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Business resiliency and people centricity: Fujitsu prepares for post-pandemic world

Putting people first, so they can put the customer first

In the early weeks of the pandemic, Fujitsu’s global delivery centers quickly shifted to all-remote work environments, transitioning in waves as COVID-19 lockdowns moved from Asia to Europe and the Americas. Fujitsu’s leaders and on-the-ground managers passed along lessons learned in Japan, China, the Philippines and elsewhere in Asia to colleagues facing imminent transitions. Perhaps surprising even Fujitsu’s leadership, some of the later transitions happened in less than 48 hours. In Poland, for example, the entire delivery center adopted all-remote work arrangements over a single weekend as the news coverage of COVID-19 shifted opinions and raised concerns about being in close proximity to coworkers in an office. Fujitsu experienced similarly rapid transitions at other facilities, including global delivery centers in Portugal and India. According to Fujitsu’s global delivery leadership, the transitions had no impact on Fujitsu’s delivery or customer satisfaction: “The SLAs [service-level agreements] hardly twitched.”

In TBR’s view, Fujitsu’s emphasis on its own people — ensuring safety, providing assurances around employment and meeting technology demands — likely had a positive ripple effect on the way employees delivered to Fujitsu’s clients. Fujitsu’s leaders noted the company’s commitment to “focus on people, and enable those people to focus on customers,” underscoring Fujitsu’s overall approach of putting its own people first. One example Fujitsu’s global delivery leaders shared with TBR centered on the company’s travel and visitor policies. Early changes reflected a slowdown in travel, but “not a strangulation.” Fujitsu’s employees believed they were still empowered to deliver to clients, traveling for work as necessary, but cognizant of coming changes and able to include their own feedback on company policies.

As February ended and the virus’s global sweep became apparent, Fujitsu employees were prepared for a shift from limiting travel to limiting visitors to office locations, primarily to provide employees with additional safety and protection from COVID-19 exposure. Another example centered on employee communication and support to ensure well-being. Fujitsu holds ongoing check-ins with employees through coffee sessions and distributed surveys to keep everyone connected and engaged, confirming the employees responded positively to the company’s approach to COVID-19. Fujitsu executives noted to TBR that over 80% of employees felt positive about the approach and execution of its COVID response. The meetings recognized employee needs beyond workload constraints, taking personal COVID-19 challenges in consideration. Overall, TBR believes Fujitsu’s global delivery leadership made a critical decision to focus on employees first, which eased the challenges related to moving to all-remote working through Fujitsu’s additional protection for employees’ well-being as well as protection for their families from COVID-19. Further, by coordinating across countries and regions so that successful strategies could be repeated and mistakes could be avoided, Fujitsu made it possible to sustain customer satisfaction and consistent services delivery.

In a wide-ranging discussion with Fujitsu’s global delivery leaders, including Head of Global Delivery Tim White, Head of Global COVID-19 Response and Chief Information Security Officer Clive Tillotson, and Specialist Marketing Manager Charlie Ayling, TBR analysts heard about the company’s immediate responses to the COVID-19 pandemic, ongoing operations and expectations for the post-pandemic world. This special report includes some highlights from the discussion. Additional information will be included in TBR’s quarterly analysis of Fujitsu Services

Fujitsu continues on path of transformation despite macroeconomic challenges

2020 will be a critical year for Fujitsu as the firm executes on its plan to become a digital transformation (DT) company, emphasizing key areas of emerging technologies and superior client experience. The company’s pace of portfolio investments and expansion outside Japan will support Fujitsu’s goal of driving top-line revenue growth and transitioning to a DT provider. Additionally, Fujitsu’s ability to retain its client base despite COVID-19 challenges will showcase whether the company can quickly adapt to dynamic economic conditions and address client needs; if the firm is unable to evolve its portfolio in a timely manner while protecting its existing market, Fujitsu could face greater challenges in creating new avenues of growth around emerging areas.

Fujitsu focuses on growth areas to drive its top-line revenue

AI is a top-of-mind concern for clients when considering digital transformation (DT) strategies as they look to automate certain processes as well as adopt other emerging technology solutions such as analytics, which enhance and increase efficiencies of human tasks. IT services vendors develop their portfolios around AI to help maintain client engagement as well as to capture demand around AI and analytics. Cloud is also an area vendors have sought to build services around to support migration, integration and management services as clients seek to leverage more responsive and insightful operations.

