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The pandemic’s lasting impact on IT services: Who’s leading through 2022 and beyond

Join Practice Manager Patrick Heffernan, Principal Analyst Boz Hristov, Senior Analyst Elitsa Bakalova, Senior Analyst Kelly Lesiczka and Analyst John Croll for a discussion on which vendors have fared best in IT services, consulting and digital transformation amid the global pandemic. The team will evaluate the strategies and investments made by different vendors, including in alliances, M&A, talent and portfolio transformations, that improved or hindered their position in the market.

 

In this FREE webinar you’ll learn:

  • Key investments driving revenue growth acceleration for some benchmarked vendors
  • Automation as the clear, successful path forward as vendors’ HR strategies have reached an inflection point
  • How consultancies are enabling hybrid cloud while bolstering on-premises enhancements to flourish

 

Mark your calendars for Thursday, June 9, 2022, at 1 p.m. EDT,
and REGISTER to reserve your space.

 

 

Related content:

  1. Digital transformation, cybersecurity and cryptocurrency: How the war in Ukraine will change technology forever

 

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Blockchain, sustainability and IT services

Join Practice Manager Patrick Heffernan and TBR’s Professional Services team as they connect evolutions in blockchain-enabled digital transformations and acceleration in adoption of sustainability actions and commitments, all in the context of the fast-changing market for IT services. TBR’s analysts will discuss which vendors will most likely benefit from increased demand around decarbonization and managed services and which vendors are best leveraging their alliances within the wider technology ecosystem..

 

Mark your calendars for Thursday, May 5, 2022, at 1 p.m. EDT,
and REGISTER to reserve your space.

Related content:

  1. Ukraine and the future of digital transformation
  2. KPMG decarbonization: The change agent helping the firm pivot toward its next chapter
  3. Atos: Digital twin enables decarbonization

 

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Global IT talent: Accelerated hiring for IT services counters persistent attrition

In TBR’s latest Global Delivery Benchmark, one particular number leapt out as both surprising and indicative of the sustained battle for technology talent.

Ukraine and the future of digital transformation

Join Patrick M. Heffernan and members of multiple TBR teams Thursday, April 14, 2022,  for a discussion on the repercussions of Russia’s invasion of Ukraine across consulting, IT services, cloud and digital transformation landscapes. TBR analysts will debate which vendors will most likely see a surge in business and opportunities and detail which vendors have been most exposed to negative fallout from sanctions, talent disruptions or overexposure to Russian markets. They will also look at whether a sustained conflict in Eastern Europe will stall, slow or accelerate digital transformation initiatives across the globe.

Don’t miss:

  • From localization to globalization and robotization to hybridization, vendors’ delivery models continue to evolve with the war in Ukraine, forcing many vendors to reconsider their next move
  • Cloud vendors will likely see minimal direct disruption as a result of the invasion, and overall, economic uncertainty bodes well for cloud continued accelerated adoption
  • Vendors best positioned to advise on and deliver solutions as real-time data processing globally complicates data privacy issues when collecting information in and around a war zone

Mark your calendars for Thursday, April 14, 2022, at 1 p.m. EDT,
and REGISTER to reserve your space.

Related content:

  1. 2022 Predictions: Digital Transformation
  2. Russia-Ukraine war: 3 factors critical to IT services vendors and consultancies
  3. Russian aggression will not dampen pandemic-driven cloud demand

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Russia-Ukraine war: 3 factors critical to IT services vendors and consultancies

Expecting little change but some opportunities in the near term

In the near term, ceased or slowed operations in Russia and Belarus will not significantly affect the revenues or strategic directions of most IT services vendors and management consultancies. Firms will stay clear of Russia, understanding any lost revenues will be well worth forgoing to alleviate the risks of running afoul of sanctions or committing a public relations blunder by staying on in an increasingly isolated country.

Within Europe, management consultancies and IT services vendors with strong consulting capabilities (such as Accenture and Capgemini) will likely see near-term opportunities to provide crisis management, operational expertise and supply chain consulting. Some vendors may repurpose pandemic-created solutions to meet the logistical challenges brought on by the mounting refugee crisis. PwC, for example, could apply the design and technology used to ensure its employees’ safety and security while working remotely during the pandemic to assist Ukrainian refugee families trying to stay connected across multiple borders and amid changing circumstances.

Three factors: Length and resolution, macroeconomic fallout, and risk

Over the remainder of 2022, how the war in Ukraine will change IT services vendors’ and consultancies’ European operations depends on three factors: the length and resolution (or lack thereof) of the conflict; the macroeconomic fallout; and each vendor’s willingness to take risks with talent, acquisitions and clients.

The first two factors necessarily influence each other. A hot war sustained throughout 2022 would severely curtail broader European economic growth, likely keep inflation high, and shift spending by governments and commercial clients alike. Cybersecurity and supply chain opportunities may flourish, but overall reduced spending and economic activity would slow or reverse growth, at least in Europe. A cease-fire and stalemate, with a low-intensity insurgency in eastern Ukraine coupled with an uneasy rebuilding in western Ukraine, would likely produce additional opportunities around risk management, compliance and Industrial IoT. Again, the growth associated with those new opportunities would be tamped down by overall economic uncertainty.

