idc marketscape: worldwide digital transformation ... 2017, idc #us41523517 idcmarketscape idc...
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June 2017, IDC #US41523517
IDC MarketScape
IDC MarketScape: Worldwide Digital Transformation Consulting and Systems Integration Services 2017 Vendor Assessment
Gard Little Ali Zaidi
IDC MARKETSCAPE FIGURE
FIGURE 1
IDC MarketScape Worldwide Digital Transformation Consulting and Systems
Integration Services Vendor Assessment
Source: IDC, 2017
©2017 IDC #US41523517 2
Please see the Appendix for detailed methodology, market definition, and scoring criteria.
IDC OPINION
This IDC study represents a vendor assessment of the 2017 digital transformation (DX) information
technology (IT) consulting and systems integration (C&SI) services market through the IDC
MarketScape model. This research is a quantitative and qualitative assessment of the characteristics
that explain the success of a vendor in the marketplace and help anticipate its ascendancy. This IDC
MarketScape covers a variety of vendors participating in the worldwide digital transformation C&SI
services market. This evaluation is based on a comprehensive framework and a set of parameters
expected to be most conducive to success in providing DX C&SI services in both the short term and
the long term. A significant component of this evaluation is the inclusion of the perception of DX C&SI
services buyers of both the key characteristics and the capabilities of these providers. Buyers were
surveyed across all three of IDC's macroregions. Key findings include:
Across all 38 strategies and capabilities assessed, the "employee management strategy" and
"offering or functionality road map" attributes were rated most highly, on average, across all DX professional service providers. The strategy attribute that received the lowest mean scores
overall was "delivery model."
Based on the survey feedback from 44 of the evaluated vendors' customers, the subcategory "delivery model appropriateness and execution" received the highest aggregate scores. The
lowest aggregate score for any subcategory was for "cost competitiveness."
When buyers were asked what characteristics were required for a DX C&SI services project to
be successful at a worldwide level, the top 2 characteristics were "ability to achieve desired
business outcomes" and "ability to transform critical business processes for digital solutions."
IDC MARKETSCAPE VENDOR INCLUSION CRITERIA
This IDC study includes analysis of 10 major DX C&SI services providers with broad portfolios
spanning IDC's C&SI research coverage and with global scale. The assessment is designed to
evaluate the characteristics of each firm — as opposed to its size or the breadth of its services. Given
this approach, Lockheed Martin has been excluded even though it is among the top 10 systems
integrators based on worldwide revenue because the firm typically receives more than 80% of its
revenue from the U.S. government. Likewise, NEC has been excluded because it derived virtually all
its revenue from Asia/Pacific. The inclusion criteria also dictate at least $500 million revenue coming
from a vendor's aggregate IT consulting and systems integration services practice at a worldwide level,
as well as a minimum of 10% of this revenue located in at least two of IDC's three macroregions. In
addition, it is conceivable, and in fact the case, that specialty firms can compete with multidisciplinary
firms on an equal footing. As such, this evaluation should not be considered as a "final judgment" on
the firms to consider for a project. An enterprise's specific objectives and requirements will play a
significant role in determining which firms should be considered as potential candidates for an
engagement.
ADVICE FOR TECHNOLOGY BUYERS
Delivery model appropriateness and innovation/R&D pace and productivity. Include vendor performance on these factors among your highest selection criteria. These were the top 2 in
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terms of importance for project success as rated by customers that were surveyed for this IDC
MarketScape.
Business outcome and business process. Select services partners for your DX C&SI services engagements that have strong ability to help businesses achieve desired business outcome.
Successful organizations carried out DX C&SI services projects by partnering with DX C&SI services providers that helped them achieve the desired business outcome they were looking for. It is essential that the investments you put in DX solutions drive the business outcomes
they are planned to achieve and, therefore, it will be highly beneficial to partner with a provider that has a reputation to help you achieve these outcomes. Successful organizations also carried out DX C&SI services projects by partnering with DX C&SI services providers that
were able to transform critical business processes for digital solutions. A key to a successful DX initiative is to enhance and improve the underlying business processes to transform the way a business is run. Select a partner that can showcase the desired business process
consulting capabilities.
Using IDC MarketScape for vendor selection. Use this IDC MarketScape in contract
negotiations and as a tool to not only short list vendors for digital transformation implementation service bids but also evaluate vendors' proposals and oral presentations. Because this analysis shows that the breadth and depth of services offered are strong for the
majority of providers, make sure you understand where these players are truly differentiated
and determine if these areas are important to your selection.
VENDOR SUMMARY PROFILES
This section briefly explains IDC's key observations resulting in a vendor's position in the IDC
MarketScape. While every vendor is evaluated against each of the criteria outlined in the Appendix,
the description here provides a summary of each vendor's strengths and challenges. IDC's
assessment includes 10 vendors (profiled in alphabetical order): Accenture, Cognizant, Deloitte, EY,
HCL, IBM, KPMG, NTT DATA, PwC, and Wipro.
