Accenture continues its staggering growth upwards and onwards with a 26% growth in revenues in its last fiscal year. With $61.6 bn in FY’22 revenues, it is the largest IT services company in the world, and by some margin. Julie Sweet, Accenture’s CEO since September 2019, has been ranked #2 of the most powerful women in business by Fortune magazine. Accenture is present in 200 cities across 50 countries with close to 750,000 people. It is one of the most admired companies in the world with the strongest brand value amongst all IT services companies.
The high pace of growth continues locally as well and Accenture BeLux has witnessed strong growth in the last year. They have a strong local presence in Belgium with a long history, diverse client portfolio, more than 1300 local employees and a strong consulting capability.
Accenture continues to be a Leader within our Applications & Digital square. They have very strong capabilities and market impact in all 3 sub areas of Systems Integration, Applications Management and Digital Transformation. We have identified them as one of the leaders for Digital Transformation. While they have a strong cloud capability globally, their market impact locally in BeLux is low. They are a strong player for Security consulting services.
They had a high representation in our survey – with 15+ client contracts assessed. They have improved their satisfaction ratings in the Applications and Digital square from 3.5 last year to a solid 3.8 this year.
Accenture is praised by clients for its business understanding, transformation capabilities, and ability to bring and apply global knowledge for its clients. Despite its extensive size and global presence, it works as one integrated organization with a uniform way of working.
Main Sectors
-
Large & Medium enterprises
-
All sectors except Government
# Contracts
15+
APPLICATIONS
MANAGEMENT
✓
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
✓
End User
Services
POSITIVES
-
Business understanding and consulting mindset
-
Transformation oriented partner
-
Strong process and governance
-
Less impacted by offshore attrition due to strong local workforce
NEGATIVES
-
Pricing is at a premium
-
Contracting and negotiation is more difficult
-
Strong culture is sometimes conflicting with clients
Atos is a global technology services, infrastructure and cloud services company with €11.3bn in revenues, 110,000 employees and a presence in over 70 countries. After a few quarters of declining revenues, Atos turned the tide in Q3 last year with a modest 1.1% increase in constant currency.
This year, Atos will split into two entities: Evidian (Data and Applications driven) and Atos (Tech Foundations which is Infrastructure driven). Atos expects its Data and Application market to grow over time while it expects the traditional infrastructure business to gradually shrink. Atos believes that this split will enable a sharper focus by each entity. The situation has however led to uncertainty in the minds of both clients and analysts and we hope that the situation will settle down soon. The news of a potential 30% stake in Evidian by Airbus and a strategic collaboration between the two companies has given its much beleaguered share price some support. Evidian had a 2% organic growth last year and a book to bill of 1.3 while Tech Foundations shrunk by 1.6% with a book to bill of 0.94. Evidian had a 2% organic growth last year and a book to bill of 1.3 while Tech Foundations shrunk by 1.6% with a book to bill of 0.94.
While we did not see an impact of this uncertainty for their Applications customers (client satisfaction at 3.5), satisfaction for their Infrastructure and Cloud customers has fallen sharply from 3.6 last year to 2.9 this year, resulting in Atos falling out of the Leaders category this year. This will continue to be a year of uncertainty for the company, but we do hope that they recover soon as we strongly believe in their underlying fundamentals and strong people capability.
They have been of the few companies to have a complete service portfolio across applications, infrastructure and security. This is also reflected in the large number of multi-tower contracts – of which Atos has the highest number amongst all service providers in our study. This will unfortunately change with the split.
Atos remains a strong cloud transformation partner with a mature portfolio including a strong Hybrid cloud offering leveraging the Atos One cloud. They have strong capabilities for workplace and service desk. Infrastructure services represent 50% of their business. Their Poland center comes in for particular praise by several clients. For this scope, they are present in all sectors and across large, medium and small enterprises.
Based upon our new assessment rules for local market impact, they have improved their position for Applications / Digital services (30% of their business). Their main challenge for applications remains to expand their footprint outside of the public sector (EU + government) which they can certainly achieve given their strong global capabilities. We consider them as one of the leaders within Managed Security Services.
