The Market It
The Market It
The Market It
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Table of Contents
0. Conclusions 4
1. Market Fundamentals 15
1.1. Overview 16
1.2. The Sector 19
2. Market Environment and Prospects 26
2.1. Market Overview 27
2.2. Demand 35
2.3. Supply 48
3. Corporate Strategies and Competition 51
3.1. Competitive Environment 52
3.2. Leaders’ Recent Performances 59
3.3. Business Strategies 65
4. Case Studies 77
5. Statistical Appendix 84
6. Sources 93
7. Annexes 96
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• Across the globe, future demand will reflect a shift in IT spending patterns, as customers’ efforts to
harness the potential of new technologies to enhance business value will translate into higher
investments in IoT, data analytics, artificial intelligence, and cybersecurity, providing subsequent benefits
for IT service providers. The sustained rise in connectivity and digital commerce means that an increasing
number of projects will make use of AI and/or data analytics. At the same time, national governments
have made AI a key development priority and have embarked on a global race to lead in this space, with
China and the US at the forefront of the industry’s advances.
• Moreover, an increasing share of the innovation budgets of Chief Marketing Officers (CMOs) and Chief
Operating Officers (COOs) and/or manufacturing executives is spent on digital marketing and industrial
automation (Industry 4.0). This has expanded the scope of IT service provision to new industry verticals
and horizontals (e.g. online marketing, an area dominated by advertising specialists).
• IT service providers are therefore fine-tuning their portfolios to tap evolving market trends by setting up
digital centers in-house or in collaboration with customers and relevant technology leaders. The
proliferation of a great number of new, constantly evolving technologies as well as specific solutions for
each industry means that the market is highly fragmented. This therefore puts emphasis on external
collaboration and inorganic investments (acquisitions).
• However, while the massive, ongoing shift towards cloud and data analytics is fuelling new revenue
streams for IT services firms, a greater share of value-added services is shifting towards tech companies
such as Google, Microsoft and Amazon, or other players (GE, Baidu, Alibaba, Tencent, etc.). Amazon, for
instance, continues to cement its leadership in cloud, well ahead of traditional IT service providers.
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1 000
18,9%
10,1%
800
Data centre systems
5,0%
spending:
Devices 26,5%
€3,121bn 400
IT services
200
Telecom services
39,5%
0
2017 2018E 2019F 2020F 2021F
EMEA
30.4%
Americas
52.5% Asia
Pacific
17.1%
Growing AI
Cloud migration
deployment
Shift towards an
API economy
300 9
8
250
7
200 6
5
150
4
100 3
2
50
1
0
0
2017 2018E 2019F 2020F 2021F
2016 2017 2018E 2019F 2020F 2021F
Companies’ intention to achieve significant business value (in terms of customer experience, revenue growth from existing
products or the launch of new products/services, and cost optimisation) with AI will drive widespread adoption of AI technology.
Likewise, cloud services are set to enjoy significant demand growth over the medium term.
Source: Xerfi Global with Gartner (cloud) and Credit Suisse (AI)
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SOFTWARE DEVELOPMENT
Platforms
ROBOTICS
AUTONOMOUS VEHICLES
CROSS-INDUSTRY SOLUTIONS
(MARKETING, INDUSTRIAL IOT, SECURITY)
MACHINE LEARNING
INFRASTRUCTURE
(CLOUD) SECURITY
MACHINE LEARNING
DATA APPLICATION
DATA PROCESSING
EDGE COMPUTING
DATA ANAYTICS
DATA CAPTURE
ENTERPRISE SERVICES
AI
IOT
Key performance indicators and main growth drivers of IT services groups analysed in the report
units: million euros, growth rate of sales in percentage, operating profit as a percentage of sales
key: colours related to average industry performance (green: above average; orange: within average; red: below average)
Key performance indicators and main growth drivers of IT services groups analysed in the report
units: million euros, growth rate of sales in percentage, operating profit as a percentage of sales
key: colours related to average industry performance (green: above average; orange: within average; red: below average)
Key performance indicators and main growth drivers of IT services groups analysed in the report
units: million euros, growth rate of sales in percentage, operating profit as a percentage of sales
key: colours related to average industry performance (green: above average; orange: within average; red: below average)
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Global ICT expenditures in 2017. The market comprises five main areas: data centre systems,
€3,121 billion
enterprise software, devices, IT services, and telecom services.