Accenture
According to IDC analysis and buyer perception, Accenture is a Leader in the IDC MarketScape for DX
consulting and systems integration services worldwide.
Accenture Digital is one of the five global growth platform areas for Accenture and its value proposition
is to help clients harness digital innovation to improve efficiency, generate growth, and create new
business models that drive higher performance across the entire organization. Accenture Digital
includes Accenture Interactive, Accenture Analytics, and Accenture Mobility sub-practices. In addition,
Accenture has the ability to combine and integrate these end-to-end capabilities — strategy, consulting,
digital, technology, and operations — in an industry context to help clients in the digital transformation
journey. Accenture Digital practice harnesses a large pool of business and technology skilled talent,
ecosystem partnerships, technology platforms, and assets to support its value proposition.
Strengths
Buyers rate Accenture highly for the appropriateness and execution of its delivery model and customer
service capability and the way it manages its resources during customer projects. Similarly, IDC rates
Accenture highly in terms of its offerings/functionality road map, its innovation/R&D pace and
productivity, and its end-to-end life cycle of digital services portfolio.
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Challenges
IDC believes Accenture's delivery model could be improved by increasing codevelopment of IP and
solutions with other services providers in the DX ecosystem. Likewise, financial/funding model could
be improved by upskilling junior resources to be able to deliver more higher value services to its
customers. Finally, Accenture would benefit from proactively offering value-added use case
development to its customers.
Consider Accenture When
You are looking for end-to-end digital transformation solutions that include not only experience
strategy and design but also the enablement of underlying digital technology. Accenture with its strong
industry knowledge and breadth of digital technology services offerings that span from consulting all
the way to managed services can fulfil experience creation, industry expertise, and technology
implementation needs at a global scale.
Cognizant
According to IDC analysis and buyer perception, Cognizant is a Leader in the IDC MarketScape for DX
consulting and systems integration services worldwide.
Cognizant has four business segments (financial services, healthcare, manufacturing/retail/logistics,
and others) matrixed against solutions and services areas (consulting, information technology, and
outsourcing services), all working together to deliver digital transformation C&SI services. Its business
consulting group indicates that most deals have a digital component, and Cognizant's thought
leadership over the past several years has addressed business-IT issues (e.g., in books Code Halosand What to Do When Machines Do Everything). Cognizant offers digital transformation planning,
enterprise architecture services, infrastructure services, program management, compliance and
governance, and security and vulnerability assessments. Historically, Cognizant has made an implicit
"promise" with investors that it will deliver higher revenue growth in return for the "privilege" of
delivering lower operating margins; Cognizant's emphasis on digital transformation services will be yet
another growth lever.
Strengths
Buyers rate Cognizant highly for cost competitiveness, employee management, and the
pace/productivity of its R&D/innovation. Similarly, IDC rates Cognizant highly in terms of not only its
pricing models and employee strategy but also on the visibility of its digital transformation practice at a
corporate level as well as externally.
Challenges
IDC believes Cognizant's marketing could be improved with more customer events related to digital
transformation across all three major geographies. Likewise, customer service could be improved by
adding more digital transformation–related customer councils where like-minded executives could
share information. Finally, Cognizant would benefit from an extension into support services that are
complementary to its digital transformation offers.
Consider Cognizant When
You not only want to implement a digital transformation but understand why it's so hard to do.
Cognizant believes its primary goal is not only to lead and educate companies to understand the value
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of digital transformation and help them get started but also to grasp the complexity (e.g., of the
hardware and software engineering) needed to deliver digital transformation at scale.
Deloitte
According to IDC analysis and buyer perception, Deloitte is a Major Player in the IDC MarketScape for
DX consulting and systems integration services worldwide.
Deloitte Digital is the organization's focal point of digital transformation at the firm, but digital
transformation capabilities are found across all its lines of business. Deloitte believes its three
differentiators, while timeless, apply nicely to the digital age: business value and industry experience, a
partnership collaboration culture focused on quality, and delivery and integrity at pace. Deloitte's digital
transformation offers span the entire plan, design, build and run spectrum, and it is also a digital
agency of record for numerous clients. Deloitte Digital is building a network (or ecosystem) of providers
into a platform, combined with its own IP and know-how, because it believes that how it brings
partners/providers to an engagement on behalf of its clients will be a distinct competitive advantage.
Strengths
Deloitte's primary strengths are the breadth and scope of the company's offers for digital
transformation, combined with the wider set of complementary professional and advisory services, and
the structure and capabilities of its sales/distribution model.
