COMPANY PROFILEAcer IncorporatedREFERENCE CODE AFCD31

COMPANY PROFILE
Acer Incorporated
REFERENCE CODE: AFCD3128-E3A5-4DAB-8D1C-
32726B4473A8
PUBLICATION DATE: 09 Feb 2021
www.marketline.com
COPYRIGHT MARKETLINE. THIS CONTENT IS A
LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
OR DISTRIBUTED
A Progressive Digital Media business
http://www.marketlineinfo.com/
Acer Incorporated
TABLE OF CONTENTS
Acer Incorporated
© MarketLine
Page 2
TABLE OF CONTENTS
Company Overview
...............................................................................................
......... 3
Key Facts
...............................................................................................

.......................... 3
Business Description
...............................................................................................
...... 4
History
...............................................................................................
.............................. 5
Key Employees
...............................................................................................
.............. 22
Key Employee Biographies
.........................................................................................23
Major Products & Services
..........................................................................................24
SWOT Analysis
...............................................................................................
.............. 26
Top Competitors
.......................................................................................... .....
............ 29
Company View
...............................................................................................
............... 30
Locations And Subsidiaries
................................................................................. .......32
Acer Incorporated
Company Overview
Acer Incorporated
© MarketLine
Page 3

Company Overview
COMPANY OVERVIEW
Acer Incorporated (Acer or ‘the company’) carries out research,
design, marketing, sales and support of
IT products. Acer’s product portfolio comprises servers, ICT
devices, projector, tablet PC, personal
computer, LCD monitor, and smartphone. It offers services
including distribution of IT products, cloud
services, real estate services, information security management
and mobility applications. It also offers
software systems development, systems integration, system
operation services, value-added business
solutions and internet data center services. The company
markets products through Acer, Gateway, and
Packard Bell brands. Acer has its presence across the US,
Mainland China, Taiwan and Other countries.
The company is headquartered in Taipei City, Taiwan.
The company reported revenues of (Taiwanese Dollars)
TWD234,285.4 million for the fiscal year ended
December 2019 (FY2019), a decrease of 3.3% over FY2018. In
FY2019, the company’s operating margin
was 1.3%, compared to an operating margin of 1.5% in FY2018.
In FY2019, the company recorded a net
margin of 1.1%, compared to a net margin of 1.3% in FY2018.
The company reported revenues of TWD65,575.7 million for
the second quarter ended June 2020, an
increase of 34.2% over the previous quarter.
Key Facts
KEY FACTS
Head Office Acer Incorporated

8F, 88, Sec. 1
Xintai 5th Road
New Taipei
Taipei
New Taipei
Taipei
TWN
Phone 886 2 27195000
Fax
Web Address www.acer.com
Revenue / turnover (TWD Mn) 234,285.4
Revenue (USD Mn) 7,585.0
Financial Year End December
Employees 7,967
Taiwan Stock Exchange Ticker 2353
Acer Incorporated
Acer Incorporated
© MarketLine
Page 4
BUSINESS DESCRIPTION
Acer Incorporated (Acer or ‘the company’) is a global provider
of hardware, software, and services to
information technology (IT) industry. The company offers
marketing, research, design, sales and services
for its portfolio of products, including personal computers

(PCs), displays, projectors, servers, tablets, and
other smart devices. Acer has its presence across 160 countries.
The company operates its business through two reportable
segments: IT Hardware Products and Other.
Acer's IT Hardware Products segment provides marketing,
research, design of tablet, IT and PC
products. In FY2019, the IT Hardware Products segment
reported revenue of TWD208,951.58 million,
which accounted for 89.2% of the company's revenue.
The company's Other segment carries out distribution of IT
products, virtual reality devices, e-commerce,
cloud services, digital signage, real estate services activities
handheld devices and smart devices. In
FY2019, its Other segment reported revenue of TWD25,333.77
million, which accounted for 10.8% of the
company's revenue.
In addition, Acer offers information and communication
technology (ICT) solutions, including information
security management, mobility applications, software systems
development, systems integration, system
operation services, value-added business solutions, and internet
data center services. The company
includes a family of three brands, including Acer, Gateway, and
Packard Bell. The Acer brand offers
laptops, desktops, tablets, smartphones, monitors, projectors,
wearable devices, accessories, and
gaming. Key sub-brands include consumer-focused Aspire
series, and commercial focused TravelMate.
The Gateway branded products include notebooks, desktops,
and monitors. The Packard Bell brand
offers notebook PCs. The company’s major customers include
government, business, and education and

home users. The company holds important contracts with
leading companies including Microsoft Inc.
(software license agreement); IBM Corporation and Microsoft
Corp. (patent license agreement); and Bank
of Taiwan, Chinatrust, Taiwan Cooperative, Megabank, Taipei
Fubon, Taishin, Bank SinoPac, DBS,
Chang Hwa, Landbank, Taiwan Business, KGI and Agricultural
Bank of Taiwan (syndicated loan
agreement).
Geographically, Acer classifies its revenue into four segments:
the US, Mainland China, Taiwan and
Others. In FY2019, Others segment reported revenue of
TWD139,173.43.4million, which accounted for
59.4% of the company’s total revenue, followed by the US with
TWD51,412.49 million (21.9%), Taiwan
with TWD32,759.35 million (14%) and Mainland China with
TWD 10,940.06million (4.7%).
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 5
History
HISTORY
New Products/Services
Year: 2020

In January, the company launched the new ConceptD 7 Ezel
Series Convertible Notebooks, and the new
ConceptD 700 Workstation.
Year: 2020
In January, Acer launched B250i portable LED projector with
studio sound.
Year: 2020
In January, Acer launched new Spin 5 and Spin 3, the updated
models in its popular convertible notebook
PC line.
Year: 2020
In January, Acer launched the new USB-C based external
display for laptops.
Year: 2020
In June, Acer launched a Nitro 5 gaming laptop in India with
10th Generation Intel Core i7 H-Series
mobile processors.

Year: 2020
In June, Acer launched the Acer Veriton N series PCs in India.
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 6
Year: 2020
In September, Acer introduced two new gaming laptops,
Predator Helios 300 and Predator Triton 300 in
India.
Year: 2020
In November, Acer announced the launch of the Enduro N3
laptop in India.
Year: 2019
In January, the company launched the Chromebook 512 and the
Chromebook Spin 512, the 12-inch

Chromebook devices for educators.
Contracts/Agreements
Year: 2019
In March, the company collaborated with Envy to use Predator
Gaming Hardware in the US.
Year: 2019
In May, Acer launched two laptops which has AMD 2nd
generation Ryzen Mobile processors with
Radeon Vega graphics.
Year: 2019
In August, Acer launched a new range of Predator gaming
laptops in India.
Year: 2019
In August, Acer announced to launch new AMD Ryzen powered
notebooks.
Acer Incorporated

History
Acer Incorporated
© MarketLine
Page 7
Year: 2019
In September, Acer announced to introduce the Predator Triton
300 gaming notebook.
Year: 2018
In March, Acer partnered with Taipei Medical University
Hospital, Changhua Christian Hospital and
Kaohsiung Medical University Hospital to promote remote
health management and smart healthcare
services based on cloud.
Year: 2018
In May, the company launched the Predator Helios 500 and a
Helios 300 gaming laptops.
Year: 2018
In May, the company launched its 15-inch Convertible
Chromebook model in the market.

Year: 2018
In May, the company launched the Acer Chromebook Spin 13
and Chromebook 13 focussed on Business
use.
Year: 2018
In August, Acer launched the 15-inch Swift 5 notebook PC
weighing 990 gram.
Year: 2018
In August, Acer introduced the Acer OJO 500, the first mixed
reality and virtual reality headset.
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 8
Year: 2018

In August, Acer announced the launch of the Acer PL6610,
PL6510, SL6610 and the SL6510 laser
projectors for commercial and educational applications.
Year: 2018
In May, the company launched its new Predator Orion 5000
series gaming desktops.
Year: 2018
In May, the company introduced new Altos R880 F4 GPU server
powered with NVIDIA Tesla GPUs.
Corporate Changes/Expansions
Year: 2018
In March, the company's StarVR deployed VR entertainment
solution at Emaar Entertainment’s VR Park
at The Dubai Mall.
Year: 2018
In March, the company introduced the Acer Chromebook Tab 10
(D651N).
Year: 2018

In March, the company launched the latest wearable device, the
Leap Beads, for the Taiwan market.
Year: 2018
In April, the company launched the latest version of its Nitro 5
gaming series, lauded for its refined styling
and outstanding performance targeting casual gamers through
the latest 8th Generation Intel Core i7 and
Intel Core i7+ processors.
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 9
Year: 2018
In January, the company launched the New Swift 7, Redefining
the World's Thinnest Laptop.
Year: 2018
In January, the company launched new Nitro 5 Gaming Laptop.

Year: 2018
In January, the company launched a new version of the
Chromebook 11 with USB-C.
Year: 2018
In September, the company collaborated with Taiwan’s Yulon
Group, Taiwan’s automakers, to launch
self-driving concept car.
Year: 2018
In December, AOPEN, a subsidiary monitor brand of the
company, launched in India.
Year: 2018
In January, the company launched TravelMate X3410 windows
10 business laptops.
Year: 2017
The company introduced ultrathin gaming notebooks,
detachables, and all-in-one PCs with advanced

thermal technology. Also, Acer introduced a series of 10-inch
tablets, including the Iconia Tab 10 (A3-
A50) and the Iconia One 10 (B3-A40FHD) with dual micro-USB
ports.
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 10
Year: 2017
Acer selected Synaptics's Natural ID fingerprint sensors, a
highly-secure SentryPoint technology for its
new Switch 5 PCs.
Year: 2017
Acer introduced Nitro 5 notebook line for casual gaming.
Acquisitions/Mergers/Takeovers
Year: 2017
In October, the company acquired additional shares in StarVR
corporation from Starbreeze.

