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DXC Technology has reported interim results for its current fiscal (FY25), reflecting revenue declines marginally higher than the same time last year, coupled with weaker profits. Total revenue for the six months ended 30 September 2024 was down 5.9% to $6.47bn (compared to a 5.4% fall in H1 24). Net Income fell sharply and was just $70m, compared to $141m for the same period last fiscal. On an organic basis (taking into account DXC’s divestments and ongoing business) H1 25 revenue was down by 5.6%.
H1 25 revenue for DXC’s Global Business Services (GBS) division was $3.35bn, down by 1.8% (compared to a decline of 1.7% in H1 24). Meanwhile, Global Infrastructure Services (GIS) revenue fell by 9.9% to $3.13bn (compared to a decline of 8.7% for the same period last fiscal). Whilst the headline financials remained firmly in negative territory, DXC’s latest interim results did at least contain one positive metric at the offerings level. Reflecting the continued growth of the company’s revitalised Insurance Software and BPS segment, Q2 revenue was up 3.3% to $396m (see: DXC goes “back to the future” for Insurance success). Elsewhere however, Consulting and Engineering Services Q2 organic revenue was down 3.2% to $1.28bn, Cloud, ITO and Security was down 9.9% to $1.19bn, and Modern Workplace was down 9.1% to $376m.
Despite the headline deterioration and approximately one year on from the departure of his predecessor (see: Time runs out for Salvino) DXC’s President and CEO, Raul Fernandez, spoke bullishly on last night’s earnings call about the progress he believes the company is now starting to make. Commenting on what he described as a “solid quarter” Fernandez highlighted the fact that, Adjusted EBIT Margin and Non-GAAP EPS both exceeded previous guidance, whilst DXC’s revenue declines were towards the lower end of the Q2 range. Confirming its revenue guidance for the current fiscal, DXC indicated that the company’s organic revenue is expected to fall by between 4.5% and 5.5% this fiscal, with the same decline forecast for the next quarter (Q3).
Posted by: Jon C Davies at 09:46
Tags: insurance financial+services
The UK government is launching a new AI assurance platform, which will provide a one-stop-shop for UK businesses to get information on the actions they can take to identify and mitigate the potential risks and harms posed by AI. The safe development and deployment of AI is central to the UK governments vision for AI on the global stage, driven by the AI Safety Institute.
The platform will bring together guidance and practical resources which sets out clear steps such as how businesses can carry out impact assessments and evaluations, and reviewing data used in AI systems to check for bias. The UK government is also seeking to partner with industry suppliers to develop a new roadmap, which will help navigate international standards on AI assurance. According to the press release by DSIT, 524 firms currently make up the AI assurance slice of the UK’s AI sector, employing more than 12,000 people and generating more than £1bn. These businesses provide organisations with the tools they need to develop or use AI safely.
Further support will see businesses, particularly SME’s, able to use a self-assessment tool to implement responsible AI management practices in their organisations and make better decisions as they develop and use AI systems. The AI Safety Institute has also announced a new AI safety partnership with Singapore which will see the two institutes work together closely to drive forward research and work towards a shared set of policies, standards, and guidance.
AI assurance and AI governance are both topics high on the agendas of many organisations who are looking to pilot or scale their AI initiatives. Navigating the challenges of hallucinations, data security, IP protection, regulatory compliance and ethical standards add further layers of complexity beyond the technical hurdles of integrating LLM’s with proprietary and external data. A number of technology suppliers are seeking to exploit this growing demand for AI governance & assurance solutions and advisory through the development of tools, platforms and frameworks which will help organisations expedite rolling out AI in a safe, secure and ethical manner.
Posted by: Simon Baxter at 09:39
Genpact increased its revenue guidance off the back of a strong set of Q3 results out yesterday afternoon, as the business continues to improve under newish President and CEO Balkrishan "BK" Kalra (see Improving picture at Genpact). Headline numbers show revenue in Q3 increasing 7% in constant currency to $1.21bn and where operating profit was up 10% YoY to $182m, with a healthy corresponding margin of 15%.