The cloud market has been growing more rapidly than the IT services space — the cloud professional services market grew 16.3% year-to-year, according to TBR’s 4Q19 Cloud Professional Services Benchmark, versus IT services growth of 2.2% year-to-year, according to TBR’s 4Q19 IT Services Vendor Benchmark — as clients shift to remote work environments that require greater capacity and workload support to ensure stable operations and client delivery and prepare for the post-pandemic era.

Changing client initiatives coupled with increased demand for AI guided Fujitsu’s September decision to transition from a traditional IT vendor to a DT company that will infuse digital throughout operations and engagements as well as work more closely with partners and clients using its network of transformation centers to improve delivery and execution. Fujitsu identified AI, IoT and data utilization as key areas that will enhance and uphold its transformation engagements and has invested in filling gaps around AI and data tools in 2020 to deliver on its clients’ DT initiatives. For example, in collaboration with Inria, a France-based research institute that focuses on emerging technologies, Fujitsu developed a technology that identifies patterns and outliers within IoT environments through devices and sensors that use AI. Capabilities of the technology include sorting methods and AI deployment models that guide business decisions and drive operational efficiencies, improving clients’ data analytics.

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 well as several recent large-scale contract wins and successful award rebids that are converting to revenue at a vigorous pace,” said Senior Analyst John Caucis. “Growth with classified customers in the Intelligence Community (IC) also remains strong. Leidos surpassed its guidance for 2019 revenue of between $10.9 billion and $11 billion, with full-year sales of $11.1 billion, an increase of 8.8% over 2018. Leidos’ guidance for 2020 calls for full-year sales between $12.6 billion and $13 billion, implying growth over 2019 of 13.6% to 17.2%, largely driven by recent strategic acquisitions. For example, Leidos spent over $2.5 billion to acquire Dynetics in December and L3Harris Technologies’ Security Detection and Automation division in February, expanding its footprint in defense technologies, airport and critical infrastructure screening products, automated tray return systems, and industrial automation systems.”

According to Research Analyst Brian Baker, “ManTech’s revenue rose 21.6% year-to-year to $604.4 million in 4Q19. Growth was augmented by acquisitions of Kforce Government Solutions, which closed in April, and H2M Group, which closed in August, as both contributed inorganic revenue to ManTech’s top line in 4Q19. Classified customers continue to accelerate spend with ManTech, while spending on behalf of ManTech’s principal Department of Defense and IC clients continues trending upward, in addition to significant wins with federal civilian and health agencies, leading to impressive 15% organic growth in 4Q19 and 9% organic growth for 2019. Robust revenue expansion, strong cash generation and stable margin performance enable ManTech to continue with its aggressive M&A strategy to enhance access to high-growth and high-value markets, similar to tactics of peers CACI, Leidos and SAIC.”

Additional assessments publishing this week from our analyst teams

Forging partnerships with larger-scale technology vendors enables vendors to more quickly enhance portfolios and incorporate emerging technologies while also strengthening scale to pursue opportunities outside their existing markets.

”Quantum computing, the edge, AI and cybersecurity are some of the latest investment areas in which Atos is developing pointed solutions to differentiate between a typical blue-sky consultancy approach and its approach of a technology-enabled organization. Enhancing its cloud capabilities, such as around Google Cloud solutions through the launch of Workplace as a Service Google Edition and the acquisition of Maven Wave, and the launch of the Digital Hybrid Cloud offering jointly with VMware, creates cloud professional services opportunities that will sustain Atos’ cloud revenue growth in the coming quarters.” Senior Analyst Elitsa Bakalova

CGI is pursuing a strategic growth objective to double its revenue base over the next several years with accelerated investments in M&A and homegrown IP. However, the company must continue to execute on its expense management strategy as margins face pressure in the near term with the ramped-up acquisition pace and ongoing organizational restructuring.” Research Analyst John Croll

“Refreshing its business image to position as a digital transformation company and better align with client demand for emerging technologies, such as security, IoT and AI capabilities, will provide growth opportunities for Fujitsu’s services business if the company is able to successfully build out its global presence and talent bench to support new portfolio areas. While the company has expanded its global network, adding new delivery and innovation centers that increase client awareness of the brand and offerings, the company is unable to generate sustainable and consistent growth outside Japan. Bolstering portfolio innovation efforts through solution codevelopment partnerships will help Fujitsu scale its new portfolio and generate new opportunities, but the company needs to maintain differentiation within its portfolio to successfully capitalize on potential opportunities around emerging technologies.”Analyst Kelly Lesiczka

