Marc Hardwick

Bringing you opinionated, authoritative research & analysis on the UK technology scene.

Bringing you opinionated, authoritative research & analysis on the UK technology scene.

TCS’s third quarter results saw the business increase revenue globally by 4.5% (in constant currency) to $7.54bn with challenging conditions across some of its core markets continuing. At the global level, operating margin for the quarter was 24.5%, down on Q3 last year (Q3 Fy24 25%) but up slightly on the previous quarter (Q2 FY25 24.1%).

Liberata remains one of the few operators still active in the Local Government Business Process Outsourcing (BPO) space picking up a healthy share of the deals that remain in play. Friday saw the announcement of an extension to its partnership with Burnley Council to add to the North Somerset contract that was renewed just before Christmas ( Liberata extends North Somerset Revs & Bens ).

Serco CEO Mark Irwin announced his retirement this morning effective from the end of February having been in place since the beginning of 2023. Irwin took over from turnaround specialist Rupert Soames ( Soames signs off on a positive note ) and has seen the Group suffer declining revenues of late ( Serco improves profits on declining revenue ).

FY results and guidance out yesterday from Concentrix, the Fortune 500 customer services outsourcing giant formed from the merger of Concentrix and Webhelp, paint a picture of slowing growth and margin pressures in the enterprise services sector. While FY2024 delivered solid revenue growth of 35.2% reaching $9.6bn, this was largely driven by M&A, with organic growth at just 2.7% in constant currency. Of particular concern is the compression in operating margins, which declined from 9.3% to 6.2% YoY. This margin pressure, combined with the company's conservative FY2025 guidance of 0-1.5% constant currency growth, suggests challenging market conditions ahead.

Bringing you opinionated, authoritative research & analysis on the UK technology scene.

Bringing you opinionated, authoritative research & analysis on the UK technology scene.

Positive H1 trading update out this morning from intelligent automation and customer engagement software provider, Netcall points to a continuing strong performance, building on last year’s growth ( Netcall heads towards double-digit territory

Having shrunk 3.4% in Q2 ( see here ) Business Process specialist WNS released a mixed set of Q3 results yesterday, showing modest growth amid challenging market conditions. Revenue grew 2.1% YoY to $333m primarily driven by some new (unnamed) client acquisitions and expansion of existing relationships, though this was partially offset by the loss of a major Healthcare client and reduced volumes in the online travel segment.