Progress in 2018
Originally rooted in technical automation and embedded software, ICT Group has been evolving into a technology solutions provider in recent years. Only five years ago, 80% of ICT’s revenue came from time hire business (secondment). ICT successfully diversified its revenue streams to project-based revenue and, more recently, recurring revenue from proprietary software solutions.
From 2015 onwards, the company decided to focus on its three core themes Smarter Industry, Smarter Cities and Smarter Health. In 2018 ICT achieved in particular significant progress in strengthening its position in Smarter Cities.
Considerably stronger in Smarter Cities
In January 2018 ICT completed the purchase of 100% of the shares in NedMobiel B.V., a Dutch consultancy specialised in complex infrastructures such as tunnels, bridges, locks and motorways, as well as mobility solutions. This acquisition supports ICT’s transition from a leading software integrator to a total technology services provider by increasing revenue from both projects and consultancy services, enabling ICT to move up the value chain. The complementary expertise of NedMobiel positions ICT well in Mobility as a Service (MaaS), a concept which is expected to be a major game changer in Smarter Cities.
Furthermore, ICT acquired the remaining 50% stake in InTraffic B.V., bringing its holding to 100%. With the acquisition of InTraffic ICT further enhances its innovation and product development capabilities in the field of railway infrastructure and mobility. This, together with the acquisition of NedMobiel, has substantially strengthened ICT’s position in Smarter Cities.
OrangeNXT launch boosts proprietary software solutions
ICT acquired the remaining 49% of the shares in ICT Mobile. ICT Mobile was established as a start-up in 2016 by the current management together with ICT, focusing on digital transformation.
Developing and marketing proprietary Software as a Service solutions requires a different set of skills and mindset. ICT therefore decided to make a distinction between its proprietary software solutions and its other services by bundling all its promising software solutions in newly established OrangeNXT. OrangeNXT focuses on ready to use software solutions, offered as Software as a Service. The Digital Transformation unit, established in the course of 2017, is now integrated in OrangeNXT.
In 2018 ICT launched a new platform, Motar, anticipating the trend of low-coded applications in industrial environments. Low code is a way to design and develop software fast with minimal hand coding. It delivers value quicker and more reliably. Motar provides a platform to create software with limited programming skills.
Focus in 2019
Growth will again be the main focus for 2019. Our growth path is defined by our strategic roadmap 2022. The buy-and-build strategy continues to be fully focused on profitable growth, combining healthy organic growth with selective acquisition opportunities.
ICT aims to grow organically in a tight labour market by
- Remaining an employer of choice
- Seizing opportunities provided in high growth areas and industries with our Software as a Services solutions bundled in OrangeNXT
- Accelerating our nearshoring offerings
At the same time ICT will continue to pursue suitable acquisitions. This includes companies with compelling offerings in the countries in which ICT is already active as well as other international companies, with a focus on Northern Europe. In January 2019 ICT announced the acquisition of Additude, a leading Swedish IT consultancy firm. This acquisition is a perfect fit with this strategy.
In 2019 we will continue to work hard to create all the right conditions to take further steps in our transformation into a total solutions provider.