The WITCH Monthly Monitor
Monthly update on major global IT consulting and services firms in healthcare
May 2019
Healthcare IT services companies are rigorously expanding their digital capabilities
HCL, NTT Data and DXC Technology released their results for the quarter ended March 31, 2019. HCL’s healthcare and life sciences (HLS) revenue grew 28.2% YoY, higher than TCS and Cognizant’s growth of 18.2% and 3.9% respectively. HCL’s contract with a leading healthcare payer and a U.S. based biotechnology company contributed towards HLS revenue growth. Their Mode-2 services which includes digital analytics, cloud native, IoT, and cybersecurity reported a growth of 28.7% YoY reflecting their robust expansion in digital. The acquisition of Strong-Bridge Envision brings strong capabilities across the digital transformation journey.
DXC Technology reported a decline in their overall revenue due to a slowdown in their traditional business. According to CEO Mike Lawrie, the company is in the phase of building their digital business to offset their traditional outsourcing and expects it to be uneven in the short term. DXC’s global business services (GBS) saw a decline of 7.2% this quarter due to completion of several contracts, as more clients prefer cloud computing over big outsourcing contracts. In order to gain traction in digital, DXC continues to expand digital transformation capabilities by hiring digital talent and building on their collaboration with Amazon AWS and Microsoft Azure.
Cognizant continues to see leadership changes as the new CEO rationalizes the organization structure and the workforce. Additionally, the company also announced layoffs and voluntary separation for senior level executives.
Accenture completed acquisition of Enterprise System Partners (ESP) for digital transformation to bolster their life science business. They also launched INTIENT, a platform for life sciences which is embedded with analytics, AI/ ML, and RPA with specific capabilities spanning research and development through patient services.
IBM won its first deployment of Imaging Patient Synopsis, an AI solution for radiologists, at Hardin Memorial Health.
Highlights for the month
Cognizant
Cognizant’s CEO makes two changes in leadership
Cognizant appointed Malcolm Frank as the President of Cognizant digital business, replacing Gajen Kandiah who led the division for the past three years. Prior to this, Frank was working as the Chief Strategy Officer with Cognizant. Prasad Chintamaneni, EVP and President of global industries and consulting was recently appointed to head the banking & financial services (BFS) business on an interim basis in addition to his current responsibilities. However, few weeks after Prasad’s appointment, he resigned from the firm making him the fourth top executive to resign in the past one month.
Cognizant begins to rationalise top deck
Cognizant has initiated a ‘voluntary separation’ program to layoff approximately 300-400 top executives, targeted at senior-level executives, including director level, assistant vice-presidents and VPs from various geographies including India and the U.S. The company is rationalizing to restructure the organization, improve its margins and accelerate revenue growth.
AVEVA and Cognizant Expand R&D Partnership to Build Next-Gen Industrial Software
Cognizant expanded its R&D partnership with AVEVA, a provider of engineering and industrial software solutions to develop software for digital transformation across industries including life sciences.
Cognizant EVP Debashis Chatterjee to leave firm
Debashis Chatterjee, who was the Executive Vice-President and President of global delivery and played a major role in growing Cognizant’s BFS practice, to exit after 23 years with the firm. Since Brian Humphries took over as CEO in April, he has been making several leadership changes at the top level.
HCL
HCL Technologies Fourth Quarter and Annual Results FY 2019
HCL’s HLS segment accounted for 13% ($296 million) of the total revenue and increased 3.5% QoQ and 28.2% YoY for the quarter ended March 31, 2019. The company won deals with a leading U.S. based biotechnology company for managed services and a leading healthcare payer (name not revealed) to implement a new cybersecurity program. They also secured a large deal from a Danish pharmaceutical giant for an end-to-end digital transformation.
HCL Comnet, three other subsidiaries to merge with HCL Tech
The board of HCL technologies approved the proposal to merge HCL Comnet, HCL Eagle, HCL Technologies Solutions and Concept2silicon Systems into HCL Technologies. The merger would enable optimum resource utilization and result in cost savings and bring about operational efficiency.
