The Forrester Wave : Global Infrastructure Outsourcing, Q1 2015

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1 For: Infrastructure & Operations Professionals The Forrester Wave : Global Infrastructure Outsourcing, Q by William Martorelli and Wolfgang Benkel, January 13, 2015 Updated: February 18, 2015 KEY TAKEAWAYS IBM Leads A Mature Market Segment Forrester s research uncovered a market in which IBM leads the pack by a substantial margin but where other market leaders include Accenture, Atos, Capgemini, CSC, HCL, HP, T-Systems, TCS, and Wipro. Competitive options include CGI, GWA, and Fujitsu. Increasingly, nontraditional suppliers compete effectively with traditional stalwarts. I&O Professionals Seek Greater Flexibility In An Evolving Market The infrastructure management services market is holding its own amid a wrenching technology transition because I&O professionals and their sourcing counterparts cannot easily insource the vast existing base of outsourcing contracts. As a result, a lively battle for market share is underway between traditional outsourcing suppliers and nontraditional contenders including leading Indian firms. Innovation, Vision, And High Customer Satisfaction Are The Primary Differentiators Despite ongoing differences, vendors that can provide innovation, a strong vision for the future of infrastructure management, and high customer satisfaction are able to position themselves to successfully deliver infrastructure management services to their customers. Access The Forrester Wave Model For Deeper Insight Use the detailed Forrester Wave model to view every piece of data used to score participating vendors and create a custom vendor shortlist. Access the report online and download the Excel tool using the link in the right-hand column under Tools & Templates. Alter Forrester s weightings to tailor the Forrester Wave model to your specifications. Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA USA Tel: Fax:

2 JANUARY 13, 2015 UPDATED: FEBRUARY 18, 2015 The Forrester Wave : Global Infrastructure Outsourcing, Q The Global Infrastructure Outsourcing Providers That Matter Most And How They Stack Up by William Martorelli and Wolfgang Benkel with Glenn O Donnell, Frederic Giron, and Andrew Hewitt WHY READ THIS REPORT Given companies shift in business focus from cost reduction to growth in revenues and improving the customer experience, infrastructure outsourcing services have become an important part of providing the right level of efficiency, flexibility, quality, and innovation to support business customers needs and expectations. Infrastructure outsourcing service providers have responded by expanding their service portfolios to include consulting, transformation and improvement, and cloud and cloud management offerings. In Forrester s 61-criteria evaluation of global infrastructure outsourcing services vendors, we identified the 13 most significant providers in the segment Accenture, Atos, Capgemini, CGI, Computer Sciences Corp (CSC), Fujitsu, The Getronics Workspace Alliance (GWA), HCL Technologies, HP, IBM, T-Systems, Tata Consultancy Services (TCS), and Wipro in the category and researched, analyzed, and scored them. This report details our findings about how well each vendor fulfills our criteria and where they stand in relation to each other to help infrastructure and operations (I&O) professionals select the right partner for their global infrastructure outsourcing needs. Table Of Contents 2 8 Flexible Infrastructure Is The Backbone Of The Digital Business Infrastructure Outsourcing Evaluation Analysis Notes & Resources Forrester conducted interviews with 13 vendors: Accenture, Atos, Capgemini, CGI, CSC, Fujitsu, GWA, HCL, HP, IBM, T-Systems, TCS, and Wipro Vendor Profiles Supplemental Material Related Research Documents North American Global Infrastructure Outsourcing Market Overview December 9, 2014 Market Overview: EMEA Infrastructure Services Outsourcing In 2015 December 1, 2014 The Forrester Wave : Global IT Infrastructure Outsourcing, Q March 11, , Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please clientsupport@forrester.com. For additional information, go to

