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FinancialServicesViews publishes its annual review of the £11bn UK Software and IT Services market within the UK Financial Services sector.
This report considers the most important Market Shaping Trends within this important sector and details their implications for the SITS vendor community. It also discusses the key developments within Infrastructure Services, Software and Applications Services and Business Process Services in the context of the Financial Services sector.
Despite the poor macro-economic outlook and the uncertainty created by Brexit, we continue to take a positive view of growth within the sector as established financial services companies address their issues of legacy IT and seek to transform their businesses and cost structures. The greater use of cloud services and the increased application of machine learning and automation technologies will be key features in the market going forward. We also anticipate a further movement to the use of more standardised processes and third party suppliers as established financial services providers attempt to improve agility and focus their resources on key elements of value-add.
We continue to expect that SITS demand in the sector will grow faster than the overall UK market, forecasting a growth rate of 3.9% in the current year (to March 2017) with above-average growth over the next five years.
This report is available to FinancialServicesViews subscribers here. If you or your company are not yet subscribers, please contact Deb Seth of our Client Services team on dseth@techmarketview.com.
Posted by Peter Roe at '15:02' - Tagged: outsourcing cloud bpo insurance automation legacy banking regulation machinelearning
Local government SITS supplier Agilisys has upgraded its public sector certified IaaS platform to include hybrid cloud hosting elements, giving its customers the ability to spread their applications and workloads across Agilisys’ and Microsoft Azure UK data centres (other hosting options will be available at a later date).
TechMarketView subscribers can read our analysis of Agilisys’ new Community Cloud and see how it stacks up against the opposition here. If you are not yet a subscriber please contact Deb Seth to find out more.
Posted by Martin Courtney at '08:00' - Tagged: publicsector Agilisys hybrid
Subscribers to the TechMarketView Foundation Service can download the latest edition of IndustryViews Quoted Sector to see our latest analysis of how the stock performance of UK software and IT services companies listed on the London Stock Exchange compares with their international peers.
For further information please contact our Client Services team.
Posted by HotViews Editor at '06:55'
In Part 1 of this Payments Bulletin report, available here, we set a historical context to the state of the payments industry and described how this archetypal, boring back-office function has suddenly become sexy and a hotbed for innovation.
The framework introduced in our July FinancialServicesViews report “Fintech Battlegrounds”, available here, was applied to help with describing the multiple dimensions of disruption underway in this space, and the key battleground of remote payments was examined in detail.
In Part II, Richard Johnson extends this analysis to several other important battlegrounds; international remittances, online commerce and physical commerce. This analysis will provide clear insights as to how these market segments will develop and how companies and their suppliers can build effective strategies to deliver lasting value.
FinancialServicesViews subscribers can access this important study here to shed some more light on a vibrant sector, with lots of potential twists and turns. Whoever thought payments could be so interesting!
Posted by Peter Roe at '17:05' - Tagged: payments FinTech
Many of you - both those that attended the Prince’s Trust ICT Leaders of the Last 40 Years event on 5th Oct and those that did not - have asked to see the videos of the speeches that night. These have now been uploaded to a new Youtube Channel - TechMarketView TV.
Individually you can view:
Holway’s Introduction and Whizz through the Last 50 years
Philip Swinstead OBE (founder of Systems Designers in 1969, first SITS IPO in 1982 and, as SD-SCICON, tried - unsuccessfully - to fight off hostile bid from EDS in 1991. Went on to form GFI Informatique and Parity)
Sir Peter Rigby (founder of Specialist Computer Centres in 1975 and now the largest independently owned IT group in Europe with revenues >£1.5b)
Geoff Unwin (CEO of Hoskyns, led Hoskyns IPO in 1988 and subsequently first non-Frenchman to be CEO of Capgemini)
Sir Robin Saxby (first CEO of ARM and led their IPO in 1998)
Dr Steve Garnett (hugely successful executive at Oracle and Siebel before leading Salesforce.com in EMEA from 2003)
Stephen Kelly (ex-CEO of Microfocus and currently CEO of Sage)
Roger Graham OBE (Various major roles in IT since the 1960s but now responsible for Archives for IT)
Holway on the Future!
