magic quadrant for crm and customer experience … · 2020. 10. 16. · worldwide published: 1...

Magic Quadrant for CRM and CustomerExperience Implementation Services,WorldwidePublished: 1 December 2016 ID: G00299019

Analyst(s): Patrick J. Sullivan, Ed Thompson

Customer experience and CRM implementation services continue to be inhigh demand, fueled by digital business transformation. Here, we positionthe largest customer experience and CRM consulting and implementationservice providers to help enterprises identify providers that best fit theirneeds.

Strategic Planning AssumptionsThrough 2019, the total market for consulting and implementation services for CRM and customerexperience (CX) will be 1.4 times the market for CRM software, with the ratio of service to softwaregrowing over that time.

By 2018, more than half of organizations will implement significant business model changes in theirefforts to improve CX.

Market Definition/DescriptionGartner defines the CRM and CX implementation service market as project-based services to helpform a customer relationship or CX strategy and/or design, build, integrate and deploy processchange and technology solutions that improve interactions between organizations and theircustomers.

These projects have goals set out by sales, marketing, customer service, field service and digitalcommerce leaders, such as improving customer satisfaction, acquiring new customers, retainingexisting customers, creating a single view of the customer, cross-selling or upselling to customers,improving campaign response rates, driving up customer advocacy or referrals, and gaining bettermargins through improved pricing.

There are seven primary differences between CRM and CX:

1. The roles involved with CRM in an organization are a subset of those involved with CX.

2. The permanence of CX operational capability differs from the transience of a CRM project.

3. A CX initiative typically coordinates several projects, while a CRM project stands alone.

4. More time is needed to demonstrate the benefits of a superior CX.

5. The association with technology is greater in CRM.

6. The focus for CRM is on actions taken; in CX, it is the customer's perception of the actions.

7. A rational approach is more important in CRM; in CX, the customer emotions matter more.

For more, see "How to Tell the Difference Between Customer Experience and CRM Projects."

CRM projects tend to focus on more-traditional CRM technology implementations for sales,marketing, customer service, field services and digital commerce. They primarily first deploy coreCRM system-of-record applications and then add supporting technologies to enhance the core.Over 80% of these projects involve the deployment of technology, and over 75% of these projectsutilize CRM packaged software (rather than building custom solutions). The CRM softwarepackages that are the most typical systems of record include Salesforce, Microsoft Dynamics CRM,SAP CRM, Oracle Siebel, Oracle CX Cloud, SAP Hybris, Adobe Marketing Cloud, Pegasystems andIBM Commerce. Salesforce and Microsoft Dynamics CRM together account for 54% of the CRMimplementation service projects, with the remaining 46% spread across all other CRM packages.This part of the market includes projects that upgrade or adapt existing CRM applications,particularly when extending this to improve usability and analytics.

CX projects encompass a far wider range of activities that are enterprisewide initiatives reachingbeyond sales, marketing and customer experiences and extend into operations, supply chain,billing, logistics and other departments. Only 50% of these projects involve the deployment oftechnology (see "Survey Analysis: Customer Experience Management Leadership"). They are oftendriven to change or transform the business operations and modes of interaction with customers.The goals of these projects are aiming to increase customer satisfaction, loyalty and advocacy (see"The Definition of Customer Experience Management"). The skills needed for these projects tend tobe more creative and design-oriented, but it also requires analytics and process skills, includingbusiness process transformation, digital commerce knowledge, information architecture/migration,customer analytics and digital design.

This market includes the work done by digital agencies as part of CRM or CX implementationefforts, but it excludes work done by brand agencies for chief marketing officers in branding, mediabuying, image projection and strategic marketing initiatives.

Page 2 of 37 Gartner, Inc. | G00299019

Magic QuadrantFigure 1. Magic Quadrant for CRM and Customer Experience Implementation Services, Worldwide

Source: Gartner (December 2016)

Gartner, Inc. | G00299019 Page 3 of 37

Vendor Strengths and Cautions

Accenture

Accenture is positioned in the Leaders quadrant due to market presence, vision and digitalorientation. Accenture leverages resources across business units, with Accenture Strategy settingthe vision, Accenture Consulting leading in business transformation and Accenture Digital providingdesign, digital marketing and analytics, while Accenture Technology takes the lead on CRMtechnology integration. Accenture is a good fit for large enterprises needing complex or industry-specific transformational efforts requiring multiple disciplines. Gartner estimates that Accenture isthe largest CRM and CX service provider, with revenue estimated to be $3 billion (around 10% ofAccenture's total revenue and 20% of its consulting and implementation revenue). The top fiveindustries for its CRM and CX services are banking, retail, consumer goods, telecom/media andutilities/energy.

Strengths

■ Digital business transformation and CX vision — Accenture is strongest at the intersection ofbusiness and technology with a focus on digital and CX services. It has steadily invested insolutions, skills, practitioners and practices that encompass business, technical and domainskills across all major CRM software and CX. Accenture perceives CX services to be outcome-driven, requiring end-to-end services to improve clients' business results. Accenture is strong atleveraging resources across business units, with Accenture Consulting leading businesstransformation, Accenture Interactive providing design, digital marketing and analytics, andAccenture Technology providing CRM technology integration. Accenture conducts extensivemarket research enabling the firm to identify new patterns of demand, set out a vision for CXand then innovate its services to match.

■ Market presence and scale — Accenture leads the market in terms of revenue and staff, aswell as being referenced most frequently on competitive bids according to references thatreported shortlist candidates. Accenture has the ability to support global and multinationalaccounts due to its extensive scale and global breadth.

■ Partnership with CRM software providers — Accenture has the largest practices in terms ofboth staff and revenue for most of the major CRM software platforms (Salesforce, Siebel,Pegasystems, Adobe and SAP). Accenture is also the largest Microsoft Dynamics CRM providerdue to the Avanade relationship (a joint venture with Microsoft). Accenture works closely with allthese software firms to develop industry- and process-specific solutions.

Cautions

■ Price — If pricing is a top criterion for selection, then evaluate Accenture with care. Amongcompanies named as references by other providers, most companies that evaluated but did notselect Accenture said the reason for not selecting Accenture was that the price was too high.References also rated Accenture below average for the total cost for the contracted services.


■ Flexibility and resource allocation — References praised Accenture for vision, thoughtleadership and consulting competencies, but some also desired Accenture to be more flexiblein the approach to projects and to manage scope change. Clients also noted that, at times,Accenture would utilize junior staff both onshore and offshore who were not as skilled asexpected.

■ Smaller stand-alone CRM implementations — Accenture is optimized for large complexengagements that include business change. The average scale and costs of its engagementsare large relative to most other providers. Accenture is not typically the best fit for small CRMimplementation projects unless there are other services also being provided.

Atos

Atos is positioned in the Niche Players quadrant due to being a European-centric provider. AtosCustomer Experience (ACE) is one of Atos' key digital focus areas, where it works on the connectedCX primarily for consumer-centric industries. Atos approaches CX from a digital technologyperspective, leveraging an integrated approach to digital, cloud, mobility, analytics and CRMtechnology integration, especially related to commerce using Worldline. Atos is a good fit forEuropean enterprises that are looking to increase revenue and customer interaction throughtechnology. Atos is the 10th-largest CX and CRM service provider worldwide, with 2015implementation revenue of about $600 million representing 5% of its total service revenue and 18%of its consulting and implementation revenue. The top five industries for its CRM and CX servicesare retail, public sector, transportation, financial services and utilities/energy.

Strengths

■ Addressing business objectives — Customer references repeatedly stated that Atos was verygood at listening to their objectives, understanding their business models and processes, andthen being able to adapt CRM and CX technologies to support the customers' processes. Atosutilizes its UX Lab and Business Transformation Innovation Center network to help clientsenvision these solutions. This enables IT organizations to support business objectives in apragmatic and effective manner and is particularly true within its focus industries.

■ Technical and committed execution — Atos has a wide range of deep technologycompetencies, particularly those needed for CRM and CX projects, including informationarchitecture and commerce. References scored Atos well on technical skills, customerinformation architecture, system integration and project management. References commentedon technical skills and ability to mobilize quickly. Comments from references cited a culture ofreliable execution and commitment to the client's success as strengths.

■ Commerce and mobility — Atos has aligned its CX strategy to the "connected customer" withthe attitude that everything is digital and mobile. The investments into Canopy, Worldline andthe CX practice enable Atos to bring together commerce, mobility and analytics in end-to-endsolutions. Atos has the highest percentage of revenue from commerce enablement of allproviders, and mobility enablement is part of virtually all services.


