FinancialBuzz.com News Commentary
NEW YORK, March 12, 2019 /PRNewswire/ -- The technology industry has rapidly become a massive market during the twenty-first century. The voracious development of the industry has led to the emergence of many new innovative sectors. Today, many of these technology companies are built to offer services, which are more commonly known as information technology services. The IT services market itself is vastly diverse, allowing consumers to choose from endless options of technologies such as data analysis, information security, APIs, data processing, mobile services, software, and Internet of Things, amongst others. The IT industry is also among one of the largest marketplaces worldwide since its services are used by many different sectors around the globe. IT services are also integrated into services areas around the world such as enterprise, financial, government, healthcare, medical, and many others. The U.S. is currently the biggest IT service market, as it accounted for 36% of the global share in 2016 as many U.S.-based technology companies provide their services abroad to multiple countries. However, the Asia Pacific region is expected to be one of the fastest growing regions within the marketplace in the coming years. And according to data compiled by Analytical Research Cognizance, the global IT services market was valued at USD 1.01 Trillion in 2018, now, the market is projected to reach USD 1.15 Trillion by the end of 2024. Furthermore, the market is projected to exhibit a steady CAGR of 2.6% from 2019 to 2024. Nerds On Site Inc. (OTC: NOSUF) (CSE: NERD),
While the IT services market has already grown immensely, the market is continuously expanding as innovation creates competition between companies. Businesses are developing and advancing their technology in order to provide optimal and top-of-the-line services to consumers. As businesses offer their consumers these more advanced in-demand services, they are also working towards reducing costs at the same time. However, the industry is heavily impacted by the lack of employment. According to ZipJob, some of the most in-demand jobs for 2019 are within the IT services like information security analysts, software engineers, web developers, and technical support. On the brighter side, the job outlook for many of these fields is expected to grow faster than average growth by 2026, according to the U.S. Bureau of Labor Statistics. And a mix of tech and business skills will be required for nearly every position, according to CompTIA Chief Technology Evangelist James Stanger, via ZDNet. "People have been talking for a long time about digital transformation of business," Stanger said. "We're going to see a lot of defined job roles either being radically redefined, or even just go away. I think an IT skillset will remain valuable, but it has to be in regards to business. Too long, those things have been kept in siloes."
Nerds On Site Inc. (OTC: NOSUF) (CSE: NERD) also listed on the Canadian Securities Exchange under the ticker (CSE: NERD). Earlier today, the Company announced breaking news that it, "is pleased to provide shareholders with an update from CEO Charles Regan.
Nerds on Site IT solutions for small and medium sized business has generated over $160M in historical sales across Canada. Upon the Company's successful IPO in November 2018 NERDS has started its planned expansion to 10 cities in the USA, building upon working relationships with tens of thousands of existing small business Clients and leveraging 10+ year working relationships with Google, Apple, Amazon, DELL and Microsoft.
Within the first 3 months post IPO, the Company has made substantial progress on multiple fronts of the planned development. It typically takes 6-12 months to sign a long term ("NerdCare") contract, as those are in process in the USA, our new US based NERDS are already excelling in on-call jobs and NerdMobile sighting call in requests. Specific areas of expansion include Florida, Arizona and further expansion in our mature market of Canada. Growth with existing clients in Canada, highlighted by Canadian Tire indicates significant upside in addition to expansion into Metro Vancouver and 3 additional Canadian Cities.
Overall our ability to scale the proven business model over the previous quarter indicates strong prospects through our North American expansion plans, all of which have the potential to significantly boost shareholder value as we continue to execute in 2019.
- Immediate results in Florida and Arizona with a team of new NERDS in action, proceeding toward full franchise status. The first 15 NERDS that we have signed up represent "franchisees to be" pending the Company's completion of the ongoing process of filing franchise documents with individual states.
- 102% revenue increase overall with USA growth, quarter over quarter.