Duane Jackson (founder of Kashflow and beneficiary of assistance from the Prince’s Trust)
Tara Leathers (Head of Fundraising at The Prince’s Trust)
ENJOY. You will never see the likes of this again.
Posted by Richard Holway at '00:00'
In this latest research note, TechMarketView’s PublicSectorViews’ team welcomes Jo Clift as a ‘guest writer’. Jo is a consultant helping organisations to engage with Government (see jocliftconsulting.com), having spent over twenty years working at the heart of Whitehall. In 'Civil service reform: what can we expect?', Jo gives her views on the current state of the Civil Service Reform agenda; her take on the objectives of the current Government; and an outline of the potential barriers to progress (including the Brexit impact!).
Suppliers of software and IT services to the sector will find her insight valuable as they look to assess the likely rate of adoption of solutions designed to support reform. PublicSectorViews’ subscribers will be able to read our interpretation of these views and what we think it means for the UK public sector software and IT services market in our forthcoming UK public sector SITS Market Trends & Forecasts report 2016.
If you are not yet a subscriber, please contact Deb Seth to find out how to access our UK public sector-focused research, including our extensive back catalogue of notes and reports.
Posted by HotViews Editor at '09:39' - Tagged: publicsector centralgovernment government digital transformation
TechMarketView Foundation Service subscription clients can download the latest edition of IndustryViews Corporate Activity, our quarterly summary of significant trade sales and private equity investment in the UK software and IT services market, by clicking here.
Please contact our Client Services team (info@techmarketview.com) if you would like further information.
Posted by HotViews Editor at '11:45' - Tagged: acquisition
We broke the news earlier this week of Atos winning a new £200m business process services (BPS) deal with insurer Aegon (see Atos secures £200m transformational BPS partnership with Aegon).
Atos takes on the second generation of the Aegon deal from incumbent provider Serco, which initially signed the contract in 2012 (see Serco ups value of Aegon deal).
The deal marks a step change for Atos in the outsourced life and pensions (L&P) sector, introducing an entrant in to the market, at a time that a number of first generation deals are coming up for renewal.
Subscribers to TechMarketView's Foundation Service and BusinessProcessViews research can read the full analysis and implications of this new life and pensions BPS win in Atos secures £200m BPS partnership with Aegon (update).
Posted by John O'Brien at '07:35' - Tagged: contract bps lifeandpensions
Rezonence burst onto the ad tech scene in 2014 with a new platform to tackle the big problem of declining advertising revenues caused by the switch from print to detail media.
This digital disrupter believes that it is uniquely placed to enable publishers to generate sufficient levels of digital revenue to remain sustainable in a world without print, compared to the incremental advertising revenues offered by its peers. Its Freewall® platform has attracted an impressive client list to date, and Rezonence is on a mission to dominate this marketplace in the UK and beyond. This SME is certainly one to watch in this highly competitive market.
To read our views on Rezonence and its outlook for the future, TechMarketView subscribers can download our snapshot here. If you’re not a subscriber, please contact Deb Seth in the Client Services team for more information
Posted by Rebecca Johnson at '18:15' - Tagged: sme digital adtech
Yesterday I posted my Whizz through the decades of ICT as I had presented at the start of the Prince’s Trust ICT Leaders of the Last 40 Years Dinner on 5th Oct 16.
I ended my part of the evening with my predictions for the future as follows:
A few months ago I was introduced as the one analyst who had regularly and accurately ‘predicted the future’. Actually predicting what was going to happen in the next 1-5 years I have found to be extremely difficult. But the next 20 years is a bit easier as everything that will become mainstream in 20+ years time is around today. Just turn the clock back to 1995 and you will see what I mean.
You just have to pick the winners from the losers remembering that Technology has a wonderful way of making things cheaper, smaller, faster and more efficient.
By 2036, I really do reckon that the auto sector will have been transformed. Indeed I think that autoTECH will create perhaps the biggest opportunity – certainly the biggest disruption – that we have ever seen and much bigger than smartphones. Cars, trucks, buses etc will have many autonomous features and certain roads and parts of Cities will be exclusively used by self-driving cars. Indeed cars with drivers might be considered as dangerous and anti-social as smoking today!
