The Q3 Services 50 Webcast

What the heck does this mean?

Join me on Thursday to find out during the Q3 TSIA Service 50 webcast:

webcasts.tsia.com/home/listing/tabid/64/listingkey/63/the_tsia_service_50_q3_2010.aspx

 

 

The TSIA Service 50

This Thursday, I will be hosting our quarterly Service 50 webcast. It is open to the public.  Follow this link to register:

http://webcasts.tpsaonline.com/event/v12hg2c78k

For those readers that have not attended in the past, I host a webcast every quarter that reviews the financial performance of fifty of the largest providers of technology services. The analysis is designed to answer the following questions regarding trends in tech services:

1. Who are the best performing providers of technology services?
2. Are technology service margins trending up or down?
3. Are net incomes trending up or down?
4. Are hardware and software companies becoming more or less service intensive?
5. What is the product service mix for the most profitable companies in the Service 50?
6. What is the product service mix for the largest companies in the Service 50?

As I review the Q3 data, I can tell you the global downturn clearly caught up to the tech companies this past quarter. However, there are some surprises. Also, service revenues and margins are continuing to play a critical role as product revenues and margins lag.

Join me Thursday for all the key trends.

The Service 50 Webcast

I promise I will return to the topic of sourcing, but I am hip deep in reviewing the Service 50 data for our upcoming public webcast this Thursday. Follow this link to register (open to all):

http://webcasts.tpsaonline.com/event/7x9537s98t4y

For those readers that have not attended in the past, I host a webcast every quarter that reviews the financial performance of fifty of the largest providers of technology services. The analysis is designed to answer the following questions regarding trends in tech services:

1. Who are the best performing providers of technology services?
2. Are technology service margins trending up or down?
3. Are net incomes trending up or down?
4. Are hardware and software companies becoming more or less service intensive?
5. What is the product service mix for the most profitable companies in the Service 50?
6. What is the product service mix for the largest companies in the Service 50?

As I review the data, I can tell you the impact of services revenues on product companies continues to be incredibly positive during this downturn. The image below is one I will cover in the webcast. As can be seen, product intensive companies with limited services revenues continue to suffer more than companies that have a healthy balance of products and services. Tune in Thursday for the complete analysis.

The Service 50 Q2 2009

Health Check Q1 2009: Techhology Services

Today, we delivered our analysis of how fifty of the largest providers of technology services performed in Q1 2009. Companies in our index include hardware, software, and pure services companies. Example companies include:

• Accenture
• Cognizant
• Cisco
• HP
• IBM
• Infosys
• Oracle
• SAP

Analyzing the Q1 data, we saw three trends important to every provider of technology services:

Pure services companies: Three clear trends

Every quarter we take a snapshot of fifty of the largest technology services providers in the world, including Accenture, HP, IBM, Infosys, and Xerox.  Bo DiMuccio, my partner in crime, and I analyze the public data to better understand the following trends:

• How are the revenues, profits, and margins for these technology services providers holding up?
• Are any specific companies or company types doing better than others?
• How are services margins trending compared to the same quarter one year ago?

On Thursday, we host a public webcast to review the analysis on The Service 50. To sign up, simply visit:

http://webcasts.tpsaonline.com/event/xd7b857205  

In the webcast, we will dissect the performance trends for all fifty companies. We will also breakout the performance of pure services companies like Accenture, hardware companies like HP, and software companies like Oracle. As Bo and I reviewed the data this past week, we were slightly surprised by the relatively strong performance of the pure services providers.

Market Predictions

Technology Professional Services organizations are human capital intensive endeavors. This means it takes time to both scale up and scale down delivery capacity. Global resourcing models have made this challenge a little easier. However, the profitability of PS organizations is still very susceptible to swings in market demand.  Right now, there are three data streams PS organizations can access to better understand the direction of the TPS marketplace.

Health Check: Technology Services

Last Thursday, we delivered our analysis of how fifty of the largest providers of technology services performed in Q4 2008. Companies in our index include hardware, software, and pure services companies. Example companies include:

• Accenture
• Cognizant
• Cisco
• HP
• IBM
• Infosys
• Oracle
• SAP

Analyzing the Q4 data, we saw three trends important to every provider of technology services.

The Service 50 Webcast

This is a quick reminder that I will be hosting the quarterly Service 50 Webcast on January 29th at 2:00pm Eastern. This webcast is open to the general public. In it, we analyze the quarterly performance of fifty of the largest providers of technology services. This is perhaps one of our most anticipated snapshots. This webcast is one data point your services organization can use to better understand how the broader technology services industry is performing in the current economic environment. Key questions we answer with The Service 50 dataset include:

1. Who are the largest providers of technology services?
2. Are technology service margins trending up or down?
3. Are net incomes trending up or down?
4. Are hardware and software companies becoming more or less service intensive?
5. What is the product service mix for the most profitable companies in the Service 50?
6. What is the product service mix for the largest companies in the Service 50?

To register, visit:

http://webcasts.tpsaonline.com/event/76vv1kdsez

Sample analyis from are last Service 50 webcast:

Service 50 Example

IBM Earnings and the Axe on Cost of Services

On Jan 20th, IBM released its Q4 earnings report. For the current economic environment, the news was very encouraging:

• Total revenues only slightly down by 6%
• Services revenues only down by 4%
• Net income up by 12%

Right now, we are crunching the numbers for our Service 50 webcast next week. Similar trends are emerging in the data. Through the end of last year, technology providers continued to weather the storm regarding top line revenue and bottom line profitability. Revenues were off a little but bottom line profits remained strong. However, IBM is the canary in the coal mine regarding what is about to happen to embedded technology service organizations of all sizes.

New Year’s Anxiety

Well, I am back in the saddle for 2009. Usually, I look forward to embracing a new year—and all the new initiatives financed by all of those reloaded annual budgets. However, I cannot recollect a new year in my career when I had more anxiety regarding the resilience of the technology services industry. Will 2009 be a total disaster regarding technology services revenues or will this sector continue relatively unscathed as it did in the first three quarters of 2008? To help answer that question, my eyes will be firmly fixed on two datasets: The Service 50 and The TPS Tracker.