everest group peak matrix™ for digital services · 2020-03-06 · everest group peak matrix for...
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Copyright © 2016 Everest Global, Inc.
This document has been licensed for exclusive use and distribution by Cognizant
EGR-2016-4-E-1955
Focus on Cognizant
October 2016
Everest Group’s PEAK Matrix for Digital Services
Copyright © 2016, Everest Global, Inc.
EGR-2016-4-E-19552
Introduction and scope
Everest Group recently released its report titled “Digital Services – PEAK Matrix™ Assessment and Market Trends:
“Is Digital the New Normal?”.
As a part of this report, Everest Group analyzed 18 leading service providers on the Everest Group Performance |
Experience | Ability | Knowledge (PEAK) Matrix specific for digital services into Leaders, Major Contenders, and
Aspirants. The PEAK Matrix is a composite framework that provides an objective, data-driven, and comparative
assessment of digital service providers based on their absolute market success and delivery capability.
Based on the analysis, Cognizant emerged as a Leader. This document focuses on Cognizant’s digital services
experience and capabilities and includes:
Cognizant’s position on the digital services PEAK Matrix
Detailed digital services profile of Cognizant
Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand the
service providers’ relative strengths and gaps. However, it is also important to note that while the PEAK Matrix is a
useful starting point, the results from the assessment may not be directly prescriptive for each buyer. Buyers will have
to consider their unique situation and requirements, and match them against service provider capability for an ideal fit.
Copyright © 2016, Everest Global, Inc.
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Background of the research
Background of the research
Enterprises are challenged by intensifying competition, uncertain macroeconomic environment, digital-savvy nimble firms, and
ever-increasing demands of digital-native consumers. They are leveraging digital technologies to not only tackle these
challenges, but also stay ahead of the competition, both current and potential
Responding to enterprise priorities, service providers are rapidly ramping up their digital services portfolio. They have invested
in acquiring newer capabilities, realigning their workforce, and developing contextualized solutions to help enterprises in their
digital transformation efforts
In this research, we present the assessment and detailed profiles of 18 IT service providers featured on the digital services
PEAK Matrix. Each service provider profile provides a comprehensive picture of its service focus, key Intellectual Property
(IP)/solutions, domain investments, and recent developments
The assessment is based on Everest Group’s annual RFI process for the calendar year 2016, interactions with leading digital
services providers (including product development specialists), client reference checks, and analysis of the digital services
market
Scope of this report
Services: Digital services
Geography: Global
Service providers: 18 leading IT service providers
This report includes the profiles of the following 18 service providers featured on the digital services PEAK Matrix:
Leaders: Accenture, Cognizant, IBM, and TCS
Major Contenders: Atos, Capgemini, CGI, CSC, Dell Services, HCL Technologies, Infosys, L&T Infotech, Tech Mahindra,
VirtusaPolaris, and Wipro
Aspirants: EPAM, Luxoft, and Syntel
Copyright © 2016, Everest Global, Inc.
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Cognizant is positioned as a Leader on the
Everest Group PEAK Matrix for digital services
Note: Assessment for Capgemini, CGI, IBM, and Infosys excludes service provider inputs on this particular study, and is based on Everest Group’s estimates which
leverage Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage of these service providers, pub lic disclosures, and interaction with
buyers. The assessment for CSC excludes the company’s erstwhile North American public sector business, which has been merged with SRA International to
form CSRA Inc.
Source: Everest Group (2016)
Leaders
Major Contenders
Aspirants
Star Performers
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for digital services - 2016
High
Low
Low High25th percentile
25
thp
erc
en
tile
75th percentile
Leaders
Aspirants
75
thp
erc
en
tile
Major Contenders
Mark
et
su
ccess
(Dig
ital serv
ices r
evenue, gro
wth
, and e
nte
rprise a
doption)
Digital services delivery capability
(Scale, scope, domain expertise & innovation, delivery footprint, and buyer satisfaction)
HCL Technologies
Accenture
IBM
TCS
Cognizant
Wipro
CapgeminiAtos
Tech Mahindra
Dell Services
CSC
VirtusaPolaris
Syntel
EPAM
Luxoft
CGI
Infosys
L&T Infotech
Copyright © 2016, Everest Global, Inc.
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Cognizant | Digital services profile (page 1 of 3)
Digital services overview
Source: Everest Group (2016)
EVEREST GROUP ESTIMATES
Overview of digital services practice: Digital transformation strategy &
consulting; customer experience design and engineering; end to end
digital technology enablement like social computing, mobility, advanced
analytics, cloud, IoT, robotics, enterprise integration, security, platform
development, digital marketing, and digital architecture; complemented
with industry-specific digital offerings.
