Solutions revenue, which is where its IT services offerings fit, held steady at £37m. Here, an increase in recurring revenue was offset by a decline in non-recurring revenue following the loss of a significant contract. A positive sign within the AS business is that revenue from its Online Desktop product grew 16% (read more on workplace trends here: The Connected Workplace: Enabling an experience beyond expectations).
Like other players with legacy business in the fixed/mobile voice markets, Alternative Networks faces the not insignificant task of balancing low/no growth markets with areas (typically in IT services) that are growing – e.g. hosting. The options are to reduce those declining businesses right down to the most profitable or strategically important contracts, or exit them completely. We understand the company has committed to withdrawing from the traditional, analogue and circuit switched fixed line voice services market by 2025.
With new developments around cloud expected to filter through during the year (e.g. the upcoming launch of OnlineCompute – an IaaS platform for enterprise workloads), and the cash/financing arrangements to support further acquisitions, there will be opportunities to support both organic and inorganic growth in the near-term.
Subscribers can see more analysis on the firm in our recent company research note: Company Snapshot: Alternative Networks.
Posted by Kate Hanaghan at '09:21'
We are delighted to announce the relaunch of TechMarketView OffshoreViews, our quarterly review of the leading India-based offshore services players.
We have completely redesigned the content and format with the aim to make OffshoreViews even more useful and informative. In particular:
And this is just for starters! We intend to further enhance OffshoreViews with even more insightful analysis and graphics over the next few issues.
Subscribers to the TechMarketView Foundation Service can download the latest edition of OffshoreViews, right here, right now!
For further information, just drop a line to firstname.lastname@example.org.
Posted by HotViews Editor at '08:40'
Dr Sati Sian, the new CEO of Allocate Software, has had a busy few months. He took the reins at Allocate from Ian Bowles, now CEO at Tribal (see here), last September following the company’s acquisition by Hg Capital in November 2014 and de-listing from AIM in January 2015 (see UKHotViews).
Allocate Software’s latest available results (FY15 results to 31 May 2015) show the SME has continued to perform well in its core market, NHS workforce optimisation software. The results revealed 8% revenue growth - 12% on a constant currency basis (all organic) - to £41.4m and 56% growth in adjusted EBITDA (which makes allowance for the costs involved with being taken private) to £8.3m. The UK part of the business performed particularly well, reporting a market-beating 16% increase in turnover to £26m.
We caught up with Sian for an update on recent developments and Allocate’s plans for the future. Eligible TechMarketView subscription service clients can read the full story in our latest UKHotViewsExtra article - Allocate Software: Benefiting from focus & investing for growth.
Posted by Tola Sargeant at '11:24'
We're delighted to say that tickets for our fourth annual ‘Evening with TechMarketView’, which will take place in London on Thursday 8 September 2016, are selling like the proverbial hot cakes! If you'd like to join us there don't leave it too late - you can book by clicking here.
Following the success of the sell-out 2015 TechMarketView Presentation & Dinner, this year’s event will once again be held in the magnificent premises of the Royal Institute of British Architects (RIBA) in Portland Place, London, from 6.30pm.
The evening, which will be centred around our 2016 research theme ‘Surfing the Waves of Disruption’, will commence with short, insightful presentations from the TechMarketView analyst team highlighting key trends in the UK software and IT services market. This will be followed by plenty of time for networking over drinks and a sumptuous three course dinner with your peers.
We’re expecting a similar audience to the previous three years with around 250 ‘movers and shakers’ from the UK tech scene, for what has been described by previous C-level attendees as “the best networking event in the industry”.
Tickets do sell quickly, so we’d advise you to book early to avoid disappointment! We’ve held the prices at the same level as last year - £395+VAT per person for TechMarketView research subscription clients and £495+VAT per person for everyone else. There are also a limited number of tables of ten available at £3,950+VAT.
Posted by HotViews Editor at '10:01'
A lot has happened at Unit4 over the past year, and particularly over the past couple of months. It held its first European Connect conference and a week later announced the surprise departure of CEO Jose Duarte who was instrumental is setting the company’s strategic direction, swiftly followed by the appointment to the CEO role of Stephan Sieber.
The direction is not changing under the new leadership. It includes structuring Unit4 to operate more effectively and with greater visibility on the international stage, and driving change in the way users interact with ERP systems including its ‘self-driving ERP’ approach, as it pursues the digital transformation agenda internally and with customers. It is also about the cloud journey. Unit4 is not alone in revitalising and taking ERP to the cloud so is operating in a challenging market but does have something different to offer.
The latest research from ESASViews, and part of our series on suppliers’ digital transitions, takes stock of Unit4. Subscribers can download Digital Transitions, Supplier Progress: Unit4 here. For those of you who don’t have one, contact Deborah Seth for information on how to take out a subscription.
Posted by Angela Eager at '15:05'
FIS is leveraging its scale in the US to drive faster growth in its international operations and we expect to see a rapid advance in the company’s UK business over the next few years. In 2016 the inclusion of the recently-acquired Sungard business for a full year and further progress with both banking incumbents and challengers are likely to push FIS well into the top ten SITS providers to the UK Financial Services sector. The scale advantaged, platform-based approach of FIS, together with the expanded portfolio and customer list acquired along with Sungard should enable FIS to be a major contender as the UK banking sector continues its process of digitalisation and renewal.
The latest report from the FinancialServicesViews research stream, “FIS – Building in the UK”, explains how FIS is looking to build on its a strong position with several of the larger UK banks and making its mark within the growing ranks of the Challengers.
This report is available to subscribers here. If you want to enquire about a subscription, please contact Deb Seth in our Client Services team.
Posted by Peter Roe at '08:58'
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