Despite a global pandemic and uncertain economic outlook across the globe, ServiceNow has been one of the few public companies to continue posting healthy results. It seems even a black swan event won’t stop the firm from racing towards in $10 billion market cap goal. The toolset – which continues to evolve capability well beyond its traditional ITSM background, now touting strengths in Governance, Risk, and Compliance, HR and a raft of other vital business service areas – has an exceptionally healthy, albeit competitive, services ecosystem packed around it.
Infosys, an IT Services major, has evolved its position as a leading ServiceNow services partner through the delivery of high-value assets, a track record of taking on complex engagements, and a willingness to loosen the purse strings to bolster capabilities. Most recently, the firm announced the intention to acquire GuideVision, a respected ServiceNow services boutique based out of the Czech Republic.
The acquisition is a shrewd move on multiple levels. Foremost, Infosys continues to commit to a well-thought out localization strategy, with a particular focus on growing economies in Europe – such as the UK, Germany, France, and the Nordics. GuideVision bolsters the local brains and brawn Infosys now has at its disposal, with offices based in Finland, Germany, Poland, and Hungary alongside the Czech Republic. Increasingly, enterprises are looking for nearshore and onshore capability to work on business-critical work – a trend accelerating in Europe, and a basic business requirement in some locations.
Second, the acquisition brings in highly-prized talent in one of the most punishingly competitive tech labor markets. An insatiable appetite for ServiceNow services continues to drive up talent costs – and according to executives on the buy-side and the sell-side, is likely to be challenging even with labor markets shaken up by the Covid-19 pandemic.
GuideVision also brings in additional assets and IP – such as smart data replicator SnowMirror – which can be integrated with Infosys’ growing arsenal of assets as part of its ESM Cafe offering. GuideVision’s body of services work has seen the firm support major brands such as T-Systems, Dr.Max, and OTP Bank in everything from process and workflow optimization, to complex rationalization projects as a result of merger and acquisition activity.
As ServiceNow evolves to become a staple of the modern digital enterprise, the services market driving it will quickly become a winner takes all game in key verticals and geographies. With this acquisition, Infosys is positioned to take a greater chunk of the booming European market – with the possibility of cornering key geographies in a similar fashion to Infosys’ almost unrivalled scale in Australia and New Zealand.