Main Sectors
-
Large & Medium enterprises
-
Government / EU
# Contracts
15+
APPLICATIONS
MANAGEMENT
✓
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
✓
End User
Services
✓
POSITIVES
-
Strong track record and capabilities in Infrastructure
-
Good cloud transformation / hybrid cloud credentials
-
Nearshore capabilities
NEGATIVES
-
Ongoing company split creating uncertainty
in minds of clients and employees -
Different countries not seen as “one global network”
-
Limited market presence for Applications outside Government/EU
Capgemini had a fantastic 2022 closing the last fiscal year with €22 bn in revenues and a 16.6% growth in constant currency. It has 360,000 employees globally and about 2000 people in Belgium. It is strongly committed to environmental sustainability and net zero commitments and made a strong evolution in 2022.
They have a strong focus on Europe (50% of its revenues) and also Belux. Their 3 main service lines are: Strategy & Transformation (8%), Applications and Technology (63%) and Operations & Engineering (29%). The core Applications and Technology business grew 18% last year. Going into 2023 they have strong momentum both globally and locally.
Capgemini is one of the few companies with strong capabilities in both applications and infrastructure, though infrastructure/cloud services is underrepresented in Belgium compared to the group. Under the leadership of Aiman Eizzat, Capgemini has consolidated its group companies under 4 brands - Capgemini, Capgemini Invent (consulting), Capgemini Sogeti (testing and capacity services) & Capgemini Engineering (Altran).
While it has the global scale and delivery capabilities, it also has a strong local capability with close to 2000 people in Belgium. They are able to seamlessly blend offshore capability for applications and operations with local capability for consulting, projects and transformation work.
Capgemini has strong capabilities in SAP and is a leader in S/4 HANA transformations across Europe. With Capgemini Engineering, they are one of the leaders in product engineering.
They remain a Leader square for Application & Digital Services in our Belux square. This assessment comes on back of the strength of their local business, maturity and completeness of service offering and high customer satisfaction scores. They have also been able to leverage group capabilities from Invent to drive transformations for clients. We also consider them to be a leader for Managed Security Services in Belgium.
Client satisfaction scores in Belgium for Applications & Digital services remain strong at 3.5 (3.6 last year). Client satisfaction for Cloud and Infrastructure services showed a small improvement with 3.1 (3 last year).
Main Sectors
-
Large & Medium enterprises
-
All sectors
# Contracts
11-15
APPLICATIONS
MANAGEMENT
✓
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
✓
End User
Services
✓
POSITIVES
-
Global reach with local presence offering good cultural fit
-
Strong capabilities across – strategy, transformation, digital and cloud, and security
-
Strong growth trajectory
NEGATIVES
-
People centric delivery, outcomes are people dependent
-
Cloud practice underrepresented in Belgium
Cegeka is a European IT services company with €744mn in last reported annual revenues with a growth of 16%. Cegeka has more than 5500 employees across 11 European countries. Cegeka is betting on the trinity of 5G, AI and cloud to drive their growth for the next decade.
Now having completed 30 years, this family owned business has grown both organically and through acquisitions. Recent acquisitions include KPN Consulting and cyber security specialist SecurIT in the Netherlands and Microsoft Azure specialist DexMach in Belgium.
Belgium still represents a little over half of the total revenues with the Netherlands being another 30%. They have a balanced portfolio across infrastructure and applications services. In Belgium, the business is split 40-40-20 across infrastructure services, application services and professional services (capacity services).
Cegeka is particularly active in the mid market and lower end of the upper market. Public/Social and Healthcare are their two biggest areas. They also have strong market share with the smaller banks and insurance companies. Cegeka has some very strong examples of improving the life of the citizens through initiatives such as Smartschool and nexuzhealth. They are a partner for Digital Flanders for both Digital Workplace and Applications services.
Cegeka are a strong player in infrastructure/cloud services. They have a complete portfolio across datacenter, workplace, service desk and cloud transformation services. Within applications, they are mostly active in custom development and portal development largely within the government and healthcare sectors. They have a Business Solutions offering based on Microsoft technology.
Cegeka differentiates itself from its competition on proximity & cultural fit. A family owned company “in close cooperation” with their clients. This is recognized by their clients, who give them satisfaction scores of 3.3 for Applications and Digital (3 last year) and a score of 3 for Cloud/Infrastructure (3.1 last year).
