0 0 admin https://tbri.com/wp-content/uploads/2021/09/TBR-Insight-Center-Logo.png admin2019-05-07 10:55:292019-05-07 10:55:29TBR Weekly Preview: May 6-10
TBR Weekly Preview: May 6-10
We are still cranking through our initial analysis of vendors’ earnings for the first quarter, with more detailed analysis available two weeks after the announcements.
- Growth of Wipro IT Services’ (ITS) emerging business lines, such as Digital Ops and Platforms, shows recent investments are paying dividends; however, steep declines in its legacy outsourcing business are offsetting gains. Though Wipro ITS is moving in the right direction, it will require a more aggressive acquisition agenda to compete with peers. — Kelly Lesiczka, Analyst, Professional Services Team
- In TBR’s 1Q19 IBM Initial Response, we discussed the waning IBM Z product cycle and its effect across IBM’s businesses. In TBR’s full report on IBM, we will unpack some of the company’s strategies that were announced at IBM THINK 2019 as well as explore the impact of IBM’s quantum computing breakthroughs on its strategy and business performance.
— Stephanie Long, Analyst, Data Center Team
- Despite experiencing pockets of growth, such as in consulting and cloud, IBM Services’ revenue continued to decline in 1Q19. IBM Services’ struggles to balance market demand with stakeholders’ expectations and the company’s relentless emphasis on improving profitability via productivity, such as implementing new ways of working and infusing automation and AI into processes, overshadowed any revenue growth. IBM has the incumbent advantage, which has been built on the company’s portfolio breadth, global scale and years of execution, making it one of the most trusted technology brands for large enterprises. However, IBM Services will continue to experience fierce competition from peers, such as Accenture, which is using its industry and functional expertise to expand client mindshare, particularly as it invests in talent development and intellectual property and shifts its value proposition to becoming a technology-enabled solutions broker. — Elitsa Bakalova, Senior Analyst, Professional Services Team
- TBR’s 1Q19 Sprint Initial Response will examine why the proposed T-Mobile merger is in Sprint’s best interests, as Sprint’s long-term survival as a stand-alone company is threatened by the company’s weak financial position, subpar network quality and struggle to attract customers apart from utilizing aggressive pricing tactics. — Steve Vachon, Analyst, Telecom Team
- Ericsson is successfully executing its strategies on multiple fronts, as demonstrated by the company’s organic sales growth and improvements in gross and operating margins in 1Q19. Its U.S.-centric 5G strategy has enabled the company to secure large-scale contracts with the country’s Tier 1 operators, as well as with U.S. Cellular, for 5G-ready RAN and LTE densification, and Ericsson will be able to sustain revenue growth throughout 2019 as these contracts ramp. Increasingly optimized headcount and the restructuring or exiting of unprofitable Managed Services and Digital Services contracts are benefiting margins.
- Execution of T-Systems’ transformation plan, combined with increased client adoption in emerging areas, will help the company capture sustainable growth. During 1Q19 T-Systems expanded its presence in Europe to increase its work with its existing clients, leveraging its portfolio investments. — Kelly Lesiczka, Analyst, Professional Services Team
- Mode 2 and Mode 3 services and solutions transition HCL Technologies’ (HCLT) portfolio into newer areas and help extract additional wallet share from clients. Additionally, HCLT pursued investments in 1Q19 to develop niche portfolio offerings, such as within the digital marking services space, to help differentiate from its India-centric peers. — Kelly Lesiczka, Analyst, Professional Services Team
- Integrating Capgemini’s established management consulting expertise with digital design and creative studios, as well as with the broader capabilities across its portfolio, will enable the company to provide holistic, consulting-led offerings and approach clients with a business transformation value proposition. — Elitsa Bakalova, Senior Analyst, Professional Services Team
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