3 The Forrester Wave : Global Infrastructure Outsourcing, Q FLEXIBLE INFRASTRUCTURE IS THE BACKBONE OF THE DIGITAL BUSINESS Infrastructure services are the backbone of systems of records and systems of engagement delivery and the foundation of new innovative digital solutions for the business enterprise. As such, the market for infrastructure outsourcing services remains critically important as enterprises prepare their infrastructure for the new digital age. Cost savings alone is no longer the principal motivation for outsourcing. Today s buyers also want to increase revenues and improve the customer experience (see Figure 1). Accordingly, the infrastructure outsourcing market is beginning to emphasize qualities that include predictability (through use of analytics), self-healing (with autonomic computing and automation), and self-service (with adaptation to cloud models and use of service stores ). The ability to deliver expected results remains in question for outsourcing service providers. While clients seek new levels of innovation to gain new customers and optimize existing customer relationships, flexibility has not always been the hallmark of infrastructure outsourcing relationships. In fact, a lack of perceived flexibility is one of the five top criticisms from customers about their relationships with external service providers (see Figure 2). Figure 1 Cost-Cutting Is No Longer The Top Goal Of Outsourcing Which of the following initiatives are likely to be your firm s top priorities over the next 12 months? (Showing high priority and critical priority ) Grow revenues 75% Improving the customer experience 75% Reducing costs 64% Improving market differentiation 50% Improving regulatory compliance 46% Base: 13,822 global business and technology decision-makers Source: Forrester s Business Technographics Global Priorities And Journey Survey, Source: Forrester Research, Inc. Unauthorized reproduction or distribution prohibited.

4 The Forrester Wave : Global Infrastructure Outsourcing, Q Figure 2 Cost Savings Failures Lead The List Of Outsourcing Customer Woes Which of the following are your IT department s biggest challenges with your existing third-party business/management consultants, digital agency, or services providers? Cost savings are lower than expected 34% Inability to deliver project as specified 29% Inflexible regarding changing, volume, scope, business needs, or pricing models 25% Lack of innovation 23% Insufficient technical expertise 22% Base: 1,532 business and technology services decision-makers (multiple responses accepted) Source: Forrester s Business Technographics Global Business And Technology Services Survey, Source: Forrester Research, Inc. Unauthorized reproduction or distribution prohibited. Infrastructure Outsourcing Market Demands Are Entering A Period Of Rapid Change... Suppliers are seeking to evolve their offerings in a variety of ways and for multiple reasons, including: Multisourcing is evolving to a service integration and management (SIAM) function. Customers seek the flexibility of obtaining services from multiple parties in multiple forms while keeping a stable or improved end user experience. With multisourcing still the predominate mode of engagement, there is significant emphasis on SIAM as a way to unify and increase efficiency and agility of service management across multiple participating suppliers. A number of providers are already offering or plan to offer SIAM services as independent service offerings meant to help unify infrastructure outsourcing towers from the service management perspective. While SIAM normally refers to IT service management (ITSM) services, a complementary approach, defined by Forrester as strategic rightsourcing, is intended specifically for cloud services. Ultimately, SIAM and cloud integration must converge. 1 Support for hybrid cloud computing tops the infrastructure outsourcing agenda. A transition to a cloud-based outsourcing market is also clearly underway, although it s still in its early stages. 2 One manifestation of this shift entails a move from conventional infrastructure delivery to a cloud-based approach. Meanwhile, suppliers are moving to encompass both conventional infrastructure delivery and cloud-based delivery from a service management perspective; for example, suppliers are beginning to embrace cloud brokering solutions.

