IT services revenue expected to dip in Q2

“As business disruption sets in with the Covid-19 pandemic, customer demand for IT services will take a hit, with revenue in the sector set to decline in the second half of 2020, according to Technology Business Research (TBR). In the analyst firm’s Q4 IT Services Vendor Benchmark report, TBR senior analyst Elitsa Bakalova pointed out that 2020 […]

2020 will be challenging for IT services vendors that are slow to adjust their business models to address rapidly changing market needs

IT services revenue will retain its low single-digit growth trajectory through 1Q20 before it begins to decelerate due to COVID-19 IT services year-to-year trailing  12-month revenue growth, at 2.2% in USD, was up 30 basis points sequentially in 4Q19 and down 400 basis points against the year-ago compare. During 4Q19, benchmarked IT services vendors continued […]

The digital transformation ecosystem demands cooperative partnerships

Competitive pressures in traditional and emerging IT service areas such as digital, cloud and cybersecurity, combined with unfavorable market dynamics tied to rising macroeconomic uncertainties and pockets of tight spending, are challenging IT services vendors’ performance. No vendor can do it alone, so partnering with software providers, such as SAP, enables vendors to expand their […]

The federal IT services market remains highly favorable in growth for technology contractors in 2020

Defense, intelligence and civilian agencies are accelerating modernization efforts in 2020. M&A activity in the market will also remain at a brisk pace. “Leidos released its 4Q19 and 2019 fiscal results on Feb. 18, posting 4Q19 revenue growth of 11.6% year-to-year to $2.95 billion on the back of strong bookings and backlog growth throughout 2019 as […]

Growing partnerships with key cloud vendors help sustain Capgemini’s success

As Senior Analyst Elitsa Bakalova notes this week, “Partners are key contributors to Capgemini’s technology-enabled transformations around next-generation technologies, such as digital and cloud. The expanded partnership with Amazon Web Services enhances Capgemini’s AWS business in North America and improves its ability to advance cloud adoption in a strategic region for Capgemini’s global expansion. Additionally, […]

IBM’s executive shakeup gets analysts’ stamp of approval

“Analysts have also chimed in with cautious optimism, including Geoff Woollacott, principal analyst and senior strategy consultant with TBR Cloud and Software. ‘The current climate is a different kind of IT landscape. The requirements and demands from enterprises are vastly different, which necessitates a different kind of leader. Arvind Krishna is, therefore, well suited to articulate and […]

Big Blue turns purple

Rometty steps down, making way for cloud champion Krishna as IBM’s new CEO At close of business on Jan. 30, IBM unveiled Virginia Rometty was stepping down as CEO. Arvind Krishna, current SVP of Cloud and Cognitive Software at IBM, will take over effective April 6. It was also announced that James Whitehurst, IBM senior […]

Can IBM pivot fast enough?

This week, TBR publishes its initial thoughts on IBM’s 4Q19 performance, featuring insights from our data center and professional services analysts. “Another quarter, another IBM Initial Response from TBR. And while our initial report on IBM’s earnings release remains constant, IBM’s strategy and investment focuses continue to pivot,” says Analyst Stephanie Long. “This quarter we’re […]

Sustained growth provides Accenture with the flexibility to enact internal and operational changes

In this week’s Accenture report, Senior Analyst Boz Hristov notes, “Accenture’s robust account management capabilities and diversified footprint supported continued profitable growth in FY1Q20 (CY4Q19), leading to increased market share. TBR does not expect major changes to the course of the company’s go-to-market strategy following the announced changes on Jan. 13 to its growth model, […]