Tech Industry Trends

Top 15 IT Services in EMEA 2025 - Accenture confirms its lead, IBM regains the podium, Infosys fastest-growing, EY enters the Top 15. PAC has published its vendor rankings for 2025 IT Services revenue at global, regional, and country levels over the last months. Accenture remains the leader in the EMEA IT services market, reporting revenue growth of +4.6% (1) in 2025. After a solid +7% growth in the region in H1, growth slowed to +3.5% in H2. Growth was highest in the UK, Benelux, and the Middle-East, average in Germany, Italy, and Spain, and lowest in France and the Nordics. Capgemini secured 2nd place, with growth of +1.5% (1). France decreased by -4%, however, showing noticeable improvement in the last quarter. The UK recovery accelerated over the course of the year, boosted by the WNS integration in the last quarter, ending CY25 with an impressive +10.5%, while the rest of Europe was nearly flat, growth in the Netherlands being balanced by a slight decrease in Germany and Sweden (both impacted by the automotive industry). IBM and TCS swapped places again. IBM grew +3.7% (1), driven by exceptional performance in the UK, good growth in France, Spain, and Italy, while Benelux and Nordics contracted slightly. Tata Consultancy Services recorded a -1.3% decline (1) in EMEA, the slowdown in the UK (following exceptional performance in the previous years) being balanced by a progressive recovery in Continental Europe. Deloitte, flat in EMEA (1), advanced to 5th place. Deloitte suffered mainly in the UK, while Italy overperformed. NTT DATA climbed to 6th place with +0.9% in EMEA (1). Spain and the SAP business unit overperformed. Atos declined -11.6% (1), falling to 7th place, as the company focuses on profitability and has withdrawn from some non-profitable activities (eg, BPO in the UK). The UK suffered the most, while Benelux was more resilient. Kyndryl stabilized in EMEA, posting a slight +0.6% increase (1). Infosys continued last year’s strong momentum, recording the fastest growth among the top 15 (+8.4%) (1) and entering the top 10. DXC Technology reported a further decline (-3.2%) (1), with continued weakness in GIS, landing in 10th place. The UK was more resilient. Sopra Steria declined (-2.4%) (1), yet, recovered over the course of the year both in France and the UK, while further declining in Benelux (post-acquisition withdrawal from unprofitable activities). CGI grew +5.1% (1), driven by the UK (20+% growth). Deutsche Telekom/ T-Systems International grew +3.1% (1), with a solid performance in Germany, Spain, Austria, and Eastern Europe. PwC (+3.7%) (1) did well in Germany while suffering in the UK. EY (+4.3%) (1) is the new entrant in the Top 15, winning 2 places, boosted by Germany. HCLTech (strong growth), Cognizant, KPMG, Worldline, and Orange Business (incl. Orange Cyberdefense) round the top 20.   (1): figures in current €, referring to calendar year 2025.   More details for our SITSI customers here: https://shorturl.at/ql80u

What has Tech Hiring been like for me so far in 2025. Well.. The tech industry is still bucking the trend in the UK and is set for more growth in 2025. Many employers including us are planning to expand teams despite economic uncertainties. This year, the demand for skilled professionals remains high, particularly in areas like AI, cloud computing, and cybersecurity. Current Trends: · High Demand for Skills: The most sought-after skills include AI, cloud computing, DevOps, Python, and machine learning. Companies are focusing on roles in data, AI, cyber, and cloud to stay competitive in the evolving tech landscape. · Competitive Market: Reviewing the market 76% of technology hiring managers are finding recruitment to be very competitive. The shortage of skilled candidates remains a primary challenge. · Salary and Benefits: The median salary for tech roles in the UK is approximately £44,949. Flexibility, such as remote work options, continues to be a top priority for tech professionals, with many willing to forgo a pay raise for the ability to work from home or hybrid agreements. Looking Ahead: · Growth Opportunities: The tech sector is projected to grow faster than the overall employment rate across the economy over the next decade. This presents numerous opportunities for both job seekers and employers. · Regional Insights: London, Manchester, Edinburgh, and Leeds are leading the way with the highest concentrations of tech employment. These cities are becoming tech hubs, attracting top talent and driving innovation.