Main Sectors
-
Medium & small enterprises
-
Public-Social, Healthcare
# Contracts
10
APPLICATIONS
MANAGEMENT
✓
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
✓
End User
Services
✓
POSITIVES
-
Strong local presence and cultural fit
-
Strong Infra practice with good cloud transformation capabilities
-
Building vertical solutions leveraging new technologies
-
DexMach acquisition strengthens cloud capabilities
NEGATIVES
-
No offshore / global capability
-
Applications capabilities and credentials are not at par with the leaders
Cognizant is a global IT services and digital transformation company with 355,000 employees and annual revenues of $19.4 bn. Born as the IT development and maintenance arm of Dun and Bradstreet in 1994, it was spun off as an independent company and since then has grown in size to be many times its original parent. While they were traditionally strong in Financial Services and Healthcare, over time it has developed a more balanced portfolio with growth in Products & Resources and CMT. Cognizant works for all of the top 30 pharma companies and 9 of the top 10 European banks.
North America still represents a large portion of their revenues at 75% with Europe being just under 20%. They have been growing 4.1% (constant currency) as of Q4-2022 with a guidance of slight negative growth for Q1-2023. Cognizant Belgium has however been growing much faster in the last years with 15-20% growth locally. Voluntary attrition which has plagued Cognizant in the last years has dropped to 19% compared to 29% a year ago, but still remains at unsustainable levels. Hopefully the change of leadership with Infosys veteran Ravi Kumar as the new CEO, a change that was largely welcome both internally and on the stock market, will steady the ship.
In Belgium, Cognizant has a strong presence in Banking, Healthcare and Telco sectors and a growing presence in Industry. They have strong local leadership in Belgium focusing on account management and delivery, with 500 local associates and a strong global delivery network.
We see them as particularly strong in applications management and digital transformation. Client satisfaction levels for Applications and Digital services remain very consistent with last year at 3.4. We hope that the new leadership should be able to stem the attrition thereby improving satisfaction results in the coming year(s). They have been identified as one of the Digital Transformation Leaders.
Main Sectors
-
Large & Medium enterprises
-
Banking, Telecom, Lifesciences
# Contracts
5-10
APPLICATIONS
MANAGEMENT
✓
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
End User
Services
POSITIVES
-
Strong domain expertise in Banking and Healthcare
-
Desperately needed new leadership brings hope
-
Strong growth in and focus on the local geography
NEGATIVES
-
Voluntary attrition levels still remain in the range of 20%
Founded in 1991 as a 1 person company, the Cronos group has grown to 8000 individuals and €970 mn in revenues serving 5000+ customers in BeNeLux. The group has a unique strategy of operating as small entrepreneurial companies that are specialists in niche or emerging technologies. The group is also an early stage investor, incubator, integrator and venture capital firm.
The group strategy is to select certain technologies, actively form knowledge cells and encourage potential entrepreneurs within the knowledge cells to pursue the technology in question. The group itself keeps a low profile but some of their brands like Flexso and Cloudar are well known. They also have some interesting company names such as Sidekick and Three Headed Giant. The combined entity is largest IT services company in Belgium, a phenomenal achievement for a Belgian start-up.
The Cronos group companies tend to be typically small. They tend to split when they reach a size of ~20 people. Flexso, the company most represented in our survey is an exception with more than 350 SAP specialists.
Customer feedback for Cronos has always remained very positive. This year they score a 3.3 for Applications & Digital (compared to 3.6 last year). However, we hear more and more customers, particularly in public services that they would like to add Cronos as a strategic partner. They seem to be the go-to company when things go wrong on a project or you need niche skills that are very difficult to find on the market. Their knowledgeable and likeable employees are praised by many clients.
The Cronos group companies are typically more active in the small and medium enterprises though we see more large firms start to work with them as a niche player.
One drawback of Cronos is their inability to pool together their resources and combine forces across different Cronos entities. This sometimes hinders them from taking on larger and diversified projects.
Main Sectors
-
Small and Mid-tier clients
# Contracts
10+
APPLICATIONS
MANAGEMENT
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
✓
End User
Services
POSITIVES
-
Strong technical competencies in niche technologies
-
Good cultural fit for the small and medium enterprises
-
Very high client satisfaction scores
NEGATIVES
-
Lack of a global delivery model or global capabilities
-
They are a loosely coupled set of companies, unable to bring together combined group capabilities
Delaware is a Belgium based technology services company that is focused on the mid market segment. They have revenues of $500mn globally with exceptional growth in the last few years. They have presence in Europe, US and Asia. Belgium represents about half of their global business.
