1. Analysis
July 12, 2022

Filings buzz: tracking digitalization mentions in the tech sector

We've analysed companies' annual reports and other filings to see which key issues are receiving the most attention.

By Data Journalism Team

Mentions of digitalization within the filings of companies in the tech sector were 52% higher between July 2021 and June 2022 than in 2016, according to the latest analysis of data from GlobalData.

When tech companies publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Digitalization is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges.

To assess whether digitalization is featuring more in the summaries and strategies of tech companies, two measures were calculated. Firstly, we looked at the percentage of companies which have mentioned digitalization at least once in filings during the past twelve months - this was 92% compared to 77% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to digitalization.

Of the 10 biggest employers in the tech sector, CTS was the company which referred to digitalization the most between July 2021 and June 2022. GlobalData identified 248 digitalization-related sentences in the United States-based company's filings - 4.6% of all sentences. Infosys mentioned digitalization the second most - the issue was referred to in 2.7% of sentences in the company's filings. Other top employers with high digitalization mentions included Capgemini, Hitachi and Teleperformance.

Across all tech companies the filing published in the second quarter of 2022 which exhibited the greatest focus on digitalization came from Atos. Of the document's 6,284 sentences, 330 (5.3%) referred to digitalization.

This analysis provides an approximate indication of which companies are focusing on digitalization and how important the issue is considered within the tech sector, but it also has limitations and should be interpreted carefully. For example, a company mentioning digitalization more regularly is not necessarily proof that they are utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into digitalization have been successes or failures.

In the last quarter, tech companies based in Middle East were most likely to mention digitalization with 1.5% of sentences in company filings referring to the issue. In contrast, companies with their headquarters in the United States mentioned digitalization in just 0.54% of sentences.

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