The WITCH Monthly Monitor
Monthly update on major global IT consulting and services firms in healthcare
August 2019
Increasing Partnerships to Develop Digital Solutions Using AI, Cloud, and Blockchain
AI–powered medical imaging solutions are gaining momentum in the healthcare industry. Wipro launched AI–powered medical imaging solution, in partnership with Intel, which is designed to assist radiologists to identify regions of interest and label abnormalities in medical X-Rays and CT scan. Atos collaborated with Xofia to support development of quantum-powered AI solutions, with specific use cases in medical image processing.
In August, several HCIT companies partnered to develop solutions using emerging technologies such as AI, cloud, and blockchain. Infosys partnered with the University of Illinois Urbana-Champaign (UIUC) to develop new technologies and systems in precision medicine by combining Infosys’s AI capabilities with UIUC’s bioinformatics and genomic applications. HCL partnered with Oracle Health Sciences to accelerate digital clinical trials. Wipro, NTT Data, and Infosys each collaborated with Google Cloud to deliver next-generation healthcare solutions. IBM launched a blockchain network in partnership with Chainyard and other firms aimed at improving supply chain management for pharmaceutical companies, as well as firms in other industries.
HCL, DXC Technology, and NTT Data reported results for the quarter ended June 30, 2019. HCL’s life sciences and healthcare business reported double-digit YoY growth rate driven by several client wins. DXC Technology’s global business services and global infrastructure services segments witnessed declining YoY growth due to the accelerated movement of clients toward cloud. However, revenue from digital business had a strong growth rate primarily driven by enterprise and cloud apps, cloud infrastructure and digital workplace, and the acquisition of Luxoft.
Accenture acquired Fairway Technologies and Analytics8, which expands their platforms service practice and digital capabilities, respectively. The company’s federal services won another deal with the U.S. Navy Bureau of Medicine and Surgery to support their health informatics, virtual health, and artificial intelligence initiatives.
According to TOI, Cognizant is laying off approximately 800 employees from their healthcare division. A large part of the layoff is expected to be from the Trizetto’s offshore delivery center in Pune, India. On the other hand, the company is increasing headcount in its sales division to increase digital revenue. IBM has also reportedly fired as many as 100,000 employees in the last few years, as part of its rebranding strategy.
Highlights for the month
Wipro
Wipro, Google Cloud Expand Partnership to Accelerate Digital Transformation for Enterprises
Wipro expanded partnership with Google Cloud to accelerate cloud adoption and digital transformation for enterprises in many industries including healthcare. Wipro has a dedicated practice focused on Google Cloud Platform (GCP) that enables technology transformations through offerings that include, application modernization, data, analytics, AI, SAP migration and cloud migration at scale.
Wipro Launches Edge Artificial Intelligence Solutions Powered by Intel
Wipro partnered with Intel to launch three AI starter solutions, Pipe Sleuth, surface crack detection, and medical imaging powered by Intel Xeon® Scalable processors. The medical imaging solution uses AI to identify regions of interest and label abnormalities in medical X-Rays and CT scans. The solution automates medical image segmentation, analysis, and captioning using deep learning neural networks and help healthcare providers save time and resources while also improving the patient experience.
Infosys
Infosys partnered with UIUC to develop new technologies and systems in precision medicine. This partnership will combine Infosys’s strength in AI through the Infosys Nia platform and UIUC’s expertise in computing systems, bioinformatics, and genomic applications, to improve preventive care and enhance predictability of treatment outcomes of potential diseases.
Infosys expanded its partnership with Google Cloud to become a Google Cloud Managed Service Provider (MSP). As a Google Cloud MSP, Infosys will offer industry-specific solutions on the GCP for several industries, including healthcare.
Cognizant
Cognizant, HCL Tech may feel the pain of US opioid lawsuits
The prevailing lawsuits in the United States related to opioid painkillers could impact Cognizant and HCL as their clients face possible bankruptcy or huge fines in legal settlements. Cognizant and HCL are IT vendors to Purdue Pharma, which is expected to pay approximately $12 billion and file for bankruptcy to re-emerge as a public trust.
Cognizant to Axe Hundreds in Healthcare, Life Sciences
Cognizant to layoff approximately 800 employees in the healthcare and life sciences division. A large part of the layoff is expected to be from the Trizetto’s offshore delivery center in Pune, India.
Cognizant Looks to Raise Sales Headcount to Spur Digital Revenue
Cognizant to increase its headcount in the sales division to strengthen the front-end client mining team and improve the share of digital services segment to its overall revenues. As part of their digital strategy, the company will target smaller, project-oriented digital services or digital transformation deals to re-position itself into a more aggressive digital services provider.
Cognizant Plans Another Round of Layoffs to Slash Costs, Says Report
Cognizant plans another round of layoffs as part of its strategy to cut cost and reduce spending. This round will likely target a few hundred employees with more than eight years of experience. In May 2019, the company targeted its middle-level executives.