Strengths
Cognizant has done well in conceptualizing and delivering
transformation-led engagements for its enterprise clients
Its investments in solution acceleration, client collaboration, and
relationship management have resonated well with clients
Areas of improvement
Cognizant needs to push thought leadership in its complex
engagements if it is to sustain its momentum
It should expand further into other verticals (manufacturing, retail, etc.)
and geographies (Europe) where it has begun to gain traction
Digital services revenue by buyer size
Small (annual revenue < US$1 billion)
Large (annual revenue = US$5-10 billion)
Medium (annual revenue = US$1-5 billion)
>50% 20-50% <20%
Mega (annual revenue > US$10 billion)
Digital services: Top 5 industries
Retail, distribution, & CPG
ManufacturingTelecom, media,
& entertainment
>20% <10%15-20% 10-15%
BFSIHealthcare &
life sciences
Digital services revenue by geography >25% 10-25% <10%
UKNorth
America
Europe
APAC
South
America
MEA
>25% 10-25% <10%Digital services revenue by segment
Analytics &
big dataSocial
Cloud applications Internet
of Things
Mobility
Cognitive
intelligence
Others
Copyright © 2016, Everest Global, Inc.
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Cognizant | Digital services profile (page 2 of 3)
Digital services solutions and co-innovation labs
Digital services – proprietary solutions (representative list)
Solution Details
ToyBox ● A preconfigured set of technology enablers for rapid prototyping; comprises a stack of cross-platform software development
kits to deliver an application prototype
RetailMate ● Provides in-store shopping behavior with smart sensors and devices. It harnesses consumer data to provide advanced real-
time analytics to identify opportunities and drive engagement in the shopping aisle
REVEAL ● Multichannel data discovery and marketing analytics solution to provide contextual insights on performance of digital assets in
the brand marketing ecosystem
Budget Optimizer ● Core analytics platform for sales and marketing budget optimization across various promotion channels
GeoLocus ● A framework to accelerate the implementation of telematics solution for various industries
Source: Everest Group (2016)
Design studios / co-innovation labs (representative list)
Location Details
Multiple locations
globally
● Digital Works Collaboratory allows teams to come together to work through the accelerator methodology in New York, U.S.
and Amsterdam, Netherlands, and the digital pop model hub for customers and partners to team, visualize, and co-create
digital experiences in London, UK
Multiple locations in
India
● Innovation centers to develop industry-specific digital products and solutions – e.g., InsuranceNext, Digital Banking Innovation
Center, and Nucleus (R&D) Lab, among others
Multiple locations
globally
● Cognizant has a host of design studios and technology CoEs and labs to facilitate prototyping and collaboration efforts – e.g.,
Tecquarium (Australia), Customer Experience Design Studio (India), and Touchstone Lab (India), among others
Vision: Help clients "become Digital”. Cognizant addresses the broader digital market – front office, middle office, and back office – by integrating strategy
shaped by human sciences, design, and technology implementation & management.
Copyright © 2016, Everest Global, Inc.
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Cognizant | Digital services profile (page 3 of 3)
Digital services investments and partnerships
Digital services investments (representative list)
Investment theme Details
Acquisitions ● ReD Associates: Acquired stake to work on using human sciences to model digital strategies
● Other relevant recent acquisitions include TriZetto (multi-channel solution for healthcare), The Cadient Group (digital
marketing), Odecee (enterprise mobile, web, and cloud), and itaas (digital video engineering)
Talent ● Invested in advanced training / certifications in the area of design thinking, IoT, mobility, cloud, web technologies, data
sciences, digital marketing, machine learning, customer experience design, analytics, security, PaaS, micro services, etc.
● Invested in R&D efforts to drive employee innovation that resulted in patents being granted
Digital services partnerships (representative list)
Partner name Details
Kony ● Global integration partner to deliver innovative mobile solutions for digital transformation
Adobe Marketing Cloud ● Specialized premium partner to help enterprises embrace the promise of digital content across devices
Box ● Power digital transformation by co-developing industry solutions to help enterprises migrate critical business content to cloud
IBM Bluemix ● Provides cloud platform to drive innovation and business transformation
Microsoft Azure ● Cloud partner to provide on-demand computing and storage resources for hosting collaboration systems, running big data
applications, and migrating applications out of over-taxed data centers
Partnering with industry leaders to co-develop digital platforms and incubate products. Cognizant has partnered with disruptive startups to reinforce their
focus on co-innovation and collaboration. Additionally, it has premium partnerships with Adobe, IBM, Oracle, Microsoft, HP, EMC Documentum, Liferay,
Sitecore, OpenText, Alfresco, and Saleforce.com, among others.