The weight of implementation and IT outsourcing services in the total global IT services
56%
market.
Share of finance companies (banking and insurance) in total IT services expenditure. The
25%
financial sector is the industry’s largest vertical market.
IT services was a €823.2 billion (+4.3% yoy) industry in 2017. It comprises three main segments:
-Consulting, a market worth approx. €143.6 billion;
-Implementation and IT outsourcing, a market worth €460.3 billion;
Scope of the report
-Business process management, hardware and custom software support, a €221.3billion market.
Geographically, North America is the largest IT services market with a 46% share (€371.8bn), followed
by Western Europe (26%). Japan encompasses roughly 10% of global IT services spending.
While traditional services associated with the upgrading/maintenance of legacy IT systems continue
to decline, emerging technologies such as cloud computing, artificial intelligence, industrial
automation, blockchain, and cybersecurity are opening new windows of growth for existing IT service
providers, who are adjusting their portfolios (by setting up digital centers or making acquisitions) to
A growing addressable market
new market demands. Moreover, the scope of the IT services market is expanding as an increasing
share of the innovation budgets of Chief Marketing Officers (CMOs) and Chief Operating Officers
(COOs) and/or Manufacturing Executives is spent on digital marketing and industrial automation
(Industry 4.0).
The IT services marketplace is highly fragmented, with main categories of players including:
-global companies (e.g. Accenture, IBM, Atos and DXC);
-advisory specialists (e.g. Deloitte, KPMG, PwC and EY);
-offshore players mainly based in India (e.g. TCS, Wipro, Infosys, Cognizant, HCL);
A fragmented competition
-regional players (e.g. Sopra Steria, Tieto);
landscape
-specialist, small-scale players (Mighty AI, NexusEdge, FinCha Bot, Neura, etc.).
As the scope of the market has expanded, IT service providers that have established digital
marketing agencies, such as Accenture and Capgemini, are becoming rivals of traditional advertising
agencies.
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ENTERPRISE SOFTWARE
€314.25 billion
DEVICES
€590.43 billion
IT SERVICES
€825.89 billion
TELECOM SERVICES
€1,233.08 billion
Business
process
IT services was a €823.2 billion (+4.3% Implementation
management &
yoy) industry in 2017. The market can and Consulting
hardware and
be split into three main segments: outsourcing
software
-consulting, a segment worth support
approximately €143.6 billion;
-implementation and IT outsourcing,
worth €460.3 billion;
-business process management &
hardware and custom software
support, a €221.3 billion segment.
IT SERVICES
Public sector
Retail
Utilities
Transportation
Healthcare
Other
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MARKETING/E-COMMERCE
Cross-
industry
SECURITY
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EMEA
30.4%
Americas
52.5% Asia
Pacific
17.1%
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P
-Government policies promote/support the
- +
industry’s development
-Stricter privacy legislation
OLITICS -An ongoing race to achieve AI leadership
among mature countries
E
-Growing e-commerce in all regions
CONOMY
-Economic growth in emerging markets
-Sluggish digital investments in Europe
compared to the US and China - +
and recovery in mature ones
S
-A digital/mobile society -Low Internet speeds in emerging markets
OCIETY
-Connectivity means more data is being
collected and used
-Limited infrastructure in emerging
countries
- +
T
-Growing complexity and fragmentation of
-Adoption of new technologies such as AI
ECHNOLOGY
and cloud expands the scope of the market
technologies
-New technologies will reduce demand for - +
-Growing threat of cyberattacks
traditional IT services
E NVIRONMENT
- - - +
L EGISLATION
-Policy efforts to create digital markets in
various countries
-Restrictions related to data location weigh
on cloud development - +
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6%
4%
2%
0%
-2%
-4%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018F
Sources: Feri (historical data) and Xerfi Global (estimates and forecasts). 2016 consumer spending is an estimate.