They are one of the largest players within the applications and digital domain in Belgium with 1200 employees and longstanding relationships with their clients. Delaware is particularly strong in SAP and Microsoft. They have even been recently named as the latest Platinum partner for SAP. 80% of their business is project based – though they start to expand on managed services. Delaware has a very strong digital workplace practice. They are helping several clients to envision and realize the digital workplace of the future.
From an industry presence, they have grown beyond manufacturing into the wider industry, into food, retail and a dominant presence in utilities. Presence within finance and telecom is still limited.
They have both offshore (China, Malaysia, Philippines) and nearshore (Brazil, Hungary) capabilities – though the scale is limited when compared to their global peers.
With our revised evaluation criteria for Market Impact, Delaware has seen a big upwards shift. Owing to their very large number of customers in Belgium and sizeable local revenues, they have moved up from being a Niche Provider to be one of the Challengers. We believe this is more reflective of the strong market impact they have on the local geography.
In terms of client satisfaction, they have dropped a bit from 3.5 last year to 3.4 this year.
Main Sectors
-
Medium & Small enterprises
-
Industry, Utilities
# Contracts
5-10
APPLICATIONS
MANAGEMENT
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
✓
End User
Services
✓
POSITIVES
-
Strong on SAP and Microsoft with deep technical skills
-
Flexible and customer focused
-
Fractional FTE model works well for the small to medium sized customers
-
Long term trust based relationships
NEGATIVES
-
Scale and global reach is an issue for large, multinational customers
-
Lacking consulting mindset and business understanding
Deloitte is a global Tax, Audit, Business Consulting and IT services organization with revenues of $59.3bn in FY2022 (an increase of 20% in local currency). They have 415,000 people worldwide and work with 90% of the Fortune Global 500 companies. Brand Finance has recognized Deloitte as the strongest and most valuable commercial services brand in the world for the 4th year running. Close to half of their workforce is under 30 years of age and also women represent close to half (48%) of the workforce in EMEA.
Consulting services represents about $26bn in revenues. Enterprise Technology & Performance (a sub-group of Consulting) focusses on providing technology strategy, digital transformation and IT project services. They are one of our three identified leaders for Transformation services – with a large portfolio of systems integration or complex technology projects and technology strategy and digital transformation.
In Belgium, Deloitte is particularly strong in the areas of SAP and Salesforce. In addition, they have strong teams in finance and supply chain / network operations.
Feedback from clients remains overwhelmingly positive. Deloitte had a high satisfaction score of 3.6 for applications and digital services – (compared to 3.7 last year). Deloitte is praised for its business acumen, consulting and transformation mindset, ability to take the customer together on the journey and very positive relations with the business. They are seen as thought leaders and strategic partners.
Deloitte has strongly benefitted from our revised assessment mechanism looking at local market impact – moving from the niche category to a challenger, on back of their strong revenues and client base for transformation work. While they seem to offer Applications Management services globally, we have not seen any instance of that locally in Belgium.
Deloitte is not a company but a global network of independent firms. This is often reflected in business behaviour - ability to coordinate across countries sometimes seems challenging.
Main Sectors
-
Large & Medium enterprises
-
All sectors
# Contracts
5-10
APPLICATIONS
MANAGEMENT
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
✓
End User
Services
POSITIVES
-
Strong consulting mindset and business understanding
-
Their business model still affords the right attention to Belgium
-
Ability to engage and drive both business and IT stakeholders
NEGATIVES
-
Weaker global delivery model and ability to act as one global company
-
Limited portfolio of IT services
DXC is a global applications, digital transformation and infrastructure/cloud services company with $17.7bn in revenues and 130,000 employees. They are one of the few companies active on both applications and infrastructure business.
DXC is organized along two major service lines. Global Business Services (GBS) which comprises of Analytics & Engineering, Applications and Business Process Services. And Global Infrastructure Services (GIS) which comprises of Cloud & Security, IT Outsourcing and Modern Workplace. The story of DXC is a story of two contrasting themes – a growing and more profitable GBS business (7 quarters of continuous growth) and a shrinking and less profitable GIS business (7 quarters of decline). This is reflective of the wider market trend whereby the Infrastructure service revenues of the service providers are declining as increasing loads move to the public cloud.
Under its new leadership, DXC has been undergoing a transformation and is focused on building modern applications on a secure cloud platform. While GBS is 50% of their global revenues, in BeLux it even represents 75% of their business highlighting the focus of the company.
DXC is particularly strong in the Insurance sector where they have their own insurance platform and provide not only IT but also business process services.
