Persistent was selected by a Fortune-50 Technology company as the engineering partner for its Data Warehouse products, as well as its Mobile Application Development products. This is a USD 100 million deal over a five-year period and involves execution on a product roadmap as well as migration of end users to customers next-generation platform. As a part of the deal, Persistent has licensed the source code for providing extended support for the earlier version of the product for enterprise customers who do not wish to move to the next version.
EIIR POV: Good to see large software product engineering deals with carve out of sunset products are back .
Accenture to Accelerate Blue Yonders Development and Delivery of New Solutions; Companies Expand Relationship to Increase Adoption of Modern, Connected Supply Chains.
EIIR POV: One type of large engineering deal is 360 degree partnership btween ISVs and service providers like this deal.
#Service Provider Results
EPAM Q1 CY23 results. Revenue $1.21 B, -1.7% QoQ and 3.4% YoY Growth.
EIIR POV: EPAM Q1 CY23 results shock the digital engineering industry. From 50% YoY growth a year back to only 3.4% YoY growth now. This year's sales growth guidance is only 3% (Last year's growth was 28.4%).
Alten Results. Q1 2023 Revenue Euro 1.035 B. 15.7% YoY Growth.
EIIR POV: Apart from Indian pure play engineering service providers, European pure play engineering service providers are showing good growth despite macro uncertainities.
IBM expects AI to impact at least 7,800 jobs (which is 30% of 26000 HR jobs )at the company in HR over the next five years.
EIIR POV: I think it is a hope, not a plan. This is just an approximation and extrapolation of current trends for the next five years and signals 5% annual job loss due to chatGPT or Generative AI.. The actual numbers might not be that much or might take longer than five years. We don?t know what challenges will come up in scaling these early pilots around AI or AI implementation.
Infosys launched Infosys Topaz - an AI-first set of services, solutions and platforms using generative AI technologies.
EIIR POV: Service providers are launching their generative AI solutions.
Cisco To Start Manufacturing In India, To Set Up Plant In Tamil Nadu. Targets Over $1 Billion In Domestic Production And Exports.
EIIR POV: The trifecta of Indian R&D capabilities, manufacturing potential, and local market opportunities is creating an attractive value proposition for global MNCs to invest in India. Cisco is latest MNC to join the party.
Continental working on cost-efficient ADAS tech for Indian carmakers.
EIIR POV: Global R&D centers in India are working to launch India specifc solutions.
#Global MNC Engineering Expansion
Deloitte has acquired assets of Optimal Design, a product engineering services company specializing in the development of smart connected products and IoT devices.
EIIR POV: Global IT MNCs are expanding in engineering with acquisitions.
#Enterprise R&D Center Downsizing
LinkedIn will cut more than 700 jobs and shut down its China jobs app in the latest round of tech sector redundancies. They are expanding the use of vendors or external partners who will take new and existing work.
EIIR POV: Tech layoffs will lead to increase use of engineeing service providers when market picks up.
ESI Groups IC.IDO Weave accelerates product development and enterprise decision-making in the Industrial Metaverse. An all-inclusive workflow solution leveraging Immersive Virtual Prototyping for design and manufacturing engineering.
EIIR POV: Though metaverse buzz is down engineering service providers are investting in Industrial Metaverse solutions.