- Significant growth in Canada with key long-term client, Canadian Tire, with the goal of total 290 stores served in fiscal 2020. Currently the Company services 226 Canadian Tire stores, therefore we expect double digit, or close to 22% increase in stores served in fiscal 2020. This number is very feasible as it represents the addition of one store per week, which has been achieved by the team historically.
- Expansion to Vancouver and 3 additional Canadian Cities. Although no long-term contract has been entered in these new areas yet, the build out is in line with previous successful expansion for the Company.
- Emphasis on stable contract revenue promises the expected increase of contract revenue by 11%, or up to 68% from Total Revenue in fiscal 2019.
USA Expansion Update, New NERD Team USA shall increase the revenues by 150%+ over fiscal year
The Company successfully vetted, trained and launched 15 new NERDS (technicians), 9 in Florida and 6 in Arizona.
New NERDS are provided with NerdMobiles, fully branded VW Beetles which the company has leased and delivered to FL and AZ. The Company is extremely pleased to be able to kick start the initial NERD team USA with a worry-free lease program. Initial NERD team members have a 37% revenue split, exactly as planned in the roll out schedule. It is anticipated that within 6 months new NERDS will transition to 50/50 revenue split for the long term, in addition to assuming lease payments. The 6 months lease turn over estimate is based on historic results in Canada.
Canadian Update – 11% more contract revenue, New Canadian Tire push, new cities planned
Canadian team has made a significant progress in the last 3 months. Contract recurring revenue target for fiscal year end 2019 is up by 11%, the goal is to continue to grow our contract business.
Our Canadian Tire team is ramping up the efforts to extend NerdCare managed service coverage to an increasing number of our Canadian Tire dealers. Currently, we are serving 226 out of 493 Canadian tire stores in Canada. Our team is targeting to add 1 new Canadian Tire store per week for the Calendar 2019, which shall bring the total number of stores to our goal of 290 by the end of 2019.
Besides the high standard of service, and high satisfaction of the existing Canadian Tire dealer clients, the "TimeWellScheduled" time management tool, has proven to be a solid door opener with the Canadian Tire Dealers.
With the heightened interest following the IPO, management has decided to expend to 4 more Canadian cities. The first city targeted for expansion is Vancouver BC. Having received strong support in that market leading up to and following the IPO. Scaling the business in the Vancouver market will follow tried and true growth principles and practices that have served NERDS ON SITE throughout its history…
About Nerds On Site: Nerds on Site, a company founded in 1995, specializes in providing cost effective, leading edge solutions to Small and Medium sized Enterprise (SME), serving as the complete SME IT solution specialists. Nerds on Site was established in London, Ontario with current annual revenues of approximately $10,000,000. The company services over 12,000 clients per year with a superb 96.5% customer satisfaction rating. NOS's business model is based on Nerds sub contracts in Canada and a Franchise model for USA expansion."
For our latest "Behind the Buzz" Show featuring Nerds on Site Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=xxRn4hygkP0
Infosys Limited (NYSE: INFY) is a global leader in next-generation digital services and consulting. Infosys recently joined Rhode Island Governor Gina Raimondo to inaugurate its Digital Innovation and Design Center in Providence and announced a partnership with the Community College of Rhode Island (CCRI) to build and launch the Digital Economy Aspirations Lab (DEAL) to enable and develop students for the digital jobs of the future. Infosys also announced that it has already hired over 100 employees in Rhode Island toward its goal of creating 500 jobs in the state by 2022. Since Spring 2017, Infosys has hired more than 7,600 American workers as part of its ongoing commitment to accelerate the pace of digital innovation for American enterprises. "Infosys is a global leader in information technology, and I'm so excited that they've chosen Rhode Island as the home of their new innovation center," said Rhode Island Governor Gina Raimondo. "In partnership with RISD and CCRI, Infosys will be helping train today's Rhode Islanders for tomorrow's jobs. Our state has some of the top designers in the world, and it's a testament to the strength of our workforce that Infosys is looking to tap into, and further develop, our talent."
