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Monday 18 October 2021

Would you like to join the TechMarketView team?

TMV logoTechMarketView is one of the most highly regarded tech research and advisory firms in the UK. We are looking for two research analysts to join our growing team. Could this be you or someone you know?

The successful candidates will be part of our analyst team and will work closely with our research directors and principal analysts to deliver research and analysis for our clients on the UK tech market.

Applicants should have some understanding of, and an interest in, the UK tech market, including software or IT services. Some experience of either the financial services or public sector tech markets would also be beneficial.

In time, you will be writing content for our daily newsletter and contributing to research reports, so you’ll need excellent writing skills and attention to detail and be able to work to deadlines. 

You’ll be comfortable with both interviewing senior people and doing desk research and will enjoy thinking analytically. 

As part of the role, you may also be involved in analysing company finances or helping to prepare our market sizing data, so you’ll need to be happy playing with spreadsheets too.

We’re a small, friendly team and the right candidates will have the opportunity to grow into the roles and develop expertise in specific areas of the market.

We envisage both roles being full-time, but we’re flexible and could tailor the position for the right candidates.

We all work remotely from home – and always have – but you may be required to travel to meetings in London or in the M25 area from time to time.

If you think this could be you, please email our Chief Research Officer, Kate Hanaghan, to tell us about yourself, enclosing either a link to your LinkedIn profile or a CV (or both!).

Posted by: HotViews Editor at 13:36

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Monday 18 October 2021

Cash injection targets Plum overseas markets

PlumUK-based money management startup, Plum, has raised an additional $14m as it looks to continue its overseas expansion. Launched in 2017, Plum aims helps users manage their finances more affectively via the application of AI and automation. The app facilitates automated savings, bill switching and investing.

Plum's latest funding has been provided by a variety of investors including Ventura Capital, DMG Ventures and previous contributors Global Brain. The cash injection follows a previous funding round in July that raised $10m and included a contribution from the European Bank for Reconstruction and Development (EBRD).

Plum, which was founded by Alex Michael and TransferWise alumnus, Victor Trokoudes (see: Cash boost for Plum) has indicated strong revenue growth during 2021. The app uses open banking dataflows to connect with multiple accounts and a mix of gamification, incentives and rules to encourage users to save more. With an increasing number of people working from home, changed personal priorities, and the economy going through something of a reset, personal finance tools have seen burgeoning interest in the wake of the pandemic.

Posted by: Jon C Davies at 09:35

Tags: funding  

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Monday 18 October 2021

Atos becomes member of Catena-X

Atos logoIt is clear Atos sees the power of collaboration in the quest to accelerate the digital transformation of industries. Its latest move sees it become a member of Catena-X, an open scalable European network, which aims to secure cross-company data-exchange across the automotive industry. Atos is coming together with automotive manufacturers and suppliers, dealer associations, and equipment suppliers to create a networked data infrastructure. Other members include BMW AG, Mercedes-Benz-AG, Deutsche Telekom AG, Robert Bosch GmbH, SAP SE, Siemens AG, and Fraunhofer-Gesellschaft.

Together, the organisations will work to select and implement scalable, system-relevant, use cases to enable a fast pivot to digital ecosystems. Five pilot projects have been defined across quality management, logistics, maintenance, supply chain management, and sustainability. The projects will seek to strengthen the competitiveness of the automotive industry by increasing efficiency and productivity, accelerating innovation, and focusing on decarbonisation and sustainability.

Atos brings its expertise in European data frameworks and platforms (it is a founding member of GAIA-X, on which the infrastructure will be based); end-to-end solutions (to help define the optimal platform for any use case); automotive industry experience and expertise; cloud, security, and high-performance computing capabilities; its decarbonisation portfolio; and access to the Atos Scientific Community and Expert Community.

This latest announcement has echoes of Atos’ involvement in Software République (see Atos one of five founding partners of Software République) . That collaboration – with others in the automotive and technology field – was embarked on to create a new open ecosystem for intelligent and sustainable mobility. It is believed that the Catena-X network could now be used to enhance the development of products and services by Software République.

Posted by: Georgina O'Toole at 09:33

Tags: digital   collaboration   data   automotive   sustainability  

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Monday 18 October 2021

CloudCoCo on track for FY profit uplift

cocoCheshire-headquartered CloudCoCo (formerly Adept4), has updated the market on its FY21 performance - covering the period to end September 2021.

