GlobalData’s latest update on the market for IT Service Providers (ITSPs) IoT Services showed what first appeared to be less interest in IoT among key service providers in H2 2023 than in previous periods.

However, while there were fewer public announcements about new IoT services, alliances, or customers, ITSPs still treat IoT as a key enabler of digital transformation while “newer” more exciting technologies such as AI take centre stage in press releases.

ITSPs have been playing an important role for many years in providing IoT-based solutions to enterprises, offering reduction of cost and complexity barriers with a one-stop shop, providing access to diverse partners for particular use cases and verticals, and providing consulting and professional services to smooth the path for hesitant customers.

In H2 2023, however, there were fewer public announcements of new services leveraging IoT than in previous periods, because it is so “baked in” to ITSP’s portfolios for digital transformation (among other capabilities such as AI, analytics, edge computing, blockchain, and hybrid cloud solutions).

IoT is not new and accordingly there were not as many significant technology enhancements, alliances or vertical end-to-end solutions added to ITSP portfolios as we have seen before. However, as 5G/5G SA, FWA, and private networks have become positive enablers of IoT momentum in 2023, both mobile operators and ITSPs remain important facilitators. For more detailed information, see GlobalData report IT Service Provider IoT Services.

ITSPs IoT Announcements in 2023

  • December 2023: Accenture and Mujin, a leader in robotics for manufacturing, logistics and supply chain, established Accenture Alpha Automation, a JV for the manufacturing and logistics industries. It will help companies automate management infrastructure with solutions that combine data from manufacturing and logistics operations with management data. The JV is owned 70% by Accenture and 30% by Mujin.
  • December 2023: In Q4 2023, Cognizant noted that it will continue to invest in IoT, citing success in using IoT to instrument functions for factories, real estate, fleets, and products to increase access to insight-generating data. Cognizant describes AI, automation, data modernization and IoT as putting data at the core of customer operations and helping to improve experiences they offer to their customers, tap into new revenue streams, automate operations, defend against competitors, and reduce costs.
  • September 2023: Kyndryl Japan is supporting Taisei Corporation’s smart building transformation business through developing and managing its public cloud environment, and by supporting the development and management of LifeCycleOS, the company’s building platform that brings together Building Information Modeling (BIM) and IoT.
  • August 2023: Following Atos’ plan (still in progress) to spin off services into a new brand called Eviden, and with plans to sell off the IT infrastructure unit of Atos (Tech Foundations), IoT will fall under the Eviden brand as it is considered a Digital Transformation technology.
  • August 2023: Infosys set up a first Makers Lab at Dr APJ Abdul Kalam University in Indore, Madhya Pradesh, India. The lab will have capabilities ranging across AI, IoT, robotics, and 3D printers.
  • April 2023: Cognizant announced its purchase of Mobica, a UK-based IoT software engineering services company. Mobica has been a strategic partner for connected software engineering services across the technology stack to technology-driven market leaders. For Cognizant, this also boosts nearshoring capabilities in Eastern Europe.
  • April 2023: Capgemini was selected to coordinate IoT-NGIN, the Next Generation IoT project, part of the European Commission’s Next Generation Internet initiative to reinvent the Internet for the third millennium. IoT has been identified by the European Commission as a technology at the forefront of digital transformation for the economy.
  • March 2023: The global standard for IoT security, the ioXt Alliance, announced the addition of Capgemini to the ioXt Authorized Labs certification program. Authorized labs are the exclusive third-party test providers for the ioXt Alliance, performing testing required for IoT devices to be certified by ioXt.
  • March 2023: Accenture announced it is acquiring Flutura, an IoT and data science services firm. This will boost the industrial AI services that Accenture sells under the umbrella of its Applied Intelligence unit.
  • February 2023: Infosysrolled out Private 5G-as-a-Service to accelerate business value for its enterprise clients. It includes Mobile Edge Computing for reliable network operation for high-bandwidth enterprise use cases including a variety of IoT/industrial IoT applications.

These announcements show that in 2023, ITSPs struck alliances or made acquisitions to expand their vertical expertise and ability to use adjacent technologies to enrich IoT solutions.

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Acquisitions such as Flutura by Accenture, Mobica by Cognizant, and Atos’ still-in-progress spin-off of its legacy IT services company, with IoT to be an element in its new services group Eviden, show the importance of IoT to enhance digital transformation as a complementary technology to analytics, AI, edge computing, blockchain, and hybrid cloud.

The role of ITSPs in making IoT and other complex technologies easier to use while solving business problems remains very important.