After a marked rebound in 2010, global GDP growth markedly slowed, although it has kept an upward trajectory since 2013. In
2017, GDP expanded at a pace of 2.9%, and this trend has intensified in 2018, providing the basis for growth in IT services
spending. Since IT tasks are a major component of “back office” operations for most organisations, IT services are generally
outsourced for cost-optimisation purposes. This makes IT services spending vulnerable to economic fluctuations, as companies
first look for savings in IT services budgets when economic conditions tighten. Conversely, IT spending rises in times of
economic prosperity.
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North America Western Europe Eastern Europe Asia Latin America & the
Caribbean
3,0% 3,0% 5% 5% 3%
2,5% 2,5%
4%
2%
2,0% 2,0%
3%
1,5% 1,5% 4% 1%
2%
1,0% 1,0%
0%
0,5% 0,5% 1%
Sources: Feri (historical data) and Xerfi Global (estimates and forecasts). 2017 consumer spending figures are estimates.
After the financial and economic crisis of 2009, GDP bounced back more strongly in emerging regions. Over 2013-2016,
however, emerging economies in Asia and, particularly, Latin America have seen GDP growth slow down, while, conversely,
mature economies, including those in Western Europe, have been progressively returning to growth, albeit at moderate rates.
GDP expansion in mature economies and stabilisation and/or recovery in emerging markets, provide strong fundamentals for
increased business investment, which includes the development of IT services.
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With digital technologies such as cloud computing and artificial intelligence becoming
increasingly embedded in the fabric of virtually every business sector, IT services companies stand
to benefit from this increasing reliance on / demand for cloud platforms, mobile systems and data
analytics.
Technologies such as cloud, data analytics, mobile systems, social media, and cybersecurity, as
well as services required to integrate these technologies with legacy IT systems, will account for
80% of growth in the IT services sector by 2025.
New technologies are increasingly This means that a greater share of value-added services will go to tech companies such as
displacing traditional IT services Microsoft and Amazon, which are way ahead of traditional IT firms in the cloud marketplace. At
the same time, the shift to cloud-based ecosystems will negatively impact the IT services sector as
markets
automation and cloud computing provide flexible and cost-efficient data storage and processing
services, reducing the need for on-site data centre-related maintenance, as well as other services
traditionally supplied by IT companies.
This trend is even more of a threat to Indian-based companies, which have relied on skilled but
low-cost labour to become preferred outsourcing partners for computer installation and
maintenance and customer call centre operations. Leading IT service providers in India have
therefore already begun to adjust their business mix by building expertise in future-oriented
technology markets such as AI and analytics.
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CLOUD SERVICES,
TRADITIONAL IT
CYBERSECURITY APPLICATIONS AND
SERVICES
INFRASTRUCTURE
DATA SCIENCE / AI /
IOT / M2M
ANALYTICS MACHINE LEARNING
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Internet users (bn, left scale) Annual change (%, right scale) Worldwide Internet penetration rate (%, right scale)
4,0 60%
Growing Internet penetration worldwide will result in
3,5 larger, digitally-connected populations, therefore allowing
for more extensive data collection and processing. Data is 50%
2,0 30%
1,5
20%
1,0
10%
0,5
0,0 0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
4G 3G
The world is transitioning to higher
speed networks, with 3G and 4G 100%
coverage worldwide projected to
reach 86% and 63%, respectively, by 90%
2020.
80%
4G networks are being deployed at a
quicker pace than 3G. The growing 70%
adoption of 4G networks will bolster
mobility and should therefore 60%
translate into higher services revenues
for IT firms positioned in this 50%
segment. Across the globe, more
companies will gain access to high- 40%
speed Internet, further bolstering
demand for cloud systems and 30%
associated applications.