Revenue is expected to be “marginally” higher than last year’s £8.0m but trading EBITDA is projected to be more than £700k, representing a sizeable uplift (in line with market expectations) on the £261k reported in FY20.

Last month, the firm made two acquisitions (Systems Assurance and More Computers - see CloudCoCo scales via acquisition and £2.1m placing), which added 125 customers. CloudCoCo reports that the integration process is “underway” with the new platforms already being used to help with efficiencies across the Group.

CloudCoCo has completed the “Get Well” and “Get Fit” development phases of its strategy and is now progressing through the “Get Bigger” phase. The firm plans to ‘get big’ via both organic growth and further acquisitions. CEO, Mark Halpin, is confident next year will be “another year of strong progress” based on “increasingly optimised operations” and a “healthy pipeline”.

Posted by: Kate Hanaghan at 09:30

Tags: cloud   tradingupdate  

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Monday 18 October 2021

Shopblocks blocks in another ‘mill’

logoI hadn't thought that there was room in the market for any more DIY e-commerce platforms, especially one that doesn't use templates to build the website.

Well, that was before I came across Stockport, Manchester-based Shopblocks, which has just completed its third (and biggest) funding round, a £1m raise led by existing backer, Greater Manchester Combined Authority (GMCA) and a group of private investors.

Founded in 2011, Shopblocks had previously raised £550k in November 2019 (see Ambitious Shopblocks books in more dosh for ecommerce expansion), after its initial angel funding round in October 2018 (see Angels bless Shopblocks' journey to ecommerce heaven). Since then, Shopblocks has opened an office in California and is in the process of doing likewise in Australia.

Besides changing its logo to something less obvious (to me, anyway), Shopblocks has also refined its pricing model, introducing a starter website development platform for £20 pm which, if I understand correctly, does not include e-commerce functionality. For that you need to pay £39 p.m. which includes unlimited products, multiple payment methods and no transaction fees. The top-end ‘Enterprise’ subscription costs £499 p.m. has all the bells and whistles.

I note that Shopblocks founder Kevin Jones no longer refers to his ambition (stated in 2018) of becoming “the leading website platform in the UK in the next 12 months”. OK, he hasn’t, but he has done very well indeed!

Posted by: Anthony Miller at 09:11

Tags: funding   startup  

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Monday 18 October 2021

CentralNic goes from strength to strength

LogoThe relentless progress of internet domain name and web services provider CentralNic Group plc continues to build momentum. The company’s latest trading update reveals that the already blistering rate of growth achieved in H121 (see here) has risen further during the third quarter. Turnover for the first the nine months of the current financial year is expected to be up 66% yoy to $280m. This means that Q3 sales have almost doubled compared to the same period in FY20.

Acquisitions remain responsible for the majority of this top line improvement. The pace of expansion of CentralNic’s organic revenue has, however, also advanced. This is estimated to have increased from 25% yoy in H1 to 29% during the first nine months of 2021. It is anticipated that adjusted EBITDA between January and September will have jumped by at least by 44% to $32m.

When commenting on the internet platform provider’s first half figures, we thought it likely that management’s full year guidance would be revised upwards come the end of Q3. CentralNic now expects to trade comfortably at or above the upper end of market expectations for the FY21. The company will provide more detail on its performance during the first three quarters of this year when publishes interim results for this period later next month.

Posted by: Duncan Aitchison at 08:48

Tags: results   marketing   domainservices   ecommerce  

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Monday 18 October 2021

CloudTrade hits cloud nine with Advanced!

logologoDelighted to bring you the news that London-based e-invoicing software developer, CloudTrade, has been acquired by Advanced, one of the UK’s largest providers of business software and services. Terms were not disclosed.

We first met CloudTrade CEO David Cocks and his top team at our eighth Little British Battler event back in April 2016 and were truly impressed (see LBB CloudTrade – making e-invoicing easy!). A year later they were selected by Capita to help automate invoicing and accounts payable activities for its customers (see Capita partners with LBB CloudTrade).

CloudTrade stepped up a gear after being spotted at our inaugural Great British Scaleup event in July 2017 by John O’Connell, founder and chair of corporate advisory network ScaleUp Group (see CloudTrade: from ‘Battler’ to Scale-Up). A year later, ScaleUp Group supported CloudTrade with its first external investment, a £2.2m funding round led by Calculus Capital (see CloudTrade's head in the clouds with £2m funding round). CloudTrade had recently been chosen as the e-invoicing partner of German supply chain management software supplier, SupplyOn, giving them access to 60,000 customers in 70 countries (see ‘GBS’ CloudTrade scales up with SupplyOn).

