Magic Quadrant for CRM Service Providers, Worldwide

Transcription

1 G Magic Quadrant for CRM Service Providers, Worldwide Published: 18 September 2013 Analyst(s): Patrick J. Sullivan, Ed Thompson CRM implementation services continue to be in high demand. Service providers are widening beyond CRM software to include consulting, analytics, digital enterprise and social CRM. Here, we position CRM service providers to help enterprises identify providers that best fit their needs. Market Definition/Description This Magic Quadrant focuses on the CRM consulting and solution implementation service market worldwide. To provide market context, we define solution implementation services and CRM here: Solution implementation services Solution implementation services are offerings to design, develop, integrate and deploy specific processes, functions, applications or initiatives in user organizations. These services aim to optimize a company's processes and integrate related technology applications and platforms (see "Forecast: Application Solution Services, Worldwide, "). CRM Gartner defines CRM as a business strategy in which the outcomes optimize profitability, revenue and customer satisfaction by organizing around customer segments, fostering customer-satisfying behavior and implementing customer-centered processes. This marketplace, competitor categories and characteristics are described in "Competitive Landscape: CRM Service Providers, North America and Western Europe." This research addresses all five CRM domains: Sales Solutions that support field sales, telesales, retail sales, Web sales and technologyenabled buying Marketing Solutions that support market segmentation, marketing analysis, campaign management, marketing process automation and other marketing functions, including analytics Customer service and support Solutions that support customer service and support processes, including consulting, technology implementation and solution deployment, but excluding the outsourcing of call center and customer service centers E-commerce Solutions that support e-commerce storefronts, product catalogs, personalization, mobile commerce and social commerce

2 Cross-CRM solutions Including master data management, multichannel business process management, voice of the customer and customer analytics For more information, see "Use Gartner's CRM Application Functionality Starfish to Evaluate Your CRM Requirements." Magic Quadrant Figure 1. Magic Quadrant for CRM Service Providers, Worldwide Source: Gartner (September 2013) Page 2 of 32 Gartner, Inc. G

3 Vendor Strengths and Cautions Accenture Accenture is a Leader in this Magic Quadrant. Accenture is a good fit for large, complex CRM initiatives, with well-defined business benefits. Gartner estimates that Accenture is one of the two largest CRM service providers worldwide in terms of both revenue and staff, with CRM revenue estimated to be between $2.0 billion and $2.2 billion (or 7% of all Accenture revenue and 16% of all consulting revenue). Accenture has the largest salesforce.com practice and very large practices in Siebel and SAP CRM, and it partners with Avanade to support Microsoft Dynamics CRM (Avanade is a joint venture between Accenture and Microsoft to focus on services related to Microsoft technologies). Strengths CRM focus, scale and scope Accenture has a corporate focus on CRM services and has steadily invested in solutions, skills, practitioners and practices that encompass business, technical and domain skills across all major CRM domains and software. Gartner estimates that Accenture's CRM staff numbers about 16,000 dedicated full-time equivalents globally. Accenture has the ability to support global and multinational accounts due to its extensive scale and global breadth. Vision Accenture approaches the market from a business consulting and technologyenabled transformation perspective. Accenture perceives CRM services to be outcome-driven, requiring end-to-end services to improve clients' business results. This incorporates multiple domains that encompass business consulting, rearchitecting business models, digital design, customer analytics, e-commerce and customer experience. Accenture also conducts extensive market research in CRM, which enables Accenture to be quicker than most of its competitors to identify new patterns of demand, set out a vision for CRM and then innovate its services to match. Visibility For the eighth year running, Accenture remains far and away the vendor that is most included and evaluated on shortlists by reference customers, reflecting both its brand and market presence. Partnership with CRM software providers Accenture has focused practices and solutions for each of the four largest CRM software solutions and is the largest consulting and integration partner for Oracle, SAP, salesforce.com and Microsoft Dynamics CRM (with Avanade) in terms of both staff and revenue. Accenture has also invested in industry- and process-specific solutions with each of the four partners to drive additional business value. Cautions Premium price According to Gartner reference checks, the most common reason Accenture has lost competitive bids (for the seventh year running) is because of the premium price of its services. Almost 40% of references from other providers who evaluated but did not select Gartner, Inc. G Page 3 of 32