Challenges
IDC believes Deloitte's delivery strength could be improved with more product and service partners'
staffs included in the work done by the company's delivery centers. While it delivers strong value for
fees paid, Deloitte's cost competitiveness remains a challenge. Finally, Deloitte's customer service
strategy could be improved by including more external sources to capture client feedback about
recently completed engagements.
Consider Deloitte When
You want to be pushed out of your comfort zone about the ambition for your digital transformation so
you can come up with some truly audacious goals that are still implementable. Deloitte Digital is not
afraid to say so when it thinks you are aiming too low by simply looking for problems to be solved.
EY
According to IDC analysis and buyer perception, EY is a Major Player in the IDC MarketScape for DX
consulting and systems integration services worldwide.
EY has chosen not to create a separately branded organization for digital transformation to underscore
that digital approaches are embedded across all service lines. Its five global offers are digital
experience strategy, innovation incubation, continuous experience implementation, digital operations,
and digital trust. EY differentiates on how it brings innovation into digital transformation consulting
engagements, believing the "what" of innovation is no longer a differentiation. This innovation
enablement involves several strategies: evolving an innovation culture, expanding internal innovation
networks, providing actionable innovation knowledge, establishing innovation as part of brand,
developing an external innovation ecosystem, and identifying/quantifying growth markets. EY has
created hubs around the world for digital, analytics, and cybersecurity to accelerate the flow of
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innovations and knowledge gained from acquisitions, across the firm; it colocates multidisciplinary
teams in these studio environments to execute on its strategy.
Strengths
Buyers rate EY highly for the pricing model options it provides and how those models align with each
client's organization, the appropriateness and execution of its delivery model, and the breadth and
scope of its offers for digital transformation. IDC rates EY highly in terms of the business strategy
behind its financial/funding model, the breadth of its services portfolio, and its customer service
strategy.
Challenges
IDC believes EY's sales/distribution strategy could be improved with more go-to-market alliances with
other complementary services suppliers or customers. IDC believes the visibility of EY's digital
transformation practice at a corporate level as well as externally could be improved. Finally, EY's
delivery strength could be improved with more product and service partners' staffs included in the work
done by the company's delivery centers.
Consider EY When
The idea of business-led technology-enabled transformation sounds like the right approach compared
with a technology-led business transformation. EY likes to help clients focus on the disruption digital
technologies cause in an industry rather than the technology itself.
HCL
According to IDC analysis and buyer perception, HCL is a Major Player in the IDC MarketScape for DX
consulting and systems integration services worldwide.
HCL digital transformation services are focused on the fundamentals of customers' business
transformation, which begins with reimagining existing business processes and user experiences. HCL
value proposition for digital services is about combining deep knowledge of business processes with
user-centered design principles to truly visualize the potential of digital technology. With a product
engineering heritage, HCL excels in creating automated solutions across all aspects of a customer's
digital technology needs. HCL utilizes digital business architectures, technology platforms, and data
innovation to drive business transformation for its customers. HCL offers end-to-end digital services
capabilities including managed services, which it delivers utilizing its GDCs spread across the globe.
Strengths
Buyers rate HCL highly for the appropriateness and execution of its delivery model, its
offering/functionality road map, and the value it delivers for the fee charged for a customer solution.
Likewise, IDC rates HCL highly in terms of its sales and distribution strategy, growth strategy, and
pace and productivity of its innovation/R&D initiatives.
Challenges
IDC believes HCL's delivery model could be improved by increasing codevelopment of IP and
solutions with other services providers in the DX ecosystem. Likewise, the financial/funding model
could be improved by upskilling junior resources to be able to deliver more higher value services to its
customers and by utilizing crowdsourcing to augment internal skill sets. Finally, HCL would benefit
from increasing visibility of its digital transformation practice at a corporate level as well as externally.
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Consider HCL When
When the need for both services automation and digital technology is at the core of the transformation
initiative, HCL offers end-to-end application as well as underlying infrastructure services to support
clients' digital transformation needs.
IBM
According to IDC analysis and buyer perception, IBM is a Major Player in the IDC MarketScape for DX
consulting and systems integration services worldwide.
IBM iX (Interactive Experience) places customer experience at the center of everything it does;
however, iX also includes deep implementation skills in areas like salesforce (with the acquisition of
Bluewolf in 2016) and IBM Watson. In addition, IBM has a dedicated IoT services practice within
Digital Operations, a domain practice which is part of the overall IBM Digital service line. IBM also
formed the IBM Watson IoT–independent business unit in late 2015, which is responsible for providing
the IoT platform and ecosystem components across IBM. Across these multidisciplinary teams
implementing different technologies, IBM strives for a digital reinvention of its clients' organizations by
ensuring that clients' strategies are ambitious enough, and executions are fast enough, to transform
clients' capabilities in the context of their changing industries.