Corporate Awards
Year: 2017
In August, the company's short films Making Dreams Possible
and The Predator 21 X Design Story -
Facing Challenges Head On received Red Dot Awards.
Year: 2016
Acer launched Iconia One 8 (B1-850), an 8-inch media tablet
for families, children or novice users.
Year: 2016
grandPad and Acer entered into a strategic partnership to
provide safe and simple technology to its
consumers.
Year: 2016
Starbreeze and Acer boards approved the previously announced
joint venture for design, manufacturing,
promotion, marketing and sales of the StarVR Virtual Reality
(VR) Head-Mounted Display (HMD).
Acer Incorporated
History

Acer Incorporated
© MarketLine
Page 11
Year: 2016
grandPad expanded its service to Switzerland, through a
partnership with Swiss telecommunications
provider, Swisscom.
Year: 2016
Acer unveiled its Predator 21 X gaming laptop with an eye-
tracking technology and GPU updates to the
Predator 15/17 series notebooks.
Year: 2015
Acer's subsidiaries, MPS Energy and BYOC ecosystem partner
Studio X-Gene, jointly announced a new
electric all-terrain vehicle (eATV).
Year: 2015
Acer announced new Predator 8 GT-810 gaming tablet, and
extended its high-octane Predator gaming

series.
Year: 2015
Acer expanded its smartphone business in the US with the
release of Liquid M220 smartphone to
Microsoft Stores. Acer also expanded its Liquid wearable line-
up with the addition of Leap Active for
socially active young-minded consumers, the Leap Fit for
health-conscious consumers, and the Leap
Curve with a unique curved screen for urban style-seekers.
Year: 2015
The company launched two new cloud application solutions,
including abPBX plus series for enterprises
and aBeing series for individuals and other working
environments.
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 12
Year: 2015

Acer in partnership with BOOKOFF, a major bookseller in
Japan, expanded its Liquid smartphones into
Japan. In the same month, the company expanded its line of
Chromebooks for the education market with
the addition of Acer Chromebook C910 and Acer Chromebook
C740.
Year: 2015
Acer acquired Xplova, a GPS cycling computer brand. This
acquisition is expected to enhance the
company's presence in the sports industry.
Year: 2015
Acer partnered with Octon to expand its BYOC solutions into
the field of telecommunications.
Year: 2015
Acer established Acer Cloud Technology (Chongqing) in
Xiantao Big Data Valley, Chongqing, China and
expanded its BYOC operations in China.
Year: 2015
The company extended its Predator gaming monitor lineup,

including the curved Predator Z and the flat-
panel Predator XB1, featuring NVIDIA G-SYNC.
Financing Agreements
Year: 2015
In August, the company along with Dentsu Ventures, and KDDI
announced to invest US$11 million in Jibo
Inc.
Year: 2015
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 13
In June, Acer and Vedantu entered into a partnership to offer
monthly tuitions for NTSE and PSA to
students.
Year: 2014
Acer announced a cloud technology license agreement with an
international customer for its cloud
platform business. Also, Acer won a contract from the Victoria

Police in Australia to provide hardware and
services for its state-wide IT infrastructure. Under the contract,
Acer will supply 11,500 units of the Veriton
X4630 desktop PCs bundled with 24" Acer BL246HL monitors,
together with 1,000 units of a blend of
TravelMate P653 and P645 notebooks across Victorian Police
stations throughout the state.
Year: 2014
Acer announced memorandum of understanding (MoU) with
MediaTek for cloud and wearable
technologies.
Year: 2014
Acer expanded its Chrome OS devices with the launch of
Chromebox CXI and Chromebook 11.
Year: 2014
The company expanded its geographic presence with the launch
of Android-powered Liquid E700
smartphones in Digicel stores in Bermuda, Jamaica and the
Turks and Caicos Islands.
Year: 2014

Acer launched Acer Chromebook 13, the first Chromebook
powered by NVIDIA Tegra K1 mobile
processor. This is expected to enhance the company's market
position in the US.
Year: 2014
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 14
Acer launched Iconia Talk S, a tablet that supports 4G LTE and
enhanced its Iconia tablet family product
line.
Year: 2014
Acer launched its new visual identity for build your own cloud
(BYOC) as part of its business
transformation to being a hardware, software and services
company.
Year: 2014

Acer introduced Aspire R 13 and Aspire R 14 Series, two new
convertible notebook lines that can
transition between various notebook and tablet style modes of
operation.
Year: 2014
The company launched Acer TA272 HUL Android All-in-one
(AIO) that combines an ultra-high resolution
27-inch display and NVIDIA Tegra quad-core processor in
2014. In the same year, Acer introduced Acer
Liquid Z5, a 5-inch smartphone designed for the budget
conscious users and enhanced its liquid line of
smartphones.
Year: 2013
Acer partnered with Intel Education Software to offer school
solutions. Acer also collaborated with
Taiwan's National Cheng Kung University to design and
architecture for high performance computing.
Year: 2013
Acer enhanced its Aspire S7 Ultrabook with improved battery
life, a refined electroluminescent (EL)
backlit keyboard, and second generation Acer TwinAir cooling
with less fan noise.

Year: 2013
The company entered in to the professional workstation market
with the Veriton P series and new Altos
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 15
servers.Thailand's Rangsit University selected Acer Smart
Cloud Builder to host its administration and
research applications. Acer announced support for the Intel
Xeon E5-2600 v2 series processor across its
line of high performance Altos servers and Veriton
Workstations.
Year: 2013
Acer announced cross-platform support for AcerCloud, the
company's file sharing and media
management solution, free to Acer customers. In addition, the
company launched the Aspire Z3 series all-
in-one PC for home entertainment and everyday computing.
Acer launched its Acer C720 Chromebook
line that features processors based on the Haswell micro-
architecture.

Year: 2012
Acer formed a global alliance with thin client
hardware/software provider, Devon IT, to address the
increasing needs of commercial IT customers. The partnership
aims at providing shared resource
computing (SRC) solution in next generation business
environment.
Year: 2012
The company launched the light emitting diode (LED)-laser
hybrid projector K520. Subsequently, Acer
also introduced ICONIA TAB A510 Olympic Games Edition
tablet PC; Aspire V5 Series notebook; and
Aspire Timeline Ultra M3 ultrabook. Subsequently, the
company also unveiled its series of Windows 8-
based products, which includes the premium Aspire S7
Ultrabook, ICONIA W Series tablets.
Year: 2012
The company launched the H6 Series LED-backlit monitors,
featuring a built-in Mobile High-Definition
Link (MHL) that directly synchronizes and displays content
from any MHL supported mobile devices.
Year: 2011

Acer partnered with Ducati Corse, under which the company
became the official partner of the motorcycle
company. The partnership covers the supply of hardware
including Acer branded clients and Gateway
servers.
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 16
Year: 2011
Acer reorganized the former IT product global operations into
two independent entities: Touch Business
Group and PC Global Operations. The newly founded Touch
Business Group comprised of the former
tablet PC and smartphone teams, while the PC Global
Operations consisted of the main PC product lines.
Subsequently, the company completed the assembly of 177
TFLOPS Advanced Large Parallel System
(ALPS) supercomputing system for Taiwan's National Center
for High-performance Computing.
Year: 2011

The company launched Acer Cloud Competency Center in
Taoyuan, Taiwan. The center would offer
proof of concept designs and new clustered computing solutions
including high-performance computing
and cloud solutions.
Year: 2011
Acer launched Acer XB280HK gaming monitor equipped with
NVIDIA G-SYNC technology.
Subsequently, Acer launched Acer Liquid Leap, a touch-screen
smart-band with fitness tracking, phone
and SMS notification, and music control.
Year: 2010
Acer and Founder Group, one of China's high-tech companies,
signed MoU to enhance and expand ICT
business in China.
Year: 2010
Acer was awarded the contract for Taiwan's National Center of
High-performance computing's overhaul of
its major supercomputer in Taichung, central Taiwan.
Year: 2010

The company and Founder Technology strengthened their long
term PC business co-operation. As part
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 17
of the co-operation, Acer would utilize Founder's channel
network, into the tier four to six cities, rural
markets and commercial market segment, especially in small
and medium business accounts.
Year: 2010
The company strengthened its presence in the mobile computing
market with the launch of ICONIA, its
tablet PC.
Year: 2010
Acer introduced Clear.fi, a media sharing system where
multimedia content is brought into a single
system with a common interface to meet the demand for multi-
platform content.

Year: 2010
Acer launched the new Timeline series notebook, Aspire
3811TZ/TZG, made with materials free of
polyvinyl chloride and brominated flame retardants in 2010.
Also, the company launched new high-
density servers equipped with NVIDIA Tesla 20-series graphic
processing units (GPUs).
Plans/Strategy
Year: 2010
Acer planned to build a new global IT manufacturing center
with its partners and set up a second base in
China in the city of Chongqing.
Year: 2009
Acer joined Open Handset Alliance, a group of mobile and
technology leaders who work towards
changing the mobile experience for consumers.
Year: 2009
The company released a set of Tempo smartphone series,
including the M900, the F900, the X960, and
the DX900. Subsequently, the company introduced its new
smartphone Liquid series: the first Qualcomm

Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 18
Snapdragon processor based and Android 1.6 high definition
smartphone.
Year: 2008
Acer's subsidiaries, Acer Europe and Gateway acquired a
controlling stake in PB Holding, the parent
company of Packard Bell. The company acquired E-Ten
Information Systems, a handheld device
company based in Taiwan.
Year: 2008
The company introduced the Aspire PREDATOR line of desktop
computers to PC gaming enthusiasts.
Subsequently, Acer along with its partners introduced Acer -
Hitachi SMS 100, a storage product designed
for the needs of small and medium sized businesses in 2008.
During the same year, Acer added
ColorBoost II and EcoProjection technologies to its video
projectors.