Vehicles using fossil fuels will be banned and most will be electric with battery technology enabling ranges many times those of today
Renewable energy will generate the vast majority of our energy needs. Solar will be like Moore’s Law and halve in cost and double in power each year. Battery technology, like Elon Musk’s Powerwall, will enable even the smallest house to store all the power it needs – including recharging the family car – if indeed we still need a car in 2036. I actually think we will just summon a car when we need it rather than keeping it on the drive unused for 95% of the time.
AI and automation will change most white collar jobs – including my own as an analyst! Just like it has changed blue collar roles in the last 40 years.
Augmented Reality will be a big hit and, when linked with Haptics, will revolutionise entertainment. Rather than seeing things on a flat screen, you will have an entertainment room at home where you be immersed in the experience – seeing, hearing and feeling things exactly as if you were there. This will be a particular big hit in pornography!
Wearable devices will have a huge range of sensors and will be particularly useful in healthcare. Your RoboDoctor will inform you that you are just about to have a heart attack and your self-driving Uber ambulance is on the way to take you to hospital – where, let’s hope, you will not have to wait 4 hours in A&E!
Whether it will be a better, happier world as a result – I will leave to you. But one thing I can predict is that if you think the last 40 years have been exciting for TECH, Well You ain’t seen nothing yet!
On 5th Oct 16, I organised the Prince’s Trust ICT Leaders of the Last 40 Years Dinner. It was attended by over 100 of the ICT Leaders from the 1960s to the present day. Indeed representative CEOs from each decade gave short presentations.
The evening started with my own gallop through the decades which I thought TechMarketView's HotView's readers might be interested in reading. It went as follows:
I’m an ANALYST. I used to be the LEADING UK ICT analyst. In 2000, the FT christened me the @WISEGREYOWL (now my Twitter 'handle') as my many warnings of the dot.com crash came to pass. Now I guess my only claim to fame is to be OLDEST UK ICT Analyst!
1969
So let me start by looking at the UK ICT Industry in the 1960s – 1969 to be precise. Valued at not much more than £2b, it was dominated – over 70% - by Communications which itself was dominated by FIXED LINE VOICE, where the POST OFFICE – the forerunner to BT – had a monopoly. Hardware was dominated by IBM, the newly formed amalgam called ICT and the rest of the BUNCH (which none of today’s generation can name let alone remember)
For most of the 60s, there were essentially no software packages. There were consultancies and bureau. But SITS- Software & IT Services - companies were being born. Eg Freelance Programmers in 1962 (big welcome to Dame Stephanie Shirley tonight), Hoskyns in 1964 – which took six years to before it celebrated £1m turnover 1970. All the way through to Logica and Systems Designers in 1969.
1985
Fast forward 25 years to 1985. BT was starting to face competition in Telecomms – which was to become even more intense with the advent of mobile. Hardware really did rule the day as minis from DEC and HP found favour with ever smaller businesses and the PC revolution took hold which was eventually to put a computer on every desk. But the biggest change was in SITS as cheaper hardware demanded cheaper solutions and the software package came of age. But bespoke systems, third party hardware maintenance and, the incredible growth in outsourcing, boosted that sector greatly.
Top Ten SITS Providers in 1985
I published my first Holway Report in 1988 using 1985 as my base point. The table shows the Top Ten SITS suppliers to the UK market as in the first Holway Report. With the exception of IBM, they were ALL UK HQed. Turn the clock forward 30 years to today and they have all been acquired by global players! This tale of our biggest and best tech players being acquired by global players continues to this day. It could all have been so different!
Today
Fast forward again to today. At £110b, the UK ICT market in 2015 was 50x bigger than in 1969. Rampant competition has meant that Telecomms has actually not only reduced its share of the ICT pie but of GDP. We are getting more and more comms for less and less as anyone who digs out their mobile, broadband and voice bills from 2000 and compares them to today’s will find. Maybe it really is the bargain of the Century!
But the same applies to hardware. In particular consumer hardware is cheap, easy to use and reliable. Another amazing revolution.
Today, SITS is the biggest sub sector at over 40%. It’s ironic that the shared data centre/bureaux concept of the 1960s disappeared in favour of on premise hardware and has now gone full circle to the Cloud and SaaS! Thomas Watson Jr of IBM in 1943 said ‘I think there is a world market for about five computers’. Oh how we all laughed! Well maybe he wasn’t wrong afterall. Let’s just hope that all five aren’t owned by Amazon!