Strengths
Buyers rate IBM highly for the appropriateness and execution of its delivery model, execution of its
growth strategy, and employee management. Likewise, IDC rates IBM highly in terms of not only its
employee strategy but also its marketing, as well as its ability to offer customers a wide range of
pricing options.
Challenges
IDC believes IBM's growth strategy could be improved with more focus on specific geographies and
buyer roles. IBM's customer service strategy could be improved by including more external sources to
capture client feedback about recently completed engagements. Finally, IBM's sales/distribution
strategy could be improved with more go-to-market alliances with other complementary services
suppliers, or customers, or via more joint ventures with product/service partners.
Consider IBM When
Cognitive systems or machine learning technology is more than a bolt-on afterthought for your DX
implementation. IBM has the longest experience and deepest base of research related to building and
implementing cognitive systems.
KPMG
According to IDC analysis and buyer perception, KPMG is a Leader in the IDC MarketScape for DX
consulting and systems integration services worldwide.
KPMG has not created a digital practice but rather has a global digital community of resources with a
broad set of capabilities, and digital is its single, largest global focus. Digital plays a role in almost
every project it delivers and all its resources have digital skills with different areas of focus. KPMG has
several global delivery centers located around the globe and a portion of its digital community is
located accordingly. While it has pursued several acquisitions to complement its digital transformation
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skills, KPMG has chosen to partner with digital agencies rather than include that skill set inside the
firm.
Strengths
Buyers rate KPMG highly for the structure and capabilities of its sales and distribution model, the
pace/productivity of its R&D/innovation, and employee management. Likewise, IDC rates KPMG highly
in terms of its employee strategy, its ability to offer customers a wide range of pricing options, and the
breadth and scope of its offers for digital transformation.
Challenges
IDC believes the visibility of KPMG's digital transformation practice at a corporate level as well as
externally could be improved. KPMG's delivery model could be improved by including complementary
service partners more often in the development of tools and methodologies for implementation
services. Finally, KPMG's sales/distribution strategy could be improved with more go-to-market
alliances with other complementary services suppliers or via more joint ventures with product/service
partners.
Consider KPMG When
You want a firm where the single, largest, focus it has is on digital transformation but also one where
digital is not being called out as a separate practice or brand. KPMG is a highly credible partner when
you need to have a board-level conversation about how not to get left behind by the forces of digital
disruption in your industry.
NTT DATA
According to IDC analysis and buyer perception, NTT DATA is a Major Player in the IDC MarketScape
for DX consulting and systems integration services worldwide.
NTT DATA, now with a significant part of Dell Services acquired, creates a global IT services firm with
a broader range of both application- and infrastructure-related services to enable digital
transformation. It offers expertise and scale for custom and packaged application development to help
clients modernize, upgrade, and integrate hybrid environments and a full range of managed services
and support services to help clients leverage resources and manage costs more effectively. NTT
DATA's Digital Experience Studios in Plano, Texas and Bangalore, India are dedicated to support
digital transformation projects and host digital discovery workshops to assess the digital needs of
customers. It offers industry-specific consulting in vertical segments such as banking, insurance,
healthcare, manufacturing, and other commercial segments.
Strengths
Buyers rate NTT DATA highly for pricing models, execution of its growth strategy, and the
appropriateness and execution of its delivery model. IDC rates NTT DATA highly in terms of its
functionality offering road map, its ability to offer customers a wide range of pricing options, and the
breadth and scope of its offers for digital transformation.
Challenges
IDC believes the visibility of NTT DATA's digital transformation practice at a corporate level as well as
externally could be improved. NTT DATA's delivery model could be improved by including
complementary service partners more often in the development of tools and methodologies for
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implementation services. Finally, NTT DATA's sales/distribution strategy could be improved with more
go-to-market alliances with other complementary services suppliers, or with customers.
Consider NTT DATA When
You are interested in a provider that focuses on experiential design and takes a systemic focus on
removing the friction points between customers and their interactions with your organization. Likewise,
consider NTT DATA if access to Dimension Data (part of the larger NTT Group), or NTT
Communications, or the over $2 billion it spends each year on R&D sound intriguing for your
implementation.
PwC
According to IDC analysis and buyer perception, PwC is a Major Player in the IDC MarketScape for DX
consulting and systems integration services worldwide.
PwC digital transformation services covers its advisory, assurance, and tax services lines and provides
clients solutions from strategy planning through tactical execution. PwC's value proposition for digital
services revolves around providing an industry-led, business-focused and technology-enabled
approach to digital that integrates knowledge of industries, business processes, and technology that
are necessary to effectively and comprehensively deliver digital solutions and services. PwC has
digital services practitioners across business strategy, experience design, and technology services.
PwC helps client achieve new/enhance operating model for their digital transformation needs across
the following elements of clients' operating model: portfolio, funding, organization, team/resources,
ecosystem, governance, process, culture, metrics/motivators, and leadership.
