Strategic Intelligence: IT Services Sector Scorecard Q3 2024 Update

Companies scoring well in the cloud, data analytics, and future of work themes lead the thematic screen of the analyst’s IT services sector scorecard. This is dominated by global IT services giants Accenture, IBM, and Infosys, closely followed by Capgemini and Hewlett Packard Enterprise (HPE). Indian heritage vendors occupy half of the top 10 vendor positions, suggesting they have successfully adapted their strategies to the long-term concern of a declining cost advantage versus their US and European peers.

Key Highlights

• Leading IT services companies continue to upskill their workforces in artificial intelligence (AI) technologies, particularly generative AI, as they see a significant advisory opportunity. This typically comes in the shape of partnerships with cloud vendors like Alphabet, Microsoft, and Amazon and chip giants such as Nvidia. In October 2024, Accenture announced the formation of a new Nvidia business group, which will train 30,000 professionals to help scale enterprise AI adoption through AI agents.
• Alongside upskilling, companies are also focusing on the security aspect of AI. Accenture has invested in Reality Defender, a cybersecurity company specializing in deepfake detection, in October 2024. IBM has unveiled Guardium Data Security Center, a platform that enhances data security by providing a comprehensive view of data assets. Through this platform, IBM aims to address evolving risks linked to hybrid cloud, AI, and quantum technologies, meeting the challenges of modern data security. As customers explore AI delivery models involving private and hybrid cloud, we expect systems integrators such as DXC Technology, Fujitsu, and Kyndryl to become increasingly involved.

Scope

• This sector scorecard provides a top-down, comprehensive outlook for the key players in the IT services sector over the next two years, based on the key themes set to transform their industry landscape.

Reasons to Buy

• Companies that invest in the right themes become success stories. Those that miss the important themes in their industry end up as failures.
• The analyst’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the right investments ahead of the competition, and secure that all-important competitive advantage.
• At the analyst, we have developed a unique thematic methodology for ranking all major companies in all major sectors based on their relative strength in the big themes that are impacting their industries.
• Our thematic engine tags over 180 million data items across six alternative data sets-patents, jobs, deals, filings, social media, and news-to themes. The vast datasets within our thematic engine help our analysts to produce sector scorecards that identify the companies best placed to succeed in a future filled with multiple disruptive threats.