𝗣𝗔𝗖: 𝗜𝗧 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗩𝗲𝗻𝗱𝗼𝗿 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗶𝗻 𝗤𝟯 𝟮𝟬𝟮𝟱: 𝗝𝗮𝗽𝗮𝗻 𝗮𝗻𝗱 𝗟𝗮𝗿𝗴𝗲 𝗗𝗲𝗮𝗹𝘀! PAC continues to track and analyze the performance of #ITservices vendors, looking at calendar Q3 2025. This quarter, introduced an organic growth estimate to better understand the dynamics at play. 𝘈𝘭𝘭 𝘯𝘶𝘮𝘣𝘦𝘳𝘴 𝘣𝘦𝘭𝘰𝘸 𝘢𝘳𝘦 𝘗𝘈𝘊 𝘦𝘴𝘵𝘪𝘮𝘢𝘵𝘦𝘴. ▶️ The Japanese market continued to be solid: Fujitsu (+6%), Hitachi (+5%), and NTT DATA (+4%, excluding gains from the data center transfer) had high organic growth, despite softness overseas. NEC Corporation was slightly subdued, with Japan well into positive territory. ▶️ Excellence in converting large awards into revenues: HCLTech (+4%, no surprise!) performed well thanks to Europe (+8%) and its ER&D business (+7%). Cognizant is firmly back(+4%) thanks to healthcare and BFSI. Infosys (+3%): Europe was solid while North America rebounded. ▶️ Infrastructure services still under pressure from cloud: Kyndryl (-3%) had a soft quarter but reiterated its FY26 CC guidance of +1%. DXC Technology (-4%) saved the day thanks to its Insurance Software & Services business (4%), whose turnaround is impressive! ▶️ A league of its own: Accenture proves it can combine size and solid growth (+3%). The company now targets agility with its well-commented $865m Back to Office and #GenAI restructuring program that targets ~1.5% of its headcount. ▶️ Rebound of the quarter: Capgemini back into the black (+2%), led by UK&I (+9%). A very positive sign: North America rebounded (+5%) thanks to BFSI, telecom, media, technology, and life sciences.

PAC recently published an analysis of the performance of the #ITservices vendors in calendar Q2 2025. 🔎 Accenture, Cognizant, and CGI led the revenue growth (+7%), driven by acquisitions and large deals. 🔎 Large deals remained the key growth lever. While many vendors saw some softness in new awards this quarter, the real differentiator is execution: HCLTech and Infosys are proving their ability to convert large deals into tangible revenues. 🔎 #GenAI continues to dominate discussions. PAC notes that 7% of Capgemini’s bookings were linked to GenAI, close to Accenture’s level. While GenAI revenues are still modest today, they are incremental to revenue growth and will only start cannibalizing traditional revenues in 2–3 years. 🔎 Japan is back! NTT DATA, Fujitsu, Hitachi, and NEC all reported solid IT services growth in their domestic market. 🔎 Are we seeing a return to telecom–IT integration? NTT is acquiring NTT DATA, BT Group is refocusing IT services and #BPO on the UK, and Deutsche Telekom is nearing completion of T-Systems’ reprofiling to balance revenue growth and profits. 🔎 Infrastructure services remain challenging: Kyndryl slipped this quarter but reaffirmed positive guidance, DXC is gradually improving, and Atos’ turnaround is expected to show results in 202

IT services growth has hit a wall—stuck at 3–5% for the past three years—and 2025 isn’t breaking the cycle unless we change the formula. In my latest edition of Saurabh’s Scoop, I unveil the 2025 Momentum Map—a heatmap of projected growth across service lines. Just 4 areas are breaking the 10% barrier: - AI services (led by GenAI and Agentic AI) - Cybersecurity - Process automation - Select industry-specific services (think clinical trials, payments, network optimisation, fraud detection) Enterprises are demanding: - AI-driven outcomes, not labor arbitrage - Tailored, verticalized capabilities, not one-size-fits-none - Speed, specificity, and skin in the game If your services strategy still revolves around resourcing, delivery scale, and broad horizontal offerings, you’re not evolving—you’re eroding. Read the full scoop here: https://lnkd.in/g4mGFxeY HFS Research Phil Fersht Tony Filippone Rohan Kulkarni Ashwin Venkatesan Ashish Chaturvedi Dana Daher David Cushman Melissa O'Brien Divya Iyer Emma Melando Aubrey H.