Strengths
PwC's primary strengths are the breadth and scope of its offers for digital transformation, its pricing
model strategy, and its employee management strategy.
Challenges
IDC believes PwC's sales and distribution strength could be improved by utilizing services and
customers as sales channels to augment its direct sales outreach. Likewise, financial/funding model
could be improved by further utilizing IP to automate services delivery and augmenting internal skill
sets via crowdsourcing. Finally, PwC would benefit from increasing visibility of its digital transformation
practice at a corporate level as well as externally.
Consider PwC When
The idea of business-led technology-enabled transformation sounds like the right approach compared
with a technology-led business transformation. PwC's approach to digital transformation is about
solving business problems in a way that they are supported and enabled by technology, but not driven
by technology alone.
Wipro
According to IDC analysis and buyer perception, Wipro is a Leader in the IDC MarketScape for DX
consulting and systems integration services worldwide.
Wipro Digital is the branded customer-facing digital practice within Wipro that offers human-centered
creative design capabilities coupled with technology services that span across strategy consulting to
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technology implementation and managed services. Wipro Digital's value proposition revolves around
the notion that successful digital transformations occur at the intersection of enhanced customer
experience and greater operational efficiencies, and therefore, Wipro helps enable client organizations
to reimagine the way they serve their customers by supporting unique customer journeys. Wipro digital
technology solutions, particularly those around analytics, are enabled heavily by IP/asset such as
Wipro HOLMES, an artificial intelligence platform. Wipro digital resources, tools, and industry solutions
cut across all services lines across Wipro, including its global infrastructure services practice.
Strengths
Buyers rate Wipro highly for the appropriateness and execution of its delivery model, the pricing model
options it offers, and its end-to-end life cycle of digital services portfolio. Likewise, IDC rates Wipro
highly in terms of its functionality/offerings road map, sales and distribution strategy, and employee
management strategy.
Challenges
IDC believes Wipro's cost management strategy could be improved by proactively offering value-
added use case development to its customers. Likewise, growth strategy could be improved by
targeting customers outside of Wipro's traditional customer base. Finally, Wipro would benefit from
adding external elements to its delivery process oversight to improve delivery consistency.
Consider Wipro When
Artificial intelligence–enabled automation and human-centric design approach for digital transformation
are your top priorities. Wipro couples its DesignIT human-centered design capabilities with highly
automated business process and technology solutions enabled by artificial intelligence IP-based
assets to cater to your industry-specific digital transformation needs.
APPENDIX
Reading an IDC MarketScape Graph
For the purposes of this analysis, IDC divided potential key measures for success into two primary
categories: capabilities and strategies.
Positioning on the y-axis reflects the vendor's current capabilities and menu of services and how well
aligned the vendor is to customer needs. The capabilities category focuses on the capabilities of the
company and product today, here and now. Under this category, IDC analysts will look at how well a
vendor is building/delivering capabilities that enable it to execute its chosen strategy in the market.
Positioning on the x-axis, or strategies axis, indicates how well the vendor's future strategy aligns with
what customers will require in three to five years. The strategies category focuses on high-level
decisions and underlying assumptions about offerings, customer segments, and business and go-to-
market plans for the next three to five years.
The size of the individual vendor markers in the IDC MarketScape represents the market share of each
individual vendor within the specific market segment being assessed.
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IDC MarketScape Methodology
IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC
judgment about the market and specific vendors. IDC analysts tailor the range of standard
characteristics by which vendors are measured through structured discussions, surveys, and
interviews with market leaders, participants, and end users. Market weightings are based on user
interviews, buyer surveys, and the input of IDC experts in each market. IDC analysts base individual
vendor scores, and ultimately vendor positions on the IDC MarketScape, on detailed surveys and
interviews with the vendors, publicly available information, and end-user experiences in an effort to
provide an accurate and consistent assessment of each vendor's characteristics, behavior, and
capability.
Note: All numbers in this document may not be exact due to rounding.
Market Definition
Digital transformation refers to the changes associated with the application of 3rd Platform technology
in all aspects of business and society. It is a process by which enterprises apply technical innovations
to business strategies, revenue models, products, customer engagement, operations, and services.
Digital transformation is accomplished through business or IT lead project-oriented initiatives. Figure 2
illustrates that buyers consume IT and business services for these service segments (denoted as the
four activities in the outer circle) to help them conceive of, execute, manage, and support digital
transformation (DX) initiatives. The scope of this IDC MarketScape is the IT consulting and systems
integration services required to build and implement digital transformations. For detailed definitions of
IT consulting or systems integration, see IDC's Worldwide Services Taxonomy, 2017 (IDC
#US42356617, March 2017).