This scenario will be further amplified 20%
by super-fast 5G networks, which are
10%
already being trialled worldwide.
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F
300
0
2017 2018E 2019F 2020F 2021F
2017-2021 CAGR
Source: Xerfi Global with Gartner; BPaaS = Business Process as a Service; IaaS = Infrastructure as a Service; SaaS = Software as a Service; PaaS = Platform as a Service
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DATA
MIDDLEWARE
OPERATING SYSTEMS
PaaS VIRTUALISATION
The vendor IaaS SERVERS
manages: The vendor
STORAGE
manages:
NETWORKING
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The higher frequency and costs of cyberattacks make security a key market
The impact of cybercrime – estimated cost of cybercrime for businesses (2017-2020)
unit: billion euros per year
2012 2020
With growing connectivity and
greater broadband investments, more
devices are being connected to the
Internet.
The last decade saw the rise of
smartphones, while, more recently,
smart TVs and wearables, smart
meters, security cameras and
connected
proliferating.
cars have been 30bn
10bn
The explosion of IoT devices will connected connected
translate into growing IoT-related
services spending across professional,
devices devices
consumer and connectivity sub-
segments. IT services firms will benefit
from increased demand for the
design, implementation and
operation of IoT-related systems as
well as associated security solutions.
Source: ARM
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3 000
2 500
With the growing deployment of
smart devices such as sensors and
robots by industries, a trend often 2 000
referred to as Industry 4.0, verticals
such as energy, transportation, and
manufacturing are set to increase 1 500
spending on security solutions.
This means that worldwide spending
on IoT security will nearly treble by
1 000
2021, from approximately €1bn in
2017.
500
0
2016 2017 2018E 2019F 2020F 2021F
2017-2021 CAGR
267,33
25,7%
20.2% Endpoint Security
649,74 122,16
29.6% Professional Services
62,5% 11,8%
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AI, the next big thing in IT, is an umbrella term for a number of technologies
Overview of the core components of Artificial Intelligence (AI)
Neural
networks
The term AI refers to self-learning systems
(deep learning, cognitive computing, natural
language understanding and processing,
neural networks, etc.) that leverage a
multitude of data (text, speech, video and
image) to recognize patterns. Deep Machine
learning learning
The development of AI has been accelerating
thanks to greater computational power,
volume, speed and variety of data, as well as ARTIFICIAL
advances in deep neural networks. INTELLIGENCE
AI holds the potential to drive significant
value for businesses, especially for customer
interaction, growth and retention; process
efficiency (lower operational costs);
enhanced decision making; and
automatization.
Cognitive Pattern
computing recognition
ARTIFICIAL
INTELLIGENCE
AUTONOMOUS CONTEXTUAL
VEHICLES RECOMMENDATIONS
MEDICAL
VR/AR
DIAGNOSTICS
3 000 14
12
2 500
10
2 000
8
1 500
6
1 000
4
500
2
0 0
2017 2018E 2019F 2020F 2021F 2016 2017 2018E 2019F 2020F 2021F 2022F
Source: Xerfi Global with Gartner Source: Xerfi Global with Credit Suisse
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AI adoption
!
The market for AI technologies is at an embryonic
Businesses are ramping-up investments in AI to build stage
digital capabilities
Security threats
1 000
0
2014 2015 2016 2017 2018E 2019F 2020F 2021F
350
300
Digital technologies are projected to
represent 23% of India’s IT and BPO export
value in 2020, and 28% in 2025.
250
The Indian offshoring market therefore
continues to benefit from strong growth
200 fundamentals.
150
100
50
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2020F 2025F
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Suppliers Customers
- +++ +++
Rivalry
Substitutes
-
• Rivalry is intense in the IT services industry, with several types of large and small players competing for a bigger slice of the
market.