CloudTrade’s acquisition by Advanced was supported by Paddy MccGwire who, with his team at Silverpeak, advised Cocks and his colleagues throughout the successful sales process.

All of us at TechMarketView wish David Cocks and the CloudTrade team all the very best for the future.

Footnote from Richard Holway

In so many ways, this CloudTrade deal epitomises the very best of TechMarketView’s partnering programmes and the power of networking.

Anthony Miller has been the driving force behind those programmes after initiating Little British Battlers in 2012 and taking it on through Great British Scaleups and the highly successful TechMarketView Innovation Partner Programme (TIPP) of today.

John O’Connell has a long pedigree of understanding the power of the network which was very much behind his formation of the Scaleup Group (SUG) which sponsored our Great British Scaleup programme. Both Anthony & I joined as founder members of SUG and have been actively involved ever since as shareholders and investors in CloudTrade and others. On top of that Capita and Advanced have been close partners and clients of TechMarketView since our very inception (and indeed way before that!)

Some readers might remember, at one of my ‘State of the IT Nation’ presentations, me offering to refund the £1250 per head ticket price for a 1% share in all the deals initiated that evening. There was a resounding ’Oh NO!’ from the gathered CEOs. There are so many examples of TechMarketView being the catalyst for couplings of all sorts in our sector.

Something of which we at TechMarketView are immensely proud.

Posted by: Anthony Miller at 08:18

Tags: acquisition  

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Friday 15 October 2021

HCL Q2 driven by app and cloud deals

hclSecond quarter results from HCL Technologies were positive with revenue (constant currency) up 10.5% (to $2.79bn) over the comparable period last year. Europe grew slightly slower at 9.0%.

The growth engine was Services revenue (i.e., combined IT & Business Services and Engineering & R&D services), which was up 13.1% year-on-year. IT & Business Services was the overall leader in terms of growth rate, up 13.2% due to an “acceleration” in application modernisation and cloud transformation deals. However, the Products & Platforms business declined 5.5% due to delays in closure of certain deals.

Across the business as a whole, HCL saw growth with a standout performance in Lifesciences & Healthcare (+20.1%) and Entertainment & Publishing (+13.4%). The company is also making progress in terms of increasing the number of larger clients. The number of $100m+ accounts has increased by one, while $50m+ clients are up by 12 and $20m+ clients up by 18m. In all, Q2 saw total contract value of new deal wins grow 38% to $2.2bn.

Although the growth rate slowed slightly on Q1 (+11.7% year-on-year), CEO & Managing Director, C Vijayakumar, says the firm’s “robust pipeline and continued strong employee ramp up augurs well for our business momentum going forward”. For FY2022 as a whole, HCL says it is expecting double digit growth and an EBIT margin of 19-21%.

More on the European and UK businesses once we have caught up with management…..

Posted by: Kate Hanaghan at 09:30

Tags: results   cloud   appmodernisation  

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Friday 15 October 2021

Automated AP provider Tipalti launches in the UK

Tipalti logoTipalti is a $2bn valuation San Francisco based unicorn who grew sales in North America by 83% during 2020 and has now launched in Europe, siting its HQ in central London. It plans to invest £100m in Europe over the next five years. As part of that it aims to create 200+ UK jobs over the next three years including over 40 hires across engineering, sales, customer success and compliance to be filled by the end of 2021. 

Tipalti’s CMO for the past seven years, Robert Israch has moved to London to become GM of the European business.

While its mid-market customers were impacted by the pandemic Tipalti also saw demand for its product grow as e-commerce businesses for example had to scale up rapidly or businesses simply had to pay more attention to how money was moving around. It has 1,500+ customers in total, including Amazon Twitch, National Geographic, Business Insider, Farmdrop, Hopin, Cazoo and Time Out, with c.50 in the Europe/UK. 

The offering, cloud based and localised for the UK market, is an automated accounts payable (AP) solution coupled with international payments capability. The end-to-end AP offering addresses the entire workflow, including supplier management, VAT compliance, procurement, invoice management, PO matching, self-billing, global payments and payment reconciliation, a process that is normally plagued by manual steps. The international transfer capability will support UK business’ international growth ambitions. With API integrations to accounting and ERP packages such as Oracle NetSuiteSage Intacct, Intuit Quickbooks and Microsoft Dynamics, its narrow focus enables it to co-exist with existing cloud solutions. How far it plans to expand its focus remains to be seen. 

