GlobalData’s IT services sector scorecard provides a top-down, comprehensive outlook for the key players in the sector over the next two years. Sitting down with GlobalData research director Ed Thomas, Verdict finds out in the below video who the worldwide winners and laggards are in IT services, along with key trends and themes.
IBM and Accenture may sit on the top of the thematic screen in the scorecard, but the real story is the dominance of Indian vendors in the first quarter of 2021. Five of the top 10 companies on the list are headquartered in India.
Also in the top 10 is Cognizant, headquartered in the US but, with 70% of employees based in India, is commonly described as an Indian provider.
A key reason for the strong position of these companies is how well they have weathered the Covid-19 storm. The initial signs did not look good, with Infosys announcing on 20 April 2020 that it was suspending its traditional practice of providing revenue guidance for the next fiscal year due to uncertainty caused by the pandemic.
However, the situation improved markedly as the year went on. Wipro, for example, reported that its profit margin for the three months to the end of December 2020 was its highest for 22 quarters.
Others have struggled to cope. DXC Technology, for one, suffered a revenue drop of more than 9% in the year to the end of March 2021, and the company said straightforwardly that the pandemic had “negatively impacted, and [would] continue to negatively impact” its business.
While there are signs that the worst of the crisis may be over in the US and Europe, a great deal of uncertainty remains. Of the 17 Technology, Media and Telecoms sectors GlobalData covers, IT Services ranked 13th.
Find out more in the video above and the IT Services Sector Scorecard Q1 2021, available here from GlobalData.