• While IBM is, by far, the leading player by revenue, and is cementing its position in budding technology markets in line with
its four “strategic imperatives” (data and analytics, cloud, mobile, social, and security), the rise of Amazon – whose cloud
revenues topped €15.45bn in 2017, making it the #1 player in cloud ahead of its main rival, IBM, which reported cloud
revenue of €15.05bn that same year – underscores the profound effects of technology. Microsoft and Google have also
established themselves as major cloud systems providers and are major players/investors in AI.
• Meanwhile, competitive pressure is mounting with rising consolidation at the top: DXC Technology was created in April 2017
via the merger of CSC (Computer Sciences Corp) and the Enterprise Services business division that was spun off from HP.
This, along with the growing internationalisation of NTT Data of Japan, as well as the broad-based expansion of India-based
IT service providers such as TCS and Wipro, increases pressure on other global players such as Capgemini, Accenture and
Fujitsu.
• Nevertheless, the sector remains highly fragmented and the emergence of digital technologies has led to the mushrooming
of many categories of niche players specialising in either one specific technology or focused on a certain industry vertical.
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…the spread of new technology has led to the rise and growth of new firms
Main characteristics of the competitive landscape of the IT services market
Offshore
service Consulting
providers firms with IT
Employee skills capabilities
Technology Brand value,
and
and innovation reputation
capabilities
Service quality,
Breadth of Scale, global
product
services reach
reliability Specialised
firms: data
Diversified
analytics,
technology
software, etc.
multinationals
A series of sizeable industrial and Internet players are now present in cloud…
The emergence of industrial and Internet/e-commerce groups as major cloud service providers
In IaaS (cloud system infrastructure services), the fastest growing segment of the cloud market, the top 10
players (with the top 5 being AWS, Microsoft, IBM, Alibaba and Google, in descending order) are expected to
increase their market share from 50% in 2016 to 70% by 2021. This is possible due to the effects of scaling.
30,0%
Top 10 Top 10
70,0%
Source: Xerfi Global with Gartner Source: Xerfi Global with Gartner
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Increasing deployment of cloud, IoT, analytics, and AI is boosting investments in the infrastructure and middleware
market. Amazon recorded the fastest revenue growth, +119.6% yoy, in 2017. However, big players such as Microsoft,
IBM and Oracle appear to have lost some momentum to smaller vendors, who enjoyed faster growth in 2017.
Amazon
IBM
Salesforce
21,5%
Oracle
Suppliers Customers
- +++ +++
Rivalry
Substitutes
-
• Governments of major economic powers, including China, Japan, Canada, the US, and Europe, have unveiled comprehensive
programmes to foster AI development, with a view to taking the lead in the market.
• Initiatives include research programmes on individual rights protection, ethics, policy and legal implications, as well as
funding strategies. In France, the government has created a special task force (‘’mission Villani’’) to formulate
recommendations.
• China is establishing itself as a major global player in AI and machine learning, which the government has designated as the
“next big areas of innovation”. In China, where data protection laws are loose, the country’s Internet giants (Tencent, Baidu
and Alibaba) are building on the availability of massive amounts of data to rapidly develop various AI applications (machine
learning, autonomous driving, etc.) and thereby expand the scope of their operations. In 2017, the State Council made public
a national development plan for AI, which aims to promote research and technology adoption across a wide array of sectors
to build an “intelligent economy” and an “intelligent society” by 2030. AI is also seen as playing a key role in achieving
China's goal of becoming a major economic power by 2030.