Breaking News: From 2024 to 2025, channel partner sentiment has shifted from full acceleration (inside a 7% growing tech industry) to cautious optimism. Back in 2024, partners were navigating economic uncertainty, inflationary pressures, and customer hesitation around big IT projects. Many partners considered protecting margins, tightening operations, and leaning on recurring revenue to weather the storm, but others had the pedal on the floor. Against these 2024 headwinds, partner optimism was off the charts with over 80% of partners in growth mode (35% in double-digit growth mode!) We saw a significant shift happen when optimism dropped 33% in 60 days between February and April this year (bottom chart). We just saw another measurable sentiment drop in a survey that closed today (top chart). Looking at Q3 2025, only 42% of partners are in growth mode - dropping optimism in half in the past 6 months. Partners continue to see opportunity in AI, cybersecurity, managed services, and cloud modernization. They are also confident in multiplier effects: for every dollar of product, there are multiple dollars of surrounding tech services like consulting, design, implementation, integration, and managed offerings waiting to be captured. As we enter the AI-era, with an estimated $6.5 trillion channel-friendly build-out over the next few years, partners know they must build capabilities, capacity, secure talent, and deepen vendor alignment. Looking at the horizon, when some of the current geopolitical and economic headwinds start to subside, the channel can turn back into growth mode — seizing ecosystem partnerships, marketplaces, and co-innovation.

The Canalys (part of Omdia) Tech Titans Index is a barometer of the health of the technology industry and state IT spending. It tracks and aggregates the revenue (in US$ and based on published earnings) of 18 leading vendors across IT hardware, software, and services, with data going back to 2007. According to the latest Q2 2025 research: • Tech Titans’ revenue growth accelerated, despite increased macroeconomic uncertainty, escalating conflict in the Middle East and US tariff disruptions. The combined revenue of the 18 tracked vendors rose 14.2% to US$560 billion, marking the strongest rate of growth in 14 quarters. • NVIDIA's 73% growth contributed 3.1 percentage points to the Index in Q2, below its longer-term average of 5.1 points since the AI infrastructure boom began in Q3 2023. Excluding NVIDIA, the remaining 17 Tech Titans grew 11.1%, outpacing the four-quarter average of 9.8%. • Capital allocation toward infrastructure and components to support AI training and inference, alongside increased spending on cloud services for migrations, cloud-native application scaling, AI workloads, and device upgrades embedding AI, continued to underpin the Index’s upward trajectory. • Amazon (Amazon Web Services (AWS)), Alphabet Inc. and Microsoft collectively spent over US$75 billion in Q2, up nearly 60% from last year and 23% from Q1, primarily on data center expansion to build AI capacity. However, demand continued to outpace supply, resulting in a growing backlog of customer spending commitments. Latest forecasts highlight: • The Tech Titan’s 2025 revenue growth forecast was raised from 11.4% to 13.0% at the mid-point, despite ongoing challenges. Supply constraints driven by limited power availability and shortages of the most advanced and in-demand GPUs will continue moderating growth rates for the hyperscaler Titans. In parallel, US-imposed export controls on GPUs to China will impact the AI component Titans. • Many of the Titans have shifted manufacturing of products destined for the North American market to countries outside China to mitigate the impact of tariffs. Although US trade deals have been announced with several alternative technology manufacturing hubs, uncertainty remains over the potential imposition of semiconductor-specific tariffs, which will disrupt global supply chains further.

Looking Ahead: Trends from 2024 and the Roadmap for 2025 As 2024 winds down, the tech industry—particularly cloud computing, CCaaS (Contact Center as a Service), and generative AI—has undergone transformative shifts. 2024 Recap: 1. AI-Driven Automation Became Standard Generative and Agentic AI redefined workflows, enabling faster decision-making and better customer engagement in CCaaS platforms like Amazon Connect. Organizations optimized AI to predict customer behavior, resolve queries, and even improve agent productivity. 2. Cloud Became the Default Cloud adoption hit new peaks as businesses embraced hybrid and multi-cloud strategies for scalability and resilience. CCaaS solutions in the cloud powered personalized customer experiences without requiring massive on-prem investments. 3. Customer-Centric Innovation Ruled The CCaaS industry moved from reactive to proactive communication, allowing organizations to anticipate and solve customer problems before they escalated. Customers demanded hyper-personalized, low-latency solutions, pushing innovation further. 4. Reskilling Was Key Engineers, developers, and product managers upskilled to stay relevant in an environment driven by cloud computing, containerization, and AI. The most in-demand skills revolved around serverless architectures, Kubernetes, and integrating AI across platforms. 2025: What’s Next? 1. Proactive Customer Journeys Will Dominate CCaaS platforms will continue to evolve, enabling businesses to not only solve problems but to anticipate customer needs. Proactive campaigns and real-time segmentation will set leaders apart. 2. AI Agents Will Reshape the Workspace The focus will shift from AI tools to autonomous AI agents, capable of handling end-to-end workflows. This will redefine efficiency for both customer service and backend operations. 3. Serverless and Edge Computing Will Scale With rising demand for low-latency solutions, businesses will increasingly adopt serverless and edge computing for real-time processing, particularly in industries like e-commerce and healthcare. 4. The Rise of Unified Tech Ecosystems Customers and enterprises alike will demand tighter integration between CCaaS platforms, CRM systems, and analytics tools. Data unification will be critical to delivering seamless customer experiences. 5. Sustainability Meets Cloud Computing Green cloud initiatives will gain traction, as businesses strive for energy-efficient computing while balancing sustainability goals with scalability demands. 2025: How Can You Stay Ahead? • If you’re in tech, ask yourself: What skills are shaping the future of cloud computing and AI? • For businesses: How can CCaaS innovations help you create unforgettable customer journeys? • For leaders: Are your teams equipped to embrace the fast-changing cloud and AI ecosystems? The journey from 2024 to 2025 will be about staying customer-centric, embracing change, and driving innovation. What’s your game plan for the coming year?