Year: 2007
Acer acquired iGware, a cloud technology company based in the
US for $320 million.
Year: 2007
Acer acquired Gateway, one of the largest PC companies in the
US.
Year: 2007
Acer was awarded the Bangkok Metropolitan Authority tender
to supply 21,000 PCs and servers for the
School Computer Development Project.
Research Grant
Year: 2007
Acer Intellectual (Chongqing), a global R&D center was
inaugurated to enhance the company's
development in smartphones and tablet PCs. The center would
cooperate with Chongqing municipal
government and China Mobile in researching and developing
smart handheld devices as well as related
Acer Incorporated
History

Acer Incorporated
© MarketLine
Page 19
software and services.
Year: 2006
The company and Yahoo! formed a multi-year partnership to set
Yahoo! as the default search engine on
all Acer PCs sold globally.
Others
Year: 2006
Acer became the first company to provide a range of notebooks
with dual-core processing technology
covering all market segments.
Year: 2003
Acer launched the Ferrari 3000, a Ferrari-red color notebook.
Year: 2002
Acer Foundation and Cadence Design Systems formed a
strategic alliance in Taiwan.

Year: 2001
Acer's affiliate, Acer Communications & Multimedia, changed
its name to Benq and began operations as
an independent brand.
Patent Grant
Year: 2001
Acer licensed the Palm OS operating system, which helped the
operating system to expand into the Asia-
Pacific and Chinese markets.
Stake Sale
Year: 2001
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 20
The company sold 100% of its holdings in Taiwan
Semiconductor Technology to Amkor Technology.

Year: 2000
Acer peripherals entered into a strategic alliance with Gallant
Precision Machining
Year: 2000
Acer established its design and manufacturing services and Acer
brand operations units and separated
its original equipment manufacturing (OEM) and branded
businesses from these units.
Stock Listings/IPO
Year: 2000
The company privatized its Mexican Stock Exchange listed
subsidiary, Acer Computec Latino America.
Year: 1999
Acer and Computer Associates, a business computing software
and services provider, entered into a joint
venture to capture an increasing share of Asia's growing market
for business management software.
Also, Acer and Cisco Systems signed a memorandum of
understanding (MoU) to promote Cisco's IP
Telephony solutions in Taiwan. Acer and General Electric (GE)
information services also formed an
alliance to set up business-to-business (B2B) e-commerce
services in the Asia-Pacific region.

Year: 1997
The company acquired of Texas Instruments' mobile computing
business.
Year: 1990
The company acquired Altos, a manufacturer of UNIX computer
systems.
Stock Listings/IPO
Acer Incorporated
History
Acer Incorporated
© MarketLine
Page 21
Year: 1988
Acer's initial public offering (IPO) on the Taiwan Stock
Exchange took place.
Year: 1987
The company started trading under the Acer brand and officially

changed its name from Multitech to Acer.
Year: 1985
The company began its expansion into overseas markets by
setting up branch offices in Japan and
Germany.
Incorporation/Establishment
Year: 1976
Mr. Stan Shih, together with his wife, Ms. Carolyn Yeh, and
five other partners co-founded Acer. The
company was originally known as Multitech.
Year: 1976
Acer designed Taiwan's first mass produced computer product
for export.
Acer Incorporated
Key Employees
Acer Incorporated
© MarketLine
Page 22
Key Employees

KEY EMPLOYEES
Name Job Title Board
Jason Chen Chairman, Chief Executive Officer Executive Board
Stan Shih Director Non Executive Board
F.C. Tseng Director Non Executive Board
Ji-Ren Lee Director Non Executive Board
Carolyn Yeh Director Non Executive Board
Philip Peng Director Non Executive Board
Emmanuel Fromont President-EMEA, Vice President Senior
Management
Ben Wan President-E-Business Senior Management
Tiffany Huang Co-Chief Operating Officer Senior Management
Maverick Shih President Senior Management
Jerry Kao Co-Chief Operating Officer Senior Management
Gregg Prendergast President-Pan-America
Operations
Senior Management
Andrew Hou President-Pan-Asia Pacific
Operations
Senior Management
Victor Chien President-Digital Display Business Senior
Management
RC Chang Chief Technology Officer Senior Management
Sophia Chen Accounting Officer Senior Management
George Huang Director Non Executive Board
San-Cheng Chang Director Non Executive Board
Ching-Hsiang Hsu Director Non Executive Board
Charles Hsu Director Non Executive Board
Meggy Chen Chief Financial Officer Senior Management
Simon Chang Director Non Executive Board

Sudhir Goel Chief Business Officer, Acer India Senior
Management
Lydia Wu General Counsel Senior Management
Acer Incorporated
Acer Incorporated
© MarketLine
Page 23
KEY EMPLOYEE BIOGRAPHIES
Jason Chen
Board:Executive Board
Job Title:Chairman, Chief Executive Officer
Since:2017
Mr. Chen has been appointed as the Chief Executive Officer and
Chairman at Acer since 2017.
Previously, Mr. Chen was the Senior Vice President of
Worldwide Sales and Marketing and Vice
President at TSMC. Before that, he was the General Manager
and Vice President in Intel.
Acer Incorporated

Acer Incorporated
© MarketLine
Page 24
MAJOR PRODUCTS & SERVICES
Acer Incorporated (Acer or 'the company') manufactures and
supplies information technology products
and services. The major products, services and brands offered
by the company include the following:
Products:
Desktops
Notebooks
Tablet PCs
Servers and Storage
Handhelds
Monitors
Projectors
LCD TV
Displays
Softwares
Batteries
Adapter and Power Kits
Bags and Covers
Storage and Drives
Keyboards
Docks and port Replicators
Cables
Cords
Clips
Projector Mounts and Lamps

Chromebooks
Services:
Distribution of IT products
Cloud Services
Real estate Services
Information Security Management
Mobility Applications
Software Systems Development
Systems Integration
System Operation Services
Value-added Business
Solution
s
Internet Data Center Services
Brands:
Acer
Acer Incorporated

Acer Incorporated
© MarketLine
Page 25
Gateway
Packard Bell
Eten
eMachines
Acer Incorporated
SWOT Analysis
Acer Incorporated
© MarketLine
Page 26
SWOT Analysis
SWOT ANALYSIS
Acer Incorporated (Acer or 'the company') is engaged in the

research, design, marketing, sales and
support of personal computers (PCs), tablets, smartphones,
liquid crystal display (LCD) monitors, servers,
projectors, and information and communication technology
(ICT) devices. Awards and recognition, and
wide geographic presence are the company’s major strengths,
even as trade receivable remains a cause
for concern. Global IT hardware market, global IoT market, and
global software market are likely to offer
growth opportunities for the company. However, the impact of
COVID-19, adverse trends in the PC
market, and complexities in IT environment could affect its
business operations.
Strength
Awards and recognition
Wide geographic presence
Weakness
Trade receivables
Opportunity

Global IT hardware market
Global IoT market
Global software market
Threat
Adverse trends in the PC market
Complexities in IT environment
Coronavirus (COVID-19) Outbreak
Strength
Awards and recognition
Acer has received various awards and recognitions in the last
few years and occupies a dominant
position in the global market as one of the provider of
hardware, software and services to information
technology (IT) industry. The company’s product portfolio
comprises server, ICT devices, projector, tablet
PC, personal computer, LCD monitor, and smartphone. In
FY2019, the company has received iF Design
awards for products include, Predator X gaming desktop, Swift
7 ultrathin notebook, Predator Triton 900
gaming notebook, Acer smart speaker and Predator Thronos

gaming chair. Acer’s ultrathin and light swift
7 has been awarded CES 2019 Innovation award. In FY2018, the
company’s Acer OJO 500 Windows
Mixed Reality headset, Swift 7 ultrathin laptop, and Acer
Chromebook 11 received Good Design Awards
of 2018 in Japan. Its Acer Chromebook 11, Acer Chromebox,
Swift 7 and Switch 7 Black Edition
notebooks received d&i Awards 2018. The company’s Predator
Triton 700 notebook, Predator Galea 500
headset, Nitro 5 notebook, Nitro RG0 and VG0 series monitors,
Swift 5, Spin 5 convertible, Swift 7 series
of notebooks, Veriton N series desktops, and VL7860 and C200
projectors received 13 Red Dot Design
Awards 2018in Germany.
Wide geographic presence
The company operates on a global scale. Wide spread
geographic presence insulates it from region
specific risks and also facilitates stable revenue growth. It sells
its products in consumer and business
Acer Incorporated

SWOT Analysis
Acer Incorporated
© MarketLine
Page 27
markets through sales offices in Taiwan and through its sales
subsidiaries and independent distributors
overseas. Acer has a diversified geographic presence. The
company operates in the US, Mainland China,
Taiwan, and Others. Its largest geographic market, Others,
accounted for 59.4% of its total revenue in
FY2019. This was followed by the US (21.9%), Taiwan (14%)
and Mainland China (4.7%).
Weakness
Trade receivables
Increasing receivables could adversely affect the company’s
cash flows. Acer has reported increase in its
trade receivables. The company’s trade receivables stood at
TWD49,466.46 in FY2019, as compared to
TWD47,536.3 million in FY2018. The company maintains a

substantial amount of current assets in the
form of receivables. In the FY2019, the company’s trade and
other receivables accounted for 40.63% of
its current assets. Such increasing accounts receivable reflects
inefficient credit management by the
company. In the backdrop of recovering economic slowdown,
the probability of defaults by any of
creditors increased may impact the overall financial position of
the company.
Opportunity
Global IT hardware market
The company is likely to benefit from the growing hardware
infrastructure market. According to in-house
research, the global IT hardware market is expected to grow to
reach a value of US$300.6 billion in 2023.
The client computing & peripherals segment of IT hardware
market accounted for 52.7% of market share,
followed by server computing with 19.3%, network
infrastructure with 13.8%, storage infrastructure with
10.4% and security hardware & appliances with 3.7%. The US
is projected to dominate the market with a
share of 34.9%, followed by Asia-Pacific (30.4%), Europe