Genpact’s business is broadly divided into two, a ‘Data-Tech-AI’ (the ‘New’) which accounts for c.47% of revenue and grew 9% YoY to deliver revenue of $569m, and its traditional (BPS heritage) Digital Operations business, that represents the other 53% and which grew revenue 5% YoY to $642m.
In his comments CEO Kalra attributed the growth primarily to client trust in Genpact’s ability to innovate across Data, Tech and AI. As a result, the firm has opted to increase guidance with 6% revenue growth now expected in 2024, up from 2% in the prior year, which would translate into FY revenue in the range of $4.740bn to $4.751bn.
Genpact continues to simplify its business and offer and has gone big on the potential of AI enabled service delivery. To put some numbers to this, the firm already has some 300+ GenAI solutions, 200+ AI/ML client deployments and with real strengths in data science and foundation models. Continued success, however, requires Genpact to become famous for its broader portfolio, as the firm continues to look to migrate up the value chain towards higher margin activity.
Posted by: Marc Hardwick at 09:02
Tags: results
In trying to address their sustainability challenges while also exploring options for deploying AI, organisations need to face up to what we call the “sustainable AI paradox”. The AI models that crunch the data necessary to tackle sustainability problems and innovate service delivery also consume resources and generate carbon emissions due to their energy-intensive nature. Harnessing the power of AI, while ensuring its development and deployment aligns with sustainability goals, is a critical challenge facing both suppliers and tech user organisations.
Determining whether an application of AI is sustainable is highly nuanced and the level of carbon emissions is just one factor. An assessment of efficiency vs. effectiveness can be an important consideration—an AI solution may emit higher levels of carbon compared to a lower emission (but less efficient) alternative, for example, but be more effective.
This report looks at the sustainability challenges that suppliers and tech user organisations face when deploying AI, given the technology’s energy-intensive nature. It explores a range of potential responses to the “sustainable AI paradox”, as well as making the case for AI lifecycle environmental assessments that can identify areas where sustainability could be improved (and provide insight into unintended consequences).
SustainabilityViews subscribers can download Managing the AI paradox: Harnessing AI while hitting sustainability goals now. If you are not yet a subscriber, or are unsure if your company has a subscription, please contact Belinda Tewson to find out how you can access the research.
Posted by: Craig Wentworth at 07:00
Tags: datacentres energy efficiency sustainable-by-design power capping
Second quarter commentary from Kyndryl reiterates its confidence that it is “well-positioned to deliver top-line growth” in Q4.
Q2 revenue was -7.0% (constant currency) to $3.8bn, reflecting the ongoing shift away from low margin contracts. However, total signings leapt 132% over the comparable period last year to a “record” $5.6bn.
Kyndryl’s execution against its strategic aims continues to bear fruit. In the three months to end September, the firm recognised $260m in revenue “tied to” its cloud hyperscaler alliances. The figure was $210m in Q1. Clearly the march towards its end of year target of $1bn continues positively. Kyndryl Consult is also progressing, with top line growth speeding up to 23%.
An important outcome of the firm’s work over the past year has been the increase in the scope of services included in contract signings. This has been combined with increased profitability of contracts. These are important steps as it gets closer to its aim of achieving “high-single-digit adjusted pretax margins” in FY27, which begins in less than 18 months.
As for the current year, Kyndryl expects to deliver “constant currency revenue growth” in the final quarter of the year, but that would still mean a decline of 2.0-4.0% for the year as a whole.
Read my first quarter analysis for more context.
Posted by: Kate Hanaghan at 09:50
Ahead of announcing its H1 results later today, DXC Technology has revealed another addition to its leadership team, (and another “returnee”) with the appointment of James Walker as Chief Administrative Officer. Most recently, Walker (pictured below) served as Vice President of Economics for IBM Cloud, where he led strategic initiatives focused on cost reduction, automation, and delivery.