“Amazon Web Services (AWS) continues growing its sales team in an effort to outcompete IaaS and PaaS rivals such as Microsoft and as coopetitive partners such as SAP take AWS head-on. The recent general availability of AWS Outposts increases AWS’ hybrid value proposition and will help the vendor maintain its leadership in the consolidating IaaS market.” Analyst Jack McElwee

Analytics within digital transformation engagements depend on high-quality people and data

This week, TBR publishes the first Digital Transformation Insights report for 2020, building on the 2019 series, which included analysis around blockchain, digital marketing, IoT and quantum. The first report centers on IT services vendors’ strategies and performances within their analytics practices. Senior Analyst Boz Hristov notes that, “The maturing A&I services market continues to hold strong digital transformation opportunities for vendors, as long as they can address buyers’ business model complexities through collaborative and coopetitive delivery frameworks. Additionally, vendors that can address skills gaps and ensure data quality and security standards are met are positioned to win.” Next month’s DTI report will look at edge computing within digital transformation. In March TBR will examine the SAP practices of a few leading services vendors.

Additional assessments publishing this week from our analyst teams

Sprint’s rising churn rates, weakening financial performance and high debt load highlight the necessity of the proposed T-Mobile merger. Subpar network quality remains at the root of Sprint’s issues as postpaid phone subscriber losses continue to escalate, despite the operator’s aggressive pricing and elevated network capex spending since 2018. A more significant capex budget is required for Sprint to successfully compete long-term in the U.S. market; however, Sprint’s inability to generate significant free cash flow hinders the company from doing so.” — Steve Vachon, Analyst

“As Infosys ramps up cyber offerings to better address the complexities associated with the next wave of emerging technologies, an aggressive pricing strategy paired with revamped account management enables the company to expand its client roster as it turns into a solutions broker.” — Hristov

Verizon remains able to capitalize on its reputation as a premium wireless service provider to attract customers willing to pay a higher price for the operator’s network coverage and premium unlimited data plans. However, Verizon’s wireless network is becoming a less significant differentiator as AT&T and T-Mobile are now on par with Verizon in LTE coverage and as the rival companies are improving signal quality and data speeds by deploying services on additional spectrum.” — Vachon

“Though AT&T is facing short-term challenges, the company’s ambition to transition from a traditional telco to a global digital service provider is a long-term endeavor requiring a broad array of assets that may not all pay dividends in the short term. AT&T also has abundant opportunity to reduce expenses without divesting core business units via initiatives such as WarnerMedia synergies, nonvital headcount and real estate reduction, and deeper integration of network virtualization.” — Vachon

“TBR anticipates Fujitsu Services will report revenue growth acceleration in 4Q19, as Fujitsu enhances its software, digital, hybrid IT and cloud offerings, which help offset declines in traditional areas. Reorganization and investments within its sales organization, such as the consolidation of its European sales force and the implementation of Account Planning and Opportunity Planning software to improve management in North America, will also contribute to revenue expansion in 2019. The business model adjustments allow the company to better execute and deliver on initiatives to drive adoption of hybrid IT and software offerings, providing recurring revenue opportunities.” — Kelly Lesiczka, Analyst

Senior Analyst John Caucis notes that the U.S. federal earnings season kicks off this week with three defense majors and one services-led defense contractor releasing the results from the final calendar quarter of 2019. First up is General Dynamics Information Technology (GDIT), releasing earnings on Jan. 29. Sales are expected to continue sliding for GDIT, owing to recent asset disposals, portfolio reshaping and operations realignment. TBR projects GDIT’s top-line revenue will decline between 11% and 12% year-to-year to roughly $2.1 billion. A strong rebound for GDIT will hinge on the full leverage of CSRA’s capabilities to win big-ticket, next-generation federal IT engagements in 2020. 

Two additional defense majors, Northrop Grumman and Raytheon, will release their earnings on Jan. 30. Northrop Grumman’s Technology Services (TS) unit completed what was likely its final quarter and last fiscal year as a dedicated, stand-alone business line offering technology, sustainment and modernization solutions in 4Q19. TS, which includes the bulk of Northrop’s technology-related services, was integrated into Northrop’s emerging Defense Systems (DS) business group, effective Jan. 1, 2020. TBR projects TS’ 4Q19 sales will continue the rebound begun in 3Q19, with year-to-year growth between 2% and 3%, bringing TS’ 4Q19 revenue to roughly $1.1 billion. Raytheon Intelligence, Information and Services (IIS), the services division of Raytheon Technologies, is expected to continue expanding its sales at a robust pace, putting the wraps on a red-letter year accentuated by consistent revenue and bookings growth, record backlog levels, improved margin performance, and of course, the pending merger with United Technologies (UT). TBR projects IIS will post revenue of about $1.9 billion in 4Q19, up between 10% and 11% year-to-year.