But tech is not just ICT. The digital economy, where perhaps the UK really does lead, would add at least another £60b to the total if you add digital and social media, gaming and e-commerce provisioning etc. That’s c10% of the UK’s GDP!
Indeed, you could argue that every business is now a tech business – from the banks and airlines to every online store. We are indeed a Digital Nation – in a Digital World in the Digital Age
And we/YOU all made it happen!
Look out for Part Two of my presentation on Tuesday - The Shape of Things to Come.
Posted by Richard Holway at '10:42'
APPLICATIONS FOR THE NINTH LITTLE BRITISH BATTLER DAY CLOSE TODAY!
Don’t miss this final opportunity for your company to get extensive market visibility in UKHotViews, the leading daily source of opinion and comment on the UK tech scene. UKHotViews reaches tens of thousands of senior executives and professionals in the tech industry, government, enterprise, investment community and the media. Plus your company will feature in the next Little British Battler Report, to be published in December.
TechMarketView coverage has brought numerous exciting, little-known UK tech SMEs to the attention of the market. Many have since gone on to greater things! Yours could be one of the 100+ companies to benefit.
We’re holding our ninth Little British Battler day (LBB9) in London on Tuesday 15th November 2016. CEOs of 12 disruptive UK tech SMEs will be invited to spend an hour in closed session with TechMarketView Research Directors and senior partners from our sponsors, technology merchant bank MXC Capital, to share their business plans and get valuable feedback on market opportunity, competitive positioning, and financing.
LBB9 is open to independent, privately held, UK-owned tech companies with revenues under £20m that are punching above their weight in their chosen markets.
To register your application, please complete the web-based Pre-Qualification Form by clicking here.
Applications must be submitted by close of business TODAY, Friday 7th October. There is no charge to apply or to participate.
We will let you know if your company has been accepted by 28th October. If you were unsuccessful with previous applications and believe your company is a ‘disruptor’, then you would be very welcome to apply again.
Contact our LBB Coordinator if you need further information.
Posted by HotViews Editor at '07:10' - Tagged: lbb
Applications for the ninth TechMarketView Little British Battler Day close TOMORROW!
It’s an unmatched opportunity for your company to get extensive market visibility in UKHotViews, the leading daily source of opinion and comment on the UK tech scene. UKHotViews reaches tens of thousands of senior executives and professionals in the tech industry, government, enterprise, investment community and the media. Plus your company will feature in the next Little British Battler Report, to be published in December.
TechMarketView coverage has brought numerous exciting, little-known UK tech SMEs to the attention of the market. Many have since gone on to greater things!
Applications must be submitted by close of business TOMORROW, Friday 7th October. There is no charge to apply or to participate.
Posted by HotViews Editor at '07:30' - Tagged: lbb
If you answered Yes to the first question and No any of the others, then we are sure that you will find this report interesting, informative and useful.
In our latest Payments Bulletin, available to FinancialServicesViews subscribers here, Richard Johnson explains the historical context of this important and growing area, comments on the overall state of the market and then analyses the key battlegrounds in the dynamic area of remote payments.
If you do not yet subscribe to FinancialServicesViews, please contact our Client Services team.
Posted by Peter Roe at '18:31' - Tagged: e-commerce mobility payments banking
We are extremely proud that the ninth TechMarketView Little British Battler Day will see the 100th company be widely recognised as a UK tech SME punching above its weight in its chosen markets.
But there’s only THREE DAYS left if you want be that company!
This is an unmatched opportunity for your company to get extensive market visibility in UKHotViews, the leading daily source of opinion and comment on the UK tech scene. UKHotViews reaches tens of thousands of senior executives and professionals in the tech industry, government, enterprise, investment community and the media. Plus your company will feature in the next Little British Battler Report, to be published in December.
The ninth Little British Battler day (LBB9) will be held in London on Tuesday 15th November 2016. CEOs of 12 disruptive UK tech SMEs will be invited to spend an hour in closed session with TechMarketView Research Directors and senior partners from our sponsors, technology merchant bank MXC Capital, to share their business plans and get valuable feedback on market opportunity, competitive positioning, and financing.