5 The Forrester Wave : Global Infrastructure Outsourcing, Q Different vendors present different approaches to brokering, however. For example, suppliers such as Accenture, CGI, Infosys, and T-Systems have all articulated aggressive visions for cloud brokering, while other participating suppliers have not. Participating suppliers are also seeking to unify hybrid cloud delivery with common terms and conditions. Greater standardization of services increases vendor margins. A variety of factors, including the high flexibility and agility of cloud services, are contributing to far more standardization among all infrastructure services. For example, Capgemini says that 90% of its infrastructure outsourcing solutions that sold in the past 12 months were based on standard delivery component descriptions. Suppliers are embracing this approach for the sake of improving margin performance and addressing clients needs and expectations. Service standardization enables scalability, increases the level of automation, helps centralize service management with standard processes and tools, but ultimately protects suppliers investments in tools and processes and decreases suppliers service management and delivery costs. Innovation becomes a key element of infrastructure services. The ability to innovate with support for new and upcoming emerging technologies is one of the primary differentiators among infrastructure outsourcing service providers. This is especially true when combined with an ability to deliver innovation in the context of existing services. Many of the participating vendors are reinvigorating their infrastructure outsourcing services to meet clients expanding needs and expectations.... Which Poses Substantial Challenges For Outsourcing Market Leaders With such profound changes come some significant challenges. Major issues for providers include: A historic market share land grab looms for outsourcing deal renewals. One reason for this is the market s absolute size. For example, Forrester estimates that the global infrastructure outsourcing market is at $187.5 billion worldwide, with the North American market comprising approximately 58% of this total (see Figure 3). A significant portion of this contract value is up for renewal during the next few years, opening up a historic opportunity for market share redistribution as well as contractual innovation. Most traditional suppliers are experiencing only limited growth or actually shrinking. Participating suppliers are vastly different regarding their aggressiveness in the market. Some suppliers particularly the Indian-centric suppliers are unabashed in their desire to take on new market share. Meanwhile, some of the historically largest providers have become highly selective in pursuing infrastructure outsourcing opportunities, in some cases emphasizing profitability over growth. Taken as a group, the traditional suppliers have demonstrated flat market share growth at best. This market will be disrupted by some untraditional providers notably those with strengths in cloud computing and service brokering.

6 The Forrester Wave : Global Infrastructure Outsourcing, Q The looming impact of automation lends new urgency to a market share battle. An arms race of automation is threatening to revolutionize infrastructure outsourcing delivery. IPsoft, a key player in this dynamic, is perhaps the best known supplier in the fledgling automation segment. Several infrastructure outsourcing suppliers are engaged in a wary dance of partnership around IPsoft s compelling capabilities while hedging their bets with homegrown automation solutions. The stakes are high. The more market share suppliers acquire, the more potential leverage they can gain by achieving IP arbitrage as opposed to labor arbitrage. Those that fail to achieve greater leverage through automation face being automated out of the business. While this threat exists, infrastructure outsourcing pricing and deal size trends were holding steady heading into Figure 3 Global Annual Spending On Infrastructure Outsourcing Services Totals US$185.7 Billion North America and Latin America Europe, Middle East, and Africa Asia Pacific 58% 27% 15% $185.7 billion Source: Forrester Research, Inc. Unauthorized reproduction or distribution prohibited. Evaluation Criteria Emphasize The Breadth Of Offerings And Strategies After examining past research, user need assessments, and vendor and expert interviews, we developed a comprehensive set of evaluation criteria. We evaluated vendors against 61 criteria, which we grouped into three high-level groups: Current offering. Current offering represents vendors expertise to deliver infrastructure services such as a global delivery model, global geographic staffing distribution, global client geographic distribution, standard infrastructure service portfolio, ecosystem participation,

7 The Forrester Wave : Global Infrastructure Outsourcing, Q SIAM capabilities, innovation, and continuous improvement based on the needs and expectations of customers. We qualify all of these attributes with Forrester client feedback on implementation, account and relationship management, service quality, and general satisfaction. Strategy. For this set of criteria, Forrester examined each vendor s strategy to understand how the vendor approaches customer value proposition, planned enhancements, plans for growth, investment to support the strategy, and the vision for infrastructure services. Market presence. For the market presence criteria, Forrester analyzed providers relative overall presence in the core infrastructure management lines of services (see Figure 4). Additionally, Forrester examined criteria like infrastructure services client base, infrastructure service employees, and total employees. Figure 4 Infrastructure Services Include Several Offerings Beyond Just Infrastructure Infrastructure services Explanation Service desk or help desk Incident and problem management, level 1 and/or level 2 support, including self-help tools and portals End device management Design, configuration, testing, standards, software, and related services for desktops, laptops, and mobile devices Desk-side or on-site support Break X, imacs, asset management, and related services Data center management Data center facility and environmental management Hosting and server management Hosting, server management, physical database administration, and related services Mainframe management Operations, production control, technical support, physical database administration, and monitoring for mainframe environments Storage management Monitoring, capacity management, backups, provisioning, and related services Network management Local-area network, wide-area network, voice, voice over IP, telephony Security management Content and data security, physical security, privacy management, threat assessment (internal and external), security information and event management, vulnerability management, incident management and forensics, and related services or collaboration and collaboration services including infrastructure management and software (application) administration Infrastructure-as-aservice (IaaS) Service management and integration Operations and strategy consulting IaaS services or extensions, including desktop-as-a-service and storage-as-aservice Management of different services and providers Assessments (e.g., cloud readiness), improvements, and innovation services; integration of various services, including cloud solutions Source: Forrester Research, Inc. Unauthorized reproduction or distribution prohibited.