Cautions

■ Project management and execution — Atos references score it lower than most competitorsin project management, project methodology and meeting expectations. Some referencesdescribed issues with cost control and coordination of project resources and said Atos was notproactive in directing some projects.

■ Geographical coverage — Non-European buyers may find a lower base of skills in CRM andCX implementation in their regions. Atos generates over 85% of its CRM and CX revenue inEurope. Atos provides support to customers globally and is building more CRM and CXcapabilities in North America and Asia/Pacific.

■ CX thought leadership and business consulting — References scored Atos relatively low onkey criteria related to business transformation and change. These included business acumen,business process functional skills and CX thought leadership. The ability to work with clients onbusiness issues is strong when Atos serves as the technical and commerce partner.

BearingPoint

BearingPoint with its global network partners is positioned in the Visionaries quadrant because itutilizes an effective consultative and innovative approach to CX transformations but with limitedscale. BearingPoint, West Monroe Partners, gA and ABeam are all regional consulting and strategyfirms that support clients globally through a strategic partnership. BearingPoint in Europe and WestMonroe in North America lead CX initiatives and are a good fit for enterprises seeking business-driven CRM strategy and/or complex CX solutions. Gartner estimates that BearingPoint, combinedwith its partners, makes up the 14th-largest CX and CRM service provider worldwide, with 2015revenue of about $350 million. BearingPoint is a good choice for European enterprises looking forCX strategy and consulting, along with analytics, as part of their solution. West Monroe is a goodchoice for North American enterprises looking for CX strategy and transformation with limited scaleof implementation. ABeam is a good choice for Asian clients looking for CRM softwareimplementation. gA is a good choice for Latin American clients looking for CX consulting and CRMimplementation. The top five industries for CRM and CX services are banking, insurance,automotive/manufacturing, public sector and telecom/media.

Strengths

■ Business-driven CX approach — BearingPoint and West Monroe lead projects with businessand industry orientation and a consultative approach. The collaborative and consultativeapproach enables them to understand the objectives and nuances of the client situation andthen bring CX best practices, analytics and business frameworks to address the clientobjectives. References cited the ability to understand their issues and the collaborativeapproach as strengths.

■ Project management and execution — BearingPoint and West Monroe both received strongratings for project management and execution by the team. References referred to effectiveproject management and change management competencies from both business and technicalperspectives.


■ Transforming CX vision into reality — References gave BearingPoint and West Monroe strongscores and comments related to the ability to address business objectives. Comments alludedto the ability to understand the client's business model and project needs, and then developbusiness and technology solutions and support business change in a rapid yet pragmaticmanner. West Monroe was recognized as having great CX vision and thought leadership toguide clients.

Cautions

■ Limited scale and varied focus by geography — The partners operate in each region andsupport each other's clients for global coverage, but there is scale only with BearingPoint inEurope (58% of revenue) and ABeam in Asia (32% of revenue). BearingPoint's efforts in Europeare very CX-oriented with an emphasis on sales and commerce leveraging analytics.BearingPoint and ABeam's combined activities in Asia/Pacific now represent 32% of revenue,mostly in Japan for technology-oriented CRM sales and service initiatives. North America, ledby West Monroe, contributes only 9% of revenue from CX initiatives, mostly in mutichannelcommerce and marketing leveraging analytics. While still small, gA CRM and CX services grewin 2015 to 2% of revenue focusing on automotive.

■ Proactive innovation — Although BearingPoint understood the client's situation andobjectives, references expressed a desire for BearingPoint to provide more proactive guidance,innovation and insight and a desire to be pushed by BearingPoint further than it provided.

■ Price — BearingPoint and partners were viewed as having high cost, and some clients citedreduced value for these high costs. These firms are optimized for on-site and nearshore deliveryand execution, and the consultative approach leverages senior talent. BearingPoint is not agood choice when cost-efficiencies are a driving factor.

Business & Decision

Business & Decision (B&D) is positioned in the Niche Players quadrant due to its specialty focus onEuropean enterprises seeking revenue generation from sales and marketing with a heavy focus oncustomer analytics. Gartner estimates that B&D is the 20th-largest CRM service provider worldwide,with 2015 revenue of about $200 million. B&D has its largest practices on Microsoft Dynamics CRMand Adobe, as well as practices in Salesforce, Siebel, Oracle Cloud and Coheris. The top fiveindustries for its CRM and CX services are banking, insurance, life sciences, manufacturing andconsumer goods.

Strengths

■ Business marketing solutions — B&D focuses its CRM efforts and skills on marketing andsales organizations. The percentage of revenue from marketing solutions was the highest of allproviders, and the company also generates significant revenue from sales enablement. Thisorientation has a technology focus on Adobe and analytics, which are applied to consumer-centric industries of banking, insurance, hospitality, retail and telecommunications/media.


■ Customer analytics and information architecture — B&D approaches the CX market from aninformation and analytics perspective, integrating and leveraging internal and external data togenerate value and business impact for clients. Business intelligence and CX are the primaryfocus of B&D, and the two disciplines generate more than 80% of revenue. This strongcustomer analytics competency is utilized in marketing areas such as lead management, loyaltyprograms, segmentation and campaign automation. There have been targeted investments todevelop frameworks that deliver incremental value creation through return on information.

■ Flexibility — References praised B&D for flexibility, professionalism and understanding of theirbusiness operations. With this approach, B&D delivers increased sales and marketingeffectiveness through the use of analytics to make better decisions and increase productivity.

Cautions

■ Project management — B&D executes projects that are unique and highly adapted to eachclient to achieve value. However, multiple clients gave B&D relatively low ratings in projectmanagement, implementation methodologies and change management skills. B&D is investingin client success programs to assure quality project execution.

■ Resource management and scale — B&D is the smallest of the service providers in thisassessment and specializes in analytics, sales and marketing solutions. References stated thatthe breadth of skills was limited, and that at times, there was less expertise than needed.References also noted there was turnover on projects, and at times, there were delays in fillingkey roles.

■ Geographic reach — Non-European companies may not be as well-supported by B&D, whichhas a strong presence in France, Belgium and Switzerland. There is a growing presence inNorth Africa (15% of revenue); but 83% of its revenue comes from Europe and more than 50%of that from France. B&D has only a small presence in Latin America (Peru) and India and haslimited presence in other parts of Europe (the Nordics, Italy and Central Europe) and otherregions of the world compared with market leaders.

Capgemini

Capgemini is positioned in the Leaders quadrant due to market presence, growing market shareand a focus on solutions for large or complex projects that require a combination of businessinnovation and CRM technical advisory and implementation skills. Capgemini's Digital CustomerExperience brings a wide range of competencies that integrate industry, consulting, CRMtechnology and analytics capabilities. Gartner estimates that Capgemini is the fourth-largest CX andCRM implementation provider worldwide, with 2015 CX and CRM revenue estimated to be around$2 billion (accounting for about 25% of its global consulting and technology service revenue) andabove-average market growth. Capgemini has very large practices in SAP CRM, Siebel, OracleCloud and Salesforce, with additional competencies in Microsoft Dynamics CRM, Pegasystems andAdobe.


Strengths

■ CX vision and thought leadership — Capgemini has invested heavily in CX and digitalmarketing initiatives. The Digital Customer Experience team brings together a wide range ofbusiness and technology competencies. Capgemini's Digital Transformation Institute partnerswith the Massachusetts Institute of Technology to research digital CX to stay ahead of themarket on trends and initiatives.

■ Industry specialization — Capgemini has become focused on selected industries for businessand CX expertise, particularly for customer service and omnichannel commerce. Theseindustries include banking, insurance, automotive, consumer goods, retail, energy/utilities andpublic sector. Capgemini also has broad and deep technology skills in all major CRMtechnologies, as well as analytics, commerce and industry experience.

■ Flexibility and collaboration — Capgemini is best in situations that require client-specificadaptation to solutions that require a combination of business and technology. Capgemini ispraised by clients for being flexible, as well as understanding the business needs and bringinginnovation and technology-based solutions to address CX challenges.

Cautions

■ Price — If lower-cost pricing is a top criterion for selection, then evaluate Capgemini with care.The most common reason cited by other providers' client references that evaluated but did notselect Capgemini was its high price points. Capgemini appears to be one of the higher-pricedproviders for CRM and CX services. This appears to be the case in continental Europe andChina, where the desire to have on-site and in-country resources may result in higher prices dueto limiting the leverage of Capgemini's global delivery capabilities.