4 Accenture said the reason for not selecting Accenture was the price was too high. References also rated Accenture below average for the total cost for the contracted services. If pricing is a top criterion for selection, then evaluate Accenture with care, but if the focus is on complex transformation through CRM, Accenture is a sound choice. Value for price Gartner references rated Accenture relatively low in overall value, and we believe that this reflects a high price point for services relative to average ratings for overall satisfaction, as well as an average rating related to providing references to peers. Accenture is a safe choice for CRM solutions when complex business-driven solutions and risk management are more critical than price. BearingPoint BearingPoint is a Visionary in the 2013 CRM Magic Quadrant. BearingPoint, West Monroe Partners and ABeam have formed a strategic partnership they call "Global Network" and jointly support clients globally using combined assets and shared processes. All three firms approach CRM from a consulting and applied analytics perspective and are a good fit for enterprises seeking businessdriven CRM strategy and/or complex customer service solutions. Gartner estimates that BearingPoint and its partners combined make up the 11th largest CRM service provider worldwide, with CRM revenue of about $175 million from the Global Network. Global Network has very large practices in SAP CRM, salesforce.com and Microsoft Dynamics CRM, as well as competencies in Siebel and Oracle Fusion. Strengths Business consulting BearingPoint's understanding of business needs and its investment in research have translated into a business-driven CRM practice with innovative solutions. References cited capabilities of business acumen, business consulting, change management, analytics and industry expertise as reasons for selecting BearingPoint. BearingPoint has the second highest percentage of revenue derived from CRM consulting services. Peer recommendation and customer satisfaction In our reference checks, BearingPoint was rated highly by clients in several aspects, including overall customer satisfaction, overall value, propensity to rehire and willingness to recommend to peers. Industries The largest proportion of BearingPoint's CRM resource skills and project experience in 2012 was from a few consumer-oriented industries that have high CRM adoption: telecommunications, business services, utilities, retail, consumer goods (especially luxury goods), banking and pharmaceuticals. Focused strategy BearingPoint, along with its Global Network partners, has a focused strategy for CRM that leverages the partners' strengths and synergies. This strategy focuses on six key areas to increase differentiation: e-commerce, digital innovation, CRM cloud deployments (salesforce.com, Microsoft Dynamics CRM), customer experience in banking, sales and marketing enablement in pharmaceuticals, and customer experience measurement. Page 4 of 32 Gartner, Inc. G

5 Cautions Software understanding According to references from other providers who evaluated but did not select BearingPoint, the most frequently cited reasons why they did not select BearingPoint were limited understanding of the specific software platform for the engagement and limited technical expertise relative to other providers. Given BearingPoint's business consulting orientation, customers with a primary focus on CRM package expertise should evaluate the Global Network on a case-by-case basis. Geographical coverage The Global Network partnership is strong and becoming more effective, but the combined entity still generates 79% of CRM revenue from BearingPoint's efforts in Europe and has a limited presence outside its strongholds in France, Germany, the U.K., the Netherlands, Switzerland, Austria, Belgium and the Nordics. ABeam's CRM efforts have been primarily in Japan and are now starting to expand in Asia, which limits Global Network in this region. That said, BearingPoint has put together partnerships with other regional CRM consultancies in Italy, Spain, Argentina and Brazil to enable global or panregional delivery of projects and the ability to serve global enterprises more seamlessly. Global delivery Reference customers said 80% of work was done on-site (the highest of all providers), a further 19% done off-site but in the same country, and only 1% done offshore or nearshore. BearingPoint's limited ability to scale system integration services compared with its peer set is also a concern; however, its partnership agreement with Tata Consultancy Services to enable global delivery helps mitigate this limitation. Price According to Gartner reference checks, the most common reason BearingPoint loses competitive bids is because of the price of its services. This is likely related to the consultative approach and also to the high level of on-site and local delivery. Business & Decision Business & Decision remains a Niche Player in this Magic Quadrant due to its limited scale and geographic footprint. Business & Decision is a good fit for European enterprises seeking CRM solutions that are focused on customer revenue generation with heavy use of CRM analytics, particularly when focused on marketing initiatives. Gartner estimates that Business & Decision is the 15th largest CRM service provider worldwide, with revenue estimated to be about $130 million. Business & Decision has established a global focus in Microsoft Dynamics CRM and Adobe (Neolane), as well as dedicated practices in salesforce.com, Siebel, Oracle Fusion and Coheris. Strengths Marketing services Business & Decision had the highest focus and percentage of revenue related to marketing services of all providers. This corresponds to the focus on the front office to know, attract, reach and develop customers. Industries Business & Decision focuses its CRM efforts and skills on selected vertical industries in Europe that are consumer-centric (insurance, banking, hospitality, retail, telecommunications and media), while its North American practice focuses on manufacturing. Gartner, Inc. G Page 5 of 32