8 The Forrester Wave : Global Infrastructure Outsourcing, Q Evaluated Vendors Are The Main Global Infrastructure Service Providers Forrester included 13 vendors in the assessment Accenture, Atos, Capgemini, CGI, CSC, Fujitsu, GWA, HCL, HP, IBM, T-Systems, TCS, and Wipro. Each of these vendors successfully satisfied the four criteria established for inclusion in the evaluation. Each of these vendors has (see Figure 5): At least $1 billion in applicable infrastructure services revenue. At least 200 infrastructure services clients. Infrastructure services headquartered in all geographic regions of the world (Americas; Europe, the Middle East, and Africa [EMEA]; and Asia Pacific). A sufficient level of interest from the Forrester client base. These criteria limited the number of suppliers included in this evaluation. Several firms even leaders from our last published evaluation in 2011 were thus excluded from consideration. Dell meets the criteria and was invited to participate, but declined. Figure 5 Providers In The Infrastructure Outsourcing Evaluation Must Meet Four Key Criteria To be included in this evaluation, selected providers had to meet the following criteria: At least $1 billion in applicable infrastructure services revenue At least 200 infrastructure services clients Infrastructure services headquartered in all geographic regions of the world (Americas, EMEA, Asia Pacific) A sufficient level of interest from the Forrester client base Source: Forrester Research, Inc. Unauthorized reproduction or distribution prohibited.

9 The Forrester Wave : Global Infrastructure Outsourcing, Q INFRASTRUCTURE OUTSOURCING EVALUATION ANALYSIS The infrastructure outsourcing market evaluation presents a tightly clustered market, but one with clear leaders and laggards (see Figure 6). The following clusters are evident from the analysis: IBM leads the pack by a substantial margin. IBM was far and away the leading supplier in the global infrastructure outsourcing segment, despite limited growth at IBM Global Services during recent operating quarters. If IBM were showing significant momentum, its lead would have been even larger. As it is, it will take time for other providers to catch up with IBM s breadth of capabilities. HCL, Accenture, TCS, HP, Capgemini, CSC, Wipro, Atos, and T-Systems are closely ranked. The closely ranked middle group in the Leader segment includes suppliers with contrasting strengths. Among these suppliers are the most visible India-centric suppliers: HCL, TCS, and Wipro; strong transformational players: Accenture, Atos, and Capgemini; and historic global infrastructure outsourcing leaders: CSC and HP. GWA, Fujitsu, and CGI are Strong Performers. A third group, just below the closely ranked middle of the pack, includes Strong Performers GWA (known primarily as CompuCom in North America and Getronics in Europe), Fujitsu, and CGI. This evaluation of the global infrastructure outsourcing services market is intended to be a starting point only. We encourage clients to view detailed product evaluations and adapt criteria weightings to fit their individual needs through the Forrester Wave Excel-based vendor comparison tool.

10 The Forrester Wave : Global Infrastructure Outsourcing, Q Figure 6 Forrester Wave : Global Infrastructure Outsourcing, Q1 15 Strong Current offering Risky Strong Bets Contenders Performers Leaders Accenture HP Capgemini CSC GWA Fujitsu CGI IBM TCS HCL Wipro Atos T-Systems Go to Forrester.com to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings. Market presence Weak 0 Weak Strategy Strong Source: Forrester Research, Inc. Unauthorized reproduction or distribution prohibited.