Like a number of DXC’s recent recruits, Walker is effectively rejoining DXC, having spent more than nine years working for the company’s antecedent, CSC, between 1996 and 2005. Walker’s career also includes leadership positions at Bank of America, Morgan Stanley, and Credit Suisse. Walker (who holds a degree in Economics from Newcastle University) will report to DXC's Chief Financial Officer, Rob Del Bene.
In his new role, Walker will oversee transformation initiatives as the company looks to improve operational efficiency and achieve growth. In particular, Walker will be focused on DXC’s operating model and delivering customer excellence. His responsibilities will include workforce productivity and “clarity and accountability” across the company. With DXC's Chief Operating Officer, Jim Brady, set to retire at the end of this month Walker will also head up corporate business services, including DXC’s IT functions.
The latest episode in TechMarketView's series of Totally Sust podcasts sees SustainabilityViews’ lead analyst, Craig Wentworth, interview Bart Nollen (Co-Founder of Dayrize) and Helena Mansell-Stopher (Founder & CEO of Products of Change) about sustainability intelligence, product impact scoring, and how technology can help brands track, measure, and reduce their Scope 3 emissions – amongst other things.
An edited (13-minute) version of the podcast is available to stream for free now on SoundCloud and Spotify (or you can click on the image link below).
Subscribers to our SustainabilityViews research stream, however, can stream or download the full 35-minute version of the episode. If you are not yet a subscriber, or are unsure if your company has a subscription, please contact Belinda Tewson to find out how you can access the research.
Posted by: Craig Wentworth at 09:36
Tags: Scope 3 brands impact scoring
In May this year, digital transformation services provider, TPXimpact, announced the retirement of CFO, Steve Winters. With a leaving date of 31st December 2024, the company has had plenty of time to seek out his replacement and plan a smooth transition.
Today, we learn that we’ll be getting to know a new CFO from 1st April 2025. This is when Noel Douglas will be welcomed onto the Board as CFO and Company Secretary. In the interim period - from January to March - Richard Griffiths, who currently leads the Group finance function will step into the role on an interim basis. Steve leaves behind a legacy of a strong team, robust management processes, and effective controls, which will enable a successful transition.
Noel joins from technology company, AND Digital, which specialises in accelerating digital transformation. With revenues of £140m and 1,400 staff, it is not too dissimilar in size to TPXimpact (£84.3m in turnover and 530 FTEs plus 140 associates). Noel also served as Group Financial Controller at global IT services supplier, Endava. There he gained experience, while leading a team of 210 finance professionals, of significant M&A activity including the subsequent integration and drive for operational efficiency. As we learned from TPXimpact CEO, Bjorn Conway (see TPXimpact: Onwards and upwards | TechMarketView), after a period spent digesting previous purchases, more acquisitions are on the cards. Seems like a great fit.
Posted by: Georgina O'Toole at 09:30
Tags: appointment leadership
Triad Group plc has delivered on its promises, achieving a much-improved financial performance in the first half of FY25. Results for the six months ended 30 September 2024 reveal revenue was up 60% to £10.21m (H1 2024: £6.39m), gross profit was £2.97m (H1 2024: £0.95m), resulting in a gross profit margin of 29.1% (H1 2024: 14.9%). Profit before tax was £0.75m compared to a loss of £0.99m in the same period last year, and cash reserves increased to £2.88m (H1 2024: £2.62m).
The impressive turnaround was achieved off the back of a record series of contract wins—in total, worth more than £25m—in H2 2024 (see Triad turning the tide with record contract wins). This included deals with the Office of Product Safety & Standards; Foreign, Commonwealth & Development Office; Met Office; Department for Energy Security & Net Zero; Ministry of Justice; Department for Transport and within the law enforcement sector.
To support this run of contract awards, Triad recruited a further 24 consultants during the period. This followed the appointment of 18 additional people towards the end of FY24 and resulted in the company having a total consultant headcount of 133 at the end of the half-year.