IT services giant HCL left employee passwords, other sensitive data exposed online
Security consultancy firm, UpGuard, reported that HCL Technologies inadvertently left employee passwords, customer project details, and other sensitive information exposed online. HCL responded and took immediate action to block the inadvertent access and determined that no sensitive employee or customer data was accessed or compromised based on their investigation.
HCL Technologies will make space for 2,000 IBM staff
HCL Technologies will onboard nearly 2,000 employees of IBM. In December 2018, HCL announced acquisition of select IBM software products for $1.8 billion which would give access to over 5,500 clients globally, along with IBM’s employees.
Accenture
Accenture Completes Acquisition of ESP
Accenture acquired Enterprise System Partners (ESP) to digitally transform manufacturing and automate supply chain management for pharmaceutical, biotech and medical device clients. ESP, headquartered in Ireland with presence in the U.S., provides consulting and manufacturing services for the life science industry. The company will bring a team of 200 professionals with deep manufacturing process and IT knowledge to Accenture’s life sciences group.
Accenture launched INTIENT, a platform that enables advanced data analytics and AI, to transform the continuity and flow of data across life sciences enterprises and deliver ground-breaking treatments for patients. INTIENT has four key components including clinical, research, pharmacovigilance, and patient platforms.
Deloitte
Deloitte and ServiceNow partnered to jointly develop solutions on the ServiceNow platform to help clients accelerate enterprise digital transformation. The solutions will initially cater to industry sectors including government and public services, telecommunications, media and high tech, life sciences, banking, energy, healthcare, and manufacturing.
Deloitte partnered with Vlocity Inc., a provider of industry-specific cloud and mobile software, to jointly deliver new solutions built on Salesforce for digital transformation. The companies will help their mutual clients across communications and media, insurance and financial services, health, energy and utilities, and government and non-profit sectors deliver enhanced digital experiences improve workflows and improve productivity.
Tackling America’s opioid epidemic with data, Deloitte and DataStax
Deloitte partnered with DataStax to develop Opioid360. Opioid360 is an analytical tool that collects de-identified data from a variety of datasets and helps to build profiles of people that may be at higher risk of developing an opioid addiction and suggests best intervention method based on their barriers to treatment.
DXC Technology
DXC Technology Q4 Earnings Top, Revenues Lag Estimates
DXC Technology reported revenue of $5,280 million, down 5.4% YoY and up 2% QoQ for the quarter ended March 31, 2019. The global business services (GBS) and global infrastructure services (GIS) segments declined by 7.2% and 4.2% respectively due to shortcomings in the traditional applications business and completion of several contracts. No public data available on their healthcare business.
Mike Salvino Joins DXC Technology Board of Directors
DXC technology appointed Michael J. Salvino, a recognized machine learning industry expert to the board of directors. Michael Salvino currently serves as a Managing Director at Carrick Capital Partners and is a board member and executive chairman of Infinia ML. He is also a board member of the foundation for Atrium, where he serves on their Investment Oversight Committee for both the hospital and foundation.
IBM
Federal regulators give blessing to Red Hat-IBM merger
The Department of Justice has approved the $34 billion acquisition of Red Hat by IBM. The deal still needs sanction from other jurisdictions before it can officially close.
Hardin Memorial Health debuts new AI solution for radiologists
IBM Watson Imaging Patient Synopsis was deployed at Hardin Memorial Health, the first health system to go live that allows radiologists to find relevant patient information quickly and easily. The Patient Synopsis provides a single-page summary of the patient by identifying and extracting relevant information from a patient’s records, and integrates with existing picture archiving and communication systems.
NTT Data
NTT Data Financial Results for the Fiscal Year ended March 31, 2019
NTT Data reported revenue of $5.56 billion (¥612.9 billion), grew by 18.9% YoY (estimated) for the quarter ended March 31, 2019. New orders in North America increased primarily due to expansion in healthcare.
NTT to launch AI-based genome screening for preventive medicine
NTT to offer a preventative medicine service by 2020 that will analyze patients’ genomes and other medical data using AI to help prevent lifestyle diseases and control healthcare costs. The company plans to launch a new, wholly owned subsidiary that will work to improve the capabilities of the AI system.