6 Analytics Business & Decision, as a firm, generates more than 60% of overall revenue from business intelligence (BI). This is reflected in its CRM practice, which has strong marketing analytical skills in areas such as lead management, segmentation and campaign automation. Cautions Growth Business & Decision's CRM revenue growth in 2012 was about 1%, which is below the market average for CRM in Europe and significantly below the global market average of 11%. Program and project management Compared with competitors, Business & Decision had relatively low scores in program management and project management execution, as well as in knowledge transfer, from its reference customers. Global delivery Business & Decision has small numbers of offshore resources in India, Tunisia and Mauritius. The company uses nearshore or off-site centers, but it lags behind most competitors in its ability to use offshore resources to deliver CRM services. Customer references said that 71% of work was done on-site, 24% off-site but in the same country, 5% nearshore and 0% using offshore resources. This is aligned with the business consulting and analytic approach that requires higher on-site presence, but it limits scalability and price competitiveness at times. Geographic coverage Business & Decision has a strong presence in France, Belgium and Switzerland; a growing presence in the U.K.; and a differentiating presence in North Africa. Its North American services expanded significantly with the 2012 acquisition of AbilityCRM, but more than 80% of revenue is still generated in Europe and more than 50% from France. Business & Decision has only a small presence in Latin America (Peru) and remains comparatively weak in parts of Europe (the Nordics, Italy and Central Europe) and other regions of the world (Asia, the Middle East, Africa and Latin America) compared with market leaders. Capgemini Capgemini is positioned in the Leaders quadrant. Capgemini is a good fit for enterprises in the U.S. or Western Europe seeking help with large-scale or complex projects needing both CRM technical advisory and implementation skills. Gartner estimates that Capgemini is the fifth largest CRM service provider worldwide, with CRM revenue estimated to be about $1 billion (accounting for about 17% of its consulting and technology service revenue). Capgemini has very large practices in SAP CRM, Siebel and salesforce.com, with additional competencies in Microsoft Dynamics CRM. Strengths Customer referral In our reference checks, Capgemini had high scores related to customer loyalty, reflected in references' potential to rehire as well as willingness to recommend the firm to a friend or colleague. References also cited prior experience with Capgemini as a reason for rehiring. Industry focus Reference checks cited Capgemini consultants' competencies, industry experience and project teams as a leading reason for selection. This strength is specific to Page 6 of 32 Gartner, Inc. G

7 CRM-technology-based solutions for the industry. The largest proportion of Capgemini's CRM focus, staffing and project experience in 2012 continued to be in the public sector (the U.K. and France), banking and insurance, telecommunications, utilities, discrete manufacturing (particularly in Germany), and retail. Technical competencies Capgemini has more than 6,000 CRM consultants, and most of these are trained on SAP, Oracle, salesforce.com or Microsoft CRM. Capgemini has large practices related to each CRM platform and experience with how these platforms are applied within selected industries. Integrated delivery model Capgemini's delivery model is a competitive differentiator in the U.S., the U.K. and the Netherlands, with use of its Indian offshore delivery capabilities, but it is less differentiating in France and Germany, which uses local delivery almost exclusively. Cautions Price The most commonly reason cited by references from other providers who evaluated but did not select Capgemini was its high price points. Capgemini appears to be one of the highest-priced providers, but it also received exceptional scores for value delivered. Business understanding during bid process The second most common reason was poor communication of understanding of business needs. Capgemini approaches the market from an industry solution perspective. For example, it has invested in an All-Channel Experience solution, focused on retail and insurance. Capgemini's bids may not align with client requirements in instances where it is not a focused vertical industry of Capgemini, or instances where the client is looking for non-industry-specific technology support. Limited geographic coverage Capgemini's CRM practice does 55% of its work in Europe and generates 38% of revenue in North America, with the strongest presence in France and the U.K. This concentration in Europe is higher than the other Leaders'. Capgemini has a limited presence in Asia/Pacific and only a minor presence in Latin America relative to other Leaders in this Magic Quadrant assessment. Cognizant Cognizant is again positioned in the Leaders quadrant. Cognizant is a good fit for organizations seeking strong technical implementation skills, particularly within selected industries (such as pharmaceuticals, insurance and banking, healthcare in the U.S., and communications in Europe). Gartner estimates that Cognizant is the sixth largest CRM service provider worldwide, with total CRM revenue of about $675 million, with about $580 million from CRM consulting and implementation services. Cognizant has very large practices in Siebel, salesforce.com and Pegasystems, with additional competencies in SAP CRM and Microsoft Dynamics CRM. Strengths Growth Cognizant continues to grow its CRM service above the industry average; it saw 22% growth in 2012 versus industry growth of 11%. This is one of the highest growth levels of Gartner, Inc. G Page 7 of 32