At this point last year (see Light at the end of the tunnel for Triad Group), Triad announced a significant drop in both revenue and profit, but Executive Chairman John Rigg, said he had “never felt so confident and enthusiastic about the state and prospects of the company”. Management held its nerve and did not reduce headcount when faced with these challenges and that confidence has paid off. Rigg is “extremely enthusiastic about the outlook” for the business and he expects the second half of the year to continue in a similar vein.
Posted by: Dale Peters at 09:27
Tags: results consulting H1 public+sector central+government
UK telecoms giant, BT Group, has published its latest H1 results, highlighting a fall in revenue and profitability in the face of tougher market conditions. The financials for the six months ended 30 September reveal that revenue was down 3% to £10.1bn whilst pre-tax profit fell 10% to £967m. BT revised its FY25 revenue downward to an expected 1-2% decline, reflecting reduced spending in the Corporate and Public Sectors and weaker international trading.
There was a mixed performance from BT’s segments with adjusted H1 revenue from Openreach up 2% to £3.11bn and Consumer down 1% to £4.83bn. Meanwhile, Business was the worst performing part of BT, with revenue down 6% YTD at £3.86bn.
In May 2024, BT announced a further cost cutting exercise targeting gross annualised savings of £3bn by the end of FY29 at a cost of £1.1bn. The telecoms giant plans to cut its workforce by 40% by the end of the decade, with the equivalent of around 55k jobs being lost. BT is so far on target to achieve its goal with £0.4bn gross annualised cost savings achieved during H1.
Elsewhere it has been reported in the media that BT is looking to offload its global operations, which provide internet and mobile connectivity services to business customers around the world. BT’s global operations generated £2.4bn FY24 however, new CEO, Allison Kirkby, is thought to be keen to divest non-UK assets, as she looks to simplify BT’s business model.
BT is betting big on AI with the technology central to the group’s future strategy. To emphasise its commitment to AI, BT has revealed that it is the UK’s number one recipient of AI patents (with around 725) whilst 97% of BT’s critical data now accessible via the google cloud.
Posted by: Jon C Davies at 09:00
Tags: telecoms
Conduent continues to see quarterly revenue declines as it looks to resize in an effort to return to growth as a leaner sharper business. This has seen a spate of divestments (see Further divestment at Conduent) designed to reduce debt and ultimately improve cash conversion. During Q3 2024 Conduent completed the sale of its Casualty Claims Solutions business for $224m in cash to MedRisk. The company then used a portion of the proceeds from the sale to repay the entire remaining outstanding balance of two major loans worth more than $70m.
The shrink to grow strategy continues to make sense, the challenge for Conduent is turning the corner on growth and proving that it can execute on the plan. Currently growth continues to remain elusive with revenue declining -13.4% in Q3 to $807m (Q3 2023 $932m). Adjusted EBITDA also fell back down -46.7% to $32m (Q3 2023 $60m) with the equivalent margin dropping to 4.1% (Q3 2023 7.2%).
Looking forward to the FY Conduent expects to achieve revenue of between $3,185m to $3,215m down from $3,320m in FY 2023, with an adjusted EBITDA margin of between 3.75% to 4.0% (FY 2023 7.4%).
Posted by: Marc Hardwick at 08:11
Tags: results bps
London-based, public sector-centric digital consultancy, Solirius has been acquired by Reply SpA, a Turin-HQ'd global IT services firm. The purchase both boost's the Italian company's headcount in this country by c.11% to over 1500 personnel and lifts the annual revenue generated here by more than a fifth to around £300m. Terms of the deal have not been disclosed.
Founded in 2007, Solirius focuses on software development, agile delivery, artificial intelligence and data management. In 2023, around 90% of the firm's £52.6m turnover was earned from the Central Govenment segment through the G-Cloud, Digital Outcomes & Specialists and Digital Specialists & Payments frameworks (see here). Solirius counts HM Courts & Tribunal Services, The Crown Prosecution Service, the Department for Education and the Department for Business, Energy and Industrial Strategy among its customers.