Source: Everest Group (2016)
Recent activities (representative list)
Activity
Further to ReD acquisition, Cognizant acquired Idea Couture, a digital innovation and experience design company to combine human insight capabilities,
strategy, design, technology, and industry expertise to create innovative solutions at enterprise scale.
Copyright © 2016, Everest Global, Inc.
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Appendix
Copyright © 2016, Everest Global, Inc.
EGR-2016-4-E-19559
Everest Group Performance | Experience | Ability |
Knowledge (PEAK) Matrix is a proprietary framework
for assessment of a service provider’s capability
Everest Group’s PEAK Matrix is a composite index of a range of distinct metrics related to a service provider’s scale, scope,
technology/domain investments, delivery footprint, and resultant market success in the context of a given services function.
Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for digital services
Top quartile performance
across market success
and capability
2nd or 3rd quartile performance
across market success and
capability
4th quartile performance
across market success and
capability
High
Low
25
thp
erc
en
tile
75
thp
erc
en
tile
75th percentile
Low High25th percentile
Aspirants
Leaders
Major Contenders
Ma
rke
t s
uc
ce
ss
(Revenue, g
row
th, and e
nte
rprise a
doption)
Digital services delivery capability
(Scale, scope, domain expertise & innovation, delivery footprint, and buyer satisfaction)
Copyright © 2016, Everest Global, Inc.
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Dimensions of service providers’ capability and
market success underlying the PEAK Matrix for
digital services
Ma
rke
t s
uc
ce
ss
Everest Group PEAK Matrix
Aspirants
Major Contenders
Delivery capability
IT services revenue
Digital services
revenue
Innovation / IP /
proprietary solutions
M&As, partnerships,
and certifications
Focus across
service segments
Coverage across
verticals
Geographies served
Delivery mix Buyer satisfaction
score
Leaders
ScaleDomain expertise
& innovationScope Delivery footprint Buyer satisfaction
Talent strategy
Digital services revenue
Digital services revenue
growth
Enterprise adoption
Copyright © 2016, Everest Global, Inc.
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FAQs (page 1 of 2)
Does the PEAK Matrix assessment incorporate any subjective criteria?
Everest Group’s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging service
provider RFIs and Everest Group’s proprietary databases containing providers’ deals and operational capability
information). In addition, these results are validated / fine-tuned based on our market experience, buyer interaction,
and provider briefings
Is being a “Major Contender” or “Aspirant” on the PEAK Matrix, an unfavorable outcome?
No. PEAK Matrix highlights and positions only the best-in-class service providers in a particular functional/vertical
services area. There are a number of providers from the broader universe that are assessed and do not make it to
the PEAK Matrix at all. Therefore, being represented on the PEAK Matrix is itself a favorable recognition
What other aspects of PEAK Matrix assessment are relevant to buyers and providers besides the
“PEAK Matrix position”?
PEAK Matrix position is only one aspect of Everest Group’s overall assessment. In addition to assigning a “Leader”,
“Major Contender” or “Aspirant” title, Everest Group highlights the distinctive capabilities and unique attributes of all
the PEAK Matrix providers assessed in its report. The detailed metric level assessment and associated commentary
is helpful for buyers in selecting particular providers for their specific requirements. It also helps providers showcase
their strengths in specific areas
What are the incentives for buyers and providers to participate/provide input to PEAK Matrix research?
Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment
Participation incentives for providers include adequate representation and recognition of their capabilities/success in
the market place, and a copy of their own “profile” that is published by Everest Group as part of the “compendium of
PEAK Matrix providers” profiles
Copyright © 2016, Everest Global, Inc.
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FAQs (page 2 of 2)
What is the process for a service provider to leverage their PEAK Matrix positioning status?
Providers can use their PEAK positioning rating in multiple ways including:
– Issue a press release declaring their positioning/rating
– Customized PEAK profile for circulation (with clients, prospects, etc.)
– Quotes from Everest Group analysts could be disseminated to the media
– Leverage PEAK branding across communications (e-mail signatures, marketing brochures, credential packs,
client presentations, etc.)
The provider must obtain the requisite licensing and distribution rights for the above activities through an
agreement with the designated POC at Everest Group
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business
services, and sourcing. We are trusted advisors to senior executives of leading
enterprises, providers, and investors. Our firm helps clients improve operational
and financial performance through a hands-on process that supports them in
making well-informed decisions that deliver high-impact results and achieve
sustained value. Our insight and guidance empowers clients to improve
organizational efficiency, effectiveness, agility, and responsiveness. What sets
Everest Group apart is the integration of deep sourcing knowledge, problem-
solving skills and original research. Details and in-depth content are available at
www.everestgrp.com.
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