8 all providers in this assessment but somewhat lower than Cognizant's CRM practice growth in prior years. Value for price Cognizant had high ratings for overall value in this CRM study, even though the price of services was considered to be slightly above average in comparison with direct competitors. Customer loyalty References gave Cognizant very high scores for several loyalty-related factors, including willingness to rehire, willingness to refer peers and meeting delivery expectations. This is consistent with Cognizant's history as a solid technology implementation partner with high levels of repeat business. Global delivery balance Cognizant makes extensive use of offshore capabilities in India for all implementation projects to drive cost competitiveness, but for CRM services, it also does a good job of balancing these with local resources. Reference customers said that Cognizant delivered 53% of the workload via offshoring (the second highest of the providers), 36% onsite, and 11% off-site but in the same country or nearshore. It is estimated that about 75% of Cognizant's total CRM-focused resources are from global delivery centers. Cautions Business consulting skills Cognizant has increased its business and CRM consulting capabilities, but with limited scale. Cognizant continues to execute largely from a CRMtechnology-centric perspective. Only 3% of references said that the project mix was more than 50% business strategy or process redesign, compared with technology or software implementation. This compares with an average of 23% for all vendors. Domain expertise and industry experience According to references from other providers who evaluated but did not select Cognizant, the most common reasons Cognizant lost competitive bids in 2012 were poor responses to RFPs and high price. This finding, coupled with a low score on industry and process experience, suggests that, while Cognizant's stated strategic direction is clearly on vertical solutions and consultative approaches, its current strength lies in implementation of CRM technical solutions within selected verticals. Geographic coverage Eighty percent of Cognizant's revenue is generated within the U.S., and less than 3% is generated in Asia/Pacific and Latin America. Cognizant continues to have fewer local resources outside the U.S., the U.K. and Switzerland than other service providers. Although Cognizant has a focused investment strategy to expand geographically and has local CRM resources in most European countries, including France, Germany, Spain, Italy, Belgium and the Nordics, it has fewer resources and revenue than do market leaders in continental Europe and far less in the rest of the world. CSC CSC is positioned in the Visionaries quadrant. CSC focuses on "customer intimacy" solutions that are industry-oriented and that integrate processes, technology and change management for large enterprises. CSC is a good fit for enterprises seeking business-led CRM capabilities in banking, insurance, automotive, government, travel/hospitality, healthcare and retail industries, with a Page 8 of 32 Gartner, Inc. G

9 particular strength in industry-specific innovation. Gartner estimates that CSC is the 14th largest CRM service provider worldwide, with CRM revenue estimated to be about $135 million. CSC has significant practices in Siebel, salesforce.com and SAP CRM, with additional capabilities in Microsoft Dynamics CRM. Strengths Impact Client references said CSC has above-average business value for CRM services, such as enhancing campaign response and revenue from cross-sales. These findings, when combined with CSC's relatively smaller CRM practice, support CSC's strategy to focus on business-led CRM solutions to deliver demonstrable value. Market focus CSC approaches CRM services within selected industries as an extension of consulting transformations that encompass business consulting, emerging technologies (mobility, customer analytics, social, software as a service [SaaS]) e-commerce and customer experience. CSC combines business transformation and technology skills to address customer experience issues within selected industries. Global scope Although having a smaller CRM practice than its market competitors, CSC generates significant revenue from all geographies. It has the ability to support large multinational clients and delivery with consistent execution globally. Cautions Growth CSC's CRM revenue has been growing slowly compared with competitors, at 1% to 3% in 2012, substantially below the market rate of 11%, even though CSC's CRM services have grown faster than its overall application services, which have seen very flat growth. Global delivery CSC makes limited use of offshore resources for CRM. Customer references said that 74% of work was done on-site, 16% off-site but in the same country, and less than 10% utilizing nearshore and/or offshore resources. This reflects CSC's consultative approach to CRM as a business-centric solution in most instances, rather than driven by large-scale technology integration and deployment. If offshore delivery and price comparison are high priorities, CSC may not be a good fit for large technology-centric implementations. Organizational transformation CSC is a company in a turnaround mode; with a new focus, direction and executive team in place, there is the expected associated challenges of retaining key resources, and uncertainty in its ability to really transform into a globally integrated, industry-aligned, geographically consistent practice. CSC has just transformed the former CRM practice into a global social and CRM competency group. This competency center must learn to interoperate with other CRM software teams (salesforce.com, Oracle, SAP, Microsoft) to be effective, and during this transition, the focus on CRM services may be limited and inconsistent across accounts and business units. Gartner, Inc. G Page 9 of 32