Reply has been in business since the mid-nineties, Today it operates from over 50 offices across Europe, the Americas and Asia and the firm's clients include Audi, Coca-Cola, Geox and Prada. Run as a decentralised network of specialised companies, the firm's global sales topped €2bn last year.
Inorganic growth has been key to Reply's global expansion. In 2022. the firm stengthened its presence in the US market with the double acquisition of SAP-centric solutions provider Enowa and The Spur Group, a marketing and sales consultancy. For the twelve months ended 31st December 2023, the company saw its UK revenue increase by 5% yoy to £242m with the associated operating margin improving by 70 bps to 6.2%. The investment in Solirius will add a significant presence in the public sector to the company's existing UK footprints in the retail, financial services and transportation verticals.
Posted by: Duncan Aitchison at 07:59
Tags: acquisition IT+services public sector
Just this morning, we wrote about CGI winning a new deal with the Crown Prosecution Service (see CGI wins again at long-term client, CPS | TechMarketView). Of course, that win has come since the end of its last quarter (to end September 2024), but we have also written about numerous successes that fell within the period, including those with the Department of Justice, Northern Ireland Courts and Tribunals Service (NICTS) (CGI wins major NI deal), Edinburgh City Council (see CGI and Access Group to transform Edinburgh’s social care services), MOD (see CGI supporting Defence Learning & Management Capability (DLMC) programme) and the Ministry of Justice (see CGI to deliver MOJ’s digital service desk).
The impact of these wins, as well as earlier ones (see UKHotViews archive), is evident in CGI’s latest results for Q4 and FY24. In the UK & Australia (where Australia represents a small part of results but showed consistent performance), Q4 revenues increased by 12.1% to CAN$421.3m, or by 7.2% at constant currency. In line with the recent wins, the revenue increase was mainly due to profitable organic growth within the Government market, as well as the Communications and Utilities markets. However, the adjusted EBIT margin in the quarter dropped from 16.1% to 14.8%, “mainly due to higher performance-based compensation accruals, lower IP license sales, as well as project-related equipment sales within the government vertical market.”
In the region, the Q4 revenue performance represented the strongest quarter of the year. In Q1 revenue growth (ccy) was 6.2%, but Q2 and Q3 were weaker at 0.0% and 0.4% respectively. For FY24, headline revenue growth came in at 8.9% to CAN$1,584.8m, or constant currency growth of 4.4%. Most vertical markets put in a positive performance, but the Government vertical was particularly strong. For the year, the adjusted EBIT margin increased from 14.9% to 15.9%.
The UK & Australia Book to Bill ratio rose above 100% when the last quarterly results were announced (see CGI arrests declining quarterly growth | TechMarketView) and is now stronger, standing at 114.5% (trailing 12-month).
For the Group as a whole, CGI’s new CEO, François Boulanger (see CGI appoints François Boulanger as next CEO | TechMarketView) cites, “increasing revenue growth, sustained earnings expansion, and strong cash from operations”, highlighting that CGI’s financial strength deepens its position as an active consolidator in the market. In FY24, revenue increased 2.7% to CAN$14.68b, or by 0.9% at constant currency (with Q4 representing the second consecutive quarter of improved ccy revenue growth). Meanwhile, the adjusted EBIT margin increased from 16.2% to 16.5%, and cash from operations increased from 14.8% of revenues to 15.0% of revenues.
Posted by: Georgina O'Toole at 15:32
Tags: results SI
UK-based venture capital firm Omni Partners has acquired data management specialists Infoshare. It has also purchased software assets from the Chartered Institute of Public Finance and Accountancy (CIPFA), which have been combined with Infoshare to create Infoshareplus. Terms of neither deal have been disclosed.
