Digital transformation fuelling revenue growth for major players in IT services

As enterprises continue through their digital transformation journeys, major players in the software market are reaping the benefits. Software giants Synopsys, Atos and Capgemini have all revealed increased revenue in their most recent financial reports, with digital transformation projects and investment in new digital services leading the growth. Synopsys, the California-based software group, has started 2018 on a strong note by exceeding financial expectations, Aart de Geus, Chairman and Co-CEO of the company said. The software giant, which specialises in automated security testing, has reported revenues of $769.4 million for Q1 of 2018, compared to $652.8 million for the first quarter of 2017, marking an increase of approximately 17.9%. Aart de Geus explained: “Propelled by the evolving age of ‘Smart Everything’, semiconductor and systems companies, along with software developers across many industries, are driving digitisation and machine learning, which require more sophisticated hardware/software interaction and high levels of software security. As the Silicon to Software partner, our combination of leading technologies positions us well to participate in this dynamic wave of opportunity.” Similarly, Atos, the international IT services company, has announced a record revenue of €12.7 billion for 2017. The company said in a statement that business from the Atos Digital Transformation Factory, which includes four ready to deploy, end-to-end blueprints, represented 23% of 2017 revenue (vs. 13% in 2016), as strong demand was seen from large organisations implementing their digital transformation. The company has also seen growth in business from the financial services sector, which has grown 4.3% in 2017, and represents €2,273 million of its total revenue. Thierry Breton, Chairman and CEO, said: “In 2017 we successfully executed the first year of our three-year plan. Our significant investments to create our technology leap generated a strong momentum in all digital transformation businesses. Thanks to our technological strengths, our highly skilled engineers and the success of our Digital Transformation Factory, we accompany our customers in their digital journey and we provide security for their cyberspace.” Another company seeing growth from its digital services is Capgemini, the multi-national professional services and business consultancy. The Group generated revenues of €12,792 million in 2017, up 2% compared with 2016. Digital and Cloud revenues continued to expand, growing 24% at constant exchange rates to reach €4.9 billion, representing 38% of 2017 revenues. “Our performance in 2017 reflects our ability to create value for our customers and capture – in particular – the demand fuelled by their digital transformation agendas. We won significant contracts to help our customers, as global strategic partners, attain their objectives in terms of both productivity – leveraging our automation technologies – and innovation,” said Paul Hermelin, Chairman and Chief Executive Officer of Capgemini. Earlier in 2018, Cognizant, the NASDAQ-listed technology consultancy, reported an increased annual revenue of $14.8 billion in 2017, up 9.8% over 2016, with spending from financial services rising 5% and accounting for 38.1% of the total revenue.