(25.5%), Middle East (0.3%), and rest of the
world (9%). The company’s IT hardware products include
battery products, transformers, fans, motors,
solenoids, driver, switches and other related products.
Global IoT market
IoT refers to the holistic interconnection of services,
applications, business processes, people and
devices with a network or Internet in order to share information
and perform certain tasks without any
human intervention. According to in-house research, the global
IoT enterprise market is forecast to reach
US$318 billion by 2023. The software and service category will
account for 71.2% of the expenditure on
IoT by 2023, followed by devices (17.3%), and connectivity
(11.6%). The company produces IoT enables
devices including Chromebooks, Tablets, PCs and smartphones.
Global software market
The company is likely to benefit from the growing software
market. According to in-house research, the
global software market is expected to reach US$425.2 billion by
2022. The software infrastructure

accounted for a market share of 46.3%, followed by enterprise
applications (31.1%), information
Acer Incorporated
SWOT Analysis
Acer Incorporated
© MarketLine
Page 28
management (13%), security software (7.1%) and enterprise
mobility management (2.4%). The US
dominated the software market with a share of 31.4%, followed
by Europe (30.5%), Asia-Pacific (25.5%),
Middle East (4.1%), and Rest of the World (8.5%). The
company developed software for Windows,
Android, and third party operating system.
Threat
Adverse trends in the PC market

The global PC market has been decelerating recently. A broader
slowdown in the economy, particularly in
developing economies that had been growing very quickly in the
recent past, and new competition from
the iPad, other tablets, and smartpho nes are contributing to
deteriorating PC sales. Global economic
issues like falling commodity prices and weak international
currencies, as well as social disruptions in
EMEA and Asia-Pacific that disrupted foreign markets, were a
large factor behind weak PC sales. The
adverse impact of the continued PC sales declines will be
detrimental for the company.
Complexities in IT environment
The company offers complex IT solutions to its customers,
which makes it prone to various risks arising
from IT complexity. For example, in spite of testing and quality
control, the company cannot guarantee the
absence of shortcomings in the present versions or advanced
versions of its products. It could face
challenges if products contain undetected errors or if service s
fail to meet customer expectations. The
deployment of products across a wide range of platforms,
integration of software with third-party software

applications and databases are some of the major challenges for
the company. The company requires
huge investments for the successful implementation of software
and integration of various product
components. These complexities restrict the company’s ability
to satisfy the requirements of IT
infrastructure.
Coronavirus (COVID-19) Outbreak
The coronavirus (COVID-19) pandemic affected global
economy severely. It resulted in huge human loss,
and protection measures such as isolation, lockdown,
quarantine, and social distancing to contain the
spread of the virus brought economic activity to a standstill. It
affected international economic and trade
functions, ranging from tourism and hospitality, medical
supplies and other global value chains, consumer
electronics, and financial markets to energy, transportation,
food, and various social activities. Based on
the current state of affairs and the containment measures
required in the second quarter in most
countries, World Economic Outlook report for April forecast
that global growth will be -3% in 2020
compared to 2.9% in 2019. If the pandemic continues to ravage

the world in the second half of this year,
growth is expected to fall another 3% in 2020, and if it
continues into 2021, the global economy may fall
8%. Advanced Economies, and Emerging Markets and
Developing Economies are projected to report
growth of –6.1% and –1.0% in 2020, compared to 1.7% and
3.7%, respectively, in 2019. The outbreak of
COVID-19 has impacted the global economy, due to which
company may be impacted and may face
interruptions in its operations.
Acer Incorporated
Top Competitors
Acer Incorporated
© MarketLine
Page 29
Top Competitors
TOP COMPETITORS

The following companies are the major competitors of Acer
Incorporated
Apple Inc
ASUSTeK Computer Inc.
Dell Technologies Inc.
Fujitsu Limited
HP Inc.
Samsung Electronics Co Ltd.
Sony Corporation
Toshiba Corporation
Acer Incorporated
Company View
Acer Incorporated
© MarketLine
Page 30
Company View
COMPANY VIEW

A statement by Mr. Jason Chen, the Chairman and Chief
Executive Officer at Acer Incorporated, is given
below. The statement has been taken from the company's 2019
annual report.
Acer has made significant progress with the dual transforma -
tion of our core business and new
initiatives in 2019, and we are pleased to share with you key
developments that dem - onstrate the
forward-looking mindset of a sustainable com - pany.
Opportunities as well as challenges have arisen, in
fact, the industry's CPU supply issue that began in late 2018 per
- sisted throughout 2019, and has been
reflected in our con - solidated revenues, which was down
slightly year-over-year at NT$234.29 billion,
with net income of NT$2.63 billion, and earnings per share
(EPS) at NT$0.87.
The pursuits in technological innovation, broadening the
boundaries of the PC business and new
markets, and creat - ing multiple growth engines are the
foundations of Acer's dual transformation. In the
PC business we have focused on segments with growth
opportunities, such as ultra-slim note - books

and gaming PCs. Our efforts have been rewarded with year-on-
year growth for Acer gaming PC and
ultrathin note - book shipments exceeding the industry (Source:
FY2019, GfK & NPD), and ranking No. 2
in Taiwan patent applications with 565 filings – up 19% from
the previous year. At the same time, Acer's
corporate responsibility efforts have consistently been
recognized by global sustainability indices that
benchmark environmental, social and governance (ESG)
performance of organizations. For the sixth
consecutive year we have been listed in the Dow Jones
Sustainability Indices (DJSI) Emerging Markets
Index.
In the gaming field, Acer has created an ecosystem with pow -
erful PCs and cool gadgets, esports
events, and an esports social platform. Our flagship Predator
PCs, and Predator Thro - nos gaming chair
provide the ultimate gaming experience. We not only sponsored
esports events but also hosted our own
Asia Pacific Predator League with growing success. The 2019
tournament drew 3,530 teams who
competed for months and battled for the championship in
Thailand. The 2020 fi - nals will bring the league
to a higher level with almost 20,000 tickets sold already.

Finally, Planet9 is our new brand and lat - est
venture in gaming announced in September. Currently in open
beta stage, it is an open community
platform that allows players to build their team, train, and
challenge for victory. Through esports, Acer will
engage new audiences while bring - ing innovations and game-
changing designs first to market.
In the PC business we have continued to challenge oursel ves
and innovate. We maintained our leading
edge in the thinand-light notebook segment with the Swift 5 as
the world's lightest 14-inch notebook,
under 900 g. Worldwide, Acer gaming monitors ranked No. 1
(Q1-Q3 '19, IHS). As we con - tinue our
leadership in these two segments, we unveiled a new brand of
high-end PCs and monitors optimized for
creators such as graphic designers, filmmakers, engineers,
architects, developers and others. The
pristine yet powerful ConceptD portfolio, with quiet operation
and high color accuracy, has been hailed as
the Windows comparison of the Apple Mac, as well as receiving
more the 40 “Best of Show” accolades re
- cently at the CES consumer show, reflecting the media's posi -
tive reception of the brand.

Making up the other part of Acer's dual transformation is our
multiple business engines, which have kept
their momentum and have seen viable growth, these include
Acer Cyber Secu - rity, Acer Synergy Tech
(AST), Weblink International, and Acer e-Enabling Service
Business, and more. The strategy of list - ing
Acer Incorporated
Company View
Acer Incorporated
© MarketLine
Page 31
our subsidiaries is also progressing accordingly. During the
fourth quarter, AST became listed on the
emerging market of the Taipei Exchange, Weblink International
began its public offering process, with
more in the pipeline. These new businesses are also making
steadily increasing contribution to Acer's
overall revenues.

Many of our new initiatives are making good progress. Gad -
geTek captured great international media
attention with the launch in the Vatican of the “Click to Pray
eRosary” smart wearable for the Catholic
community, reaping 2500 media ar - ticles. In the biotech realm,
we forged a cross-industry coop - eration
with Novartis Taiwan, where the companies will focus on
artificial intelligence (AI) technology in areas
such as clini - cal trial design, disease detection, and patient
care integra - tion. Acer and Novartis will
benefit from each other's global operations to bring smart
medical products to markets, forming a win-win
opportunity.
More exciting developments of our AI-based technologies
include the indoor smart air monitor solution,
developed by our AI research team in collaboration with experts
in the field of air quality. Plans are in
place to serve 1300 locations including schools in mid and
southern Taiwan in 2020. Acer will provide a
one-stop shop air quality improvement solution from detection,
data analytics, reporting, solution, to
maintenance. Also, in the realm of smart cities, following the
success of Taiwan's first roadside Smart
Parking Meter BOT project in Tainan by Acer ITS, more smart

parking meters will be promoted to be
implemented in other cities.
Without a doubt, Acer has so much under development and we
are constantly seeking for new prospects.
With your trust and support, Acer's goal is to bring higher value
to our customers, shareholders and
employees, and to become an indispensable part of life.
Thank you.
Acer Incorporated
Acer Incorporated
© MarketLine
Page 32
LOCATIONS AND SUBSIDIARIES