Omni Partners was founded by Steven Clark in 2004 to manage a single hedge fund strategy. It evolved over time to offer a wider range of investment strategies, before spinning out its event-driven hedge fund strategy in 2022 and focusing on investment management within private markets.
In March 2024, Omni enhanced its team with the appointment of Wayne Story and Phill Rowland—former Civica CEO and CFO respectively—as Partners. It is now targeting opportunities in tech-enabled services, healthcare and education and training, particularly companies at the smaller end of the middle market. In 2024, it has already added Compass Continuing Healthcare and Briefed to its portfolio.
Founded in 1996, Infoshare provides data quality and master data management solutions, helping to create a single view of citizens and customer data. The company was one of 12 businesses selected to participate in the 2016 edition of TechMarketView’s Little British Battler programme (see Little British Battler Report 8).
Over the subsequent eight years, the company expanded and partnered successfully with many public sector focused systems integrators (see Partnerships help drive growth at LBB Infoshare). It was one of six UK tech scaleups that participated in the Capita Scaling Partner programme, which was developed in association with the TechMarketView Innovation Partner Programme (see Capita Scaling Partner contender: Infoshare).
Omni has integrated Infoshare with CIPFA’s AssetManager.net (an asset management platform) and CIPFAStats+ (an interactive data analysis tool) to target opportunities in the public sector, particularly those in local government and public safety. This includes helping organisations improve data accuracy, asset management and performance benchmarking to help provide the insights to drive service efficiency enhancements.
Under the new Infoshareplus brand, it is seeking to create a scalable software and data platform to make further investments in the sector. The company is now pursuing partnerships and additional public sector-focused software providers with complementary solutions. As part of this plan, ex-Civica executive director, Steve Thorn, has joined as the executive chairman of the new look business. He will work alongside CEO Pamela Cook to help implement Infoshareplus’s growth plan.
TechMarketView has followed the impressive growth of Civica for many years (see A new era for Civica) and Omni will be hoping the strong team of former senior Civica employees it has assembled will help it achieve its GovTech expansion ambitions. TechMarketView will be following the journey closely.
Posted by: Dale Peters at 10:10
Tags: acquisition software analytics data MDM public+sector govtech
CGI’s relationship with the Crown Prosecution Service can be traced back to 2001 (see Logica crowns CPS deal | TechMarketView) when the non-ministerial department decided to improve its handling of cases by reducing reliance on the physical file. Logica, as was, signed the COMPASS contract, with an initial focus on a new electronic case management system. The contract evolved over the years to become a full outsourced ICT service and was extended multiple times.
In 2018, the CPS stated its intention to disaggregate the COMPASS contract. Since then, we have seen various suppliers take a slice of the pie, including DXC, which won the CPS Service Desk Partner contract in 2023 (see DXC lands CPS service desk partner contract | TechMarketView) and NTT DATA, Kainos, and i-10, which became the organisation’s Digital Delivery Capability Partners early in 2024 (see CPS selects NTT DATA, Kainos, i-10 for nimbleness | TechMarketView).
However, through the disaggregation, CGI has maintained a strong footprint, including an Apps and Hosting contract, which has been extended to November 2025. Now, it has announced a further win as CPS’ Application, Database, and Infrastructure Management Services (ADIMS) partner. The focus of the contract will be on elevating the digital backbone of the CPS’ Future Casework Tools Programme; the Programme provides digital solutions to increase efficiency, enhance casework quality, and improve user experience.
CGI will introduce a new digital infrastructure within CPS and its wider ecosystem of partners and will support (24x7, 365 days per year) its clients’ business and mission-critical applications and case management within the criminal justice system.
Two key things appear to have influenced the CPS’ decision to award CGI the contract. Firstly, a need for a “world-class level of stability” to support prosecutors. And secondly, the ability for CGI to bring its decades of first-hand experience with the organisation’s applications to enable the CPS to improve its platform design, with security at the core.