Applications must be submitted by close of business on Friday 7th October. There is no charge to apply or to participate.
Posted by HotViews Editor at '08:19' - Tagged: lbb
The combined UK Enterprise Software and Application Services (ESAS) market is looking at anemic growth of around 2%. The software sector is forecast to perform better than application services but the future is not robust for either market segment.
The pace of digital change is picking up but remains slower than expected as enterprises struggle to find headspace to consider enterprise level change and deal with rising complexities. Meanwhile potential revenue gains for suppliers are knocked back by budget shift and the deflationary effect of the digital agenda, which even if it is not prioritised to cut costs, does take cost out.
In this time of low growth and uncertainty, suppliers need to focus on the fundamental drivers shaping the ESAS market: the pace of digital change and the role of data. Software developments (e.g. data driven intelligent applications, AI/machine learning-led analytics) are a response to the data every organisation and every individual is producing, and the need to derive intelligence from that data. Data unites the digital enablers that are core to CX-centric digital business and sets the context for the key ESAS trends. Viewing the market through a data lens will help suppliers and enterprises surf the waves of disruption.
Subscribers can download “ESAS Market Trends & Forecasts 2016”, one of the foundation reports from the ESASViews research stream, for a deep dive into the market and to learn more about how to surf those disruptive waves. If you want to find out how to subscribe, please email Deborah Seth who will be able to help.
Posted by Angela Eager at '09:45' - Tagged: markettrends software forecasts applications digital data
We recently met with Somit Kapoor, Wipro’s general manager for BPS operations, who talked us through the strategy for enterprise operations transformation (EOT). This is an important new initiative that lies central to many of the big themes and challenges facing Wipro, and its Indian Pure Play (IPP) peers as they attempt to transform their legacy operations (see An Evening with TechMarketView - September 2016).
Transforming Legacy is a core theme running through our BusinessProcessViews research (see Transforming Legacy – critical for BPS providers in the digital era). It is fundamentally about transforming old modes of working—moving from manual, labour intensive processes, to digitised and increasingly automated processes—to take full advantage of the advances in digital and automation technologies.
Some providers are burying their heads in sand, or just paying it lipservice, while others like Wipro here, are explicitly making legacy transformation key to their future BPS strategy.
Subscribers to TechMarketView’s BusinessProcessViews research stream can read the analysis and implications here in Wipro Transforming the Legacy BPS core.
Posted by John O'Brien at '08:00' - Tagged: bps legacy
There’s just FOUR DAYS to go before applications close for the ninth TechMarketView Little British Battler Day.
Contact our LBB Coordinator for more information.
Posted by HotViews Editor at '07:18' - Tagged: lbb
The UK Business Process Services (BPS) market achieved growth of 4.5% in 2015 - dipping below the mid-single digit line for the first time (see UK BPS Market Trends & Forecasts 2015).
Both public and private sectors experienced a slowdown in growth due to fewer major deals coming on stream, and deflationary pressures caused by Digital and Automation - hitting the twin customer drivers of legacy transformation and radically improved cost/productivity (see Transforming Legacy - critical for BPS providers in the Digital Era and Business Process Automation - what is Intelligent Automation?).
These disruptors are causing the UK BPS market to experience a 'rebalancing effect' around lower growth, which we now expect to continue through our forecast period to 2019, and probably beyond.
Business process consultancy, will be a winner in this rebalancing, as customers seek increasing help to map out and build their digital futures, alongside cloud-based delivery models like Business Process-as-a-Service (BPaaS), to help them provision and run processes in an agile, flexible way.
Subscribers to TechMarketView’s BusinessProcessViews research stream can read the market size, forecasts and analysis in our new anchor report UK Business Process Services Market Trends & Forecasts 2016 The accompanying forecasts data and charts can be found here.
If you're not yet a subscriber and would like to be, please contact Deb Seth (dseth@techmarketview.com) who will be happy to help.
Posted by John O'Brien at '07:53' - Tagged: markettrends bps
There’s just FIVE DAYS to go before applications close for the ninth TechMarketView Little British Battler Day.
Contact our LBB Coordinator for further information.
Posted by HotViews Editor at '07:36' - Tagged: lbb
