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Amdocs to Aid Altice Portugal's IT Modernization Journey

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Amdocs (DOX - Free Report) recently announced that it has been selected as the digital transformation partner of Portuguese communications magnate — Altice Portugal.

Reportedly, its amdocsONE suite of products and services will provide open and modular solutions that will help Altice Portugal modernize operations across its wireless, wireline, broadband Internet and television lines of business for consumers and enterprise customers.

Moreover, migration to amdocsONE will enable Altice Portugal to improve agility and IT velocity and enhance customers’ digital-first experience.

Amdocs will transform Altice Portugal’s processes like product definition, lead management, enterprise price configuration, order entry and billing.

Partnerships Bode Well

Amdocs continues to expand its global client base by signing long-term contracts and collaborating with major telecom industry players worldwide. In fiscal 2018, Amdocs reported record high 12 months backlog of $3.34 billion, which includes key transformations projects with global service providers such as Comcast, T-Mobile, Altice and DISH in North America; Vodafone British Telecom, Orange in Europe; América Móvil, Airtel, Telstra, SingTel and Globe in the rest of the world.

In May this year, announced that it is rolling out the DigitalONE platform to modernize and accelerate Sprint’s (S) digital transformation, as part of the latter’s IT modernization efforts. In the same month, it also announced that it has extended partnership with Telefonica to aid the latter’s digital transformation initiatives, particularly in Argentina and Chile. Earlier this year, Amdocs partnered with PJSC VimpelCom on a digital IT modernization project.

Such deals are boosting the company’s top line. In third-quarter fiscal 2019, revenues were $1.04 billion, up 2.2% from the year-ago quarter, driven by digital modernization requirements of many of Amdocs’ communications, Pay TV and media customers.

Intensifying Competition

With the onset of digital transformation across most industries, IT services firms are vying for partnerships to boost their relevance.

Earlier this year, Infosys (INFY - Free Report) announced that it is teaming up with Hewlett Packard Enterprise (HPE - Free Report) for using the latter’s GreenLake consumption model to aid clients' journey to hybrid cloud.

Again in June, Sabre (SABR - Free Report) entered into a long-term contract with Microsoft as part of its strategy to move the services of the former to the cloud.

The following month, DXC Technology expanded its association with Microsoft by forming the global Microsoft Azure Digital Transformation Practice.

Notably, partnerships are helping competitors add stimulus to their capabilities in the cloud services market and ramp up their competitive presence.

However, with a solid managed services portfolio and focus on forging strategic partnerships, Amdocs is likely to fortify its presence in the IT modernization space and garner additional revenues.

Amdocs currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
    
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