The WITCH Monthly Monitor
Monthly update on major global IT consulting and services firms in healthcare
October, 2019
The WITCH Monthly Monitor provides latest financial and market performance updates on WITCH companies along with other global IT consulting firms on a monthly basis.
Highlights for the month
Wipro
Wipro sets up engineering and innovation centre in Virginia, to create 200 jobs
Wipro sets up a 10,000 square foot engineering and innovation centre in Virginia, U.S. to focus on full-stack engineering solutions, customer experience and accelerators across cybersecurity, cloud, digital, and DevOps. The company expects to create 200 additional jobs in the Richmond area by 2021.
Results for the Quarter ended September 30, 2019
Wipro reports revenue of $2,141 million, an increase of 6.8% YoY for the quarter ended September 30, 2019. Healthcare segment accounts for $277 million, with growth of 9.5% YoY and 1.9% QoQ due increasing client wins in the digital space.
Infosys
Indian Tech Giant Infosys Shaken By Whistleblower Complaints
An alleged group of employees at Infosys, who call themselves as “ethical employees,” have complained to the company board and the US Securities and Exchange Commission (SEC) against CEO Salil Parekh and CFO Nilanjan Roy of ‘wilful misstatement’ and ‘accounting irregularities’ to boost short-term revenue and profits. SEC and SEBI both have started investigating this matter.
Infosys deputy CFO Jayesh Sanghrajka resigns; exit comes after 14-year stint in IT major
Infosys EVP and Deputy CFO Jayesh Sanghrajka exited the company after working with the company for 14 years. Sanghrajka was with the company from 2000 to 2007 as General Manager, Finance and rejoined in December 2012 as VP and Corporate Financial Controller.
Results for the Second Quarter ended September 30, 2019
Infosys reports revenue of $3,210 million with a growth of 9.9% YoY and 2.5% QoQ for the quarter ended September 30, 2019. Life Sciences and healthcare segment accounted for $207 million, with growth of 10.7% YoY and 7.25% QoQ.
SAP and Infosys Collaborate to Accelerate Enterprise Digital Transformation for Clients
Infosys announces a new strategic program, Innov8, to accelerate enterprise digital transformation journeys using SAP digital solutions. As part of the program, Infosys and SAP propose to create a joint go-to-market engagement model between project Embrace from SAP and Infosys’ Innov8 program to help companies accelerate their digital transformation.
TCS Delivers Steady Growth in Q2
TCS reports revenue of $5,517 million with growth of 5.8% YoY for the quarter ended September 30, 2019. Life sciences and healthcare accounted for 8.1% ($447 million) of the revenue and continues to outperform with growth rate of 16% YoY driven by increasing traction in the drug development value chain of large pharma companies.
Cognizant
Cognizant Reports Third Quarter 2019 Results
Cognizant reports the third quarter revenue of $4.25 billion, an increase of 5.1% in constant currency from the year-ago quarter. Healthcare contributes 27.7% of revenues, with an YoY decrease of ~1% in constant currency, due to the consistent negative impacts from industry consolidation, movement of work to a captive at a large North American client, a contract dispute with a customer, and the complete closure of a project on which Cognizant was a subcontractor to a third party. On the contrary to healthcare, life sciences performs well due to continued demand within digital operations, continued momentum within the industry-specific platform solutions, and the contribution of Zenith Technologies.
Cognizant to Acquire Contino, a Premier Enterprise DevOps and Cloud Transformation Consultancy
Cognizant to acquire Contino, a consultant that provides services for DevOps, Continuous Delivery, and Pragmatic Agile practices to accelerate digital transformation for clients across industries including healthcare. Contino is headquartered in London, with operations in the United States and Australia.
HCL
HCL Technologies Second Quarter FY 2020 Results
HCL Technologies reports revenue of $2,486 million, an increase of 18.4% YoY, and 5.2% QoQ for the quarter ended September 30, 2019. The life sciences and healthcare segment contributed $321 million (12.9%) with growth of 19.9% YoY, and 6.6% QoQ driven by major client wins.
HCL Tech appoints Shikhar Malhotra on board of directors
HCL Technologies appoints Shikhar Malhotra as a non-executive, non-independent director to its board. Malhotra is the Vice-Chairman of HCL Healthcare, Pro-Chancellor of Shiv Nadar University, and Trustee of The Habitats Trust.