Head Office
Acer Incorporated
8F, 88, Sec. 1
Xintai 5th Road
New Taipei
Taipei
New Taipei
Taipei
TWN
Phone:886 2 27195000
www.acer.com
Other Locations and Subsidiaries
Acer Africa (Pty) Ltd
Acer House
Naivasha Road, Sunninghill, Ext. 85
sandton
sandton
ZAF
Phone:27 112336100
Fax:27 11 233
www.acer.co.za

Acer America Corporation
333 W. San Carlos Street
Suite 1500
San Jose
California 95110
USA
Phone:1 408 533 7700
Fax:1 408 533 4555
http://us.acer.com
Acer Computer (Switzerland) AG
Moosmattstrasse 30
8953 Dietikon
CHE
Phone:41 44 745 58 58
Fax:41 44 742 06 16
http://http://www.acer.ch/
Acer Incorporated
3F., No.139, 300
Minzu Road
East District
Hsinchu
Hsinchu
TWN

Acer Incorporated
3F., No.371, Sec. 1
Wenxin Road
Nantun
Nantun
TWN
Acer Incorporated
4F.-2, No.38
Xinguang Road
Lingya District
Kaohsiung
Kaohsiung
TWN
Acer Incorporated
No.138
Nangong Road
Acer India (Pvt) Ltd
6th Floor, No.13
Embassy Heights, Magrath Road

Acer Incorporated
Acer Incorporated
© MarketLine
Page 33
Luzhu Township
Taoyuan
Taoyuan
TWN
Bangalore
Karnataka
Bangalore
Karnataka
IND
Phone:91 80 39408700
Fax:91 80 25329535
www.acer.co.in
Acer Sales & Services Sdn. Bhd
Level 24, Bangunan AmFinance

No. 8 Jalan Yap Kwan Seng
Kuala Lumpur
Kuala Lumpur
MYS
Phone:60 3 2162 1388
Fax:60 3 2162 4949
www.acer.com.my
Gateway, Inc.
7565 Irvine Center Drive
Irvine
California
Irvine
California
USA
Phone: 949 4717000
www.gateway.com
A Progressive Digital Media business
John Carpenter House, John Carpenter Street, London, United
Kingdom, EC4Y 0AN
T: +44 (0) 203 377 3042 | F: +44 (0) 870 134 4371 | E:

[email protected] | W: www.marketline.com
Company Overview Key Facts Business Description History
Key Employees Key Employee Biographies Major Products &
Services SWOT Analysis Top Competitors Company View
© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT
AND IS NOT TO BE PHOTOCOPIED Page | 1
MarketLine Industry Profile
IT Services in South Africa
April 2020

Reference Code: 0044-2313
Publication Date: April 2020
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT
AND IS NOT TO BE PHOTOCOPIED
http://www.marketlineinfo.com/
Industry Profiles

1. Executive Summary
1.1. Market value
The South African IT services industry grew by 10.7% in 2019
to reach a value of $7.7 billion.
1.2. Market value forecast
In 2024, the South African IT services industry is forecast to
have a value of $13.1 billion, an increase of 70.1% si nce
2019.
1.3. Category segmentation
Infrastructure services is the largest segment of the IT services
industry in South Africa, accounting for 58.1% of the
industry's total value.
1.4. Geography segmentation
South Africa accounts for 0.6% of the global IT services
industry value.

1.5. Market rivalry
The IT services industry is evolving from offering services such
as outsourcing, which improve productivity and
efficiency, to providing value-added services such as analytics
consulting. This has increased rivalry as players seek to
capture a share of these higher margin sectors.
1.6. Competitive Landscape
The South African IT services industry has experienced strong
growth overall during the historic period. The industry
consists of four main leaders, Accenture plc, International
Business Machines Corporation, Hewlett Packard Enterprise
Company and Capgemini SE. The industry leaders are based in
Ireland, the US and France, indicating the well-
diversified regions the industry players are operating from.
Most of the leading players in the market have a strong
presence in the market, which was gained through diversified
product portfolio, strong research and development
(R&D) capabilities and strong geographic presences. In
addition, the IT services industry in general consists of debt
offerings, acquisitions and finance ventures, as it is the primary
characteristic of companies operating in this market
and one of the most important techniques of raising capital.

Industry Profiles
TABLE OF CONTENTS
1. Executive Summary2
1.1. Market value
...............................................................................................
................................. 2

...............................................................................................
................... 2
...............................................................................................
................ 2
...............................................................................................
............. 2
1.5. Market rivalry
...............................................................................................
................................ 2
1.6. Competitive Landscape
...............................................................................................
................ 2
2. Market Overview7
2.1. Market definition
...............................................................................................

........................... 7
2.2. Market analysis
...............................................................................................
............................. 7
3. Market Data9
3.1. Market value
...............................................................................................
................................. 9
4. Market Segmentation10
...............................................................................................
.............. 10
...............................................................................................
........... 11
5. Market Outlook12

...............................................................................................
................. 12
6. Five Forces Analysis13
6.1. Summary
...............................................................................................
.................................... 13
6.2. Buyer power
...............................................................................................
................................ 14
6.3. Supplier power
...............................................................................................
............................ 16
6.4. New entrants
...............................................................................................
............................... 17
6.5. Threat of substitutes
...............................................................................................
................... 19

6.6. Degree of rivalry
...............................................................................................
......................... 20
7. Competitive Landscape21
7.1. Who are the leading players?
...............................................................................................
..... 21
Industry Profiles
7.2. What strategies do the leading players follow?
......................................................................... 21

7.3. What strategies do the leading players follow (continued)?
...................................................... 22
7.4. What has been the recent M&A activity?
.................................................................................. 23
8. Company Profiles25
8.1. International Business Machines Corporation
........................................................................... 25
8.2. Accenture plc
...............................................................................................
.............................. 31
8.3. Capgemini SE
...............................................................................................
............................. 36
8.4. Hewlett Packard Enterprise Company
...................................................................................... 40
9. Macroeconomic Indicators44

9.1. Country data
...............................................................................................
............................... 44
Appendix 46
Methodology
...............................................................................................
.............................................. 46
9.2. Industry associations
...............................................................................................
.................. 47
9.3. Related MarketLine research
...............................................................................................
..... 47
About MarketLine
...............................................................................................
...................................... 48

Industry Profiles
LIST OF TABLES
Table 1: South Africa IT services industry value: $ billion,
2015–19 9
Table 2: South Africa IT services industry category
segmentation: $ billion, 2019 10
Table 3: South Africa IT services industry geography
segmentation: $ billion, 2019 11
Table 4: South Africa IT services industry value forecast: $
billion, 2019–24 12
Table 5: International Business Machines Corporation: key facts

25
Table 6: International Business Machines Corporation: Annual
Financial Ratios 28
Table 7: International Business Machines Corporation: Key
Employees 29
Table 8: International Business Machines Corporation: Key
Employees Continued 30
Table 9: Accenture plc: key facts 31
Table 10: Accenture plc: Annual Financial Ratios 33
Table 11: Accenture plc: Key Employees 34
Table 12: Accenture plc: Key Employees Continued 35
Table 13: Capgemini SE: key facts 36
Table 14: Capgemini SE: Annual Financial Ratios 37
Table 15: Capgemini SE: Key Employees 38

Table 16: Capgemini SE: Key Employees Continued 39
Table 17: Hewlett Packard Enterprise Company: key facts 40
Table 18: Hewlett Packard Enterprise Company: Annual
Financial Ratios 41
Table 19: Hewlett Packard Enterprise Company: Key Employees
42
Table 20: Hewlett Packard Enterprise Company: Key Employees
Continued 43
Table 21: South Africa size of population (million), 2015–19 44
Table 22: South Africa gdp (constant 2005 prices, $ billion),
2015–19 44
Table 23: South Africa gdp (current prices, $ billion), 2015–19
44
Table 24: South Africa inflation, 2015–19 44
Table 25: South Africa consumer price index (absolute), 2015–
19 45

Table 26: South Africa exchange rate, 2015–19 45
Industry Profiles
LIST OF FIGURES
Figure 1: South Africa IT services industry value: $ billion,
2015–19 9
Figure 2: South Africa IT services industry category
segmentation: % share, by value, 2019 10
Figure 3: South Africa IT services industry geography

segmentation: % share, by value, 2019 11
Figure 4: South Africa IT services industry value forecast: $
billion, 2019–24 12
Figure 5: Forces driving competition in the IT services industry
in South Africa, 2019 13
Figure 6: Drivers of buyer power in the IT services industry in
South Africa, 2019 14
Figure 7: Drivers of supplier power in the IT services industry
in South Africa, 2019 16
Figure 8: Factors influencing the likelihood of new entrants in
the IT services industry in South Africa, 2019
17
Figure 9: Factors influencing the threat of substitutes in the IT
services industry in South Africa, 2019 19
Figure 10: Drivers of degree of rivalry in the IT services
industry in South Africa, 2019 20

Industry Profiles
2. Market Overview
2.1. Market definition
The IT services industry is valued as the combination of the
business process outsourcing (BPO) services market, the
application services market and the infrastructure services
market. Values include revenues generated from (a) signed
deals that remain under contract and (b) new contracts signed
within that particular calendar year.
The BPO services market is defined as the reveues from
services related to the following segments: customer
relationship management (CRM), finance and accounting,
human resources, knowledge process outsourcing, and
procurement and supply-chain.

