financial services
The number of managed services awards in the financial services sector is on pace to hit an all-time high. In the first half of 2021, there were 281 managed services awards, setting the sector up to reach more than 550, a significant jump from the current record of 492 awards set in 2019 (see Data Watch). And the number of deals in this sector is likely to continue to climb as firms wrestle with some big challenges:
Historically low interest rates, reduced consumer spending and a spike in provisions for future loan losses means that companies are looking for solutions to help them reduce technical debt and take out costs.
Demand for digital customer engagement is driving contact center traffic way up (as it's increasingly being seen as an important sales channel) and putting tremendous pressure on mobile and online banking apps.
Increased scrutiny on compliance and operational resilience is driving financial services companies to beef up their data security, especially in WFH scenarios, which has in turn increased cybersecurity risks.
Rapidly changing needs around commercial and corporate real estate for both branches and corporate offices means that financial services companies are thinking consolidation – which will have a big downstream impact on service lines – including facilities management and managed network services.
These are big challenges for an industry that consistently produces a great deal of activity in the market – both in terms of number of deals and in contract value. | | |
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deal activity
- McDonald’s and Capgemini. U.S. fast food chain extends ADM relationship (link).
- Horizon Power and Empired. Australian power company signs three-year ITO deal with recent Capgemini acquisition (link).
- MKS Instruments and HCL. Process control instrumentation company signs five-year workplace and cloud deal (link).
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M&A
- Mphasis acquires U.S.-based user experience design firm Blink UX (link).
- Accenture acquires Brazilian customer experience firm Experity (link).
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isg insiders
Stanton Jones, Alex Bakker, Cynthia Batty, Dr. Daniel Gerster, Doug Saylors, Missy Lawrence-Johnson, Mrinal Rai, Ron Exler, Sashidharan Balasundaram, Steve Hall, Sunder Sarangan, Troy Williams
contributing this week
Owen Wheatly
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