Finally, Booz Allen Hamilton (BAH) will release earnings on Jan. 31. We project BAH will expand its top line between 8% and 9% in 4Q19 to over $1.8 billion, building on the momentum established during the first half of its FY2020. BAH’s strong performance stems from traction with its technically focused solutions, increasingly infused with advanced technologies that enable the mission aims of its federal agency clientele. Operationalizing AI has clearly become a strategic growth platform for BAH; AI featured prominently in the company’s alliance activity, new contract awards and introduction of new offerings in 4Q19.

Fujitsu, digital trust and the future of technology

Strike a balance between the utilization of data and the protection of data

Opening the event, Hiroshi Tsuda, head of Security Laboratory at Fujitsu Labs, set the tone by acknowledging that every enterprise and consumer must understand the balance between the utilization and efficiency of data and the associated privacy and protection. Other speakers and panelists at the symposium echoed that theme of balance, each taking a different spin on how balance could be achieved and, most importantly, who bears the responsibility for striking and maintaining balance, as well as remediating any negative consequences caused by mistakes. Tsuda also presented the results of the Fujitsu Global Digital Transformation Survey Report, a survey of 900 business leaders in nine countries that provides insight into their process in digital transformation and to clarify how business leaders around the world perceive trust.

Delivering the Fujitsu Keynote, CEO of Fujitsu Labs Hirotaka Hara explained that the company’s long-standing slogan, “Reliability and Creativity” had been replaced with “Digital Trust and Co-Creation.” For Fujitsu, “digital trust” includes pushing for social acceptance of AI, which requires IT services vendors and technology companies to create “explainable AI” to overcome current reluctance among many companies and individuals to fully accept judgments made by algorithms, rather than humans. In TBR’s view, Fujitsu’s expressed appreciation of the challenges in AI adoption comes as a welcome relief from the hype heard from other IT services and software vendors. Further, the updated slogan reflects a clear evolution from basic reliability of technology and systems to more essential and compelling trust, while the shift from creativity to co-creation moves the conversation from Fujitsu acting alone in R&D to interacting with clients, creating together.

Advancing the trust theme, Hara explained that Fujitsu Laboratories “ensures digital trust through technologies, to include a wide range of solutions, ideas and competencies, such as smart contracts, authentication, compliance, data traceability management and cybersecurity — all with trust at the center.” Multiple IT services vendors and consultancies throughout 2019 have centered events, presentations and use cases around trust, but few have described the ecosystem and diverse elements as comprehensively as Fujitsu. And few have been as direct and succinct as Fujitsu, which stated, “Digital trust is the foundation to achieving digital transformation.”

In TBR’s June 2019 Digital Transformation Insights Report: Voice of the Customer, we quoted the CEO of a global healthcare company on trust and the various roles IT services vendors and their clients must play. Echoing Fujitsu’s sentiments around trust, that CEO said, “Responsibility needs to be an integral part of the overall business and technology landscape for any company, and I strongly suspect that we will see a resurgence of some of the other traditional roles and technology.” In all, Fujitsu, through Hara’s remarks and comments made throughout the day, demonstrated a grounded, hype-free understanding that the challenges of digital transformation do not come from the technologies, but from the ecosystem and the people. And the initial steps to transformation depend on digital trust.

Fujitsu Laboratories Advanced Technology Symposium (FLATS) 2019: Around 400 people gathered in Santa Clara, Calif., for a full day of presentations and panels centered on data security and the need to balance user and regulatory requirements around privacy with expectations around rich online experiences, leading to deep discussions about ethics, transparency and trust. Hosted by Fujitsu Laboratories and attended by more engineers than entrepreneurs, the event surprisingly stayed focused on applying technology for societal good, to build ecosystems of trust, and to protect consumers’ data and privacy. Fujitsu Labs showed off its ground-breaking technological advancements and innovations in an exhibit hall but kept main-stage conversation rooted in the application of technology in a messy and uncertain world.