The AI Impact on IT Services: Navigating the Great Decoupling The IT services sector is currently at a pivotal moment, with recent market corrections indicating an underlying "AI Scare Trade" driven by the "Great Decoupling." The traditional model of manpower scalability where headcount growth was directly linked to revenue is evolving. Here are my views on a 3-phase framework to understand the transition ahead for IT services providers: 1. The Structural Bear Case (Near-Term Disruption Risks) Deflationary pressures are emerging as Agentic AI reduces billable hours in L1/L2 support, QA, and routine coding. This trend leads to downward revenue compression on legacy Time & Material contracts and a near-term EBIT drag, as forward P/E valuations adjust to multi-year lows. 2. The Transition Phase (Operational Headwinds) We are experiencing "AI Paralysis," with clients pausing legacy tech deals to strategize their AI approach. This results in consulting deficits, causing mega-deals to decline in favor of smaller, fragmented, and highly competitive PoCs. Near-term cash flow is affected by increased CapEx for AI centers of excellence and significant workforce retraining. 3. The Long-Term Bull Case (Emerging Opportunities) The key to recovery lies in the Data Readiness Pipeline. An effective AI strategy cannot exist without a robust data strategy, and there is a substantial $600B pipeline dedicated to cleaning, migrating, and modernizing legacy enterprise data to the cloud. This restructuring will ultimately: - Expand the Total Addressable Market (TAM). - Drive higher billing premiums (30-40%) for specialized skills in vectorization, RAG, and AI security. - Command high-margin structural increases in Revenue Per Employee (RPE). While valuations have reset, IT services firms that shift to outcome-based pricing and manage the "plumbing" of AI transformation are well-positioned for significant long-term recovery. Which transition challenge or opportunity is your organization focusing on most? #ITServices #DigitalTransformation #GenAI #AgenticAI #DataEngineering #CloudMigration #NavigatingNext

As we close the first half of 2025, one thing is clear: the service provider market is moving faster than ever. The last six months have marked a profound shift in the TechCo industry, driven by three key forces: AI Acceleration: Artificial intelligence is no longer a future-looking concept; it's a present-day catalyst for change, demanding new infrastructure and service capabilities. Hyperscaler Partnership Realignments: Major cloud players are rethinking their go-to-market strategies, creating new opportunities and challenges for their partners. Ecosystem Monetization Pressure: There's a growing imperative to generate real revenue from partner ecosystems, moving beyond simple alliances to strategic, value-driven collaborations. These aren't just trends—they're turning points. From my vantage point on the frontlines, I'm seeing: Hyperscalers are getting more selective. They are doubling down on systems integrators and carriers that can demonstrably drive workload adoption and deliver on customer outcomes. Telecoms are evolving into "TechCos," but many are still navigating the transition from legacy operating models to true platform-led growth. The vision is there, but the roadmap is still being written. ISVs are the new power players. Independent Software Vendors are critical for co-selling and marketplace scale, yet their potential remains largely untapped by many global service provider operators. In this dynamic environment, the providers who are breaking away are those that orchestrate their partnerships strategically, align on mutual outcomes, and execute swiftly on modernization. If you're exploring how to unlock the full value of your alliances and ecosystem strategy, let's connect. #TechCo #ServiceProviders #Hyperscalers #Ecosystems #Partnerships #Telecommunications #AI #GTMStrategy #wirelessevolution