Nokia Corporation (NYSE: NOK) is a multinational communications and information technology company, headquartered in Espoo, Finland. Recently, Research conducted by China's Ministry of Industry and Information Technology (MIIT) shows that consumption of 70% of 5G business applications will take place indoors, with high-value customers likely to spend 80% of their working hours in an indoor environment. As a result, indoor coverage has become a key area for operators to develop new 5G services. China Mobile has long utilized distributed access systems (DAS) for 4G indoor coverage and wanted a solution that would meet the demands of 5G while reducing costs as it introduces innovative new services. Nokia and China Mobile jointly developed the industry-first 5G low-cost hybrid distributed indoor system to meet these challenges. This active smart indoor coverage system leverages the Nokia 5G Pico RRH system together with passive DAS antennas and Bluetooth Low Energy (BLE) technology. With fewer active elements to deploy compared to Pico systems, the solution reduces deployment costs to the levels associated with traditional passive-only DAS systems, while delivering greater capacity than DAS. Chang Jiang, Chief Technology Officer of Customer Operations at Nokia Shanghai Bell, said: "Nokia is committed to working closely with China Mobile as a long-term technology partner, and the launch of the innovative hybrid system is a strong testament to our work. As a leader in 5G, Nokia will continue to build on its technology momentum to help China Mobile evolve its network to meet its business and consumer customers' increasing demands in the 5G world."
Zix Corporation (NASDAQ: ZIXI) is a leader in email security. Last year, Zix Corporation was awarded the International Organization for Standardization (ISO) 27001 certification, validating the strength of Zix's solutions in preserving the security of information assets. Zix's certification covers ISO standards for the development, operation, and administration of ZixEncrypt®, ZixProtect®, ZixArchive®, ZixMail®, and ZixOneSM solutions. To receive ISO 27001 certification, Zix was audited by CyberGuard Compliance, a global consulting firm focused on cyber security and IT compliance. A recognized ISO 27001 auditor, CyberGuard Compliance certified Zix after a comprehensive review of its security processes and practices, finding it exceeded all qualifications without a single exception during the audit. CyberGuard is based in the United States but serves clients around the globe. Its leadership team has over 150 years of combined business management, operations and related information technology (IT) experience. "With the sophistication of evolving threats, customers need assurance that their cloud providers are taking the necessary precautions to protect their valuable data. Zix's ISO 27001 certification is a significant milestone that demonstrates our commitment to deliver solutions that meet the highest security standards," said David Wagner, Zix's Chief Executive Officer. "Zix's customers trust us to provide superior solutions. With the ISO 27001 certification, they can have added confidence that we are not only enhancing solution features and functionality but are also strengthening the security of our development and operations."
Wipro Limited (NYSE: WIT) is a leading global information technology, consulting and business process services company. Wipro Limited recently announced that it had won a 10-year engagement to provide a comprehensive suite of solutions and services to Lincolnshire, Illinois-based Alight Solutions LLC, a leader in technology-enabled health, wealth, HR and finance solutions. This deal will result in revenues of USD USD 1.5 to USD 1.6 Billion for Wipro over the tenure. This is Wipro's largest win to date. This engagement will enable the digital transformation of Alight's offerings across health, wealth, HR and finance solutions, and enhance the employee experience of Alight's clients by leveraging Wipro's industry-leading strengths in digital technologies, cognitive automation and data analytics. Abidali Z. Neemuchwala, Chief Executive Officer and Executive Director, Wipro Limited said, "We are delighted to be chosen by Alight as their long-term strategic partner in their enterprise transformation journey to bring digital experiences and offerings to employees and employers globally. This is a testimony to the capabilities we have built through our strategic investments in Wipro Digital, cloud platforms and cognitive platform Wipro HOLMES™. We will leverage this expertise to digitalize and modernize Alight's core across platforms, technologies and operations."
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