Study finds consolidation in healthcare industry is impacting growth rate and margins among top IT consulting firms.
Damo Consulting, a leading digital transformation and growth strategy consultancy for healthcare enterprises and technology firms, today announced the release of its mid-year WITCH Report, which provides a market landscape view of the major global technology consulting firms in healthcare and life sciences. The findings indicate declining growth in the healthcare business of the major global technology firms, but more promising growth within life sciences areas.
The one-of-a-kind WITCH Report, which has been published since 2015, includes a comprehensive review of the financial and market performance of 12 global technology consulting firms in healthcare and life sciences. It provides a detailed review of market performance metrics, insights, and activities of Wipro, Infosys, TCS, Cognizant Technology Solutions, and HCL (WITCH), along with other industry leaders. Information covered in the WITCH Report includes financial performance, M&A activities, customer wins, partnerships, new product initiatives, and leadership announcements.
“Our mid-year review of 12 global technology consulting firms indicates declining growth rates in the past two quarters due to a variety of factors for most of the firms. Large-scale M&A in the health insurance industry, notably CVS-Aetna and Cigna-Express Scripts, has created pricing pressures and related challenges for some firms,” said Paddy Padmanabhan, CEO of Damo Consulting and author of The Big Unlock: Harnessing Data and Growing Digital Businesses in a Value-Based Era.
“In the payer space, several clients of technology providers are in-sourcing their operations which leads to further pressures on topline growth for firms with large exposure to this sector. At the same time, cost pressures faced by clients have resulted in demand slowdown for the short term. The life sciences segment seems to have done better as compared to the healthcare segment for most firms, with one firm being an exception. In terms of deal wins, publicly announced transactions were few.”
A challenge for many of the firms covered in the report is increased levels of H1B visa rejections which create pressures on hiring and margins for onsite client engagements. The ongoing opioid lawsuits could impact overall IT spend by Pharma companies facing monetary penalties, which in turn will impact consulting firms with exposure to these companies.
Compiled from publicly available information, the WITCH Report is a complimentary report that provides the most comprehensive overview of the healthcare market performance of the major global technology consulting firms. In addition to the WITCH companies, the report covers Accenture, Atos, Capgemini, DXC Technology, IBM, and NTT Data, Optum, and Deloitte.
To download the report, visit: https://www.damoconsulting.net/the-witch-report-2019-mid-year-review/
About Damo Consulting
Damo Consulting is a growth strategy and digital transformation advisory firm that works with healthcare enterprises and global technology companies. We help develop and implement digital transformation strategies and enable market growth strategies. We specialize in thought leadership led brand transformation and actionable healthcare market intelligence.
For media inquiries, write to us at firstname.lastname@example.org
Originally posted in CISION PRWeb