Digital transformation initiatives contain elements of the five dimensions illustrated in Figure 3. Digital
transformation includes at least one of the following 3rd Platform technologies: cloud, business
analytics, enterprise mobility, and social. IDC also includes all innovation accelerators in digital
transformation spending (IoT, next-generation security, robotics, cognitive computing, and
augmented/virtual reality). The core of Figure 2 illustrates this definition. For digital transformation
examples, see IDC's Worldwide Digital Transformation Use Case Taxonomy, 2017: Engineering-Oriented Value Chains in the Manufacturing Industry (IDC #US42203716, January 2017).
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FIGURE 2
Business and IT Services Enable Digital Transformation
Source: IDC, 2017
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FIGURE 3
The Five Dimensions of Digital Transformation
Source: IDC, 2017
Digital transformations can be applied to any function within an organization. For example, creative
design typically provided by digital agencies can be included as part of Internet of Things or a mobile
application or in the planning of digital media campaigns. While not a requirement, digital
transformations can create innovations that disrupt business processes, functions, or entire industry
value chains, for example, by disaggregating or reaggregating these elements, by introducing
consumers earlier in a process, or by changing their role to that of a prosumer — one which is also a
coproducer of products or services created in a value chain.
Customer Perceptions of Digital Transformation Consulting and Systems Integration Services Vendors
A significant component of this evaluation is the inclusion of the perceptions of DX C&SI services
buyers of both the key characteristics and the capabilities of the vendors evaluated. The buyers
participating in IDC's 2017 Digital Transformation Consulting and Systems Integration Services Buyer Perception Survey have partnered with at least one of the participating vendors directly on a DX C&SI
project within their organization. The survey findings highlight key areas where buyers expect DX IT
project-based services providers to showcase a range of capabilities. The buyers consider these
capabilities a must-have for DX C&SI services to be able to fulfill the requirements of many challenging
business and IT issues.
Figure 4 illustrates 17 business drivers for DX C&SI services projects for the customers surveyed in
2017. Customers sighted "create a more effective business that caters to changing customer needs"
and "improve the digital design and digital consumability of products/services" as the two primary
business drivers for DX C&SI services projects.
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FIGURE 4
Business Drivers for Digital Transformation Consulting and Systems Integration Services Projects, 2017
Q. How important a business priority do you believe each of the following is currently for your company?
n = 44
Note: Mean scores are based on a scale of 1–5, where 1 is not a priority, and 5 is a critical business priority.
Source: IDC's Digital Transformation Consulting and Systems Integration Services Buyer Perception Survey, 2017
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Figure 5 illustrates the rank order of factors important for a successful DX C&SI services project for the
DX customers surveyed in 2017. Survey findings suggest that the "able to achieve desired business
outcome" as the most critical factor for the successful completion of the project. Customers also
indicated a vendor's "ability to transform critical business processes for digital solutions" as one of the
top success factors. In addition, customers regard a vendor's "ability to deliver innovation that
produces results" for the project to be critical for a project's success.
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FIGURE 5
Important Factors for a Successful Digital Transformation Consulting and Systems Integration Services Projects, 2017
Q. For a digital transformation consulting and systems integration services project to be successful, please indicate the importance of each of the following characteristics.
n = 44
Note: Mean scores are based on a scale of 1–5, where 1 is detrimental to success, and 5 is most essential to success.
Source: IDC's Digital Transformation Consulting and Systems Integration Services Buyer Perception Survey, 2017
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Figure 6 illustrates the relative proportion of key sponsors for DX C&SI services projects for the DX
customers surveyed in 2017. CIOs/CTOs have the largest share (21.9%), followed by other (15.9%).
Perhaps the key takeaway from this information is that the IT department (IT managers + CIO/CTO) is
the key sponsors for DX C&SI services projects only 27.9% of the time, which means almost three-
fourths of DX C&SI services projects are sponsored from outside the IT department.
FIGURE 6
Key Sponsors for Digital Transformation Consulting and Systems Integration Services Projects, 2017
Note: Others include IT managers, CFO, VP of digital, parent company, GM of commercial operations, deputy director of news,
development manager, and CHRO.
Source: IDC's Digital Transformation Consulting and Systems Integration Services Buyer Perception Survey, 2017
Interestingly, the buyer perception survey highlights that when it comes to taking on DX C&SI services
projects, only 16% of projects are purchased as standalone projects most of the time (see Figure 7). In
most cases, enterprises buy DX C&SI services projects in conjunction with another service. Among
these, 39% of clients responded they buy custom application development for DX solutions or platform
on most projects when they consume DX C&SI services. The same percentage (34%) of clients
indicated consumption of creative content design and management solutions was the most frequent
bundling for most projects.