■ Mobility and UX design — Capgemini does not have the creative advertising agency level ofdigital design that some of its direct competitors possess. References gave relatively low scoresto Capgemini related to digital design and UX capabilities. The acquisition and continuingorganic expansion of Backelite are addressing this issue.

■ Resource management — Some references cited instances in which senior staff and subjectmatter experts were not readily available, placing too much reliance on junior staff in executingprojects. This resulted in some project inefficiencies and frustrations with project teams notbeing adaptable to project requirements.

Cognizant

Cognizant is positioned in the Challengers quadrant due to market traction, growth and strongtechnical implementation skills. Cognizant is a good fit for firms looking for a collaborative partnerfor complex CRM and CX technology solutions, particularly within the selected industries.Cognizant's Digital Works business unit takes the lead on CRM and CX implementation projectswith a combination of industry understanding, deep CRM technology capabilities, design thinkingand client-centric execution. The acquisition of Odecee and partnership with ReD have broughtadditional consulting and digital design skills. Gartner estimates that Cognizant is the sixth-largest


CX and CRM service provider worldwide, with total 2015 revenue from CX and CRM implementationservices of about $1 billion, as well as growth considerably above the market growth from 2014.Cognizant has large practices in Salesforce, Pegasystems, Adobe and Microsoft Dynamics CRMwith additional competencies in SAP CRM, Siebel and Oracle Cloud.

Strengths

■ Industry focus — Cognizant goes to market by industry, focused on retail, banking, insurance,life sciences and healthcare providers. Cognizant invests in these industries and deepens itscapabilities with acquisitions, industry-specific solutions and senior staff that are focused withinthese industries. This focus brings industry understanding to clients and also enables Cognizantto gain market traction with industry-specific solutions and expertise on par with or greater thanits larger competitors.

■ Collaborative partner and project management — Cognizant is very strong at working withclients as a partner while executing projects efficiently and effectively. Account executives andsenior Cognizant delivery leaders collaborate with clients to design solutions and assure issuesare addressed. When issues arise, such as when the staff is not performing as expected,Cognizant is responsive and addresses the issues. References pointed to project management,responsiveness to issues and flexibility in execution as key strengths.

■ Client satisfaction — References give Cognizant above-average ratings in overall satisfaction,realized value and willingness to rehire. This satisfaction stems from the combination of clientintimacy and industry understanding, which results in a high percentage of clients that extendtheir services.

Cautions

■ Resource management — Cognizant delivery and execution are highly dependent upon seniorstaff who are on-site working closely with the client. References noted occasions when staffingof these critical roles required more time than desired, as well as instances in which remote andjunior staff did not have the depth of competency that was anticipated.

■ Business transformation — Cognizant CRM and CX buyers are predominantly IT executives,and Cognizant is effective in supporting them through CRM or CX initiatives that focus ontechnology integration. Cognizant was rated relatively low in business change management andits ability to be more proactive with innovation related to CX strategy and businesstransformation.

■ Geographic coverage — Cognizant is strongest when leveraging its large India-based deliverymodel for English-language customers. Of Cognizant's CRM and CX revenue, 77% percent isgenerated from North America, 16% within Europe (dominated by the U.K.) and 7% in Asia/Pacific. Cognizant has a growing presence in France, Germany, Italy, Japan and China but maystill need to supplement with resources from other countries to address client needs.


Deloitte

Deloitte is positioned in the Leaders quadrant due to market traction, digital consulting and CXtransformation competencies. Deloitte Digital is the primary practice for CX and positions itself as a"creative digital consultancy." Deloitte is a good fit for enterprises that seek business-consulting-ledcomprehensive solutions or complex digital or CX solutions, particularly when the business islooking for innovative CX solutions for competitive differentiation. Gartner estimates that Deloitte isthe second-largest CX and CRM implementation service provider worldwide, with 2015 CX andCRM revenue estimated to be $2.9 billion (accounting for 13% of its consulting and implementationrevenue) and growth from 2014 through 2015 significantly above average. Deloitte has very largepractices in Salesforce, Siebel and SAP CRM. It also has significant staff with skills in other majorCRM software products, including Adobe, Oracle Cloud, Pegasystems and Microsoft DynamicsCRM.

Strengths

■ Full range of capabilities (strategy though execution) — Deloitte has the broadest set ofcapabilities from strategy through design and integration and on to the digital marketing agency,as well as leveraging the audit, risk and strategy practices. Project execution with clients isconsistently good, leveraging relationships with business buyers for CX strategy and digitaltransformation engagements, but also can address technology and marketing buyers (digitalagency and customer analytics). References gave Deloitte high ratings for business acumen,business process consulting, industry expertise and business change management, as well asin technology integration and architectural skills.

■ CX vision — Deloitte approaches CX services as part of digital business transformation,leveraging business and industry consulting, along with digital and CX expertise. Customerreferences rated Deloitte well above average for vision, CX thought leadership and CX strategycapabilities.

■ Collaborative, agile and flexible — References commented on Deloitte's cultural style as adifferentiator. This included being collaborative, flexible and reliable and being an excellentpartner with both the business and IT. Deloitte Digital's culture and style are more similar to asmall digital agency than a global consulting firm, and the culture from acquisitions is now thenorm.

Cautions

■ Price — If pricing is a top criterion for selection, then evaluate Deloitte with care. Deloitte wasperceived as expensive by clients who commented on high rates (particularly for on-site efforts).According to other providers' client references that evaluated but did not select Deloitte, highprice was the primary reason Deloitte was rejected by buyers.

■ Value for fees — Some Deloitte references gave lower-than-average scores to Deloitte relativeto overall satisfaction, willingness to rehire and overall value. The low scores may be tied topremium fees in some instances.


■ Microsoft partnership — Deloitte's clients and prospects may find barriers to working withDeloitte when there is an existing audit relationship. Governmental bodies and regulators forindependence policies mandate restrictions on the consulting services that the audit/attestindustry can provide to the same client. For example, Deloitte has a Microsoft Dynamics CRMpractice, but the audit relationship with Microsoft limits Deloitte's participation in certain go-to-market programs.

EY

EY is positioned in the Niche Players quadrant due to a focus on digital consulting and CXtransformation competencies, but with limited scale. EY is a good fit for enterprises that seekbusiness-consulting-led CX strategy, design and roadmaps. Gartner estimates that EY is the 17th-largest CX and CRM consulting and implementation service provider worldwide, with 2015 CX andCRM revenue estimated to be about $280 million (accounting for 2% of its consulting andimplementation revenue). The top five industries for its CRM and CX services are manufacturing,consumer goods, energy/utilities, transportation and life sciences. EY has practices in MicrosoftDynamics CRM, Pegasystems and Adobe, with a focus on omnichannel commerce.

Strengths

■ Vision and CX Strategy — EY helps clients visualize how the business can be transformedthrough bringing together business strategy, design and technology to develop CX strategies.References score EY high on business consulting and process consulting capabilities and citedthe ability to bring vision to pragmatic CX designs and develop roadmaps to implement andexecute those designs.

■ Flexibility and project management — EY largely utilizes small teams of senior consultants forstrategy, vision and design efforts, supplemented by technicians. References pointed toeffective execution of these teams with strong project management and flexible approachesthat are responsive to their unique needs.

■ Customer satisfaction — References were consistently satisfied with the outcomes, giving EYhigh rankings for overall satisfaction, value and references' willingness to recommend to others.The buyers are predominantly business managers looking at CX transformation.

Cautions

■ Price — Due to using teams of relatively senior consultants that EY assembles for mostengagements that are on-site or onshore, references cited high price points for engagements. Ifcost is a primary driver, other providers may be better; however, EY value for consulting anddesign is quite high.

■ Large CRM implementation scale — EY's primary focus is on business and CX transformationrather than large-scale technical deployment. There is limited scale related to CRMtechnologies, and EY does not focus on stand-alone CRM technology implementation services.EY will partner with other technology providers to supplement its own staff when additionalscale and technical skills are needed for implementation.


■ Salesforce partnership — EY is limited in focusing on Salesforce due to the existing auditrelationship with Salesforce. Governmental bodies and regulators for independence policiesmandate restrictions on the consulting services that the audit/attest industry can provide to thesame client. EY has a Salesforce practice, but the audit relationship with Salesforce limits EY'sparticipation in certain partner and go-to-market programs.