Accenture
Accenture to help Santen Pharmaceutical, an ophthalmic pharmaceutical company headquartered in Japan, migrate Santen’s key data and processes for supply chain management, finance & accounting, and other enterprise operations to SAP® S/ 4HANA®. The new system will consolidate information at all its locations across more than 20 countries and regions.
Accenture Acquires UK-Based Innovation Firm Happen
Accenture acquires Happen, a privately-owned innovation firm that uses proprietary methods, frameworks, and digital tools to help clients generate new ideas, products, and services that drive business growth. Happen is headquartered in London, UK, with presence in the United States and works primarily across life sciences, consumer goods, food & beverage, and retail industries. The acquisition expands Accenture’s innovation and analytics capabilities.
Accenture inaugurates a new Industry X.0 studio (also called a Forge) at the Chicago Innovation Hub to help clients accelerate the development of new smart connected products and services.
Atos
Atos signs major contract with Bayer to provide global Digital Workplace Services
Atos signs a five-year contract with Bayer to implement and deliver digital workplace services for Bayer globally. Atos will provide support to 1,30,000 Bayer workstations in 91 countries which allows Bayer employees to have simplified and omnichannel services with automation and interactive technology.
Atos Unveils North American Google Cloud Artificial Intelligence Lab
Atos launches Google Cloud Artificial Intelligence (AI) Lab in Irving, Texas, which is part of a global partnership with Google Cloud that began in 2018 to provide clients access to the latest analytics technologies. This center is a part of a global network with other labs in London, Paris, and Frankfurt.
Atos completes the acquisition of IDnomic
Atos completes the acquisition of IDnomic, a provider of digital identity management infrastructure. This acquisition expands cybersecurity portfolio in digital identity and Public Key Infrastructure (PKI) solutions to protect digital identities of people, machines, and smart devices.
DXC Technology
DXC Technology appoints Will Smart as its Global Director for customer engagement within healthcare and life sciences. Will Smart was the CIO of the National Health Service (NHS) since August 2016 and, prior to that, he was the CIO at the Royal Free London Foundation Trust for six years.
IBM
IBM Reports 2019 Third-Quarter Results
IBM reports revenue of $18 billion, a decrease of 3.9% YoY for the quarter ended September 30, 2019. Global Business Services grew by 1%, whereas Global Technology Services, Systems, and Global Financing declined 5.6%, 14.7%, and 11.7% respectively. Cloud and cognitive software increased by 6.8% led by growth from Red Hat.
IBM Watson to pull the plug on Merge Eye
IBM Watson plans to discontinue customer support for the Merge Eye Station digital fundus imaging platform, and the Merge Eye PACS web-based image management system by the end of 2020. Topcon Healthcare Solutions, a New Jersey-based company intends to support a transition plan for the Merge Eye imaging platform to allow customers to move patient data from the Merge Eye platform to its cloud-based Harmony data management system.
NTT Data
InTouch Health and NTT DATA Strengthen Partnership to Advance Virtual Care
NTT Data expands partnership with InTouch Health, provider of acute care telemedicine solutions. NTT Data will support to integrate the virtual care platform with existing clinical workflows, EHRs, digital solutions, and IT environments. Together, the companies will provide virtual care solution that reinvents the patient experience and delivers new forms of value for healthcare providers.
NTT DATA Awarded $114 Million Contract by the Centers for Disease Control and Prevention
NTT Data secures a five-year, $114 million contract with the Centers for Disease Control and Prevention (CDC) to manage IT infrastructure and provide application and user support services, including service desk support, cybersecurity, and infrastructure emergency preparedness. NTT Data, who has been a partner with CDC since 2004, currently supports nearly 20,000 users and 33,000 CDC devices.
Others
Optum Q3 revenue up 13.3% to $28.8B: 5 key notes
Optum reports revenue of $28.8 billion with growth of 13.3% YoY for the quarter ended September 30, 2019. OptumHealth revenue increases by 34.4% due to the expansion of its behavioral health services and growth across the business.
Tech Mahindra launches Wireless Secure Factory & IOT Sandbox
Tech Mahindra launches two solutions – Wireless Secure Factory & IOT Sandbox – in collaboration with CISCO and HP. IoT Sandbox is a highly efficient persona-based IoT solution finder which helps users to find the correct solution based on persona across industries, including healthcare.