Accounting is a crowded sector within the UK but Tipalti (which comes from the Hebrew expression for "we handled it") appears to have an edge with the level of automation it brings to the mundane but vital accounting processing task. The planned investment in the UK and creation of new tech sector jobs is welcome too. 

Posted by: Angela Eager at 09:18

Tags: software   accounting  

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Friday 15 October 2021

CGI wins European Space Agency 5G navigation contract

CGICGI is working with the European Space Agency (ESA) across a range of contracts (see here and work back), the latest of which will see it use 5G networks, alongside traditional navigation systems, to provide ‘hybrid-positioning’ systems. In layman’s terms, this is all about helping airspace users in locations where traditional navigation systems struggle.

Back in December, CGI signed a contract with ESA to develop a 5G facility at the European Centre for Space Applications & Telecommunications (ECSAT) at the Harwell Campus in Oxfordshire (see here). Its latest contract will be a proof of concept (PoC) arrangement with a view to supporting future aircraft development such as unmanned aerial vehicles (UAV), that will need to safely operate beyond line of sight within built-up areas, where the signals of Global Navigation Satellite Systems (GNSS) are often disrupted.

In addition to the ESA, CGI is working with a range of partners on the PoC including u-blox, the Advanced Communication, Mobile Technology and IoT (ACMI) Research Centre at the University of Sussex and air navigation service provider National Air Traffic Services (NATS), to define use cases and system requirements for a 5G-based complement to existing GNSS receivers. 

This looks like a positive move for CGI, not only further deepening its relationship with the ESA but using its experience in delivering complex, mission-critical, space software systems for clients to develop use cases in areas that should offer future growth, as well as bringing closer the potential benefits of satellite integration into 5G networks.

Posted by: Marc Hardwick at 09:16

Tags: contract   satellite   5G  

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Friday 15 October 2021

Temenos forges ahead in Q3

TemenosLeading core banking software vendor, Temenos, has released its latest quarterly results, once again characterised by strong revenue growth and healthy operating profitability. Following a strong H1 (see: Momentum builds for Temenos) the financials for the three months ended 30 September 2021 revealed quarterly revenue of $231.6m, up 11% on the same time last fiscal and EBIT of $40.8m, at a margin of 17.6%.

Temenos saw its revenue from software licences jump by 21% in the quarter to $63.5m whilst SaaS and subscription revenue climbed 58% to $31.3m. Total bookings were up 19% as the vendor onboarded 18 new clients in the quarter off the back of strong demand for its offerings. Maintenance and services revenue was more or less constant at $137m as Temenos continues to successfully move more and more of its customer onto the “as a Service” pricing model.

Whilst Temenos continues to prosper in the US, the Geneva-based vendor is also seeing healthy growth closer to home, with Europe the second largest contributor to SaaS ACV in the quarter. Temenos is specifically targeting the European Banking as a Service (BaaS) market, estimated to be worth more than $3bn per annum and to that end recently signed a partnership agreement with BaaS specialist Vodeno.

Temenos has set the bar high in terms of the market for core banking software. The vendor appears to be reaping the rewards for being an early mover in embracing cloud native technology, modular, open architecture and collaborative innovation. Despite having cut its teeth serving the smaller and mid-tier institutions globally, Temenos is now increasingly working with large, multi-national banks that are looking to embrace digital transformation at pace and at scale.

Posted by: Jon C Davies at 08:39

Tags: Temenos  

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Friday 15 October 2021

Did you know our Corporate Subscriptions are for...

… organisations of all shapes and sizes?

Whether you represent an ambitious start-up or a well-established multi-national, we can offer a subscription package that’s tailored to the size and shape of your business.


Choose the TechMarketView research streams that are relevant to your business

• the Foundation Service, cornerstone of our analysis of the UK tech market

• the brand-new TechSectorViews research stream, which brings together all of our ‘horizontal’ tech analysis

• PublicSectorViews, for in-depth coverage of the UK Central Government, Local Government, Defence, Education, Police and Healthcare markets

• and FinancialServicesViews, focused on Banking, Insurance and Financial Markets, as well as FinTech & InsurTechs.