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Despite having scaled back operations, IBM remains in the driver’s seat
Key performance indicators and main growth drivers of leading global IT services companies analysed
units: billion euros, compound annual growth rate (CAGR) of sales in percentage, operating profit as a percentage of sales
Key: colours related to average industry performance (green: above average; orange: within average; red: below average);
Source: Xerfi Global with companies’ reports
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New mega player, DXC, has emerged from the CSC and HP Enterprise merger
Key performance indicators and main growth drivers of leading global IT services companies analysed
units: billion euros, compound annual growth rate (CAGR) of sales in percentage, operating profit as a percentage of sales
Key: colours related to average industry performance (green: above average; orange: within average; red: below average);
Source: Xerfi Global with companies’ reports
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Key: colours related to average industry performance (green: above average; orange: within average; red: below average);
Source: Xerfi Global with companies’ reports
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IBM
Accenture
Fujitsu*
DXC
Atos
Wipro
0 11 22 33 44 55 66 77
Calculations: Xerfi Global with company reports; *revenue from Technology Solutions (IT services division) only
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IBM Accenture
AWS - Amazon Web services
Fujitsu - Technology Solutions TCS
NTT Data Capgemini
Atos Wipro
600
160
500
400
120
300
200
80 100
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
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Tata Consultancy Services and AWS are the most lucrative among top players
Operating profitability of leading IT services companies analysed (2017 and 2013-2017 averages)
unit: operating income over net sales in %
TCS
AWS
IBM
Wipro
Accenture
Atos
Capgemini
NTT Data
DXC
INFRASTRUCTURE
(CLOUD) SECURITY
MACHINE LEARNING
DATA APPLICATION
DATA PROCESSING
EDGE COMPUTING
DATA ANAYTICS
DATA CAPTURE
ENTERPRISE SERVICES
AI
IOT
International expansion,
Technology and service Expansion in key verticals,
particularly in high-growth
innovation creating new businesses
markets
Competitors /
Research
technology Start-ups Customers Universities
institutions
groups
12
8
In order to further enhance know-how in
blockchain and AI, TCS relies on start-up
6 incubators, programming competitions (e.g. TCS
CodeVita), and venture funds such as the TCS Co-
Innovation Network (dubbed COIN).
4
IBM has been looking to build leadership in the emerging blockchain sector via partnerships with
customers across various industry verticals: with Suncorp New Zealand in insurance; with Maersk
in global trade digitalisation; with banks to develop Batavia, a blockchain trade finance platform.
IBM has also strengthened its AI-based technology partnership with Salesforce, becoming the
preferred cloud services provider of Salesforce.
Fujitsu is currently running 123 open innovation projects in Japan and a further 44 across 14
overseas countries. On top of partnerships with research institutions and universities (e.g. with
Kyushu University to develop AI for enhanced agricultural yields), customers, and start-ups (e.g.
with Blue Prism), Fujitsu is seeking to ramp up its go-to-market strategies in Asia with the
establishment of a JV in China for smart city and smart manufacturing solutions.
Capgemini has increased its reliance on third-party innovation, partnering with major technology
companies (IBM, Microsoft, Oracle, and SAP are among Capgemini’s “strategic partners”) while
nurturing relationships with companies/start-ups that have a more narrow set of skills. Moreover,
it continues to multiply the number of Applied Innovation Exchanges – R&D hubs where it
develops innovative business ideas together with customers.
As the industry’s scope evolves, so does the R&D focus and service offerings
New services launched by leading IT services groups (2017-2018)
Atos is establishing three new In 2018, IBM unveiled Watson Data Kits,
R&D centres focused on machine a data and AI-based solution designed
learning and AI in France, the UK Atos IBM to bolster business insights for travel,
and the US over the coming years. transportation and food.
Innovation
TCS, a major player in the Accenture deployed its first
financial sector vertical, Tata blockchain-based solution with
rolled out the Quartz Consultancy Accenture the launch of a travel rewards
Blockchain Solution for Services programme for the Cathay
banking. Pacific Group.