5G-readiness spend and migration to new network architectures spur the TIS market to growth in 3Q18

According to Technology Business Research, Inc.’s (TBR) 3Q18 Telecom Infrastructure Services (TIS) Benchmark, the TIS market grew as communication service provider (CSP) investment in areas tied to 5G-readiness increased. CSPs are rearchitecting their networks leveraging NFV, SDN and the cloud as well as implementing new business models, which requires growing spend across a broad range of professional services. Deployment services spend grew slightly, but the market will strengthen as the 5G spend cycle ramps up over the next couple of years, although the spend intensity will be lower than during the LTE cycle. RAN suppliers Nokia (NYSE: NOK), Ericsson, Huawei, ZTE and Samsung will capture incremental TIS market share as they drive high volumes of services attached to their 5G RAN. This is already occurring to some extent as CSPs densify networks as part of their 5G-readiness strategies. Though 5G will require significant hardware spend, the aggregate amount will be lower compared to LTE, which will drive vendors to explore new market areas, such as Industry 4.0.

The managed services market was flat year-to-year in 3Q18 as a decline in outsourcing was offset by growth in the out-tasking market. Generally, vendors are exercising pricing discipline when determining which outsourcing contracts to take on in an effort to improve margins. Ericsson is currently leading the way in this regard as it evaluates 42 contracts for exit or rescoping. Huawei, ZTE and CCS have been less concerned with price and are focused on consolidating the outsourcing market. Other vendors, including those that are historically hardware-centric with little to no footprint in the managed services market, are increasingly playing in out-tasking as they will manage applications deployed in CSP networks. Ciena (NYSE: CIEN) is an example of this trend.

 

 

TBR’s Telecom Infrastructure Services Benchmark provides quarterly analysis of the deployment, maintenance, professional services and managed services markets for network and IT suppliers. Suppliers covered include Accenture (NYSE: ACN), Amdocs, Atos, Capgemini, CGI, China Communications Services, Ciena, Cisco (Nasdaq: CSCO), CommScope, CSG International, Ericsson, Fujitsu, Hewlett Packard Enterprise (NYSE: HPE), Huawei, IBM (NYSE: IBM), Infosys (NYSE: INFY), Juniper Networks (NYSE: JNPR), NEC, Nokia (NYSE: NOK), Oracle (NYSE: ORCL), Samsung, SAP (NYSE: SAP), Tata Consultancy Services, Tech Mahindra, Wipro (NYSE: WIT) and ZTE.

Services Weekly Preview: Nov. 11-16, 2018

As we build toward the middle of the quarter, we’re wrapping up our periodic assessments of IT services vendors. Like last week, we also have some semiannual analysis on vendors in the management consulting space.

Monday: 

  • KPMG’s risk-averse culture pressured its performance, causing the firm to drop a spot in terms of revenue size among peers in the latest assessment of the management consulting practice. A potential KPMG and Bain marriage, however, could be a way for the firm to catch up with rivals and disrupt the management consulting space.
  • Continued expansion of its onshore presence, including the recent build-out of its co-innovation center in London, improves HCLT’s value proposition by enabling it to work alongside its clients to create larger-scale transformation engagements. However, HCLT faces some challenges in recruiting talent to support new centers, spurring the implementation of employee development programs.

Tuesday: Although Atos will grow revenues at a slower rate in 2018, the expansion of the company’s Digital Transformation Factory portfolio and recently announced acquisition of SIX Payment Services, which is expected to close in 4Q18, will enable the company to accelerate revenue growth in 2019. TBR’s 3Q18 Atos report analyzes the implications from Atos’ ongoing activities, such as the Syntel acquisition and investments artificial intelligence (AI) and security solutions and capabilities.

Wednesday:

  • Senior Analyst Jen Hamel examines EY’s strategy to provide clients with technological enablement of business transformation in her profile on the firm for our Fall 2018 Management Consulting Benchmark. One key takeaway: Increasing its investment in technology-enabled services, including those involving blockchain and AI, by $1 billion over the next two years will improve EY’s competitiveness with solutions-led peers IBM and Accenture.
  • We continue looking for signs Wipro will see improved performance, as its India-centric peers have, to align with its digital transformation strategy and expanded portfolio and capabilities. In this latest assessment, we’re still searching.
  • Capgemini has made changes to its portfolio, organizational structure and sales model to address rising demand from clients’ business side, rather than their technology side. In TBR’s 3Q18 Capgemini report, we will dive deeper into topics such as AI, digital marketing, and Capgemini Invent, the new global business line Capgemini launched in September.
  • In TBR’s 3Q18 Perspecta Initial Response, we will provide an overview of Perspecta’s second quarter as an independent company. Made up of Hewlett Packard Enterprise’s former U.S. Public Sector business, Vencore and KeyPoint Government Solutions, Perspecta faces some challenging financial and resource-related issues as it works to find its footing as a stand-alone company.  