HCL Technologies

HCL Technologies (HCL) is positioned in the Niche Players quadrant due to reliable execution ofCRM implementation services within selected industries in a flexible manner. HCL is a good fit forclients that are looking for CRM technology implementation and integration services, particularly forcommerce and when cost is a key consideration. Gartner estimates HCL to be the 15th-largestprovider with total CX and CRM implementation service revenue of about $360 million for 2015.

Strengths

■ Project management and execution — References praised HCL for project management,commitment to execution and taking ownership of project deliverables. HCL is also very flexiblein contracting and agreeing to work as a partner and sharing risks on projects, relying on thededicated project teams that consistently execute.

■ Technical and platform skills — HCL has large practices in Microsoft Dynamics CRM(PowerObjects acquisition) and SAP (CRM and Hybris) along with significant practices in mostother platforms (Salesforce, Siebel, Oracle Cloud and Adobe). This was particularly strong withcommerce solutions. References gave HCL high marks for technical architecture, integrationand quality of software implementation.

■ Industry orientation — HCL goes to market by industry with a focus on financial services, lifesciences, manufacturing, consumer goods/retail and telecommunications/media. Its consultantsbring a combination of technology skills and experience within these selected industries tounderstand and then address the client challenges to be solved though technology.

Cautions

■ Business domain and transformation — HCL has strong relationships within IT organizationsbut limited direct relationships with chief marketing officers or other senior business buyers.References gave HCL relatively low scores related to business process consulting, businesschange management, CX strategy and thought leadership.

■ Project initiation — References commented on HCL having difficulty in bringing key resourcesonto the project in a timely manner, particularly for key on-site staff, which reflects limited scalefor critical skills. Once staffed, the skills were appropriate, and HCL was also flexible in shiftingresources when needed. References also suggested that HCL could have been more proactiveand decisive to initiate project scoping and approach.


■ Analytics and design — Some references said HCL was viewed as relatively weak in customeranalytics, information architecture, digital design and the ability to develop complex mobilesolutions.

HPE

Hewlett Packard Enterprise (HPE) is positioned in the Niche Players quadrant due to the ability toapply CRM technology solutions to address business issues but within a limited scale and focus.Gartner estimates that HPE is the 18th-largest CRM service provider worldwide, with CX and CRMimplementation revenue in 2015 estimated to be $250 million. HPE is a good fit for enterprisesseeking CRM capabilities with global reach to address front-office transformation. The top fiveindustries of focus are consumer goods, public sector, telecommunications/media, naturalresources/oil/gas and manufacturing industries. HPE has its deepest strengths in MicrosoftDynamics CRM, along with practices for Oracle Cloud, Siebel, SAP CRM and Salesforce.

Strengths

■ Digital business and consulting orientation — HPE formed the Digital Business AccelerationServices team in 2015 focused on supporting clients in the definition, design andimplementation of digital operations, particularly focused on front-office transformation, CX andcommerce. Consultants within selected industries (manufacturing, consumer goods, retail andfinancial services) lead the CX visualization that addresses business needs.

■ Focused technology partnerships — HPE has a very strong focus on Microsoft DynamicsCRM and Oracle, encompassing both the implementation and hosting services. HPE haspartnerships with SAP integrated with infrastructure platform practices, mostly to upgrade, runand manage CRM applications. HPE references gave HPE relatively high scores forpartnerships, technical skills, system integration and ability to be flexible and creative inapplying CRM technology solutions to the needs of the business.

■ Global scope and midsize enterprises — HPE has a primary focus on large enterprises, but italso has more of a focus on smaller enterprises (500 to 5,000 employees) than other globalproviders due to HPE's sales team and channel partners around the globe that serve theseclients. HPE has strength in project execution with smaller project teams and against tightbudgets that can support both large and small businesses with Microsoft CRM services.

Cautions

■ HPE service transition and focus on CRM — Even though CRM and CX services are an areaof growth for HPE at 5% from 2014 through 2015, CRM and CX implementation is not a primaryfocus of HPE and represents only 4% of its overall consulting and system integration revenue.HPE had a significant reduction in overall service revenue from 2014 to 2015 (−15%), and thiscontinued into 2016. HPE announced that the service team will become part of CSC in 2017; inthe long term, this change will stabilize HPE services but likely will continue to impact markettraction into 2017.


■ Technology-centric approach to market — Although HPE demonstrates good consultingcapabilities, CX services are driven by technology and platform responses to business needs,rather than leading with CX business transformation. Client references said that HPE's ability todevelop technical solutions is effective, but they also cited limited business process depth.

■ Limited scale and focus — HPE has one of the smaller CX practices, and references alluded tohigh turnover within project teams and the availability of key staff. Most projects are relativelysmall and short with the project team working locally with clients. HPE also has limitedutilization of offshore delivery for CRM and CX efforts, and the combination of on-site teamsalso has higher costs and expenses.

IBM iX

IBM Interactive Experience (iX) is the business unit within IBM Global Business Services (GBS) thatleads CX services focused on front-office transformation, digital design, cognitive (analytics) andcommerce efforts. IBM iX is positioned in the Leaders quadrant due to its vision, scale andintegrated approach to providing solutions. IBM iX is a good fit for enterprises looking to transformtheir businesses to enable interactions with customers, partners and suppliers, especially usinganalytics. IBM iX is the third-largest provider of CX and CRM implementation services, with 2015global revenue for CRM-related implementations estimated to be around $2.5 billion (16% of IBMGBS's overall consulting and implementation revenue). The top five industries for its CRM and CXservices are banking, insurance, securities, transportation and retail/consumer goods. IBM iX hasvery large practices in Salesforce, Siebel, SAP CRM and Adobe, and also focuses on servicessurrounding IBM cognitive, commerce and marketing software.

Strengths

■ CX vision and strategy — IBM iX was first to make large investments to assemble the fullrange of capabilities needed for CX strategy, business consulting, customer analytics, digitaldesign, design thinking and studios around the globe. References recognized strengths in CXstrategy and CX consulting, as well as the ability to apply these strengths to bring insight anddesigns specific to their needs.

■ Architecture, technical and platform competencies — IBM iX's core strengths are tied tomaking complex technologies work together to address business issues. References notedstrengths in architectural design and CRM platform expertise (Salesforce, Pegasystems, Adobe,Microsoft Dynamics CRM and SAP Hybris). The 2016 acquisition of Bluewolf dramaticallyexpanded the Salesforce competencies. IBM iX also has strengths in digital design, digitalmarketing and mobile enablement. IBM iX's cognitive and analytic capabilities (includingWatson) are often utilized for customer analytics and marketing.

■ Client satisfaction — References scored IBM iX very high in critical satisfaction rankings,including clients' willingness to refer IBM iX to others and willingness to hire again, and IBM iX'smeeting all expectations and overall value for fees.


Cautions

■ Program management — Some references noted that, at times, IBM's size and multiple unitsmake it difficult for IBM to work seamlessly with large clients across multiple projects, initiativesand geographies. They suggested that IBM iX could be more proactive in managing its internalorganizational dynamics.

■ Small project execution — IBM iX was more effective with large complex initiatives thansmaller projects. The Bluewolf acquisition is moving IBM toward offering more nimble, cost-effective solutions for smaller projects due to its collaborative approach and smaller dynamicteams.

■ Business change management — Some references communicated the desire for IBM iX to bemore directive in supporting the business process changes as part of CX transformation efforts.Business change management received below-average ratings from references.

Infosys

Infosys is positioned in the Challengers quadrant. Infosys is a good fit for enterprises that have aneed for multicountry technology-led CRM implementations. Gartner estimates that Infosys is theninth-largest CRM service provider worldwide, with estimated total CX and CRM implementationrevenue in 2015 of about $725 million, which represents 13% of its consulting and implementationrevenue. Infosys is focused on North America as the primary market, with 60% of revenuegenerated there, along with 24% from Europe, 15% from Asia/Pacific and 1% from Latin America.Infosys is organized by vertical sector: In Europe, the greatest proportion of Infosys' CRM efforts arefocused on telecommunications, consumer goods, retail, life sciences and energy/utilities, while inNorth America, the focus is on automotive, high technology, financial services, consumer goods andretail.

Strengths

■ Working style and commitment — Infosys was cited by references as being a committed andsupportive partner with an attitude for going the extra mile, understanding the client objectivesand dedication to successful completion. Infosys has been training consultants in designthinking, which will extend this client-centric attitude and also become more proactive.

