Thematic Intelligence: IT Services Sector Scorecard Q2 2024 Update

Thematic Intelligence: IT Services Sector Scorecard Q2 2024 Update

Summary

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

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. However, there are significant challenges in achieving enterprise-level accuracy and reliability. Just this quarter, McDonald's had to remove an IBM-developed AI ordering technology from its drive-through restaurants in the US. After an initial experimentation phase with lots of pilots, IT services customers are likely to become more demanding in terms of the return on their generative AI investments. Furthermore, 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.

• Companies that invest in the right themes become success stories. Those that miss the important themes in their industry end up as failures.
• GlobalData’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 GlobalData, 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.