And with a corporate subscription all of your employees can have access to the same insightful research for no additional cost (we don’t charge per seat – anyone with a corporate email address from your organisation can be added to the account).

That’s not just UK-based employees either – it may surprise you to learn that only 53% of our readership are based in the UK, we really are global!

Plus when you sign up you immediately get access to every piece of research we’ve ever published in your chosen research stream/s and the searchable archive of over 20,000 UKHotViews and UKHotViewsExtra articles – a treasure trove of insight on tech suppliers and trends.

As a corporate subscription client you can also take advantage of unmetered analyst access – half hour calls or short email exchanges with our analysts to quiz them about what the research means to you are ‘all part of the service’.

Want to know more? Check out the Corporate Subscriptions area on our website and email our friendly Client Services team via for a quote that’s tailored to your organisation.

Posted by: HotViews Editor at 00:00

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Thursday 14 October 2021

TechMarketView Webinar: Making Green from Green

Thank you to everyone who joined us the fourth and final webinar in our autumn series this morning, Making Green from Green, where we explored the emerging sustainability market opportunity and how the supply side is gearing up to tap into the revenue streams that could flow from it, with TechMarketView’s Angela Eager and Duncan Aitchison.

WebinarIf you didn’t manage to attend the live event, you can view the recording here. We’ll also be making the slide-deck available to both our corporate and UKHotViews Premium subscribers later in the autumn – look out for the link in UKHotViews in the coming weeks. 

In the meantime, TechSectorViews subscribers can delve into the detailed research behind the webinar in reports such as Making a Difference with Sustainability Tech or our various market trends, forecasts and supplier rankings reports. (If your organisation doesn’t currently subscribe to our in-depth research in this area, contact Deb Seth for more details).

And if you’ve enjoyed the webinar series, mark your calendars now for our popular, in-person, ‘Evening with TechMarketView’ event which will be returning on 22 September 2022. We look forward to seeing you there!

Posted by: Tola Sargeant at 12:08

Tags: sustainability   webinar  

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Thursday 14 October 2021

Google Cybersecurity Action Team takes form

Google Cybersecurity Action Team takes formGoogle is strengthening its cyber security capabilities to offer advisory and professional support services to its customers and integrate more specialist third party cloud-native security tools into its Workspace productivity platform.

The company is aiming to help organisations of all sizes implement digital transformation programmes securely, everything from government departments and critical national infrastructure (CNI) providers to enterprises and small businesses.

Given the criticality of their activity and the volumes of sensitive data they store and process, we think large public sector customers and CNIs in particluar are likely to demand greater levels of cyber security protection than Google has historically provided. Many also need advice on how best to define and implement broader security strategies and risk management frameworks future proofed for post-pandemic hybrid working environments.

The new Google Cybersecurity Action Team includes advisory engagements and professional services support alongside threat intelligence and incident response services and a standardised, certified approach to deploying Google Cloud products and services securely in compliance with data protection and privacy regulation.

Google also launched its Work Safer proposition earlier this week, which combines cloud-native, zero-trust solutions from Google Workspace with best of breed tools from cyber security specialists Palo Alto Networks and CrowdStrike. The CrowdStrike collaboration provides extended detection and response (XDR) tools which are also certified to work with additional cyber security platforms from Mimecast, Proofpoint, Zscaler, Okta and Extrahop via the CrowdXDR Alliance.

Protecting data and applications stored in cloud-hosted and hybrid IT environments has become a bigger priority since more people started working from home. Employees now access SaaS-based email, productivity and other databases on a much larger scale than previously, with the greater reliance on distributed locations and network connectivity potentially expanding the attack surface for hackers.

Verizon’s latest Data Breach Investigations Report (DBIR) found that cyber incidents involving cloud-native systems outnumbered those involving on-premise equivalents for the first time in 2020. Superscalar cloud service providers including Google, Microsoft and AWS have responded accordingly, either embedding additional layers of protection into their services or partnering specialist cyber security suppliers to fill in the gaps.

Posted by: Martin Courtney at 09:30

Tags: threatintelligence   advisory   cybersecurity   XDR   cloud-native  

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Thursday 14 October 2021

Irish airports set to fly with HPE GreenLake

hpeHewlett Packard Enterprise has announced that daa has selected its GreenLake platform that will see it achieve a “major performance and capacity upgrade" to mission critical services.

daa is a global airports and travel retail group with businesses across 16 countries. It is owned by the Irish State and is headquartered at Dublin Airport.