Matthew Cain, CPS’ Chief Digital Information Officer, states, “We are particularly impressed with CGI's approach to a service culture, automation, and platform design that integrates security as a shared responsibility (DevSecOps) from the outset.”
Posted by: Georgina O'Toole at 09:41
Tags: contract SI infrastructureservices public+sector application+services central+government
The UK Government is beginning the next stage of testing the GOV.UK AI chatbot through providing advice to small businesses. The Department of Science, Innovation and Technology (DSIT) said that up to 15,000 people will be able to ask the GOV.UK Chatbot for advice on business rules and support, with the AI linked to 30 of GOV.UK’s business pages, such as ‘Set up a business’ and ‘Search for a trade mark’.
A team of in-house data scientists, developers and designers are building the experimental tool using OpenAI’s GPT-4o technology which aims to help people more quickly navigate complex advice. Users will receive straightforward, personalised answers that collate information that may otherwise be spread across dozens of pages. The results from the current trial will determine the next steps which could include potential larger-scale testing. This could ultimately lead to the chatbot being rolled out across the full government website, made up of 700,000 pages.
After the first trial, which was conducted late last year, nearly 70% of users agreed that the responses provided by the chatbot were helpful. Reports from various media organisations who have tested the latest version suggest that on the whole it works well in surfacing relevant information, within the confines of existing documentation it was trained on. Where it struggled was asking it to predict or advise on unknown outcomes (for example certain legislations being passed), but this should be no surprise, the current state of GenAI tools like this are not designed to act as advisors, they are there to make access to existing information easier.
The chatbot itself also warns upfront it may be subject to hallucinations, though most of the major kinks seem have been worked out. “Guardrails” have been added so the chatbot won’t respond to queries that may prompt an illegal answer, share sensitive financial information or force it to take a political position. Working with the government’s AI Safety Institute, the developers have also installed protections aimed at preventing hackers from leading the bot astray and making it say damaging things.
Science Secretary Peter Kyle said:
“Outdated and bulky government processes waste people’s time too often, with the average adult in the UK spending the equivalent of a working week and a half dealing with public sector bureaucracy every year. We are going to change this by experimenting with emerging technology to find new ways to save people time and make their lives easier”
Posted by: Simon Baxter at 09:38
TechMarketView’s latest UK Health Software and IT Services (SITS) Suppliers, Trends, and Forecasts report is now available. It is the third in a series of reports providing in-depth analysis of the six UK public sector subsectors, following our reports on Central Government and Education, and our UK Public Sector Software and IT Services Suppliers Trends and Forecasts report. It will be followed in the coming weeks by reports for the other public sector subsectors as defined by TechMarketView: Local & Regional Government, Police and Defence.
This report provides TechMarketView’s view of the UK Health Software and IT Services (SITS) market from a market and supplier perspective. It provides our analysis of the performance of the market in 2023 and the ongoing challenges of recovering core NHS services following the COVID-19 pandemic. We also look ahead to 2027 as the government seeks to drive a major tilt towards technology in healthcare in an effort to unlock productivity, move from hospital to community-based care, and drive the focus of care upstream.
The report also contains an update to our UK Health SITS Top 10 supplier rankings, with our analysis of what is driving each player’s performance, as well as an insight into those suppliers that are threatening to unseat the leading players, and our pick of the ‘ones to watch’.
PublicSectorViews subscribers can find out the size of the UK Health SITS market, its future growth, and who the leading suppliers are by downloading Health Software and IT Services Suppliers, Trends and Forecasts 2024 today. If you are not yet a subscriber, or are unsure if your organisation has corporate subscription, please contact Belinda Tewson to find out more.
Posted by: Dale Peters at 09:35
Tags: nhs health forecasts healthcare market+trends supplier+rankings
FY results out this morning from Dotdigital, show the UK-headquartered SaaS customer experience and data platform, continuing its growth trajectory with another set of positive results. Group revenue was up 14% to £79m (FY23 £69.2m) with organic growth up an impressive 9% in constant currency to £74.3m.