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FIGURE 7
Solutions Bundled with Digital Transformation Consulting and Systems Integration Services Projects, 2017
n = 44
Source: IDC's Digital Transformation Consulting and Systems Integration Services Buyer Perception Survey, 2017
Strategies and Capabilities Criteria
This section includes an introduction of market-specific weighting definitions and weighting values.
IDC believes DX C&SI services vendors must exhibit the characteristics shown in Tables 1 and 2 to be
completely successful when crafting a future strategy and in leveraging existing capabilities to their
best advantage. The factors were weighted because IDC believes that some factors are more
important than others in maximizing market opportunity and realizing market success (see Tables 1
and 2).
©2017 IDC #US41523517 19
TABLE 1
Key Strategy Measures for Success: Worldwide Digital Transformation Consulting and Systems Integration Services
Strategies Criteria Criteria for Success Subcriteria Weight
Subcriteria Weight as
Percentage of Total
Strategy Score
Offering strategy
Functionality or offering
road map
Excellence is marked by plans to increase
offerings across all phases of digital
transformation (DX) consulting and systems
integration (C&SI) services practice as well as
around all major DX areas such as leadership,
information, customer experience, operating
models, and workplace.
0.60 6.0
Delivery model Excellence is marked by plans to support
consulting services utilizing more efficient tools
and methodologies.
1.05 10.5
Cost management strategy Superior service calls for ways by which the
vendor can help clients justify expenditures
including ROI models and by providing clear
paths by which the client can lower costs.
0.90 9.0
Portfolio strategy A strong portfolio strategy dictates that well-
thought-out plans are in place to ensure
development of offerings across the entire
market of digital services (i.e., more than just
consulting and integration).
0.45 4.5
Subtotal 3.00 30.0
Go-to-market strategy
Pricing model Vendor exhibits superior planning for future
pricing alignment with market buying pattern.
0.45 4.5
Sales/distribution strategy Excellence is demonstrated by plans to serve
new markets or specific industries.
0.75 7.5
Marketing strategy Successful firms have an eye toward a well-
articulated plan for how they will market their
capabilities in the future.
0.82 8.2
©2017 IDC #US41523517 20
TABLE 1
Key Strategy Measures for Success: Worldwide Digital Transformation Consulting and Systems Integration Services
Strategies Criteria Criteria for Success Subcriteria Weight
Subcriteria Weight as
Percentage of Total
Strategy Score
Customer service strategy Superior firms have a well-articulated plan for
lowering client churn in the future. Successful
firms also continuously focus on ways to bring
consistency in delivering DX C&SI services.
0.90 9.0
Other go-to-market
strategy
Excellence is marked by the vendor's DX
services practice having high visibility on their
main homepage and ranking in terms of visibility
of the DX services practice in the web search
engines.
0.08 0.8
Subtotal 3.00 30.0
Business strategy
Growth strategy The vendor has strategic plans for both organic
and inorganic growth and ones that align well
with the overall IT trends in the next one to three
years.
1.60 16.0
Innovation/R&D pace and
productivity
The vendor has strategic plans for attaining or
retaining functional superiority over competition
by improving innovation in DX C&SI services
delivery methodologies and tools.
0.60 6.0
Financial/funding model The vendor's funding strategy is viable for the
next one to three years, and the vendor has
solid plans for growing revenue per employee
and a strong corporate-level support for the DX
C&SI services practice.
1.00 10.0
Employee strategy The vendor has solid plans for retaining and
hiring top-performing employees.
0.80 8.0
Subtotal 4.00 40.0
Total 10.00 100.0
Source: IDC, 2017
©2017 IDC #US41523517 21
TABLE 2
Key Capability Measures for Success: Worldwide Digital Transformation Consulting and Systems Integration Services
Capabilities Criteria Criteria for Success Subcriteria Weight
Subcriteria Weight as
Percentage of Total
Capability Score
Offering capabilities
Functionality/offering
delivered
The vendor offers full spectrum of DX C&SI
services across the plan, design, build,
implement, sustain (e.g., custom addition), and
upgrade continuum and provides sound industry
expertise, technical insights and competence
related to social, mobile, analytics, cloud
services, and innovation accelerators. It also
has the ability to transform critical business
processes for digital solutions, ability to achieve
desired business outcomes, drive/support IT
change (people/process changes related to
digital transformation initiatives) across the client
organization, and ability to provide creative
content design solutions. And, it offers across
DX areas of leadership, customer experience,
information, operating model, and worksource
(HR).
1.40 14.0
Delivery model
appropriateness and
execution
The appropriate delivery model must include an
ability to meet project timeline, ability to handle
changes in project scope, utilize proven
methodologies/tools (horizontal- and vertical-
specific integration accelerators and templates),
and integrate project team with client. Higher
capability reflects buyer perception of a firm's
capability. The vendor should have strength in
terms of colocation with partners, above
average number of tools, above average
number of studios/labs, above average
percentage of resources located in GDCs, and
above average percentage of resources located
at client sites.
