Defining a new hybrid landscape

TBR brings together analysis of hybrid-influenced and hybrid-enabling vendors and technologies, examining and defining the hybrid landscape

Many hybrid players legitimize their presence in hybrid engagements through partnerships with vendors in adjacent markets. Vendors with entrenched legacy assets are well-positioned to cross-sell integrated solutions that fuel hybrid-influenced revenue opportunity. — TBR’s 4Q17 Hybrid Benchmark

Leading IT services vendors position ahead of the curve due to past and ongoing investments in next-generation solutions

Vendors that have diversified their portfolios and skills in digital and cloud are able to scale transformational activities with clients and offset growth pressures in traditional IT services areas, accelerating revenue growth year-to-year during the past several quarters. Expanded proximity to clients, collaborative innovation capabilities and applications expertise, for instance around solutions from SAP, Microsoft, Oracle, Google Cloud and Amazon Web Services, drive advisory, implementation and integration activities. Vendors upskill and reskill their workforces on digital and cloud to support the continued transition of their portfolios from traditional and commoditized IT services and outsourced solutions. However, training initiatives, along with increased business development and higher volumes of presales and sales activity due to shorter-term contracts, lead to increased costs and temporary margin pressures. Reluctance of employees to participate in reskilling initiatives may increase attrition. — TBR’s 4Q17 IT Services Vendor Benchmark

The greatest revenue growth opportunities derive from the front end of A&I implementations, where services can be more differntiated

Analytics and insights services segment overview

Analytics and insights (A&I) services revenue expanded 13.7% on average in 3Q17 for the 20 vendors benchmarked by TBR, spurred by growing client interest in data-intensive digital transformation initiatives requiring services such as consulting, data integration and analytics application development. Consulting continues to lead segment revenue growth, but double-digit expansion in Integration and Implementation (I&I) and Application Development and Maintenance (ADM) highlights increasing demand for execution.

  • Consulting revenue growth continues to accelerate, partly driven by Accenture and McKinsey, both of which are top six vendors in revenue and year-to-year growth for the segment. A new Digital Strategy consulting practice positions IBM to compete more effectively with these vendors for advisory-led opportunities that lead to cognitive and analytics implementation engagements.
  • As enterprises look to become data-driven, vendors help them navigate increasingly complex choices around which data sources to draw from for analytics and how to integrate legacy and new data sources, accelerating growth in the I&I segment.
  • A&I ADM revenue growth remains robust as clients seek vendors’ support to build analytics applications that improve the user experience and drive business outcomes. Client centers remain a key tool for vendors to showcase their application design and coinnovation capabilities.
  • Infusion of automation and AI into managed services delivery slows revenue growth for the segment, which is dominated by technology-centric vendors that can bundle services with A&I software and infrastructure sales. Revenue leader IBM recently unveiled the Integrated Analytics System, which provides machine learning capabilities to accelerate data integration and analytics performance.

3Q17 Analytics & Insights Professional Services Vendor Benchmark

Factors impacting wireless subscriber growth: Insights from TBR’s 4Q17 U.S. & Canada Mobile Operator Benchmark

Insights from TBR’s 4Q17 U.S. & Canada Mobile Operator Benchmark

All Tier 1 U.S. carriers, with the exception of Sprint, reduced postpaid phone churn in 4Q17, which was largely attributed to customers’ increased satisfaction with their network coverage and accelerated data speeds enabled by LTE-Advanced technologies. Mobile video bundles are also helping to reduce churn as AT&T (HBO Now), Sprint (Hulu) and T-Mobile (Netflix) now provide free over-the-top video subscriptions to their unlimited data customers, which serves as an added incentive to retain customers. — Analyst Steve Vachon, TBR’s 4Q17 U.S. & Canada Mobile Operator Benchmark