■ Technology and platform expertise — Client references rated Infosys as strong both intechnology skills and in strengths related to major CRM technologies. Infosys has largepractices in Salesforce, Microsoft Dynamics CRM, Siebel, SAP CRM and Oracle Cloud.References gave Infosys high ratings for information architecture, technology skills, customeranalytics and mobility skills. These were particularly strong with the implementation of sales andcustomer service CRM technologies.

■ Client satisfaction — References scored Infosys very high in satisfaction, including meeting allexpectations and overall value for fees. The satisfaction also includes the consistent ability todeliver projects within budget and time commitments.


Cautions

■ Project and resource management — Infosys execution is highly dependent upon senior staffworking closely with the client and coordination with remote staff. References noted that projectmanagement and coordination of resources was not smooth at times, particularly with remotestaff and in managing critical scarce resources.

■ CX thought leadership — Infosys received low scores from references related to CX vision andthought leadership. References perceived Infosys to be strong from a technology perspectivebut not strong in helping shape CX and front-office transformation strategies, businessconsulting and CX strategy formulation.

■ Digital marketing and transformation — Infosys is best-suited to core CRM implementationssupporting sales and customer service. Digital marketing that includes branding, advertisingand marketing campaign execution often requires business transformation and agency-levelcreative digital design, for which Infosys may have limited scale.

NTT Data

NTT Data is positioned in the Leaders quadrant due to strong capabilities from both CX consultingand CRM technology expertise while approaching in a pragmatic manner. NTT Data is a good fit forenterprises that require CRM and CX solutions that have complex business and technicalrequirements, particularly related to customer service and in selected industries. NTT Data is rapidlybuilding scale and has had significant growth in North America and Europe both organically andfrom multiple acquisitions. Growth in Asia was minimal due to low growth in the Japanese market.Gartner estimates that NTT Data is the fifth-largest CX and CRM implementation service providerworldwide, with 2015 revenue estimated to be around $1.2 billion, composing 18% of its totalconsulting and implementation revenue. The integration of Dell Services will have a significantimpact on scale and revenue. The top five industries for NTT Data's CRM and CX services aretelecom/media, automotive, banking, public sector and services.

Strengths

■ CX business operational consulting — NTT Data approaches CX from a pragmatic operating-level business change perspective, working with clients to envision and change sales, customerservices and commerce operations. References in North America and Europe gave NTT Datavery high ratings for many of the CX transformation competencies, including CX strategy,business acumen, business process consulting, technology consulting and digital design.

■ Technology and platform expertise — Client references rated NTT Data as strong in a widerange of CRM technology skills, including information architecture, technical architecture,system integration and analytics. NTT Data also has large and deep CRM platform practiceswith difference by region. Asia (mostly Japan) has a large SAP CRM practice. Western Europehas large practices in Siebel, Microsoft Dynamics CRM and Salesforce (including the recentlyacquired Nefos). North America has a large practice in Salesforce and SAP CRM.


■ Collaborative engagement execution — References noted that NTT Data engages with clientsin a highly flexible and collaborative manner to execute projects in an efficient and pragmaticway. References rated NTT Data high on project management, cultural fit, satisfaction andvalue.

Cautions

■ Regional delivery variation — NTT Data operates on a regional model with each region havingstrategies and operations aligned to the local markets, but the different operations translate intodifferent market characteristics. Asia, with 60% of revenue, is heavily focused on SAP CRM andcustomer service with telecommunications, banking and government. Twenty-nine percent ofrevenue comes from EMEA with strength in commerce, sales and marketing transformation,with a focus on automotive, retail, consumer goods and financial services industries. NorthAmerica generates 10% of revenue focused on sales and customer service transformation forbanking, insurance, automotive and healthcare. The addition of Dell Services will increase theNorth American presence, especially with healthcare and government. Latin America has asmall CX practice (1% of revenue) that is business-consulting-driven from the everis acquisition.

■ Marketing and brand awareness — Even though NTT Data is the fifth-largest IT servicesprovider globally, the brand awareness outside Asia is less than that of competitors. This is inpart due to the many acquisitions and subsidiaries within NTT Data and NTT Group that havenot been unified under one brand in the eyes of buyers because they exist at a regional level.The NTT Data service marketing initiative driven by the Dell Services integration should improvethis.

■ Change management — References noted that there were instances in which NTT Datashould have been more directive and assertive in change management. This was true onselected engagements from the perspectives of technology change management and businesschange management.

PwC

PwC is positioned in the Leaders quadrant due to market traction, vision and a consultativeapproach. PwC has a focus on CX strategy that is part of larger business transformations. PwC is agood fit for enterprises seeking business-consulting-led complex CX solutions in specific industriesand geographies. Gartner estimates that PwC is the seventh-largest CX and CRM service providerworldwide, with revenue estimated to be about $970 million, and it has continued to demonstratevery high growth relative to other providers. This CX and CRM revenue accounts for 7% of PwC'soverall advisory revenue and 16% of its consulting and implementation services. PwC has largepractices in Salesforce and Oracle Cloud with significant practices in Microsoft Dynamics CRM andSAP CRM.

Strengths

■ Business and technology consulting — PwC's CX practice focuses on businesstransformation and innovation, often using design thinking and design centers. PwC was ratedvery highly by client references in competencies related to business consulting, thought


leadership, business acumen, business industry expertise and business change management.PwC was also rated highly for technical skills, including information architecture, technicalarchitecture and system integration, particularly when applied to sales/commerce andmarketing initiatives. This combination enables the development of vision followed by executionthrough technology-enabled business change.

■ Industry depth of expertise — PwC goes to market by industry with deep industry expertiseand insight that enable clients in those industries to differentiate through the use of CXexecution and technology. Industries of focus include financial services, life sciences, consumergoods, manufacturing, public sector, utilities/energy and telecommunications/media. PwCreferences gave very high rating for business process consulting and industry understandingand commented on the industry solutions.

■ Cultural fit and collaborative style — PwC is viewed as a collaborative and flexible partner.Multiple references commented on PwC's culture, style and approach as very flexible andaccommodating, and they said PwC is passionate and innovative in helping the businessthrough the change process.

Cautions

■ Price and value — PwC often utilizes a team of senior consultants due to the nature ofbusiness transformation services. References commented on the high fees, and somereferences did not feel that the value provided by all the team members and partners wascommensurate with the fees. PwC is not be the best firm for a technology-oriented CRMimplementation without broader business transformation.

■ Scope management — Transformation projects typically are not fully defined at the outset, andmultiple PwC references commented on how the scope and scale of projects were larger thananticipated. References also commented on PwC being aggressive in adjusting scope morethan expected as the CX vision evolved.

■ Geographic coverage — PwC's CX and CRM coverage is strong within the U.S., from which itderives 75% of its CRM and CX implementation revenue. Only 10% of the revenue is generatedin Europe, mostly from the U.K. and Germany. Its coverage in Asia/Pacific (14%) is focused onJapan, China and Australia. Beyond that, PwC's CX and CRM coverage is limited in othercountries, such as France, Spain, Italy and the Nordics, and in regions such as Latin Americaand the Middle East.

Reply

Reply is positioned in the Niche Players quadrant due to a narrow market focus on revenue andsales improvement. Reply is a good fit for European clients looking for revenue growth from salesand commerce fueled with customer analytics. Gartner estimates that Reply is the 13th-largest CXand CRM service provider worldwide, with revenue estimated to be around $380 million in 2015. CXand CRM services are the major focus of the company, with 55% of all its revenue coming from CXand CRM implementation services. Reply has large practices in Salesforce, SAP (Hybris and Cloudfor Customer [C4C]) and Adobe, but it also has practices for Oracle Cloud and Microsoft Dynamics


CRM. The top five industries for its CRM and CX services are automotive, banking, retail/consumergoods, telecom/media and transportation/hospitality.

Strengths

■ Sales and commerce with creative ideation — Reply positions itself as a specialist focusedon sales, commerce and marketing digital transformation. The approach is pragmaticoperational-level change within the sales and marketing operations with an emphasis oncommerce. References commented on creative solutions using design thinking and gave highscores on commerce, digital design, mobility/UI design and business process consultingcompetencies.

■ Collaborative and flexible style — References praised Reply as being an excellent partnerdemonstrating the ability to understand their needs, assume responsibility for outcomes andengage in a highly flexible and collaborative manner. References rated Reply high in projectmanagement, methodologies and project execution.

