Duncan Aitchison

Building lifecycle software company, Eleco plc has acquired Irish SaaS Computerised Maintenance and Management Software ("CMMS") specialist PMI Software Ltd (PEMAC). The deal, which complements the group’s CMMS ShireSystem brand, comprises an initial consideration of c.€6.0m and an additional earn-out consideration of up to €2.4m payable in two tranches in 2026 and 2027. The transaction is being funded by existing cash.

Telstra, Australia’s leading telecommunications and technology company, and Accenture have announced the intent to establish a global AI and data focused joint venture. The proposed seven-year collaboration remains subject to consultation with Telstra’s employees and unions.

A return to top line growth in North America during Q325 has prompted Infosys to raise full year guidance for a third time since last April. Company revenue for the three months ended 31st December increased by 6.1% yoy at constant currency to $4.94bn with all of the offshore major’s vertical units posting revenue improvements. Operating margin for the period was up by 20 bps qoq to 21.3%.

A further acceleration in North American demand during Q325 helped LTIMindtree to build on its positive first half of the year ( see here ). An 8% yoy increase in revenue from the region during the three months ended 31st December underpinned the firm-wide top line improvement of 5.6% at constant currency for the period. This performance lifted third quarter turnover to $1.14bn, albeit this was accompanied by a sequential decline of 150 bps in EBITDA margin to 16.5%. The European region, conversely, remained challenging for the company with sales in the territory declining by 2.7% qoq to $157m.

Wipro narrowly avoided a return to sequential top line decline posting a 0.1% qoq constant currency increase in turnover for Q325. Company revenue for the three months ended 31st December beat the guidance provided in October ( see here ) to reach $2.63bn, albeit this still represented a 0.7% dip compared to the same period in the prior fiscal. Operating margin for the latest quarter ticked up by 70 bps qoq to 17.5%.

Tech Mahindra built on the progress it made during the first half of the financial year to post a second successive quarter of sequential and yoy sales growth in Q325. Company revenue for the three months ended 31st December increased at constant currency by 1.2% qoq and 1.3% yoy to $1.57bn. The improving top line performance generated a significantly larger uptick in Tech Mahindra’s profitability with the Q3 EBITDA margin advancing by 40 bps qoq to 13.6%, up dramatically from the 8.8% achieved in the third quarter of FY24.

TechMarketView’s updated outlook for the UK Software and IT Services market is available to download here. In this forecast cycle we revise the estimates published last summer to reflect market activity in the second half of 2024 and current economic conditions.

Cognizant has secured a multi-year extension to the engagement with McDonald’s Corporation which began in 2017. The next phase of the collaboration will see the IT services heavyweight continuing to support the fast food giant in several enterprise areas, including global finance systems and human capital management. The latter encompasses payroll processing, franchisee management, master data management, and legal applications.

The University of Surrey has been selected to develop a sign language artificial intelligence (AI) model for the deaf community. Awarded by the by UK Engineering & Physical Sciences Research Council, the five-year, £8.45m SignGPT project will build tools to allow spoken language to be translated into photo-realistic sign language and sign language video into spoken language.

Mid-tier offshore service provider, Coforge picked up the pace of its accelerated growth still further in the third quarter of FY25. At a headline level, revenue for the three months need 31st December increased at constant currency by just over 40% yoy ( Q225: 33% ) to just shy of $400m.