The application services market is defined as the revenues from
services related to the following segments:
application development, application management and
application performance monitoring.
The infrastructure services market is defined as the revenues
from services related to the following segments: cloud
computing, data center & hosting services, IT management,
security and storage.
All currency conversions are at constant 2019 annual average
exchange rates.
For the purposes of this report, the global market consists of
North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United
States.
South America comprises Argentina, Brazil, Chile, Colombia,
and Peru.
Europe comprises Austria, Belgium, the Czech Republic,
Denmark, Finland, France, Germany, Greece, Ireland, Italy,

Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden,
Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India,
Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan,
Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United
Arab Emirates.
2.2. Market analysis
The South African IT services industry experienced very strong
growth during the historic period, which is expected to
continue over the forecast period, with slight variations due to
the COVID-19 outbreak.
The IT services industry is highly correlated with the gross
domestic product (GDP) of a country. This means that the IT
services industry will move according to GDP growth, due to
their positive correlation. In addition, as technological
advantages are increasing by the year, many businesses are

employing IT services of some sort, most importantly IT
infrastructure services, in order to be fully functional and
competitive. Thus, the IT services industry follows the same
curve as technology does, which means that the IT services
industry will be growing as technology grows, with slight
variations from country to country; however, the industry’s
growth rates will still be significant.
The South African IT services industry had total revenues of
$7.7bn in 2019, representing a compound annual growth
rate (CAGR) of 11.9% between 2015 and 2019. In comparison,
the Nigerian and Egyptian industries grew with CAGRs
of 10% and 19% respectively, over the same period, to reach
respective values of $3.2bn and $1.4bn in 2019.
Due to a number of high-level cybersecurity threats and the
interconnected nature of network technologies,
cybersecurity has become critical for many businesses. This has
driven growth in the service industry and encouraged
innovation and development within the field. As a response to
the increased threat of cyberattacks, many

Industry Profiles
governments have strived to implement regulations and offer
support, encouraging a demand for services of this
nature.
The infrastructure services segment was the industry's most
lucrative in 2019, with total revenues of $4.5bn,
equivalent to 58.1% of the industry's overall value. The BPO
services segment contributed revenues of $1.9bn in 2019,
equating to 25.2% of the industry's aggregate value.
Infrastructure services was the industry's most profitable
segment as IT infrastructure is necessary for the operation
and management of a company’s IT services, both internal and
external. Essential to any organisation, fully
functioning infrastructure delivers businesses’ IT requirements

to both employees and customers, rendering it of
absolute importance for any kind of business.
The performance of the industry is forecast to decelerate, with
an anticipated CAGR of 11.1% for the five-year period
2019 - 2024, which is expected to drive the industry to a value
of $13.1bn by the end of 2024. Comparatively, the
Nigerian and Egyptian industries will grow with CAGRs of
8.1% and 14% respectively, over the same period, to reach
respective values of $4.7bn and $2.7bn in 2024.
Demand for IT services is expected to rise in the coming years,
as many companies will employ working from home
schemes and business outsourcing in order to be able to cope
with potential virus outbreaks or any other kinds of
disruption. In order to do so, businesses will have to invest
heavily in IT and new technologies which will help them
carry on as usual, by working from remote locations or at home,
at any time. However, at the time of writing, it is
extremely difficult to predict how the industry will perform in
the coming years due to the widespread outbreak of
COVID-19. This novel coronavirus was declared a pandemic by
the WHO in March 2020. While the true impact of
COVID-19 is difficult to assess due to the nature in which the
situation is rapidly changing, it will undoubtedly have a

detrimental impact on this industry's performance.
Industry Profiles
3. Market Data
3.1. Market value
The South African IT services industry grew by 10.7% in 2019
to reach a value of $7.7 billion.
The compound annual growth rate of the industry in the period
2015–19 was 11.9%.

Table 1: South Africa IT services industry value: $ billion,
2015–19
Year $ billion ZAR billion € billion % Growth
2015 4.9 71.5 4.4
2016 5.6 80.3 5.0 12.4%
2017 6.2 90.1 5.6 12.2%
2018 7.0 101.1 6.2 12.2%
2019 7.7 111.9 6.9 10.7%
CAGR: 2015–19 11.9%
SOURCE: MARKETLINE
M A R K E T L I N E
Figure 1: South Africa IT services industry value: $ billion,

2015–19
SOURCE: MARKETLINE
M A R K E T L I N E
Industry Profiles
4. Market Segmentation
Infrastructure services is the largest segment of the IT services

industry in South Africa, accounting for 58.1% of the
industry's total value.
The Bpo services segment accounts for a further 25.2% of the
industry.
Table 2: South Africa IT services industry category
segmentation: $ billion, 2019
Category 2019 %
Infrastructure Services 4.5 58.1%
Bpo Services 1.9 25.2%
Application Services 1.3 16.7%
Total 7.7 100%
SOURCE: MARKETLINE
M A R K E T L I N E

Figure 2: South Africa IT services industry category
segmentation: % share, by value, 2019
SOURCE: MARKETLINE
M A R K E T L I N E
Industry Profiles
South Africa accounts for 0.6% of the global IT services

industry value.
China accounts for a further 10.5% of the global industry.
Table 3: South Africa IT services industry geography
segmentation: $ billion, 2019
Geography 2019 %
China 134.5 10.5
India 38.7 3.0
South Africa 7.7 0.6
Nigeria 3.2 0.2
Egypt 1.4 0.1
Rest Of The World 1,090.1 85.5
Total 1,275.6 99.9%

SOURCE: MARKETLINE
M A R K E T L I N E
Figure 3: South Africa IT services industry geography
segmentation: % share, by value, 2019
SOURCE: MARKETLINE
M A R K E T L I N E
Industry Profiles

5. Market Outlook
In 2024, the South African IT services industry is forecast to
have a value of $13.1 billion, an increase of 70.1% since
2019.
The compound annual growth rate of the industry in the period
2019–24 is predicted to be 11.1%.
Table 4: South Africa IT services industry value forecast: $
billion, 2019–24
Year $ billion ZAR billion € billion % Growth
2019 7.7 111.9 6.9 10.7%
2020 8.5 123.5 7.6 10.4%
2021 9.5 136.8 8.5 10.8%

2022 10.6 152.5 9.4 11.4%
2023 11.8 170.6 10.5 11.9%
2024 13.1 189.8 11.7 11.3%
CAGR: 2019–24 11.1%
SOURCE: MARKETLINE
M A R K E T L I N E
Figure 4: South Africa IT services industry value forecast: $
billion, 2019–24
SOURCE: MARKETLINE
M A R K E T L I N E

Industry Profiles
6. Five Forces Analysis
The IT services market will be analyzed taking providers of it
outsourcing & processing, it consulting & support and
cloud computing services as players. The key buyers will be
taken as businesses and government agencies, and
providers of hardware devices and software tools as the key
suppliers.
6.1. Summary
Figure 5: Forces driving competition in the IT services industry
in South Africa, 2019
SOURCE: MARKETLINE

M A R K E T L I N E
The IT services industry is evolving from offering services such
as outsourcing, which improve productivity and
efficiency, to providing value-added services such as analytics
consulting. This has increased rivalry as players seek to
capture a share of these higher margin sectors.
The IT services industry is fragmented, with small players
competing alongside large multinationals. Services have
become increasingly globalized and are likely to become
gradually automated, particularly due to the adoption of
cloud computing services. Buyers range in size. Larger buyers,
with greater financial muscle, exert more buyer power.
Brand recognition is of significant importance to customers and
many look to reputable companies for services. This is
particularly the case for players involved in IT outsourcing and
data processing, where consistent quality and security
are key factors in winning contracts.
Skilled employees, as suppliers of technical knowledge and
expertise, are an important input. Other inputs include

hardware components, which tend to be purchased from a sole
supplier, increasing their power. In contrast, some
companies engage in backwards integration with their own
hardware and software capabilities, which reduces their
reliance on external suppliers.
A substitute is to employ and train in-house staff to provide IT
services. In times of economic difficulty, some
companies may rely on existing staff rather than third-party
service providers. However, the services offered by
industry players do provide several key advantages. As such,
the threat from substitutes remains moderate.
Industry Profiles

6.2. Buyer power
Figure 6: Drivers of buyer power in the IT services industry in
South Africa, 2019
SOURCE: MARKETLINE
M A R K E T L I N E
Buyers range in size from small businesses to multinational
companies and government agencies. Larger buyers, with
greater financial muscle, exert more buyer power. Contracts
between industry players and buyers vary according to
the service provided. Some IT service contracts can last for
several years, which can translate into substantial
switching costs for buyers should they wish to terminate the
agreement early. However, consulting contracts tend to
be shorter and there is a growing trend towards shorter duration
contracts. Contracts with large customers are often
secured after a bidding process. Consequently, such customers
enjoy greater buyer power.