In both scenarios, energy costs in Europe and globally will provide persistent headwinds. TBR anticipates that in the face of persistent macroeconomic pressures in Europe, vendors already active elsewhere will accelerate those investments. In APAC, IT services vendors and consultancies have increasingly invested in regional opportunities, notably the Australian public sector, automation-enabled BPO in Japan, and digital- and e-commerce-driven demand for customer experience applications in many countries in Southeast Asia. In TBR’s view, vendors with the most diversified footprints are the best positioned to absorb new risks — not a novel observation but newly important.

A quick resolution, followed by a return to some measure of normality, would likely alleviate macroeconomic pressures while bringing forward the third factor: appetite for risk. IT services vendors and consultancies would have the opportunity to hire (or rehire) Russian consulting and technology talent, move quickly again on acquisitions, and re-evaluate taking on Russian clients, particularly those pledging to help rebuild Russia’s credibility and good standing in the global market. Clients, both European governments and multinational companies, looking to escape inflationary pressures and find quick growth after a war-based shock to Europe’s economy may look to vendors, particularly the management consultancies, for assistance. And these vendors will be forced to decide whether or not to help high-value clients resume their business in Russia. As quickly as the world closed the Russian economic spigot, it could be reopened.

The determining factor: Leadership

More than any other factor, leadership will determine how these vendors handle the war in Ukraine and its effects on their business, and TBR will be assessing leadership decisions, announcements and strategy shifts over the next few weeks for markers of the most likely near-term and 2022 outcomes.

TBR releases exclusive webinar content from 2022 Prediction series

Technology Business Research, Inc. (TBR) announces on-demand availability of all of our 2022 Predictions webinars. Predictions is an annual special series examining market trends and business changes in key markets, such as cloud, IT services, digital transformation and telecom.

Deep dive: Management consulting and analytics services leading trends in 2021

Join Practice Manager and Principal Analyst Patrick Heffernan, Principal Analyst Boz Hristov, Senior Analyst Elitsa Bakalova and Senior Analyst Kelly Lesiczka Thursday, Feb. 24, 2022, at 1 p.m. EST/10 a.m. PST for an in-depth analysis of leading trends in the IT services industry, such as vendor performance across regions, service lines and select verticals and the evolving value proposition as pent-up demand for run-the-business awards continues. The team will also do a deep dive into management consulting and analytics services segments.

Mark your calendars for Thursday, Feb. 24, at 1 p.m. EST,
and REGISTER to reserve your space.

Related content:

  1. Top 3 Predictions for IT Services
  2. Top 3 Predictions for Management Consulting

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Understanding industry needs and accelerating tech adoption: How IT services vendors are growing in financial services

Financial services benefited from emerging technologies over the past decade, creating a highly lucrative and exceedingly competitive market for IT services

While historically, financial services has been ahead of other industries in digital technology adoption, the COVID-19 pandemic accelerated technology-enabled transformations as IT services vendors and consultancies sought to address the needs of financial services clients, including the need to interact with customers and conduct business transactions through digital channels, as well as the needs of financial services employees, who began working remotely. Such changes in operating models drove an increase in advisory, application and infrastructure managed services work and accelerated revenue growth for IT services vendors beginning in early 2020.

With increasing pressure to embrace digital banking and digital payment platforms to address demand for cashless transactions across different economies and businesses, financial services clients look to transform supply chain, data analytics, management and workflow as well as address security needs and improve overall operations. These clients need to become agile, enhance their customers’ experiences, and modernize their information and communication technologies environments. For IT services vendors, capturing market share requires a fundamental understanding of financial institutions’ technology landscapes as well as a differentiated value proposition, pushing vendors to augment industry-specific capabilities through acquisitions.

Note: Includes financial services revenues for 16 of the 30 vendors covered in TBR’s IT Services Vendor Benchmark; not representative of a total global market view

Revenue growth in the financial services segment of IT services was also driven by vendors addressing clients’ needs around data protection, regulatory compliance and governance. Supporting adoption of next-generation technology solutions like blockchain to address topics such as commission tracking and recording, asset management, and AI-enabled hybrid cloud management is also a factor for revenue growth.

Leading IT services vendors leverage acquisitions to expand industry-specific capabilities and broaden client reach, particularly in Europe

Acquisitions enable vendors with well-executed strategies to access new portfolios, cultures and client bases, largely focusing on top-of-mind areas for digital transformation budget spending such as cybersecurity, AI and digital product engineering. As enterprises move IT workloads to the cloud, vendors are compelled to invest in both talent and technology to leverage newly accessible data for analytics and AI-powered insights. But as services remains a people business, we expect most vendors will continue to manage risk by assessing cultural and portfolio fit when selecting acquisition candidates.

Understanding industry needs and accelerating tech adoption: How IT services vendors are growing in financial services

Understanding industry needs and accelerating tech adoption: How IT services vendors are growing in financial services

Key insights

The COVID-19 pandemic accelerated technology-enabled transformations as IT services vendors helped financial services clients interact with customers and conduct business transactions through digital channels.

Financial services clients need to become agile, enhance their customers’ experiences, and modernize their information and communication technologies environments.

Capturing market share requires a fundamental understanding of financial institutions’ technology landscapes as well as a differentiated value proposition, pushing IT services vendors to augment industry-specific capabilities through acquisitions.

Check out our special report Top 3 Predictions for IT Services in 2022 for additional thoughts on the IT services market in the new year.

Register for our upcoming webinar on Deep dive: Management consulting and analytics services leading trends in 2021 for an in-dpeth chat on leading trends in the IT services industry, such as vendor performance across regions, service lines and select verticals and the evolving value proposition as pent-up demand for run-the-business awards continues