11 The Forrester Wave : Global Infrastructure Outsourcing, Q Figure 6 Forrester Wave : Global Infrastructure Outsourcing, Q1 15 (Cont.) Forrester s Weighting Accenture Atos Capgemini CGI CSC Fujitsu GWA HCL HP IBM T Systems TCS Wipro CURRENT OFFERING Global delivery model Global geographic staffing distribution Global client geographic distribution Standard infrastructure service portfolio Ecosystem participation Service integration and management (SIAM) capabilities Innovation Continuous improvement Client feedback on implementation Client feedback on account and relationship management Client feedback on service quality Client feedback on general satisfaction 50% 10% 5% 10% 10% 10% 10% 15% 10% 5% 5% 5% 5% STRATEGY Customer value proposition Planned enhancements Plans for growth Investment to support strategy Vision for infrastructure services 50% 30% 15% 15% 10% 30% MARKET PRESENCE 0% Service market presence 20% Financial strength 20% Infrastructure services client base 20% Infrastructure service employees 20% Total employees 20% Vertical alignment (not graded) 0% All scores are based on a scale of 0 (weak) to 5 (strong). Source: Forrester Research, Inc. Unauthorized reproduction or distribution prohibited.

12 The Forrester Wave : Global Infrastructure Outsourcing, Q VENDOR PROFILES Leaders IBM. IBM has an enormous market presence the largest of all the companies that we included in this analysis although its market share does not appear to be growing. IBM views the current infrastructure management services market as the age of outcomes, IP, and automation. It is pursuing a variety of initiatives, including automation with IBM Workload Automation and integration across systems of record and systems of engagement. Since its acquisition of SoftLayer Technologies in 2013, cloud services have become a major element of its infrastructure management strategy. This is logical because it represents an opportunity for much faster growth than more traditional infrastructure management services. IBM attempts to translate its great strength in big data and analytics to infrastructure outsourcing by leveraging its vast hoard of customer data accumulated during decades of service relationships. IBM has a very strong vision for the future of infrastructure services and also has a very well-balanced global delivery model. Its relatively large investment in strategy was another high point of its response. HCL. HCL Technologies tends to be one of the India-centric providers most often encountered in deals involving the traditional outsourcing giants, even though its overall service market presence is not the highest among India-centric firms. HCL enjoys a solid reputation for flexibility, cost-effectiveness, and technological capability, which gives it an extremely strong value proposition. HCL also has a particularly robust set of planned enhancements. Its relatively large investment in strategy shows its willingness to increase its infrastructure services footprint. HCL is particularly adept at pursuing existing outsourcing customers and transitioning them into the HCL fold. Its vision includes the enterprise workplace of the future, network generation data centers, and zero infrastructure sites. HCL also registered the second highest overall grades for customer satisfaction (GWA and TCS tied for first). Accenture. Accenture possesses great strengths in applications services, infrastructure services, and transformational services. Historically, Accenture has avoided asset-heavy deals and has preferred to embrace its asset-light philosophy, but the company is now seeking to increase its competitiveness in standalone infrastructure outsourcing engagements. Leadership in cloud orchestration and brokering is another focus, which is the rationale for the firm s significant investments in its Accenture Cloud Platform, a vehicle for integration and service orchestration across various cloud models, including private cloud solutions available from its partners. Accenture enthusiastically touts its partnership with IPsoft for automated infrastructure support services. It is also seeking to serve as the role of service integrator in infrastructure engagements. Generally an asset-light provider, Accenture thrives on transformational engagements. Accenture s distribution of staff and clients is well-balanced and a source of strength for the supplier.