They have close to 1000 people in Belgium and are a key player particularly within the government sector where they have a lot of strong credentials around Digital Transformation for public services and the citizen. Consequently, they have been identified as one of the Leaders for Digital Transformation services in Belgium.
They continue to have very good satisfaction scores on Applications and this year with a score of 3.6 and this year have also had a big improvement in their score for Cloud/Infrastructure services with 3.6 (compared to 3.1 last year). Their scores have improved as anticipated by us in the past reports thanks to their renewed focus and move out of some problem deals that bogged them for some years.
DXC has also been one of the winners in terms of their Market Impact positioning for Applications with our renewed evaluation criteria. This has seen them move from the Niche Players category into one of the Challengers.
Main Sectors
-
Large & Medium enterprises
-
Government
# Contracts
15+
APPLICATIONS
MANAGEMENT
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
✓
End User
Services
✓
POSITIVES
-
Strong digital transformation skills
-
Balanced portfolio across applications and infrastructure
-
Strong in custom applications development and digital transformation
-
Very strong in the government sector
NEGATIVES
-
Limited presence outside of the public sector
-
Global revenues still shrinking
Fujitsu is a global technology services company that has 130,000 employees and revenues of $32bn. While 70% of their revenues come from Japan, they are truly global with a presence in over 180 countries. Technology Services comprises 65% of their revenues (the other being products). Sustainability is high on their agenda with their global mission statement being - to make the world more sustainable by building trust in society through innovation. After a few declining quarters, Fujitsu services returned to growth in the last quarter.
For infrastructure / cloud services, they are one of the biggest players in the world. Its one of the few companies to offer complete end to end solutions that span applications and devices in several industries e.g. in Retail and Healthcare. They want to leverage these capabilities to be a true digital transformer offering sustainable solutions.
In Belgium, they are one of the most important players for Infrastructure and Cloud services. Fujitsu has 650 people in Belgium and another 700 working from global delivery centers for Belgian clients. They offer datacenter, infrastructure management, cloud transformation, service desk and workplace services. They also have their global CoE for blockchain in Belgium and a strong ServiceNow practice.
Almost half of Fujitsu’s business comes from the European institutions and government sector. We believe that with their mature delivery capabilities and flexible model, they are a very strong fit for mid-market clients where they have a good cultural fit. Within the industry, while we see them often in the European arm of large Japanese conglomerates.
Fujitsu is praised by clients for their delivery capability, flexibility and ability to adapt to different client situations and requirements. Fujitsu relied extensively on its Kazan delivery center in Russia to service Belgian clients. In wake of the Ukraine war, Fujitsu pulled out of Kazan and clients were migrated mostly to India while a small proportion was moved to Poland. This transition did lead to some service issues at a few clients. However, the overall client satisfaction with Fujitsu remains stable at 3.1 (compared to 3.0 last year).
Main Sectors
-
Medium & Small enterprises
-
EU, Government, Industry
# Contracts
10+
APPLICATIONS
MANAGEMENT
SYSTEMS
INTEGRATION
DATACENTER /
CLOUD
✓
End User
Services
✓
POSITIVES
-
Mature service portfolio and flexible client centric approach
-
Very strong fit for mid-market clients
-
Ability to offer end to end digital solutions
NEGATIVES
-
Less industrialized compared to some of their peers
-
Weak presence outside of European institutions and Japanese companies
HCLTech is a global IT services company with revenues of $12.3 billion and 220,000 employees. Their services business grew by 15% last year and they expect growth in 2023 to be along the same lines. HCLTech is organized into the following business segments: IT & Business services (72%), Engineering & R&D services (16%), and Products & Platforms (12%).
While their portfolio of IT and Business services comprises of Applications, Cloud/Infrastructure and BPO services with sizeable business in each of these areas, in Belgium we seem them playing a very strong role in Cloud/Infrastructure services. They have a small number of high-profile clients. HCLTech offers comprehensive cloud migration, cloud operations and cloud native development capabilities.
Their platform solutions such as HCL Notes, Domino, Unica provide certain stickiness with their customers. They also have a strong digital workplace offering. Clients appreciate HCLTech for their knowledge, service delivery, flexibility and willingness to work together with a positive mindset.
