TBR’s Business Insights

Cloud adoption is on the rise, but for many customers, particularly those deploying workloads across multiple clouds, latency, data flow, privacy and overall business resiliency remain core challenges. Edge computing is an emerging segment in IT, giving customers a way to supplement their cloud and IT core investments by processing data locally for minimum latency and backing it up to an adjacent environment for use cases like analytics and application development.

As Accenture’s revenue continues to grow, so does the share of revenue from its top 10 partners, reducing the share of sales from the rest of its alliance partners. With Accenture’s top 10 alliance partners helping to generate close to 50% of the company’s total sales, it remains to be seen whether Accenture will be able to retain its other partner relationships in the long term. 

TBR anticipates that Peraton will continue to more efficiently convert its backlog (last reported at $24.4 billion in the middle of 2022) into revenue while the company also keeps capitalizing on federal budget priorities favoring civilian, defense and healthcare agencies. A government shutdown in 4Q24 could still disrupt Peraton’s expansion, but TBR believes Peraton will still reach between $8.0 billion and $8.1 billion in annual revenue during 2024, representing growth of between 2.6% to 5.2% over 2023.

As the efficiencies of automation, analytics and AI begin benefiting technology companies themselves, not just their enterprise clients, TBR sees the latter half of 2024 as fundamentally business model disruptive for pretty much every technology company we cover, from McKinsey & Co. to Infosys to Dell Technologies to Amazon Web Services to IBM to Ericsson to NVIDIA.

TBR’s latest telecom research indicates customer care, which includes contact centers, will be profoundly transformed by AI. Though traditional AI has been utilized in customer care for many years (e.g., chatbots and interactive voice response), GenAI will take customer care to an advanced state. TBR estimates that GenAI could reduce the costs of running contact centers by up to 80%, and this is an area telecom operators are keenly interested in as they remain focused on cutting expenses across their businesses.