13 The Forrester Wave : Global Infrastructure Outsourcing, Q TCS. Tata Consultancy Services is among the most competitive and capable of the India-centric providers in infrastructure outsourcing opportunities. In particular, TCS has a compelling perspective on automation with an eye for sustainability through change. It tied with GWA for the highest customer satisfaction scores in our analysis and also received high marks for its particularly strong vision for the future of infrastructure services. TCS is also pursuing a variety of cloud services such as ion Cloud ERP (integrated IT-as-a-service for small and medium-size businesses), which was pioneered in India and utility models in partnership with infrastructure and storage partners. TCS is also focused on automation of infrastructure management activities using its own IP. HP. HP has the second largest overall market presence of all companies included in this analysis. It is particularly strong in workplace and mainframe services, but like other traditional outsourcing leaders, HP has become more selective in evaluating specific infrastructure management opportunities. HP seeks opportunities where it can help clients improve their business performance and progress in what it calls the new style of IT (mobility, social, cloud, big data/analytics, and security). While judicious with infrastructure outsourcing, HP is forging ahead aggressively in cloud services. Its recently announced Helion portfolio of cloud products and services enables organizations to build, manage, and consume workloads in hybrid environments. HP has significant market presence on a global basis, including considerable strength in North America. It has a strong historic focus on multisupplier integration and is also aggressively pursuing its own approach to automation. HP has a very well-balanced global delivery model and has globally balanced staff and client distribution. Capgemini. Capgemini is not as visible a supplier in North America as it is in EMEA, but the firm is seeking to expand its market presence in North America. Capgemini s efforts in this area are bearing fruit, as its infrastructure outsourcing revenues grew by more than 15% from 2013 to Capgemini s Dynamic Services vision is intended to bridge the legacy and future technology management worlds and encompasses Capgemini capabilities such as service integration, cloud brokering, service orchestration, service aggregation, and consulting and technology transformation services. Capgemini is notable for its strength in SIAM and is also aggressive in positioning its cloud brokering capability. In Forrester s analysis, Capgemini received high marks for its capacity for innovation and its focus on continuous improvement. Investment in strategy was another high point of its response. Its geographic staff distribution biased to EMEA was perhaps Capgemini s primary weakness in our analysis. CSC. Computer Sciences Corp is a significant historic player in mainframe services, with a burgeoning presence in cloud services. CSC became a more serious player in cloud orchestration and management with its acquisition of ServiceMesh, now part of CSC s Agility Platform. With this platform, it intends to empower customers to act as cloud service aggregators and orchestrators (CSC itself does not embrace the term cloud broker ). CSC s commitment to the cloud is apparently sincere. It intends to have all of its own applications in

14 The Forrester Wave : Global Infrastructure Outsourcing, Q the cloud by 2015 ( client zero ). CSC has also become more partner-centric as it transforms from a holding company to an operating company under CEO Mike Lawrie. 3 CSC is willing to team up with otherwise competing suppliers, as it has done with its cloud-oriented partnership with HCL and its alliance with IBM for solutions in big data and Hadoop. CSC also has a very balanced global distribution of staff and clients and has a solid overall current offering. Wipro. Wipro remains in the first rank of India-centric suppliers in infrastructure outsourcing, a position it has held since its 2007 acquisition of Infocrossing gave it a significant asset presence in the North American market. Wipro subsequently expanded with targeted data center acquisitions. Wipro has the largest market presence of the India-centric providers in this analysis and also the broadest range of mainframe capabilities among the India-centric firms. Wipro is also quite serious in its pursuit of automation and service management with its internally developed ServiceNXT offering. However, it will also consider external alliance partners. Wipro also competes in the cloud market with its istructure infrastructure-as-aservice (IaaS) offering. Atos. Although a global consulting firm and provider of infrastructure and application services, this French firm is best known in its native EMEA market. Still, it has a growing international profile highlighted by visible engagements like its work with the International Olympic Committee (IOC) including the 2014 Winter Olympic Games in Sochi, as well as plans to participate in future Olympic events. Despite its acquisition of Siemens IT Solutions and Services in 2012, most of Atos clients are in Europe and relatively few are in the Americas and Asia Pacific. The same is true of Atos infrastructure services staff. Like many traditional infrastructure outsourcing providers, it has focused primarily on margin improvement during recent quarters and has experienced limited growth. Nevertheless, it has made substantial investments in the Canopy partnership, which provides cloud capabilities that Atos leverages in its infrastructure outsourcing operations. Canopy imbues Atos with significant growth opportunities, which was a notable Atos strength in this evaluation. 4 T-Systems. Based in Germany and a subsidiary of Deutsche Telekom, it follows that most of T-Systems clients and infrastructure services staff are concentrated in EMEA. It has relatively few clients or staff in the Americas and Asia Pacific. Nevertheless, it is seeking to expand its presence in these regions. Among the focal points of its infrastructure outsourcing activities is its Dynamic Cloud Platform, a framework for hybrid computing. T-Systems has been historically highly active in SAP, and one of its major opportunities is to migrate its significant base of managed SAP customers to the Dynamic Cloud Platform. It gets high marks for its complete service portfolio, which includes both traditional infrastructure services and complementary consulting services around transformation, migration, and innovation. T-Systems approach to ecosystem participation and investment to support strategy are strengths for the firm.