While HCLTech does not have the market share of a Kyndryl or Atos in Belgium, they have a small number of clients who are top names within their industry. Not bogged down with legacy datacenters or a large ageing local workforce they have a public cloud first mentality which we don’t often see with all providers. They have an agreement with Proximus’ Enterprise Business Unit to focus on the small and mid tier market for the provision of hybrid cloud services.
This year they had a client satisfaction score of 3.5 (a drop from 3.9 in the last year).
Main Sectors
-
Large & Medium enterprises
-
All sectors except Public
# Contracts
5-10
APPLICATIONS
MANAGEMENT
SYSTEMS
INTEGRATION
DATACENTER /
CLOUD
✓
End User
Services
✓
POSITIVES
-
Strong cloud transformation capabilities with cloud first mindset
NEGATIVES
-
Local presence is not at the level of competition
-
Still seen as an Indian player without local competencies
IBM is a global consulting services and technology solutions & platforms company with $60.5 bn in revenues and people across 175 countries in the world.
IBM consulting spans business transformation, experience design, technology consulting and applications operations. It represents about 30% of the global business ($18bn in 2021) with 150,000+ people across 150+ countries helping clients in their digital transformation, build open hybrid cloud architectures, manage and deploy applications and provide business operations services. This is a healthy growing business, with a 12% increase last year on the back of some large deals like CIBC, Delta Airlines, Bank of America, Samsung Electronics, Barclays and Citi. They have a strong book to bill of 1.1 and are particularly strong in the Financial sector.
This shows that the strategy of spinning off Kyndryl (which is returning to growth independently) is paying off, IBM having reversing several years of decline and returning both entities to growth. With the spin off, IBM is betting big on AI and open hybrid cloud driven by their Red Hat platform to drive future growth.
In Belgium IBM is particularly focussed on financial services and public/EU – which together represent 85% of its business. They are focussed on the larger deals and clients that have a significant transformation aspect.
While capabilities are quite mature and offerings quite wide – IBM scored very poorly on client satisfaction with average score being 2.5 (compared with 2.8 last year). Clients complain of rigid processes and organization, over complexified solutions, low client centricity and difficulty to do business with. To clients it seems like a very large ship that is hard to steer.
Main Sectors
-
Large enterprises
-
Financial Services, Government / EU
# Contracts
5-10
APPLICATIONS
MANAGEMENT
✓
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
End User
Services
POSITIVES
-
Strong open hybrid cloud offering based on Redhat
-
Significant R&D investment and innovation globally
-
Strategic relationships and traction at large clients
NEGATIVES
-
Large and complex organization with low flexibility
-
Not always able to bring its global expertise and innovation to local clients
-
Over complexified solutions and processes
Infosys is a global technology services and digital transformation company who had $16.3 bn revenues (FY2022) and 300,000 employees. Infosys grew 20% in the last fiscal year and since then has grown 21%, 19% and 14% in the last three quarters. They have a healthy operating margin of 21.5%. Infosys has emerged as the 3rd most valuable IT services brand in the Brand Finance report 2023.
Their core offerings are divided into ‘Scale Digital Agile’ (57% of their business) driven by data analytics, digital and cloud transformation; and ‘Energize the Core’ that focusses on management and modernization of client legacy systems.
Infosys has a strong products and platform offering with several industry leading offerings such as Finacle (digital banking platform), Equinox (ecommerce and digital marketing platform), Panaya (cloud based test management and change intelligence) and Stater (mortgage processing market leader in BeNeLux).
In Belgium, Infosys is particularly strong in the telco and manufacturing sectors where they long have a long history and truly strategic relationships. Their industry focussed verticals that roll into Europe means that we often do not see Infosys in new competitive deals at the smaller Belgian clients. Across BeNeLux, Infosys has is a clear leader in Financial Services and Telco while they have a strong European footprint for Manufacturing.
Infosys had a client satisfaction score of 3.3 (slightly up from 3.2 last year).
Main Sectors
-
Large enterprises
-
Telecom, Manufacturing
# Contracts
5-10
APPLICATIONS
MANAGEMENT
✓
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
End User
Services
POSITIVES
-
Long established client relationships in Belgium
-
Deep industry knowledge and capability
-
Strong products and platform based delivery
NEGATIVES
-
Limited visibility on new competitive deals in Belgium
Kyndryl is the world’s largest provider of infrastructure services. With 4000+ customers including 75% of the Fortune 100, Kyndryl continues to be the partner of choice for the most complex transformation projects and engagements. In the past
year they have signed new contracts with global enterprise customers like Michelin, CaixaBank, BMW, Bangalore International Airport, Carrefour Belgium and Singapore Airlines. They operate half of the world’s mainframe systems.