The GreenLake platform will run from daa’s two data centres and manage passenger and baggage handling, security systems, business intelligence, and retail operations for Dublin and Cork airports. Until now, daa had been running these critical services on its estate of HPE servers, which were reaching end of life. Moving to GreenLake requires daa to make no upfront investments and switch to a pay-as-you-go model.

Infrastructure costs have of course come to the fore as passenger numbers plummeted during the pandemic. Removing the need for a significant capital investment took away what daa describes as a “headache”. On top of saving costs and changing the financial model, there is now ‘room to grow’ in terms of infrastructure capacity - and to do so rapidly.

Last month, HPE announced its $2bn contract with the National Security Agency in the US, further evidence that GreenLake is building in momentum.

Posted by: Kate Hanaghan at 09:15

Tags: contract   Eire   airports  

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Thursday 14 October 2021

*NEW RESEARCH* Digital Marketplace Review H1 2021-22

DM Review CoverTechMarketView’s Digital Marketplace Review H1 2021-22 research reveals spend through the three Crown Commercial Service (CCS) frameworks: G-Cloud, Digital Outcomes & Specialists (DOS) and, most recently, Digital Capability for Health (DCFH) was up 28% to £1.7bn. G-Cloud accounted for 73% of spend during the six months (April-September) covering H1 of the UK Government year 2021-22, with DOS covering the remaining 27%—spend via DCFH represented less than 1% of spend during the period.

Spend on G-Cloud was up 34% to £1.2bn driven by pandemic related Health spend and increased digital investment in Defence and Central Government. The challenges of bringing in teams and specialists during the pandemic suppressed the DOS market in H1 2020-21; however, by H2, suppliers and their clients were adapting to hybrid working and spend picked-up. In H1 2021-22 spend continued to recover in some key subsectors, ending the six-month period up 15% to £469m. There were wide variations in DOS spending between the public sector subsectors, ranging from 68% year-on-year growth to 74% decline.  

The rate of growth in spend with SMEs during the period was broadly consistent with that of large companies, with the former up 29% and the latter up 28%, but large companies still attracted the majority of spend, accounting for 64% by value. 

Three companies (AWS, Kainos and Capgemini) broke the £50m barrier for Digital Marketplace income during the period. Six customers (Home Office, HMRC, Department of Health and Social Care, Department for Work and Pensions, NHS Digital, and Ministry of Justice) broke the £80m spend barrier—their combined spend represented nearly 40% of total spend for the period.

If you are an existing PublicSectorViews subscriber, you can access further analysis and charts now. If you’d like to discuss an extension to your existing subscription or would like details of how to subscribe to TechMarketView, please email Deb Seth.

Posted by: Dale Peters at 08:55

Tags: g-cloud   data   dos   digital+marketplace   dcfh  

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Thursday 14 October 2021

Ideagen to offload Pentana Compliance unit for $21.3m

IdeagenAIM listed risk management software specialist Ideagen, is to divest its Pentana Compliance unit (formerly known as Redland Business Solutions) for $21.3m to StarCompliance, a provider of employee compliance technology to the financial services industry.

Ideagen originally bought Pentana/Redland Solutions for £15.8m back in 2019. Founded in 2001, Bromsgrove-based Redland was evolving from an IT services firm into a software business through the development of Insight, a Senior Manager & Certification Regime (SMCR) and individual employee competency SaaS platform for financial services.

Ideagen has been growing successfully off the back of a series of acquisitions (see Ideagen deal making bears fruit) and it’s likely that the division was viewed as no longer core to the businesses software-led offering. The firm has raised and spent considerable sums recently on a deal pipeline and it would not surprise us if proceeds were recycled in the form of further acquisitions in the not-too-distant future. 

Acquirer StarCompliance was founded in 1999 and its software automates the detection and resolution of potential areas of conflict. The firm has more than 150 employees with a dual US/UK headquarters, and an office in Hong Kong. 

Posted by: Marc Hardwick at 08:12

Tags: divestment   compliance   RegTech  

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Thursday 14 October 2021

Mindtree revs up … and up

logoAfter flying off the starting blocks in its new FY (see Mindtree off to a storming start), Bangalore-based mid-tier offshore services supplier Mindtree upped the pace – and profitability –  in FQ2.