■ Client satisfaction — References scored Reply very high in critical satisfaction rankings,including clients' willingness to refer to others and willingness hire again, and Reply's meetingall expectations and its overall value.

Cautions

■ Broad business transformation — Reply's strength is focused on the sales and marketingoperations and is not as strong for broad CX transformation or business model transformationinitiatives. References gave relatively low ratings to Reply on business consulting, businessacumen and industry expertise.

■ Geographic footprint and scale — Reply generates 93% of its revenue within Europe, mostlyfrom strengths in Italy, Germany and the U.K., with some presence in the rest of Europe. Thereis limited presence in North America (4% of revenue), Latin America (2%) and Asia (1%). WhileReply effectively supports global clients based in Europe, clients based in other regions mayneed support from European resources for scaled projects.

■ Aggressive scope management — CX projects typically are not fully scoped initially, andmultiple references commented on Reply changing project estimates, scope and scale. Somereferences commented that Reply was at times overly aggressive in pushing ideas or projectexpansion.

Salesforce Services

Salesforce Services (a business unit of Salesforce) is positioned in the Niche Players quadrant dueto an exclusive focus around Salesforce technologies. Salesforce Services is a good fit forenterprises deploying Salesforce solutions, especially when complex designs and architecture areneeded or newer Salesforce technologies are being utilized. Salesforce Services continues toincrease its scale and geographic reach through acquisitions and organically to bring value tocustomers for complex implementations. Gartner estimates that Salesforce Services is the 12th-largest CX and CRM service provider worldwide, with revenue estimated to be $420 million in 2015,


representing growth around 30% from 2014. The top five industries for its CRM and CX services arefinancial services, life sciences, high technology, services and transportation/hospitality.

Strengths

■ Salesforce technology architecture — Salesforce Services focuses on consulting andarchitectural support to clients that are deploying Salesforce technologies. Salesforce Serviceshas a deep understanding of all the Salesforce technologies (and other technologies), especiallyin relation to information architectures. References gave Salesforce above-average scores ininformation management, technical architecture, system integration and technical skills.Comments from references reinforced these ratings, citing strengths related to technologyintegration and customer information architecture based upon understanding the client'sbusiness needs.

■ CRM and CX vision — Salesforce Services has increased its consulting competencies and iseffective in leading customers through CX vision, proof-of-concept experiences, and developingCX strategies and designs. Recent acquisitions that bolster the services provided by Salesforce(gravitytank, AKTA and Kerensen Consulting) are having an impact. References gave SalesforceServices high marks for CX vision, thought leadership and solution design skills.

■ Flexibility and agile execution — Salesforce Services typically delivers through small seniorteams on rapidly executed agile projects. This approach is very appealing to clients that arelooking to deploy CRM and CX solutions, especially business buyers. Customer referencesidentified Salesforce Services' agility, use of best practices, project approach and projectmanagement as areas of strength.

Cautions

■ Geographic reach — Salesforce Services is growing rapidly, but mainly within countries thathave large direct Salesforce presence in North America (70% of revenue), Western Europe(22%) and mature Asia/Pacific (8% from Japan and Australia). In other countries and for largeglobal implementations, partners are utilized. Organic growth and acquisitions will increase thescale and geographic scope.

■ Price and contracting — Salesforce Services' rate structure and fees are among the highest,because of the senior staff that is utilized, the limited leverage of offshore resources and apremium for Salesforce technology expertise. According to other providers' client referencesthat evaluated but did not select Salesforce Services, the most common reason it was notselected was due to cost of services. References also commented on the complexity andlimited flexibility in contracting for Salesforce Services.

■ Limited scope of focus — Being the professional services arm of a software firm has naturallimitations on the focus and scope of services provided. Salesforce Services' primary focus ison Salesforce technologies but even more centered on the architectures and solution designs toassure successful deployments. Team sizes are small relative to most competitors due to seniorstaff members who are technology consultants with agile project approaches. References alsorated Salesforce Services relatively low on business transformation criteria that would be


beyond CX transformations, including industry expertise, business acumen and businesschange management.

Slalom

Slalom is positioned in the Niche Players quadrant due to strong ability to implement CRM and CXsolutions in a pragmatic manner within a limited market scope. Slalom is a good fit for NorthAmerican enterprises that require CRM and CX solutions that have business and technicalrequirements. Slalom is a midtier consulting and implementation firm with a focus on CX deliveredout of local offices. Slalom has its large practices in Salesforce and Microsoft Dynamics CRM with asmaller focus on SAP Hybris and Adobe. Gartner estimates that Slalom is the 19th-largest CX andCRM implementation service provider worldwide, with 2015 revenue estimated to be around $215million comprising 39% of its total consulting and implementation revenue. The top five industriesfor its CRM and CX services are retail, services, insurance, telecom/media and manufacturing.

Strengths

■ CX business operational consulting — Slalom approaches CX in a pragmatic manner,leveraging CX consulting, technology consulting and analytics to support clients' sales,customer services and commerce operations. This approach (Spark) usually includes designthinking and journey maps focused on customers and operational metrics. References gaveSlalom high ratings for business process consulting, technology consulting, mobility/digitaldesign and business change management.

■ Customer information architecture and analytics — Slalom focuses on customer informationand analytics as a vital part of all CRM and CX initiatives. This is an extension of enterprisearchitecture and uses metrics to understand customers and build metrics-based dashboards.References gave high ratings for information architecture, customer analytics and technicalskills.

■ Collaborative engagement execution — Slalom delivers from local regional offices acrossNorth America, forming close partnerships with clients and leveraging local senior-levelconsultants. References viewed Slalom as committed to their engagement success, flexiblewith a good cultural fit and very strong in project management.

Cautions

■ Broad business transformation — Slalom's strength is focused on the sales, customer serviceand marketing operations and is not as strong for general business model transformationinitiatives. References gave relatively low ratings to Slalom on industry expertise andcommented on a limited ability to bring proactive business vision and best practices.

■ Geographic footprint and scale — Slalom generates 99% of its revenue within North Americaand 1% from the U.K. office. The large number of North American local offices at times reducesthe sharing of critical resources across offices. However, a regional delivery model acrossoffices helps to scale the offices and represents 15% of the company's overall revenue. In otherregions, Slalom is limited in the ability to support global clients without partnerships.


■ Price — Multiple references noted that Slalom was somewhat expensive, due in part to senior-level staff and delivery from local offices. With no offshore delivery capabilities and a high-touchdelivery model, Slalom is not well-suited for CRM technology implementation and integrationprojects where technical skill and cost are primary objectives.

Tata Consultancy Services

Tata Consultancy Services (TCS) is positioned in the Challengers quadrant due to market tractionand consistent execution. TCS is a good fit for enterprises seeking complex technology-heavy CRMimplementation, particularly customer service and sales. Gartner estimates that TCS is the 11th-largest CRM service provider worldwide, with CX and CRM implementation revenue of about $425million in 2015 representing 9% of total TCS consulting and implementation revenue. TCS has verylarge practices in Salesforce and Oracle (Siebel, Oracle Cloud, ATG and InQuira) and smallerpractices in all other major CRM software packages. TCS goes to market by industry sector; the topfive industries for its CRM and CX services are banking, securities, insurance, retail/consumergoods and telecom/media.

Strengths

■ Technology skills supporting business — TCS has the ability to work with both the businessand IT to develop and implement solutions. TCS has large practice focus on all major CRMtechnologies (especially Salesforce, Oracle and Pegasystems) and has excellent technologyarchitecture and integration skills. References praised TCS for being able to understandbusiness requirements and then "bridge the gap" between business and IT. References citedstrengths in the ability to understand business issues and utilize technology to support thedevelopment of innovative CX solutions.

■ Partnership and project execution — TCS was recognized as being collaborative, responsiveand flexible, with the ability to work with both IT and business teams in CRM and CXimplementations. TCS was also perceived as highly effective and reliable with excellent projectmanagement to control scope, schedule and budget.

■ Customer satisfaction and value — TCS had excellent feedback from customer references interms of overall customer satisfaction, meeting project expectations, willingness to rehire andpropensity to refer to peers. References also rated TCS highly in terms of overall value forinvestment and in total cost of services. This corresponds to a pattern of a high level of revenuegeneration from existing accounts that is driven by clients satisfied with past project execution.

Cautions

■ Proactive business change management — TCS received lower-than-average scores fromreferences related to analytics and digital design that are focused on digital marketing. Someclients expressed a wish that TCS would be more proactive in bringing CX solutions, bestpractices and industry-specific insights to projects. TCS is increasing the use of businessprocess consulting capabilities in some clients and using co-innovation more regularly.