Recently Kyndryl marked the one year anniversary of its spin-off from IBM. While they started with a $19bn business and 90,000 employees, they were confronted with declining revenues, years of underinvestment and a delusional focus on all things IBM.
The spin-off was in a sense a breaking of shackles for Kyndryl. Since then they have focused on forging new alliances with hyperscalers and best in class technology providers, and on skills building (they have doubled the number of hyperscaler certifications in 1 year, and growing to 50,000 certifications in 2023). While they expect to close 2023 at ~$17bn in revenues ($1.3bn in unfavourable currency impact), last two quarters have shown positive growth. They are on target to achieve the return to strong growth by 2025.
Kyndryl is focussed on providing managed infrastructure and cloud transformation services on a best of breed hybrid cloud platform. They are organized by six key practices including the core offerings of Cloud (33%), Core Enterprise and z-cloud (33%) and the other practices of Security & Resiliency (13%) Application, Data & AI (4%), Network & Edge (8%) and Digital Workplace (8%).
In Belgium they are one of the largest IT services companies despite the split. The size of their infrastructure services practice is double that of the nearest competitor. They have a large client base with financial services constituting more than 50% of their business, but also a large presence within manufacturing. They have a decent client satisfaction score of 3.4 (unchanged from last year).
Main Sectors
-
Large enterprises
-
Financial Services, Government / EU
# Contracts
11-15
APPLICATIONS
MANAGEMENT
SYSTEMS
INTEGRATION
DATACENTER /
CLOUD
✓
End User
Services
✓
POSITIVES
-
Leader in complex infrastructure / mainframe services
-
Strong hybrid cloud capability with own datacenters with shared solutions
-
Strong outlook with alliances with best in class partners
NEGATIVES
-
Several scope dependencies on IBM in certain areas (particularly linked to consulting and applications)
PwC is one of the world’s leading professional services companies delivering Audit & Assurance, Advisory services, and Tax & Legal services. They service 84% of the Global Fortune 500 companies and had revenues of $50bn last year (up by 13%). They have 328,000 people across 152 countries.
Advisory services represent about $20.7bn globally. This includes both business advisory (majority) and technology advisory. In terms of Technology capabilities, PwC offers technology strategy, cloud, cybersecurity, data & analytics, business application services and services on new technologies like AI or 5G.
In Belgium they are coming very strong on business transformation projects, on platforms like S/4HANA, Salesforce, Workday, etc. They also have deep skills on cloud and data analytics. Clients praise PwC for their business acumen, consulting and transformation mindset, and deeply skilled people who fit well culturally with their clients.
They are the latest entrant to our Applications and Digital square and they have arrived in some style! This year they have the highest client satisfaction scores in this category and we have also identified them as one of the Digital Transformation Leaders in Belgium. While they do not have the scale of a Deloitte or Accenture, they are doing very impressive work combining business consulting with technology transformation across several Belgian clients.
Main Sectors
-
Large & medium sized enterprises
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Government
# Contracts
5-10
APPLICATIONS
MANAGEMENT
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
✓
End User
Services
POSITIVES
-
Best in class client satisfaction
-
Technology transformation with a strong business transformation angle
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Fit well with large but also small to medium organizations
NEGATIVES
-
Smaller scale compared to the larger competition
Stefanini is small but global company with roots in South America but a presence across the world. They have $1bn in revenues with 30,000 people and a presence in 41 countries. They offer workplace and infrastructure services, application and digital services and cybersecurity services. While 20,000 of their people are in South America, they have 3200+ employees in Europe. Brussels is their European HQ and they have delivery centers in Romania and Poland. They have a diverse client portfolio well split across different industries – the most important being financial services and manufacturing.
Stefanini continues to make a mark in Belgium, particularly for their core strength which is Service Desk and Digital Workplace where we perceive them to be amongst the strongest players. They support clients in 45 languages. While their revenues and number of customers in Belgium are not at the same level as the bigger players, they continue to grow fast.
They have extremely satisfied clients and continue to have a high satisfaction score of 4 (a small drop compared to last year’s score of 4.2).