HCL
HCL Technologies First Quarter FY 2020 Results
HCL Technologies reported revenue of $2,364 million with a growth of 3.8% QoQ and 15% YoY for the quarter ended June 30, 2019. Life sciences and healthcare accounted for 12.8% ($303 million) with growth of 2.4% QoQ and 16% YoY.
HCL Technologies And Oracle Health Sciences Collaborate To Accelerate mhealth In Clinical Trials
HCL Technologies partnered with Oracle Health Sciences to help life sciences companies execute and scale the next–generation of digital clinical trials. The partnership will include HCL’s Faster Intelligent Trials (FIT) Solution using Oracle Health Sciences Mobile Health (mHealth) Connector Cloud Service (Oracle mHealth Cloud) and enable clinical teams to establish digitally–enabled clinical trial processes and new digital trial methods such as remote patient monitoring.
Accenture
Accenture Acquires Fairway Technologies to Bolster Product and Platform Engineering Services
Accenture acquired Fairway Technologies, which provides strategic consulting services and end-to-end technology solutions. The acquisition will expand the Accenture Product and Platform Engineering Services practice, which helps clients manage and innovate software-based platforms and introduce new business models and revenue streams. Fairway Technologies, headquartered in California, United States, serves across many industries including healthcare.
Accenture to Acquire Analytics8, Australian Analytics and Data Specialists
Accenture to acquire Analytics8, a provider of data and analytics solutions with headquarters in Chicago, Illinois and Sydney, Australia. Analytics8 provides its clients with an end-to-end service spanning data management, reporting, and visualization, data science, and analytics services across multiple industries including healthcare. Together, the companies will provide a unique, AI–based approach to help clients transform their businesses.
Accenture secured a five-year contract with U.S. Navy Bureau of Medicine and Surgery (BUMED) for $79 million, to support health informatics, virtual health, and artificial intelligence initiatives.
ATOS
Atos delivers Quantum-Learning-as-a-Service to Xofia to enable artificial intelligence solutions
Atos collaborated with Xofia, a startup based in Texas, to deliver Quantum-Learning-as-a-Service (QLaaS) to support the development of quantum-powered AI solutions for the enterprises. Atos’s QLaas will support Xofia’s two main uses cases in healthcare and energy. In healthcare, Xofia aims to transform medical image processing by implementing quantum-based algorithms and simulations that can reduce cost and time of image processing.
Deloitte
Deloitte Names Mike DeLone National Sector Leader for Life Sciences
Deloitte appointed Mike DeLone, who has more than 20 years experience in the life sciences industry as National Sector Leader for the U.S. life sciences practice, effective immediately. DeLone succeeds Greg Reh who will serve as the global life sciences and health care industry leader.
DXC Technology
DXC Technology Reports First Quarter Results with Strong Digital Revenue and Pipeline Growth
DXC Technology reported revenue of $4,890 million, declined 7.4% YoY due to continued headwinds in the traditional application services business. However, the digital business grew by 35% YoY driven by growth in enterprise and cloud applications, cloud infrastructure and digital workplace offerings.
IBM
IBM launched Get Results in Transition (GRIT), a digital solution for veterans, active-duty service members and reservists to address individual and social determinants of health and well-being. The solution was developed in partnership with the Department of Veterans Affairs (VA) and embedded with Total Brain’s technology, a neuroscience–based mental health and fitness platform.
IBM Fired as Many as 100,000 in Recent Years, Lawsuit Shows
IBM reportedly fired as many as 100,000 employees in the last few years as part of a rebranding strategy. Some former employees including Alan Wild, former Vice President of human resources have filed lawsuits against the company for age discrimination.
IBM collaborated with Chainyard and other members including Anheuser-Busch InBev, Cisco, GlaxoSmithKline, Lenovo, Nokia, Schneider Electric and Vodafone to launch a blockchain network to improve supply chain management for firms in several industries including pharmaceutical companies. The network, called Trust Your Supplier aims to improve supplier qualification, validation, onboarding, and life cycle information management and eliminate manual processes to reduce fraud and errors.
NTT Data
Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2010
NTT Data reported revenue of $4.8 billion (¥527 billion), declined 13.8% QoQ (estimated) for the quarter ended June 30, 2019. No public information on healthcare related updates.
NTT DATA Collaborates with Google Cloud on Next-Gen Healthcare Solutions
NTT Data collaborated with Google Cloud to deliver digital offering in the cloud, analytics, and AI to improve patient experience, streamline operations and reduce costs for payers and providers. NTT Data and Google Cloud will specifically focus on patient engagement, population health, customer relationship management, clinical and claims apps and AI/automation that enable providers and payer to foster better patient outcomes.