■ Resource management — Some client references cited issues with resources, including theinitial ramp-up in securing of key resources, noting that TCS has had increased difficulty inbringing remote resources to projects. Multiple references also identify project turnover as anissue and the availability of both key technical and key business resources.

■ Analytics and digital design — TCS received lower-than-average scores from referencesrelated to digital design and mobility capabilities, as well as customer analytics. TCS has notfully integrated and leveraged the digital/mobile capabilities in CRM and CX projects in someclients.

Tech Mahindra

Tech Mahindra is positioned in the Niche Players quadrant due to excellent CRM technical skillsfocused on a few domains and industries. Tech Mahindra is a good fit for enterprises within specificindustries that are seeking sales and customer service implementation services. Tech Mahindra hasa large presence in the telecommunications and automotive sectors and good practices in lifesciences, healthcare, financial services and energy/utilities industries. Gartner estimates that TechMahindra is the 16th-largest CRM service provider worldwide, with 2015 revenue of about $350million from CX and CRM implementation services. Tech Mahindra has practices focused on Siebel,Salesforce and Pegasystems with additional competencies in Adobe, Oracle Cloud and MicrosoftDynamics CRM.

Strengths

■ Value and customer satisfaction — Tech Mahindra executes projects in a professional andreliable manner, generally meeting deliverable expectations within the expected time frame andbudgets. References gave Tech Mahindra good scores for project management and overallvalue for fees.

■ Industry domain understanding — Tech Mahindra is focused on a few industries in whichdigital business, the Internet of Things and CX all come together, including telecom/media,automotive, manufacturing, energy/utilities and banking. Tech Mahindra has invested insolutions within these industries and has the ability to bring industry, technology andtelecommunications capabilities together. Industry solutions include telecommunications (ordermanagement and retail order fallout), automotive (connected car, warranty management anddealer management) and retail (omnichannel accelerator). References gave Tech Mahindra goodscores for technical consulting and architecture while commenting on the value of thecombination of technology industry domain skills in crafting pragmatic solutions.

■ Responsive and flexible execution — Tech Mahindra was very responsive and flexible toclient needs. References commented on the responsiveness of Tech Mahindra in organizing theinitial effort rapidly and adapting to issues and the commitment of the project team to success.References also cited the company's ability to assess the requirements and address projects ina collaborative and flexible manner.


Cautions

■ Business transformation and CX strategy — Although Tech Mahindra is very strong inselected industries, it approaches the market from a technology consulting solution perspectiveand not from a CX strategy or business transformation perspective. References scored TechMahindra well below average in consulting-related competencies, including business acumen,industry expertise, business change management and business process consulting.

■ Resource scalability — Some client references cited issues with Tech Mahindra's ability tobring consistent quality of resources to the project. References commented that while thequality of senior staff was strong, there were large gaps and inconsistencies, especially withjunior staff and offshore staff to supplement and take direction.

■ Customer analytics and mobility — Tech Mahindra references gave relatively low rankingsrelated to analytics, digital design and digital marketing competencies. These are most requiredfor omnichannel commerce and marketing projects. Mobility efforts for most sales andcustomer service initiatives were adequate.

Wipro

Wipro is positioned in the Challengers quadrant due to having strong growth and ability to bringboth functional and technical skills to CRM solutions. Wipro Digital is the key delivery arm for thispractice to focus on front-office solutions and human-centered design and complements thetechnology practice. Wipro is a good fit for enterprises seeking strong CRM technologyimplementation skills for the major CRM platforms (Siebel, Salesforce, SAP CRM, Pegasystems andMicrosoft Dynamics CRM). Gartner estimates that Wipro is the eighth-largest CRM service providerworldwide, with about $850 million in CX and CRM consulting and implementation service revenuein 2015, which is 25% of its global consulting and implementation revenue. The top five industriesfor its CRM and CX services are banking, automotive, manufacturing, energy/utilities and retail/consumer goods.

Strengths

■ Functional and technical skills — Wipro approaches the market from an industry perspectiveand brings an understanding of industry-specific sales, customer service and marketingprocesses. Wipro has been aggressive in expanding both functional and technical skills withacquisitions of Designit (digital design), cellent (IT consulting) and Appirio (Salesforce), whichare now being integrated. References cited the ability of Wipro to understand business issues,process redesign and nuances within their business operations along with deep technologyunderstanding. References gave Wipro above-average rankings for business process functionalskills, CRM software implementation and system integration skills.

■ Committed responsive teams — Client references were positive about the flexibility andresponsiveness of Wipro to meet their needs. They viewed Wipro as collaborative andaccommodating to the changing needs of projects. References cited an excellent work ethic,the commitment to delivery of the project teams and being a trusted partner with whom it iseasy to do business.


■ Customer information and analytic skills — Due to the combined business and technicalunderstanding, Wipro has the ability to develop complex CRM solutions with analytics.References rated Wipro very high on technical architecture, information architecture andanalytics.

Cautions

■ Resource utilization and management — Many of the issues cited by references were relatedto managing resources on projects. Multiple references cited issues with resources on projects,including difficulty to ramp up, staff with fewer-than-expected skills and resources beingstretched across too many projects. Multiple projects were not tightly managed, with somehaving difficulty in achieving time and budget expectations. Client references also gave Wiprorelatively low scores for project management and project methodologies.

■ Value and customer satisfaction — Wipro references gave lower-than-average scores formeasures of satisfaction, including willingness to refer to peers and meeting expectations inexecution. Although Wipro is usually very competitive from a cost and pricing perspective,references rated Wipro quite low in overall value.

■ Business transformation — Wipro references gave lower-than-average scores for manycriteria that would be needed for CX transformation, including CRM vision, business andconsulting skills, and digital design. Wipro references were mostly IT-centric, and projects arefocused on how technology can address business issues, rather than on broader business-strategy-driven initiatives.

Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a result ofthese adjustments, the mix of vendors in any Magic Quadrant may change over time. A vendor'sappearance in a Magic Quadrant one year and not the next does not necessarily indicate that wehave changed our opinion of that vendor. It may be a reflection of a change in the market and,therefore, changed evaluation criteria, or of a change of focus by that vendor.

Added

Two providers were added this year, with both exceeding the $200 million qualification criterion forCRM and CX consulting and implementation services in 2015:

■ EY

■ Slalom

Dropped

No providers have been dropped from last year.


Inclusion and Exclusion CriteriaThe inclusion criteria represent the specific attributes that analysts believe are necessary forinclusion in this research. To qualify for inclusion, providers need to:

1. Generate a minimum of $200 million (in U.S. dollars) of CRM and CX implementation servicerevenue (excluding software revenue and fees for application management, outsourcing, andsoftware maintenance and support) in 2015

2. Provide both CRM and CX business strategy, consulting and technology design along withimplementation services to large enterprises

3. Operate in more than one major geographical region of the world

Note: This is only for project-based services and excludes application management services, aswell as CRM software license fees, software support fees and SaaS fees.

Evaluation Criteria

Ability to Execute

This Magic Quadrant focuses on CRM and CX project-based services that include consulting andsolution implementation services worldwide. CX and CRM solutions increasingly require a broad setof business, consulting, technical and management disciplines that must be brought togetherseamlessly.

We evaluate the set of offerings for CX and CRM programs that include the ability to provide:

■ Advisory and consulting services to define and design CX and CRM solutions

■ Insight across industries for CRM technology solution decisions

■ Consulting services for customer architecture and design (technology) environments

■ A comprehensive set of system integration and implementation services across the CRMproducts and technologies (both on-premises and SaaS-based)

■ Multiple business and technical domains into CX and CRM solutions, including but not limitedto business consulting, social CRM, mobility and digital, customer information and analytics,master data management, and workflow and business process management

Based on these requirements, this analysis heavily weighted the ability of a service provider to bringa multidisciplinary approach to CRM business issues and consistently craft and deploy holisticsolutions.

Not to be overlooked, technology skills still play an important role; however, as those skills arecloser to commoditization, we placed more weight to business-led, information-centric, mobility,social and analytic capabilities.