There are both small and large players in the market offering
slightly differentiated products, giving buyers the upper
hand, as they are able to choose from a variety of market
players. However, brand recognition is likely to be of
significant importance to customers, particularly when it comes
to electronic data processing. Buyers will often look to
a reputable company for such services; this is especially the
case regarding government contracts, which have
heightened media scrutiny in terms of IT failures. Services
offered are often critical to the successful operation of a
business, which reduces buyer power considerably. Full
backwards integration by buyers is unlikely, even in cases
where in-house IT services have been developed. Those IT
services cannot match the quality of products the market
players can provide due to years of experience, decreasing
buyer power overall. Although this could decrease buyer
power, it is mitigated by the fact that players are reluctant to
integrate forwards into buyers' areas of operation,
industries in which players may not necessarily have any
experience.
Services are relatively undifferentiated, which has given rise to
strong price competition, driven by a reduction in labor
costs, and has encouraged multinational providers to relocate to

low-cost locations. This shows the power that buyers
have in influencing player practices. Large-scale players seek to
differentiate themselves in terms of customer
relations and are likely to become more successful as they
develop more complex offerings; IBM, for instance, has
developed ‘System One’, a quantum computer which is 1,000
times faster than a normal computing system, which
can offer its services to all institutions around the world via
cloud access, which will serve to weaken buyer power.
While some smaller companies may seek to drive down the cost
of services by seeking the best prices from players,
for many buyers, the quality of the services offered is of the
utmost importance as the quality of the buyer's product is
greatly affected by this. It is particularly important for
multinational corporations and government agencies to ensure
they obtain a high-quality product as failures could be
extremely costly. However, due to the fact that government
agencies and big corporations often employ market players
through auctions, or price competitions, they force
market players to compete with each other for the same kind of
services, giving buyers the power to choose the best

Industry Profiles
price. Therefore, in this industry, there is a mix of buyers
willing to pay less for services and willing to pay more for
high quality services.
Overall, buyer power is assessed as moderate.
Industry Profiles

6.3. Supplier power
Figure 7: Drivers of supplier power in the IT services industry
in South Africa, 2019
SOURCE: MARKETLINE
M A R K E T L I N E
A critical industry input is staff with appropriate technical
knowledge and expertise. Industry players rely on the
continued service of qualified employees, and high rates of staff
turnover can be detrimental. This can be regarded as
a high switching cost, with employees viewed as suppliers of
such expertise.
Taking into consideration that suppliers in this industry are
mainly highly paid and skillful employees, it makes the
industry a crucial component of suppliers' livelihoods, due to

their specialized expertise providing services based on
this specific industry. It is highly likely that suppliers could
move into the industry themselves, due to the experience
they could acquire over their careers, making them willing and
confident to start their own companies and
organizations. The amount of alternative raw materials is
relatively low, as raw materials in this industry are hardware
components and software; this increases supplier power.
Inputs such as hardware components are often purchased from
sole suppliers. Suppliers are normally large companies
offering high-quality differentiated products, resulting in
significant supplier power. The software market in South
Africa is dominated by large international players; leading
suppliers include Microsoft Corporation, Oracle Corporation
and SAP AG. In contrast, companies such as IBM engage in
backwards integration – the company has its own
hardware and software capabilities – reducing its reliance on
external suppliers. Alternative solutions exist for most
software and network suppliers.
Software suppliers may begin to forward integrate once more
complex software is required to provide IT services
linked to powerful computers, offering parallel processing and
advanced analytical techniques, which will increase

supplier power. Microsoft, for example, runs a predictive
analytics service based around its Azure cloud platform,
while IBM offers access to its new quantum computer System
One to institutions around the world through the cloud.
Supplier power in this industry is strong overall.
Industry Profiles
6.4. New entrants
Figure 8: Factors influencing the likelihood of new entrants in
the IT services industry in South Africa, 2019

SOURCE: MARKETLINE
M A R K E T L I N E
Entry on a small scale is achievable in the IT services industry;
some smaller players have grown as both government
and commercial institutions increasingly turn to third-parties to
provide specialized IT support. Similarly, buyers seek
to cut costs wherever possible and data processing and other
business processes have increasingly been outsourced
to specialists; allowing clients to focus on core activities.
Large companies in this industry have significant economies of
scale in processing and can offer more services; smaller
companies can compete by specializing in particular verticals,
and offering customized services. Newly developing
niche markets will offer opportunities for smaller players in
areas such as green IT and the Iota. Equally, industry
specialists operating in the key markets of healthcare and
finance have notable opportunities. However, prominent
companies, relying on an established image, may be unwilling
to trust smaller, less established companies, giving

larger industry players an advantage. While there is a relatively
large number of expert staff in this industry, many
may be attracted to larger more established companies such as
IBM and Hewlett Packard, as they are often able to
offer greater incentives, such as development opportunities and
higher pay. This may deter new entrants as they may
lack the reputation and ability to attract the most experienced
staff.
Regulation is varied and largely dependent on the service
offered and the buyers involved. For example, data
processing services for financial institutions are often
stringently regulated. Restrictions on data flows between
different countries may restrict the expansion capabilities of
new entrants.
The markets in which the companies in this industry operate are
subject to technological advances, developing
industry standards, and changing customer needs and
preferences. The success of a company is dependent on its
ability to anticipate and adapt to changes. Large companies
often acquire smaller players to gain access to the
technology and intellectual property of smaller, more innovative
firms.

Blockchain technology has increased the number of new
entrants in the market as it is not regulated, so companies
have a certain amount of freedom when using this particular
technology. However, companies using blockchain
technology have to be particularly careful and, most of the time,
have to publish their financial records, due to fear of
persecution from the government, based on fraud allegations.
Fixed costs for the market are relatively high, due to the energy
and electricity consumption server rooms require. In
order to provide their services, even via cloud, IT companies
require a large amount of space for their server rooms,
Industry Profiles

consuming high levels of electricity. To provide high-end
services and keep them up to date, server rooms require
constant maintenance from high expertise personnel, increasing
fixed costs.
In addition, new entrants require highly skilled employees in
order to be able to compete with already established
market players, which are well-known in the industry through
their brand image, rendering entry even more difficult.
South Africa is currently leading the way regionally with regard
to developing smart city technology. The South African
Local Government Association (SALGA) is actively
encouraging innovation in this field and cities such as Durban,
Cape
Town and Johannesburg have already implemented various
technologies. Government initiatives like this are likely to
attract new entrants, which can capitalize on changing trends.
Distribution is often limited by technological infrastructure,
meaning new entrants to developing markets will find it
difficult to expand. The World Economic Forum's latest Global
Information Technology report ranks South Africa 65th
out of 139 countries in terms of network readiness, suggesting
that the market has room for development in terms of

IT infrastructure. Intellectual property is likely to become
increasingly important as the industry shifts to more
complex service offerings; IBM, for example, has obtained over
97,000 patents since 1993. This will weaken
opportunities for new entrants unable to invest in R&D.
Many companies that are the source of business for this industry
curtailed their costs in order to survive. Conversely,
some areas, such as IT outsourcing, run along a counter-cyclical
trend to some extent, as buyers reduce costs by
obtaining cheaper labor through the outsourcing of certain
services.
The likelihood of new entrants to this industry is assessed as
strong.
Industry Profiles

6.5. Threat of substitutes
Figure 9: Factors influencing the threat of substitutes in the IT
services industry in South Africa, 2019
SOURCE: MARKETLINE
M A R K E T L I N E
An alternative to a number of services offered in this industry is
to employ and train in-house staff to provide such
services. In times of economic difficulty, some companies may
rely on existing staff rather than third-party service
providers. However, the services offered by industry players do
provide several key advantages. Key employees may
be released from performing non-core or administrative
processes, allowing a company to concentrate wholly on its
core activities.

The increasing automation of IT services will pose difficulties
for many players as buyers seek to bring more services
in-house. This will also allow the service arms of hardware and
software suppliers to act as substitutes for traditional
IT services players. Equally, professional servi ces firms such as
KPMG are increasingly offering IT services due to the
relative ease of replicating service models.
Business can be more flexible by not investing in assets and
reducing response times to environmental changes.
However, using outsourci ng or consulting companies can result
in a loss of internal business process know-how, and
consequently result in a dependency on service providers.
Overall, there is a moderate threat from substitutes in this
industry.

Industry Profiles
6.6. Degree of rivalry
Figure 10: Drivers of degree of rivalry in the IT services
industry in South Africa, 2019
SOURCE: MARKETLINE
M A R K E T L I N E
Large players attempt to differentiate themselves through a
number of initiatives in an effort to boost their
competitive edge. Companies such as IBM offer a variety of
services and products including hardware and software,
which serves to ease rivalry as they are not solely reliant on the
revenues generated from this industry. In addition,
developments in social network, mobile, analytic and cloud

technologies allow players to offer more value-added
services, increasing rivalry in terms of intellectual property and
the need for perpetual innovation.
Due to a number of high-level cybersecurity threats and the
interconnected nature of network technologies,
cybersecurity has become crucial for many businesses in Europe
and worldwide. IBM Security has established itself as
a leading player in this field; the company partnered with Cisco
in 2017, and has since shared intelligence between
internal research groups when investigating hacks. Partnerships
of this nature can help players to gain a competitive
edge, reducing the degree of rivalry.
While switching costs for small businesses in this industry can
be relatively low, for large corporations and
government agencies, switching providers for certain services,
such as infrastructure, can incur high costs and damage
reputations if services are down for a long period of time. High
switching costs for some will reduce the degree of
rivalry, as players may become locked into using a certain
supplier.
The globalized nature of the industry increases rivalry with
regard to cost reductions, which has driven the rapid

expansion of export services in countries such as India, where
competitive contractual terms are key success factors.
This has historically been linked to labor costs, but may develop
into storage costs as restrictions on data flows mean
that data centers will proliferate.
Security and secrecy are also key factors in terms of data
storage, which is perhaps why traditional tax havens top the
list of countries with the most secure internet servers per one
million people – Liechtenstein, Bermuda, Monaco,
Switzerland, Luxembourg and the Isle of Man are all in the top
10. However, services offered by most industry players
are essentially similar and companies are highly reliant on
revenues from the industry.
Overall, the degree of rivalry is assessed as moderate.

Industry Profiles
7. Competitive Landscape
The South African IT services industry has experienced strong
growth overall during the historic period. The industry
consists of four main leaders, Accenture plc, International
Business Machines Corporation, Hewlett Packard Enterprise
Company and Capgemini SE. The industry leaders are based in
Ireland, the US and France, indicating the well-
diversified regions the industry players are operating from.
Most of the leading players in the market have a strong
presence in the market, which was gained through diversified
product portfolio, strong research and development
(R&D) capabilities and strong geographic presences. In
addition, the IT services industry in general consists of debt
offerings, acquisitions and finance ventures, as it is the primary
characteristic of companies operating in this market
and one of the most important techniques of raising capital.
7.1. Who are the leading players?