Thursday:

  • TBR’s 3Q18 Raytheon Intelligence, Information & Services (IIS) full report explores how the emerging geopolitical power struggle in space and cyberspace plays to Raytheon’s strengths in cyber hardening, computer network operations, advanced analytics and AI. The report examines how IIS was able to outgrow federal IT services competitors in 3Q18 and how its deep mission knowledge in the U.S. provides a strong foundation as it pursues riskier adjacent market opportunities in volatile markets such as the Middle East.
  • TBR’s 3Q18 Leidos full report examines the company’s first quarter of year-to-year organic revenue growth since it acquired Lockheed Martin’s IT services business in 2016. The report explains Leidos’ positioning across defense, health and civilian markets and how the company is adjusting to disruption amid the federal market’s shift from bespoke proprietary technology development to configurable commercial-off-the-shelf IT solutions.
  • In our 3Q18 results on Wednesday, TBR expects Cisco Services to continue to accelerate revenue growth during the rest of 2018 and in 2019, positively affected by Cisco’s ongoing portfolio investments in and acquisitions around next-generation and software-driven solutions that generate professional services opportunities. TBR expects Cisco’s recent acquisitions and partnerships in cloud, security and networking to generate increased professional and technical support services for Cisco Services during the coming quarters.

Friday:

  • The previous edition of TBR’s Management Consulting Benchmark Profile: PwC described the firm’s efforts to make its Business, Experience, Technology (BXT) framework a companywide endeavor. Six months later, we’ve seen signs the firm’s ambitions around BXT have evolved from aspirational to operational, with global examples of the framework becoming an on-the-ground reality in working with clients.
  • Partners enable Fujitsu to enhance its core services with cloud, software and digital capabilities, helping to ease clients’ transition into emerging areas while offsetting declines from traditional services. However, without expanding its client base outside of Japan, Fujitsu could face challenges in maintaining revenue growth.

Equipment vendors continue to struggle with lower sales volume, while IT services and software-centric companies enjoy growth, thanks to digital

HAMPTON, N.H. (Jan. 5, 2018) — According to Technology Business Research, Inc.’s (TBR) 3Q17 Telecom Infrastructure Services Benchmark, leading vendors are making significant strategy changes and retrenching around their core competencies to weather subdued communication service provider (CSP) spend.

“Leading vendors are realizing they must transform themselves before they can effectively help their customers transform,” said TBR Telecom Senior Analyst Chris Antlitz. “New technologies and processes, particularly in the areas of cloud, artificial intelligence, cognitive analytics, automation and DevOps, promise significant agility, better outcomes and cost savings, and vendors must not only offer solutions that leverage these technologies to their customers but also adopt and employ these technologies internally to be credible, differentiate and remain competitive.”

Tier 1 network solution providers (NSPs) are going back to their product-led roots and doubling down on partnerships. Huawei, Ericsson and Nokia are all transitioning back to being product-led, which is an about-face from their prior strategy of being services-led. This strategy shift indicates that product-centric vendors have realized that the optimal go-to-market model is to stick to their core businesses and core competencies as much as possible and augment capabilities with partnerships.

TBR believes this strategy shift means NSPs will increase emphasis on product-attached services, which is their main telecom infrastructure services (TIS) profit pool, particularly maintenance services. This retrenchment by NSPs will also enable IT services companies to have a clearer path to capitalize on digital opportunities.

TBR’s Telecom Infrastructure Services Benchmark provides quarterly analysis of the deployment, maintenance, professional services and managed services markets for network and IT suppliers. Suppliers covered include Accenture, Amdocs, Atos, Capgemini, CGI, China Communications Services, Ciena, Cisco, CommScope, CSG International, Ericsson, Fujitsu, Hewlett Packard Enterprise, Huawei, IBM, Infosys, Juniper Networks, NEC, Nokia, Oracle, Samsung, SAP, Tata Consultancy Services, Tech Mahindra, Wipro and ZTE.

For additional information about this research or to arrange a one-on-one analyst briefing, please contact Dan Demers at +1 603.929.1166 or [email protected].

 

ABOUT TBR

Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, and telecom vendors and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in a format that is uniquely tailored to clients’ needs. Our analysts are available to address client-specific issues further or information needs on an inquiry or proprietary consulting basis.

TBR has been empowering corporate decision makers since 1996. For more information please visit www.tbri.com.