Feedback is consistently positive. Clients almost uniformly praise them for their customer focus, service delivery, cultural fit and flexibility. They are not the most industrialized of players – but the human touch and personal fit, particularly to the small and mid-tier clients seems very powerful. They are a family owned business and the strong culture and behavior of a mid-sized firm seems to fit very well with some clients.
In Belgium, they are particularly strong and focused on the Manufacturing sector. They are quite interesting if you need multi-lingual support across Europe.
Main Sectors
-
Small and medium enterprises
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Manufacturing
# Contracts
5-10
APPLICATIONS
MANAGEMENT
SYSTEMS
INTEGRATION
DATACENTER /
CLOUD
✓
End User
Services
✓
POSITIVES
-
Consistently top notch client feedback
-
Client focus and flexibility
NEGATIVES
-
Small footprint in Belgium
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Credentials limited to Digital Workplace and Service Desk
Part of the Tata group, India's largest multinational business corporation, TCS is also the largest and most impactful of the Indian IT services companies. With FY’22 revenues of $25.6 bn, TCS has over 613,000 consultants across 55 countries. After a period of sluggish growth, TCS has been growing at 15-18% in the last three quarters with a strong book-to-bill and an industry leading operating margin of 24%. They are also the most visible of the Indian IT services companies both globally and locally.
TCS continues to perform very strongly in Belgium. They remain as one of the Leaders within our Applications and Digital square, with a much improved client satisfaction score of 4 (compared to the already good 3.7 last year). In 2022, they have won significant new work in Cloud/ Infrastructure services and we expect them to be on our Cloud/Infra square next year.
TCS has a long history in Belgium with a presence dating back to almost 30 years. They have close to 4000 people working for 35+ very satisfied Belgian customers.
TCS is the strongest player for Application Management services. They have very strong delivery capabilities, a robust delivery network and wide technology coverage. They are seen as dependable and reliable and in a year marked by difficult circumstances and challenges due to global attrition, TCS has stood out on client feedback. They have been perceived as being a customer focused and loyal partner with two clients scoring them at the maximum score of 5 (beyond expectations) and not a single client scoring them below 3 (satisfied).
In terms of industry, they are well diversified in Belgium with a strong presence across Financial Services, Manufacturing Retail and CPG, Services and Transportation, and Telco.
Main Sectors
-
Large & Medium enterprises
-
All sectors
# Contracts
11-15
APPLICATIONS
MANAGEMENT
✓
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
✓
End User
Services
POSITIVES
-
Very high satisfaction scores
-
Client focused and reliable
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Strongest capabilities on Applications Management
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Vast coverage of technologies and skills
NEGATIVES
-
Lack of consulting / transformation mindset
Wipro has returned to growth in the last year with the last three quarters growing at 17%, 13% and 10%. They reported annual revenues in of $10.4bn with 260,000 employees.
The last year has been a good year for Wipro in the BeNeLux with some important client wins such as Mazda in Belgium. Wipro has a strong focus on business solutions with a geography oriented approach. There is intense focus on Europe, and as part of that we also see a strong focus on Be-Lux.
Very recently, Wipro has announced a reorganization into 4 global business lines. These include FullStride Cloud - a full stack cloud offering including cloud native applications, cloud architecture, apps modernization, cloud strategy and migration, and cloud infrastructure; Enterprise Futuring which includes application platforms, data, digital operations and cybersecurity; Wipro Engineering; and, Wipro Consulting which will include capabilities of Capco and Wipro's own domain consulting skills.
Wipro has strong capabilities on both Applications and Digital services and Cloud transformation. They have strong capabilities on Salesforce through the 4C acquisition some years ago – for which there is strong client feedback.
Wipro has benefitted from our renewed evaluation criteria for Market Impact. Owing to their large global capabilities and client base for Applications services, they have risen on this scale despite the low local footprint on the Belgian market.
We have seen a particularly mature cloud transformation offering and strong team at a European level. We expect Wipro to be a strong challenger for new deals in Belgium given their local focus and ambition.
Main Sectors
-
Large & Medium enterprises
-
Public services for 4C
# Contracts
5-10
APPLICATIONS
MANAGEMENT
✓
SYSTEMS
INTEGRATION
✓
DATACENTER /
CLOUD
End User
Services
POSITIVES
-
Good global capabilities across applications and cloud
-
Strong management attention to grow Belgium
-
Strong sense of CSR through the Wipro and Azim Premji foundation
NEGATIVES
-
Smaller footprint in Belgium compared to peers
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Lack of consulting / transformation mindset