15 The Forrester Wave : Global Infrastructure Outsourcing, Q Strong Performers GWA. The Getronics Workplace Alliance is best known for its end device management services, giving it among the largest service market presences in the world. Additional members of the consortium include Getronics, CompuCom, Tecnocom, NTT Data Getronics, SPIE Communications, KPN, and ServiceOne to cover infrastructure services globally. Local presence is provided by members in each region. GWA s clients are concentrated in EMEA and the Americas, with a smaller portion in Asia Pacific. GWA s highest density verticals include manufacturing, pharmaceutical companies, and oil and gas. GWA tied for the highest score in customer satisfaction in our evaluation. Fujitsu. Fujitsu is a global infrastructure outsourcing supplier based in Japan. Correspondingly, its highest service market presence is in Japan. It also possesses a relatively large client base in EMEA and the rest of Asia Pacific, but its client base in the Americas is relatively sparse. Similarly, most of Fujitsu s infrastructure outsourcing service staff members are based in Asia Pacific and EMEA, with a few staff members based in the Americas. It has yet to become a fully global player, but it is seeking to become just that. Fujitsu maintains a variety of different cloud computing models, and its vision for the future of infrastructure outsourcing is relatively strong. CGI. CGI s acquisition of Logica in 2012 yielded an entity with infrastructure outsourcing capabilities that span the globe. CGI is making a concerted effort to lead the nascent market for cloud brokerage services and is participating in the Helix Nebula ( the Science Cloud ) partnership between European research institutions CERN, European Molecular Biology Laboratory (EMBL), the European Space Agency (ESA), and other participating technology service providers. It is also pursuing opportunities in service integration in more traditional infrastructure management deals. CGI is well positioned to compete in cloud brokering opportunities, particularly in the public sector one of its largest vertical concentrations where it is FedRAMP-certified. 5 Because CGI is so focused on vertical solutions, it is less likely to compete on pure infrastructure outsourcing opportunities. CGI lacks discernible momentum in the marketplace and lacks a clear expression of interest from Forrester clients. SUPPLEMENTAL MATERIAL Online Resource The online version of Figure 6 is an Excel-based vendor comparison tool that provides detailed product evaluations and customizable rankings. Data Sources Used In This Forrester Wave Forrester used a combination of three data sources to assess the strengths and weaknesses of each solution:

16 The Forrester Wave : Global Infrastructure Outsourcing, Q Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluation criteria. Once we analyzed the completed vendor surveys, we conducted vendor calls where necessary to gather details of vendor qualifications. Product demos. We asked vendors to conduct demonstrations of their product s functionality. We used findings from these product demos to validate details of each vendor s product capabilities. Customer reference surveys. To validate product and vendor qualifications, Forrester also conducted reference surveys with three of each vendor s current customers. The Forrester Wave Methodology We conduct primary research to develop a list of vendors that meet our criteria to be evaluated in this market. From that initial pool of vendors, we then narrow our final list. We choose these vendors based on: 1) product fit, 2) customer success, and 3) Forrester client demand. We eliminate vendors that have limited customer references and products that don t fit the scope of our evaluation. After examining past research, user need assessments, and vendor and expert interviews, we develop the initial evaluation criteria. To evaluate the vendors and their products against our set of criteria, we gather details of product qualifications through a combination of lab evaluations, questionnaires, demos, and/or discussions with client references. We send evaluations to the vendors for their review, and we adjust the evaluations to provide the most accurate view of vendor offerings and strategies. We set default weightings to reflect our analysis of the needs of large user companies and/or other scenarios as outlined in the Forrester Wave document and then score the vendors based on a clearly defined scale. These default weightings are intended only as a starting point, and we encourage readers to adapt the weightings to fit their individual needs through the Excel-based tool. The final scores generate the graphical depiction of the market based on current offering, strategy, and market presence. Forrester intends to update vendor evaluations regularly as product capabilities and vendor strategies evolve. For more information on the methodology that every Forrester Wave follows, go to Survey Methodology Forrester s Business Technographics Global Infrastructure Survey, 2014 was a mixed methodology phone and online survey fielded in June and July 2014 to 3,190 business and technology decisionmakers located in Australia, Brazil, Canada, China, France, Germany, India, New Zealand, the United Kingdom, and the United States from companies with two or more employees.

17 The Forrester Wave : Global Infrastructure Outsourcing, Q Forrester s Business Technographics Global Business and Technology Services Survey, 2014 was a mixed methodology phone and online survey fielded in July and August 2014 to 1,532 business and technology decision-makers located in Australia, Brazil, Canada, France, Germany, India, New Zealand, the UK, and the US from companies with 100 or more employees. Forrester s Business Technographics Global Priorities And Journey Survey, 2014, was fielded to 13,822 business and technology decision-makers located in Australia, Brazil, Canada, China, France, Germany, India, New Zealand, the UK, and the US from SMB and enterprise companies with two or more employees. This survey is part of Forrester s Business Technographics and was fielded from January 2014 to March ResearchNow fielded this survey on behalf of Forrester. Survey respondent incentives include points redeemable for gift certificates. We have provided exact sample sizes in this report on a question-by-question basis. Forrester s Business Technographics provides demand-side insight into the priorities, investments, and customer journeys of business and technology decision-makers and the workforce across the globe. Forrester collects data insights from qualified respondents in 10 countries spanning the Americas, Europe, and Asia. Business Technographics uses only superior data sources and advanced data-cleaning techniques to ensure the highest data quality. We have illustrated only a portion of the survey results in this document. To inquire about receiving full data results for an additional fee, please contact data@forrester.com or your Forrester account manager. Integrity Policy All of Forrester s research, including Forrester Waves, is conducted according to our Integrity Policy. For more information, go to ENDNOTES 1 Part of the strategic rightsourcing methodology has to do with identifying candidates for cloud migration. See the March 27, 2014, Strategic Rightsourcing Application Portfolio Analysis Tool report. 2 For an explanation of the changes taking place in cloud computing services in the cloud in 2015, see the November 13, 2014, Predictions 2015: The Days Of Fighting The Cloud Are Over report. 3 Suppliers were graded on their investment to support strategy on a sliding scale tied to percentage of revenues. IBM s investment to support strategy was approximately 6%. CSC CEO Mike Lawrie has characterized CSC as more of a holding company prior to his arrival. Source: Marjorie Censer, CSC, facing tougher times, brings in new CFO, The Washington Post, May 20, 2012 (

18 The Forrester Wave : Global Infrastructure Outsourcing, Q On December 18, 2014, Atos announced it is acquiring Xerox s information technology outsourcing business for approximately $1 billion. The planned acquisition would expand Atos presence in North America. However, Xerox ITO revenues and assets are not combined with Atos revenues assets in this analysis. Source: Atos ( 5 The Federal Risk and Authorization Management Program (FedRAMP) is a governmentwide program that provides a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services. Source: Cloud.cio.gov (

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