Mindtree’s headline revenues for the three months ending 30th September 2021 grew by 34% yoy to $350m, the company’s highest quarterly yoy growth in a decade, and streets ahead of larger peers TCS, Infosys and Wipro. Sequential growth at 12.8% was outstanding. Operating margins (by our estimates) improved both yoy and qoq to 18.2%.

In a really refreshing change of fortunes, the UK was the star performer, with revenues growing by 85% yoy reaching $38m, comprising a record 11% of Mindtree’s worldwide revenues.

Like larger peers, Mindtree witnessed a step jump in attrition, hitting 17.7%, up four points yoy and qoq. This is somewhat unexpected and looks like a ‘structural’ issue in the India-based IT services industry which we will try to understand better. In any event, Mindtree continues to recruit like crazy, with worldwide headcount up 36% yoy to over 29,700 FTEs, 9% higher than the prior quarter.

Mindtree’s challenge is to keep up this hectic pace of growth without compromising profitability. CEO Debashis Chatterjee appears to think they can do just that, expecting “profitable, industry-leading growth in FY22”. Investors are avid believers – Mindtree’s share price closed at Rs4,888 yesterday, tripling in value since the beginning of the year!

We will be meeting management later this month and will add colour and movement then.

Posted by: Anthony Miller at 07:50

Tags: offshore  

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Thursday 14 October 2021

Barclays bases technology teams north of the border

BarclaysUK banking group, Barclays has opened a new central operations facility in Scotland. The campus location alongside the River Clyde in Glasgow will be home for many of the bank’s technology teams, including those associated with its Eagle Lab technology incubator programme. Barclays currently employs around 3.75k staff in the Glasgow area and the new site is designed to house around 5k employees by 2023.

Barclays secured a £13m funding package from Scottish Enterprise in 2018, which included the condition that at least 42% of the new jobs would be "high value", and at least 340 targeted towards disabled or disadvantaged workers. According to Barclays, the state of the art facility has been built with inclusivity in mind, including a specific focus on neurodiversity via the bank’s partnership with Scottish Autism.

Similar to other technology vendors located around Glasgow (see: HPE reaffirms its commitment to Erskine) this major investment by Barclays reflects the bank's confidence in the area as a tech hub. Scotland has long been the preferred home for many of the UK’s largest financial services brands and the latest move appears to indicate that, the pool of local talent, coupled with the incentives available from a progressive administration, are helping to maintain the region’s appeal.

Posted by: Jon C Davies at 07:45

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Thursday 14 October 2021

Wipro powers ahead

LogoOnce again not only mirroring, but also outstripping the rapid growth performance of its Tier 1 offshore rival Infosys (see here), Wipro has delivered another eye-catching set of results. Revenue for Q222 (the three months ended 30th September) jumped by 28.8% yoy and 8.1% qoq at constant currency to $2.58bn.  Although this increase in turnover was in part supported by the impact of the recent Capco acquisition, it is likely underlying organic growth in the second quarter exceeded 20% yoy. Adjusted operating margin at 17.8% held level with the same period in the prior year, but it slipped down sequentially by 104 bps.

The standout divisional performances came, unsurprisingly, from the parts of the business to benefit proportionally more from the Capco purchase; Financial Services and Europe. These units saw their Q2 sales leap yoy by 44% and 48% respectively. Given the significant scale of Capco’s UK operations, it is probable that Wipro’s revenues in this country grew at an even faster pace. Indeed, the offshore major’s fortunes here have improved notably during H122. The £32m win at National Grid last month (see here) marked the latest in an increasingly steady flow of big deals successes for Wipro and the firm will soon open the doors on its new 20,000 sq.ft. Innovation Centre in London.

The figures did contain one piece of less good news in the shape of a sharp sequential rise from 15.5% to 20.5% in voluntary staff attrition. Wipro is, however, far from alone among the India-centric suppliers to be experiencing an acceleration in staff churn. All of the offshore players to have posted results covering the third calendar quarter have reported marked upticks in personnel turnover.

Looking ahead, Wipro expects Q3 revenue will be in the range of $2.63bn to $2.68bn. This translates to a sequential growth of 2.0% to 4.0% and would at its midpoint deliver a yoy top line improvement of more than 28%. CEO Thierry Delaporte’s first full financial year at the helm appears to be shaping up very nicely.

Posted by: Duncan Aitchison at 07:00

Tags: results   offshore   systemsintegration  

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