Contact center and customer experience BPO firm Sitel is acquiring SYKES for $2.2 billion; the combination is expected to generate more than $4 billion in revenues in 2021. Link
Banking cloud provider Temenos has had a busy June. Societe Generale selected it for payment and cash management in Europe and Asia (link), Standard Chartered will extend the SaaS platform into its financing and securities offering (link), and Italian bank Credem and Australian challenger bank Virgin Money both went live this month (link, link).
The enterprise network has never been more fundamental to digital transformation, even though network managed services annual contract value has been declining since 2017.
The network is the factory floor of digital transformation. Enterprises are working to retool this factory to quickly and securely deliver services to customers and employees – wherever they are. The pandemic has only accelerated this trend, which is having a significant impact on network managed services providers – both MSPs and telcos.
As a result of this shift, network managed services annual contract value has been declining since 2017 (see Data Watch) due to productivity increases from software-defined network transformations and the move away from on-premises voice and collaboration systems to cloud-based ones.
This does not mean enterprises are not focused on the network. They are – and in a big way. What it means is that spending in this category is increasingly happening outside traditional managed services. Instead, it’s being spread across multiple systems integrators, MSPs, telcos and as-a-service providers – similar to what’s happening with infrastructure managed services as workloads migrate to and are built on the public cloud.