September last year, Dotdigital added the £25m acquisition of Fresh Relevance to improve its personalisation offer and increase the size of dotdigital’s addressable market and value of deals, which is all now feeding through into the results. Management points to the combined Dotdigital and Fresh Relevance offering now contributing to higher value deals, with a c.60% increase in average order value from new customer wins. International revenue is now 33% of Group total with strong growth in APAC while North America has stabilised. Profitability wise, operating profits fell back -12% to £11.9m influenced by the Fresh Relevance acquisition, whilst adjusted EBITDA increased 10% to £24.3m (FY23 £22m).
On the capability front, Dotdigital continues to progress on the AI front with WinstonAI its market intelligence engine that knits together a range of different tools (proprietary and third party). Recent progress here has seen AI deployed to support marketing creation and review and on analytics and predictive solutions.
Posted by: Marc Hardwick at 09:31
Tags: results marketingautomation
Infosys has announced a collaboration with Southwark Council to deploy its Springboard digital learning platform across the Borough. The move is in support of the Digital Inclusion pillar of the council’s three-year technology and digital strategy (designed to “empower its residents with the essential digital skills to navigate the digital landscape”, as well as roll out fast, reliable, affordable broadband internet, and implement lending programmes that provide residents with access to digital devices). Southwark believes that equitable access to the internet, coupled with the digital skills to help people go online, should be considered “the fourth utility”.
Springboard is features content spanning digital learning, emerging technologies, and life skills pertinent to participation in the digital economy. The council is looking to the platform to help Southwark residents acquire new skills and enhance employability, aiming to provide the service to everyone in the Borough for free.
Infosys has previously deployed Springboard in Brent in 2021 and Sandwell in 2023, and the platform now boasts over 50,000 registered users (with access to over 10,000 courses).
Infosys isn’t the only supplier with a digital training platform or initiative designed to upskill people in underserved communities and marginalised groups at scale to create pathways to employment (we reported on Cognizant’s Synapse initiative this time last year). However, Southwark’s rollout of the Infosys service deserves praise as it forms part of an overall strategy which not only provides online skills training, but helps people access that training through associated connectivity and device initiatives too (thereby taking a holistic approach to narrowing the digital divide).
Posted by: Craig Wentworth at 09:11
Tags: digital skills digital divide
NTT DATA saw headline results for its second quarter tick up underpinned by a strong performance in its core domestic Japanese market. The IT Services Group expanded et sales globally by 7.8% YoY to ¥2,240bn (Q2 23 ¥2,079bn) for the three months to the end of September 2024, helped by strong demand in its international data centre and SAP businesses, as well as a strong performance across all Japanese business units. New orders received grew 15.4% YoY to ¥2,500bn as the company delivered improved operating profits of ¥149bn, up some 22.3%. Operating margins were 6.7% up 0.8bps on the previous year and represent a return to form on profitability on the previous quarter.
The UK arm of NTT DATA is a key component of the EMEAL region (EMEA plus Latin America) which saw broadly flat net sales (+0.1%) of ¥241.1bn. EBITDA ticked up slightly (+0.6%) to ¥11.6bn, whilst New Orders Received declined -3% to ¥223.8bn. Whilst NTT DATA does not split out results by country it does point in its commentary to robust demand in Spain and Latin America (particularly in manufacturing), whilst the UK and Germany saw declining revenue as a consequence of the “economic situation”.
Operationally, NTT DATA Inc (the business outside Japan) is now under the leadership with former McKinsey consultant Abhijit Dubey taking over as CEO of the business outside of Japan (see NTT DATA appoints new CEO). The key UK&I geography is also under new leadership, now moving forward under the management of Niccolo Spataro and has been making progress on a number of fronts over the last few months including a range of new partnerships announced (see here , here and here) as it looks to strengthen its UK&I ecosystem.
Posted by: Marc Hardwick at 08:12
Tags: results IT+services
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