IBM
Atos
Accenture
NTT Data
Wipro
Accenture Interactive
Wipro Digital
IMB iX
4,5%
4,0%
3,5%
3,0%
2,5%
2,0%
1,5%
1,0%
0,5%
2000 2002 2004 2006 2008 2010 2012 2014 2016
1 200
1 000
800
600
400
200
0
2020 2025 2030
The number of AI-related patents China has is second only to the US…
China’s AI ecosystem: number of patents in AI (cumulative number of patents up to 2016)
unit: number of patents
US
China
Japan
Germany
Korea
Canada
Australia
UK
Russia
Austria
…and its AI scale tops other major economies in Europe and elsewhere
China’s AI ecosystems, key indicators (2016)
unit: billion euros
US US
China China
UK UK
Canada India
Germany Canada
Israel Israel
Japan Germany
France France
Spain Spain
Switzerland Switzerland
China attracts global talent. This was underscored by the appointment in 2014 of Dr. Andrew Ng, a
professor at Stanford University and co-founder of Coursera, as Chief Scientist of Baidu (he left the
company in 2017).
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Europe
€2.7bn
North
America
€13.3bn Asia
€7.1bn
Source: Xerfi Global with the European Commission - The Age of Artificial Intelligence; includes both internal corporate investments and external investments (venture capital,
private equity, M&A)
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Atos, a European leader, derives 23% of its revenue from digital services
Atos’ digital revenue (2016-2019)
unit: billion euros; % share of total
10%
0%
2016 2017 2019
CAGR: 48.7%
Source: Xerfi Global with Amazon
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While in decline at home, NTT Data has gained clout overseas thanks to M&A
NTT Data’s revenue across Europe and North America (2008-2017)
units: million euros; CAGR in %
2 €481
m
0
2008 2010 2012 2014 2017
SOLUTIONS
Web services
Media processing
Applied
Basic research Commercialisation
Advanced research innovation
10% research Deployment
50% research
30%
10%
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Sources: Feri (historical data) and Xerfi Global (estimates and forecasts)
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Source: ITU
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Devices 590.43
IT services 825.89
Source: Gartner
2017 825.9
2018E 871.9
2019F 911.8
2020F 952.8
2021F 995.7
Source: Gartner
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2017 135.9
2018E 165.0
2019F 195.7
2020F 230.3
2021F 267.8
Source: Gartner
Year AI revenue
2017 1.1
2018E 1.9
2019F 3.3
2020F 5.4
2021F 8.5
Source: Gartner
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2010 43.99
2011 52.32
2012 60.90
2013 67.36
2014 77.63
2015 87.19
2016 95.60
2017 103.57
2018 111.54
2020F 177.04
2025F 309.82
Source: NASSCOM
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Company Revenue
IBM 70.05
Accenture 30.85
Capgemini 12.79
Atos 12.69
Wipro 7.41
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Weekly newspaper
The Economist
www.economist.com
Financial Times
Financial Times
www.ft.com
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Etude strictement réservée à EM LYON BUSINESS SCHOOL ( 400339 ). Diffusion interdite Paris, le 04/02/2020
ENGLISH FRENCH
CATEGORY
ITEM DEFINITION ITEM DEFINITION
Assets encompass all the economic resources owned by a L'actif regroupe toutes les ressources économiques détenues
Assets company. They are commonly divided into short term (cash, Actif par une entreprise. On distingue généralement actifs
trade receivables, etc.) and long term assets. circulants (trésorerie, créances, stocks) et actifs immobilisés.
CAGR Acronym for Compound Annual Growth Rate. TCAM Acronyme de Taux de Croissance Annuel Moyen.
Short for "Capital Expenditure", an item of the cash-flow Abréviation de "Capital Expenditure", un élément du tableau
statement used as a proxy for investment in property, plant and de trésorerie mesurant l'investissement dans les
Capex CAPEX
equipment (PPE). Generally entails physical assets used immobilisations corporelles. Il sert à évaluer l'effort consenti
to maintain or increase operation capacities. pour maintenir ou développer les capacités de production.
Capex ratio The percentage ratio between capital expenditures and net sales. Ratio CAPEX/CA Ratio entre dépenses d’investissement et chiffre d’affaires.
The current ratio is found by dividing current assets by current Le ratio de liquidité générale exprime le rapport entre actifs
Ratio de liquidité
Current ratio liabilities and indicates whether the company has enough circulants et passifs circulants et reflète la capacité de
générale
resources to pay its short term debt (12 months). l’entreprise à couvrir sa dette de court terme (12 mois).