1.20 12.0
Cost competitiveness Cost competitiveness can best be measured by
the ability to deliver an appropriate and
sustainable return on investment. Higher
capability reflects buyer perception of a firm's
capability. Blended rates are suitable to attract
clients.
0.80 8.0
©2017 IDC #US41523517 22
TABLE 2
Key Capability Measures for Success: Worldwide Digital Transformation Consulting and Systems Integration Services
Capabilities Criteria Criteria for Success Subcriteria Weight
Subcriteria Weight as
Percentage of Total
Capability Score
Portfolio benefits delivered Evolved vendor firms will necessarily be
required to provide a digital services (business
consulting, custom apps development, on-
premise/hosted app/infra management, support
services). Higher capability reflects buyer
perception of a firm's capability.
0.60 6.0
Subtotal 4.00 40.0
Go-to-market capabilities
Pricing model options and
alignment
The vendor offers flexible pricing models to
meet client needs for DX C&SI services. Higher
capability reflects buyer perception of a firm's
capability. Variety of pricing models are offered
to the clients.
0.60 6.0
Sales/distribution structure
and capabilities
A firm is able to communicate the value of its
services/solution and delivery
methodologies/tools that the clients are currently
consuming as well of other services/solution that
the clients are not currently consuming. Higher
capability reflects buyer perception of a firm's
capability. It has a number of dedicated sales
resources for the practice.
0.90 9.0
Marketing A firm should be able to communicate the value
of its services/solution and delivery
methodologies/tools that are currently being
consumed by the clients as well as those that
are not being currently consumed. Higher
capability reflects buyer perception of a firm's
capability. Variety of marketing channels are
utilized to market the practice.
0.60 6.0
Customer service The firm should have the ability to provide
customer service particularly onsite and to
resolve problems/issues related to customer
service. Higher capability reflects buyer
perception of a firm's capability. Customer
retention ratio was attained for the practice.
0.90 9.0
Subtotal 3.00 30.0
©2017 IDC #US41523517 23
TABLE 2
Key Capability Measures for Success: Worldwide Digital Transformation Consulting and Systems Integration Services
Capabilities Criteria Criteria for Success Subcriteria Weight
Subcriteria Weight as
Percentage of Total
Capability Score
Business capabilities
Growth strategy execution This involves growth sustainability — client
willingness to spend more and client willingness
to recommend to other buyers within their own
firm or outside. Higher capability reflects buyer
perception of a firm's capability. Growth rates
are achieved for the practice in FY16.
1.20 12.0
Innovation/R&D pace and
productivity
A firm's ability to innovative can be showcased
in the way the firm transfers this innovation to its
clients via innovative service delivery as well as
the thought leadership it brings to the table.
Higher capability reflects buyer perception of a
firm's capability.
0.75 7.5
Employee management Success is measured by the head count
associated with the practice as well as how well
an implementation services vendor manages its
staff turnover during a project's lifetime and the
quality of resources on the projects based on
client perception. Higher capability reflects buyer
perception of a firm's capability.
1.05 10.5
Subtotal 3.00 30.0
Total 10.00 100.0
Source: IDC, 2017
LEARN MORE
Related Research
Worldwide and U.S. IT Consulting Services Forecast, 2017–2021 (IDC #US42499117, May
2017)
Worldwide and U.S. Systems Integration Services Forecast, 2017–2021 (IDC #US42499217,
May 2017)
IDC's Worldwide Services Taxonomy, 2017 (IDC #US42356617, March 2017)
©2017 IDC #US41523517 24
Market Analysis Perspective: Worldwide and U.S. IT Consulting and SI Services, 2016 (IDC
#US40140116, September 2016)
IDC MarketScape: Worldwide Digital Transformation Consulting and Systems Integration Services 2015 Vendor Assessment (IDC #255870, May 2015)
Synopsis
This IDC study represents a vendor assessment of the digital transformation consulting and systems
integration services ecosystem through the IDC MarketScape model. This assessment discusses both
quantitative and qualitative characteristics that explain success in the ecosystem. This IDC
MarketScape covers a variety of vendors participating in the digital transformation services space. The
evaluation is based on a comprehensive and rigorous framework that assesses vendors relative to the
criteria and one another and highlights the factors expected to be the most influential for success in the
market during both the short term and the long term.
"With customers expecting to achieve business outcomes, create innovative solutions that produce
results, and transform business processes upon implementation of a digital transformation solution,
digital implementation services providers must focus on a balanced services portfolio that not only
offers digital technology implementation solutions but also cater to customers' business process
transformation needs," says Ali Zaidi, research director, IT Consulting and Systems Integration
Business Strategies at IDC.
About IDC
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