Accenture plc is the biggest provider of IT services in South
Africa with market cap of $104.1bn. The company is based
in Dublin, Ireland and offers management consulting,
technology and outsourcing services to clients across a broad
range of industries. It serves food and beverage, household
goods, personal care, tobacco, fashion/apparel,
agribusiness and consumer health companies; supermarkets,
hardline retailers, mass-merchandise discounters,
department stores and specialty retailers; as well as airlines and
hospitality and travel services companies. Media and
entertainment industry group serves the broadcast,
entertainment, print, publishing and Internet/social media
industries. The company operates in the Americas, Europe,
Middle East and Africa (EMEA), and Asia-Pacific.
International Business Machines Corporation (IBM) is the
second biggest provider of IT services in South Africa with
market cap of $89.1bn. The company is based in New York, the
US and is an integrated information technology (IT)
company. It is engaged in offering services such as consulting,
delivery and implementation services, cloud and
cognitive offerings, enterprise software, systems and financing
solutions. It serves public, financial services, industrial,
communications and distribution business. IBM has its

operations across Europe, the Americas, the Middle East, Asia-
Pacific and Africa.
Hewlett Packard Enterprise Company (HPE) is the third biggest
provider of IT services in South Africa with market cap
of $11.7bn. The company is based in San Jose, the US and
offers compute, storage, and data center networking
services, enterprise networking and security solutions. The
company provides wired and wireless local area network
hardware products such as switches, routers, sensors, Wi -Fi
access points, and various software products including
cloud based management, network management, analytics and
location services. It also offers investment solutions,
including leasing, financing, IT consumption, utility programs,
and asset management services. HPE offers its solutions
to commercial and large enterprise groups through resellers,
advisory firms, distribution partners, original equipment
manufacturers, independent software vendors and system
integrators. The company also provides solutions for
corporate investments including communications, media
solutions and other business incubation projects. It has
business presence in the Americas, Europe, Middle East, Africa
and Asia-Pacific.
Capgemini SE (Capgemini) is the fourth biggest provider of IT

services in South Africa with market cap of $10.7bn The
company is based in Paris, France and offers business process
management (BPM), cloud services, and product and
engineering services. It serves a wide range of industries
including banking and capital markets, manufacturing and
industrial products, aerospace and defense, agriculture,
automotive, consumer and retail, electronics and high tech,
energy and utilities, government and public sector, healthcare,
and life sciences, and transportation and distribution.
The company offers its products and services under Capgemini,
sogeti, and Invent brand names. It conducts business
operations in the Americas, Asia-Pacific, Europe, the Middle
East, and Africa.
7.2. What strategies do the leading players follow?
Industry Profiles

Accenture's strong network of alliances, client services and
geographical presences, make the company a leading
provider of IT services in the world. The company works
closely with some of the technology market leaders that
complement and extend its solutions and capabilities. Accenture
has alliances with leading technology companies
such as BMC, Cisco Systems, Dell, EMC, HPE, IBM, JDA,
Microsoft, NetApp, Oracle, Red Hat, Salesforce.com, SAP,
SAS,
Siemens, Symantec, Thomson Reuters, VMware, among others.
The strong alliance network allowed Accenture to
deliver innovative and collaborative solutions by bringing
together various technology teams. Alliances with leading
technology companies have allowed the company to cater to the
broad and varied needs of its clients. The strong
network of alliances has allowed Accenture to create significant
and sustainable value to its customers. A robust
alliances network equips Accenture with the ability to serve a
diverse base of clients. Furthermore, the company
enjoys strong and lasting relationships with many of the world's
leading companies. It has relationships with more

than 6,000 clients in 120 countries and 97 of its top 100 clients
have been clients for at least 10 years. Accenture
serves 92 of the top 100 companies in the Fortune Global 500.
This indicates that the company enjoys high switching
costs. Long relationships with its clients ensures Accenture's
consultants are well versed with their businesses, and
therefore clients will have to incur high switching costs. The
client relationships are also a testimony to the company's
ability to retain its customers and to the favorable competitive
position that it enjoys. These client relationships will
also enhance the company's ability to win new business as it has
a roster of valuable client references. In addition, the
company's ability to operate at a certain scale provides a
favorable competitive environment and pricing power.
Accenture is further positioned as a one-stop-shop that provides
cross-selling opportunities. Accenture enjoys a
significant scale and is diversified across industries and
geographies while at the same time offering integrated
services. The company has one of the broadest offerings in
management consulting, technology services and
outsourcing markets. It caters to 13 industry groups, under its
five operating groups: products; financial services;
communications, media and technology; resources; and health
and public service. In addition, the company offers its
services to clients globally through its Global Delivery Network

which includes Accenture personnel based at more
than 50 delivery centers around the world. The company
operates in more than 200 cities in 52 countries.
Furthermore, the company generates a balanced revenue stream
across its operating groups.
IBM's strong R&D focus enables the company to invest in new
ideas and create innovative services and products. The
company has been consistently investing in R&D to enhance its
products and add new technologies. In 2018, the
company invested more than $5bn in R&D activities. IBM
Research works with clients and the company's business
units through global labs on near-term and mid-term
innovations. In 2018, IBM was awarded 9,100 patents in the US,
more than any other company for the 25th consecutive year.
These patents represent a diverse range of inventions in
artificial intelligence and cognitive computi ng, cognitive health,
cloud, cybersecurity and other strategic growth areas
for the company. IBM's focus on new innovation and
intellectual property enables it to introduce new products,
providing it with first mover advantage in a dynamic and
continually evolving technology market. The company's
business model is built to support two principal goals: helping
enterprise clients to become more innovative, efficient
and competitive through the application of business insight and

IT solutions; and providing long-term value to
shareholders. The business model has been developed over a
period of time through strategic investments in
capabilities and technologies that have superior long-term
growth and profitability prospects based on the value they
deliver to clients. The company's global capabilities include
services, software, systems, fundamental research and
related financing. The broad mix of businesses and capabilities
are combined to provide integrated solutions to the
company's clients. According to the company, its business
model is dynamic, adapting to the continuously changing
market and economic environment. The company continues to
divest certain businesses and strengthen its position
through strategic organic investments and acquisitions in
higher-value areas. Earlier, IBM Watson Health completed
the acquisition of Truven Health Analytics, a provider of cloud-
based healthcare data, analytics and insights, for
$2.6bn. Truven brings more than 8,500 clients to the Watson
Health portfolio, including the US federal and state
government agencies, employers, health plans, hospitals,
clinicians and life sciences companies. IBM acquired Aperto,
a Germany-based digital agency. IBM's strong business model
has enabled the company to deliver strong earnings,
cash flows and returns to shareholders in the long run.

7.3. What strategies do the leading players follow (continued)?
HPE's strong focus on R&D capabilities enables the company to
enhance its product portfolio. The company's R&D
focuses on designing and developing products, services and
solutions to meet the changing customer needs and
Industry Profiles
desires and to meet the emerging technology trends. Hewlett
Packard Labs, together with the various R&D groups,
focuses on developing next-generation products and solutions
integrating emerging technologies. In 2019, the
company spent $1,8bn on R&D, which as a percentage of

revenue stood at 6.3%. As a result of the company's strong
focus on R&D, the company has a worldwide patent portfolio of
approximately 15,000 issued and pending patents.
Increased focus on R&D helps the company to remain
competitive in the marketplace with significant offerings. It
allows HPE to maintain technological edge over its competitors
and to stay ahead of industry trends. In addition, it
also allows the company to differentiate its products from its
competitors'.
Capgemini's strong focus on its customers gives the company a
competitive edge over its peers. Its established
Rightshore business model enables to deliver a wide range of
services and strengthen its relationships with clients.
The company uses the Rightshore delivery model to deliver
maximum business value for clients. Its global delivery
model integrates quality, efficiency, talent, and collaborative
approach to improve scalability and add value to its
revenue stream. This model focuses on promoting innovation
and transformation to create and sustain a competitive
edge over its peers. It successfully delivered more than 1,000
projects using this delivery model. Rightshore model
primarily targets achieving cost reduction of 40% on IT
infrastructure costs and improving investments to enhance
productivity. It reduces operating costs by implementing more

agile, efficient processes. Capgemini’s distribution
network is spread across 40 countries including the US,
Germany, Poland, the Netherlands, Canada, Brazil, China,
Spain, and others. The model is a blend of onshore, offshore,
and business process outsourcing (BPO) activities, which
offers greater access to clients, and leads to faster and effective
communications and delivery of solutions. By
leveraging Virtual Delivery Center’s capabilities, Capgemini
offers a virtual workforce of robots and platform delivery
to provide solutions to various business enterprises.
7.4. What has been the recent M&A activity?
Accenture has acquired Context Information Security, a cyber-
defense consultancy, from Babcock International Group
PLC, an aerospace and defense company, for $138.12m. Both
Context and Babcock are based in the UK. Context
provides high-end cyber defense services across a range of
industries including financial services, government,
aerospace and defense and critical infrastructure. Context
employs over 250 people across the UK, Germany, USA and
Australia. Context was part of the Group's Marine sector. For
the year ended 31 March 2019, it had an operating
profit of $1.2m. As of 30 September 2019, Context had gross
assets of $34m.

COMPANY PROFILEAcer IncorporatedREFERENCE CODE AFCD31

COMPANY PROFILEAcer IncorporatedREFERENCE CODE AFCD31

Recommended

Recommended

More Related Content

Similar to COMPANY PROFILEAcer IncorporatedREFERENCE CODE AFCD31

Similar to COMPANY PROFILEAcer IncorporatedREFERENCE CODE AFCD31 (20)

More from LynellBull52

More from LynellBull52 (20)

Recently uploaded

Recently uploaded (20)

COMPANY PROFILEAcer IncorporatedREFERENCE CODE AFCD31