Interest coverage is calculated by dividing operating income by Ratio entre le résultat opérationnel (EBIT ou EBITDA) et les
Ratio de
Interest net interest expenses and reflects the company's debt burden, dépenses nettes d’intérêt; reflète la charge de la dette pour
couverture des
coverage i.e. its ability to pay interest on outstanding debt. The lower this l’entreprise (capacité à payer les intérêts annuels). Plus le
intérêts
ratio, the more the company is burdened by interest expenses. ratio est faible, plus l’entreprise est à risque de faire défaut.
Liabilities encompass all obligations arising from a company's Le passif comprend toutes les obligations contractées par
past operations and which will result in an outflow of resources une entreprise dans l'exercice passé de ses activités et qui se
Liabilities in the future. Liabilities are divided into short term and long Passif matérialiseront par des décaissements à terme. Le passif
liabilities, and represent the debt a company owes to its peut être courant ou non-courant, et représente l'ensemble
creditors. des créances d'une entreprise.
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ENGLISH FRENCH
CATEGORY
ITEM DEFINITION ITEM DEFINITION
Net debt is calculated by subtracting a company's cash Endettement L'endettement net se calcule en déduisant le cash disponible
Net debt
from its total debt. net d'une entreprise du montant total de ses dettes.
Net profit refers to a company's total earnings. It is the Le résultat net est le bénéfice net d'une entreprise. Il correspond
Net profit/ result of the difference between net sales and all à la différence entre le chiffre d'affaires et toutes les dépenses
Résultat net
net margin operating and non-operating expenses such as taxes, opérationnelles et non-opérationnelles comme les impôts, les
interests, depreciation and amortisation expenditures. intérêts, les charges de dépréciation et d'amortissement.
Operating profit refers to the earnings generated by the Le résultat opérationnel désigne le bénéfice dégagé par une
normal business operations of a company. Operating Résultat entreprise grâce à l'exercice de ses activités traditionnelles. Le
Operating profit/ profit is the result of the difference between sales and opérationnel/ résultat opérationnel est obtenu en déduisant les dépenses
operating margin total operating expenses. Operating margin is expressed marge d'exploitation du chiffre d'affaires. La marge opérationnelle,
in % and is computed by dividing operating profit by net opérationnelle exprimée en %, est obtenue en divisant le résultat opérationnel
sales. par le chiffre d'affaires.
Expenses associated with the research and development Dépenses associées au processus de recherche et de
Dépenses de
R&D expenditure process of creating new products or services; it is often développement de nouveaux produits et de nouveaux services.
R&D
used as a proxy for innovation. C'est un indicateur de la capacité d'innovation d'une entreprise.
Return on assets is calculated by dividing a company's Le retour sur actif est calculé en divisant le résultat net d'une
Basic Return on assets
net income by its total assets. It measures the ability of Retour sur actif entreprise par le total de son actif. Il mesure la capacité d'une
financial (ROA)
the company to generate profits from its assets. entreprise à créer de la richesse à partir de ce dont elle dispose.
analysis
Return on equity is calculated by dividing a company's Le retour sur fonds propre est calculé en divisant le résultat net
Return on equity net income by its shareholder equity. It measures the Retour sur d'une entreprise par le total de ses fonds propres. Il mesure la
(ROE) ability of a company to generate profits from its fonds propres capacité d'une entreprise à créer de la richesse à partir des
investment funds. capitaux apportés par ses actionnaires.
The quick ratio is calculated by dividing current assets Le quick ratio équivaut au rapport entre actifs circulant
net from inventories by current liabilities and measures (diminués des stocks) et passifs circulants. Similaire au ratio de
Quick ratio Quick ratio
the company’s immediate capacity to repay its short term liquidité générale, il exprime la capacité immédiate de
debt. l’entreprise à couvrir sa dette de court terme.
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