Provider evaluation was based on:

■ Gartner analysts' interactions over the last 12 months with Gartner clients, which reveal interestand insight on specific CRM service providers

■ Vendors' presentations to Gartner of their depth and breadth of CRM service capabilities

■ The service provider's current and potential market impact, as measured by frequency ofappearance on shortlists

■ The vendors' financial performance over the previous 12 months

■ The vendors' ability to provide evidence of resources for consulting and solution implementationservices (including program and project management) across multiple CRM software platforms(that is, Salesforce, Microsoft Dynamics CRM, Oracle Cloud, Siebel, SAP [C4C and Hybris],Adobe and Pegasystems)

■ References from vendors' customers who completed surveys related to the providers' vision,competencies and outcomes on recent CX and CRM engagements

Evaluation Criteria

Ability to Execute

Gartner analysts evaluate service providers on the quality and efficacy of the processes, systems,methods or procedures that enable IT provider performance to be competitive, efficient andeffective, and to positively impact revenue, retention and reputation. Ultimately, service providersare judged on their ability and success in capitalizing on their vision.

Product or Service: This criterion considers the core services offered by the provider thatcompetes in the CX and CRM implementation service market. This criterion includes current serviceofferings as defined in the market definition and expressed by capacity, service definition,predefined assets, skills availability, breadth and depth of offering, and so forth. Subcategoriesinclude:

■ CX strategy and consulting to envision and design the transformation of the CX

■ Assessment of services in key CX and CRM business skills for sales, marketing, commerce,customer service and support, field service, and other departments impacted by CXtransformation

■ Analysis of technical knowledge and skills to implement and integrate core CRM systems

■ Assessment of a provider's ability to develop services to meet emerging market needs

Sales Execution/Pricing: This criterion evaluates the technology provider's capabilities in allpresales activities and the structure that supports them. This includes solution visualization, dealmanagement, pricing and negotiation, presales support, and the overall effectiveness of the saleschannel.


Market Responsiveness/Record: This criterion considers the provider's ability to respond andadapt to changing competitive forces as opportunities develop, competitors act, customer needsevolve and market dynamics change. This criterion also considers the provider's history ofresponsiveness, its revenue growth and its ability to quickly address changing requirements.

Customer Experience: This criterion considers:

■ Specific client feedback on the experience of working with the CX and CRM service provider ona project

■ A demonstrated ability to deliver on key metrics that drive the overall "client experience" whenworking with a CX and CRM service provider

Operations: This criterion evaluates the ability of the organization to meet its goals andcommitments. Factors include the quality of the organizational structure, such as skills,experiences, programs, systems, global delivery model, automation of service delivery, and othervehicles, which enable the organization to operate effectively and efficiently on an ongoing basis.Subcategories include:

■ Organizational and business model

■ Applied use of methodologies

■ Global delivery model capabilities

Table 1. Ability to Execute Evaluation Criteria

Evaluation Criteria Weighting

Product or Service High

Overall Viability Not Rated

Sales Execution/Pricing Low

Market Responsiveness/Record High

Marketing Execution Not Rated

Customer Experience High

Operations Medium


Completeness of Vision

Gartner analysts evaluate service providers on their ability to convincingly articulate logicalstatements about current and future market direction, innovation, customer needs and competitive


forces and how well they map to the Gartner position. Ultimately, service providers are rated on theirunderstanding of how market forces can be exploited to create opportunity for the provider.

Market Understanding: This criterion evaluates the ability of the provider to understand buyers'needs and translate these needs into products and services. This includes both business andtechnology buyers across all CX and CRM domains. Vendors that show the highest degree of visionlisten to and understand buyers' wants and needs, and they can shape or enhance those wants andneeds with their added vision. Subcategories include:

■ The service provider's knowledge and articulation of key market direction and trends

■ The analysis of the service provider's executive leadership (including thought leadership,continuity, operational capabilities, and so forth)

■ The vision on how multiple domains combine synergistically to support clients utilizing CX as acompetitive differentiator within their industry

Marketing Strategy: This criterion assesses the provider's clear CX and CRM implementationservice marketing strategy, which should offer a differentiated set of messages consistentlycommunicated across all clients and geographies. This will clearly specify targeted markets,solutions and differentiating characteristics. It also includes the effectiveness of marketing and salesinitiatives.

Offering (Product) Strategy: This criterion assesses a technology provider's approach to solutiondevelopment and delivery that emphasizes differentiation, functionality, methodology and featureset as they map to current and future requirements. Subcategories include:

■ The service provider's strategies for partnerships and alliances

■ Vision for creating new and/or additional CX and CRM business

■ Integration of multiple domains (business and technical) into implementation services

■ Bundling services and positioning to address specific buyer needs

Vertical/Industry Strategy: This criterion evaluates the technology provider's strategy to directresources, skills and offerings to meet the specific needs of individual vertical market segments.

Innovation: This criterion assesses the provider's direct, related, complementary and synergisticlayouts of resources, expertise or capital for investment, consolidation, and defensive or pre-emptive purposes. Subcategories include:

■ Approach to CX design and development

■ Sustainable investment in proactive tools, methods and/or locations for CX and CRM solutiondevelopment

■ CX and CRM solution development that addresses vertical or process-specific instances andintegration of multiple competencies and disciplines


Geographic Strategy: This criterion evaluates the technology provider's strategy to directresources, skills and offerings to meet the specific needs of geographies outside the "home" ornative geography, either directly or through partners, channels and subsidiaries, as appropriate forthat geography and market.

Table 2. Completeness of Vision Evaluation Criteria

Evaluation Criteria Weighting

Market Understanding High

Marketing Strategy Medium

Sales Strategy Not Rated

Offering (Product) Strategy High

Business Model Low

Vertical/Industry Strategy Medium

Innovation High

Geographic Strategy Low


Quadrant Descriptions

Leaders

Leaders in this Magic Quadrant bring a wide range of business and technical capabilities thatinclude CX strategy, business transformation consulting, customer analytics, enterprise architectureand design, CRM technology expertise, industry-specific domain expertise, and business changemanagement. They demonstrate strong comparative revenue growth. They can demonstrate theability to scale across multiple geographic regions. They are delivering with high client satisfaction.

Challengers

Challengers do not have the full breadth of business and technical capabilities, but will have scaleand breadth of the technical, architectural and CRM technology skills. The market presence must behigh, with high market growth and customer satisfaction across multiple regions.

Visionaries

Visionaries in this Magic Quadrant bring a wide range of business and technical capabilities,including CX strategy, business transformation consulting, customer analytics, enterprise


architecture and design, CRM technology expertise, industry-specific domain expertise, andbusiness change management. They can demonstrate innovative new projects that have not yetbeen replicated by competitors. However, they do not have the scale in terms of market presence,breadth of technology, and/or geographic reach.

Niche Players

Niche Players have deep capabilities that are limited to some areas. They may be strong in a few ofthe various domains (business consulting, CRM technical skills, sales, commerce or digitalmarketing) and/or have limited market focus (industry and/or geographic reach). These providers arehighly competitive as specialists in some market niches based upon their market focus and serviceportfolios.

ContextThis year's Magic Quadrant analyzes the market for CX and CRM consulting and implementationservices. The relative positioning of vendors in this Magic Quadrant is based on inclusion criteriaand key criteria for evaluating the Ability to Execute and Completeness of Vision. Consulting andsolution implementation projects require a blend of business, industry, technology, and project andprogram management skills that must align with your objectives, institutional and business culture,and employees. Do not simply select service providers in the Leaders quadrant. All selectionprocesses are enterprise-specific; consequently, vendors in the Challengers, Visionaries or NichePlayers quadrants may prove to be more appropriate for your requirements. Many smaller serviceproviders not covered in this Magic Quadrant may be appropriate for your needs on smaller orregion-specific projects.

Market Overview

What Happened?

During the first years of this century, CRM applications began the shift from on-premises to SaaS,and this shift will continue for the next decade. SaaS-based CRM implementations now exceed on-premises implementations led by Salesforce and Microsoft Dynamics CRM. SaaS or cloud-basedCRM now accounts for over half of the CRM software market, and it is growing more than 25%annually, which is more than twice the rate of on-premises CRM solutions (see "Market Share: AllSoftware Markets, Worldwide, 2015"). One impact has been that business buyers have been able tobypass the IT organization and make purchases of point products for their departments withoutneed for a coordinated enterprise strategy. Another impact is that fewer technology skills have beenneeded in setting up the supporting infrastructure. It has also meant a shift to Agile from Waterfallmethods and a rise in the importance of having differentiating software assets to enhance the cloudCRM software vendo

magic quadrant for crm and customer experience … · 2020. 10. 16. · worldwide published: 1...

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