IoT Enhancements Among ITSPs Driven by Acquisitions and Alliances in 2022

Kathryn Weldon – Research Director, Business Network and IT Services – Americas

Summary Bullets:

• GlobalData’s latest report on IoT services from IT service providers (or ‘ITSP’ – please see: ”IT Services Provider IoT-Services Competitive Landscape Assessment”) highlights recent alliances and acquisitions that have given providers a deeper focus into industrial verticals or enhanced digital transformation capabilities with IoT and adjacent technologies.

• Looking at new services, partnerships, and recent alliances over the last six months, GlobalData ranks Atos as a ‘Leader’ in ITSP IoT services; Accenture, Capgemini, and IBM as ‘Very Strong;’ and InfoSys and Cognizant as ‘Strong.’

Recent key announcements from these providers not included in the aforementioned report (and others such as Tech Mahindra and Wipro) demonstrate how important recent acquisitions and alliances have been to fortify IoT offerings along with other digital transformation technologies such as AI, digital twins, 5G, edge, blockchain, and cloud services.

• June 2022: Tech Mahindra announced a collaboration with Anritsu, a global provider of test and measurement solutions for wireline and wireless technologies, to launch an IoT experience lab to test 5G devices used in emerging IoT use cases.

• June 2022: ZainTech, the digital and ICT solutions arm of Middle Eastern Zain Group, entered into a partnership agreement with Atos to address the evolving needs of the B2B market across Zain’s operations in MENA.

• June 2022: Atos and Capgemini partnered with Scottish Water to offer remote sensors and data-driven insights on managing its wastewater facilities with the utility company investing around GBP100 million ($122.7 million).

• April 2022: Wipro announced it acquired Convergence Acceleration Solutions, an American consulting and program management company that specializes in driving large-scale business and technology transformation for large enterprises.

• March 2022: Accenture acquired engineering and operational technology capabilities from Japanese logistics provider, Trancom ITS. This will allow Accenture’s Industry X service to offer hyper-automation solutions at scale. From Trancom ITS, 190 engineers involved in cloud-based logistics systems and optimizing warehouse operations with IoT and sensor technology will join Accenture Industry X in Japan.

Why Buy? The main reason to hire an ITSP in a digital transformation journey that includes multiple technologies including IoT is to get as close to a one-stop shop as possible without lock-in. Bringing in all the elements of an IoT solution should help ITSPs overcome fragmentation as a barrier to adoption. ITSPs are also increasingly offering vertical solutions that can be replayed but remain customizable for each enterprise by offering them as reference architectures.

Recent acquisitions by ITSPs have focused on expanding end-to-end vertical depth. For example, Accenture gained depth in warehouse logistics through its Trancom ITS acquisition and acquired Eclipse Automation earlier in 2022 to gain depth in building next-gen factories. IBM gained depth with its Sentaca acquisition in serving its telco vertical with solutions to help them monetize new technologies such as edge, 5G, and IoT. Wipro gained experience in large-scale business and technology transformation when it bought Convergence Acceleration Solutions. Atos acquired Ipsotek in 2021 to boost its IoT capabilities in video, analytics, and dedicated edge computing IoT solutions. In July 2021, Cognizant acquired TQS Integration, which provides data intelligence, technology consulting and digital systems integration in smart manufacturing.

Why Partner? Reasons to partner – rather than buy – are more diverse, ranging from geographic expansion to gaining new technologies to reselling or blending with existing professional services.

Tech Mahindra’s collaboration with Anritsu helped it launch an IoT experience lab to test 5G devices in emerging IoT use cases. Accenture and Johnson Controls are collaborating to operate innovation centers to drive rollouts of building control system products and services. ZainTech is partnering with Atos to address the needs of the B2B market across Zain’s operations in the Middle East and Africa. Atos partnered with Dell to launch ‘Atos Business Outcomes-as-a-Service,’ a 5G, edge, and IoT offering using cloud architecture at the edge. Atos struck a deal with Sparkle to address demand from clients for cloud services. EY is allying with Infosys to support clients’ business transformation and growth with solutions such as cloud, IoT, blockchain, and AI.

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