10 Deloitte Deloitte is positioned in the Leaders quadrant. Deloitte is a good fit for enterprises that seek business-consulting-led comprehensive or complex CRM solutions. This is particularly true when the business is looking for innovative customer experience solutions to bring competitive differentiation. Gartner estimates that Deloitte is the third largest CRM service provider worldwide, with CRM revenue estimated to be about $1.7 billion (accounting for 17% of its consulting and implementation revenue). Deloitte has very large practices in Siebel, salesforce.com and SAP CRM. Strengths Vision and CRM leadership Deloitte approaches CRM services as part of business transformation and customer experience enrichment. Deloitte brings together a full set of capabilities that include strategy, business process consulting, technology, digital design (via Deloitte Digital) and analytics often focused on transforming the front office of customers. Customer references rated Deloitte among the highest for CRM vision and overall thought leadership. Growth Deloitte outgrew its largest competitors in 2012 in terms of total CRM-related revenue, with a growth rate of about 14%, which is higher than the overall industry and significant for the size and maturity of the practice. Customer satisfaction and peer recommendation References gave Deloitte the highest ratings for the likelihood of a client rehiring the firm, and among the highest for overall customer satisfaction and recommending the firm to a friend or colleague. Deloitte also had very high scores in delivery execution and meeting all expectations. Industries Deloitte approaches the CRM market through a vertical go-to-market model that leverages globally deployed CRM practitioners. In Europe, Deloitte's CRM vertical focus is on telecommunications, technology, banking, insurance, utilities and the public sector. In North America, the focus is on discrete manufacturing, process manufacturing, banking, insurance and healthcare. Cautions Price According to references from other providers who evaluated but did not select Deloitte, high price was the primary reason Deloitte was rejected by buyers. When the competition was offshore providers, Deloitte typically lost on price, but price was also a factor for Deloitte in losses to other global providers. Understanding client needs The most common reason Deloitte lost competitive bids in 2012 was that it did not demonstrate an understanding of the client's needs within the bid process. Deloitte approaches most issues from a complex business consulting perspective, and some clients may evaluate the Deloitte scope for complex business transformation to be broader than requested. Microsoft partnership Deloitte's clients and prospects may find barriers to working with the firm when there is an existing audit relationship. Governmental bodies and regulators for independence policies mandate restrictions on the consulting services that the audit/attest Page 10 of 32 Gartner, Inc. G

11 industry can provide to the same client. For example, Deloitte has a growing Microsoft Dynamics practice, but the audit relationship with Microsoft limits Deloitte's participation in certain go-to-market programs. HCL Technologies HCL Technologies (HCL) is positioned in the Niche Players quadrant. HCL leverages skills from the acquisition of HCL Axon as part of its practice and is a good choice for CRM implementation services, particularly for SAP CRM solutions, marketing and customer service, and within selected industries (life sciences, utilities, retail and consumer, medical devices, and travel and transportation). Gartner estimates HCL's total CRM revenue to be about $170 million, but only about $130 million is from CRM consulting and implementation services. HCL has a very large practice in SAP CRM and significant practices in all other platforms (Siebel, Oracle Fusion, salesforce.com and Microsoft Dynamics CRM). Strengths Industries solutions HCL goes to market by industry and focuses heavily on selected industry segments (life sciences, high technology, utilities, retail and consumer products). HCL has developed industry-specific solutions (for life sciences, medical devices, utilities, and travel and transportation). For example, in life sciences, HCL has developed an Oracle-based solution for pharmaceutical sales and e-detailing. Platform-based technology practices HCL has developed deep partnerships with the four major CRM software providers and invested in solutions around all these. More than 50% of HCL CRM revenue is generated related to SAP solutions, with significant investment in SAPspecific accelerators and solutions. HCL has also focused on Oracle Fusion and additional Oracle Edge Solutions (such as RightNow, InQuira and Endeca), as well as on salesforce.com and Microsoft Dynamics CRM accelerators and templates. Business benefit realization HCL has effectively embedded its formal benefits realization methodology into implementation projects (called the Value Management Framework). HCL works with clients to define solutions with tangible business benefits, enabled through a comprehensive set of processes. These processes include identifying business benefits and converting these benefits into quantifiable financial gains, as well as ensuring decisions made during implementation are aligned with business benefits identified. This is particularly tied to SAP CRM. HCL is also flexible and willing to assume risk-based contracts through tying a portion of its fees to the realization of identified benefits using this approach. Cautions Customer satisfaction and willingness to recommend Within this assessment of the largest CRM providers worldwide, HCL's scores were lower than average from references related to several aspects of custom satisfaction. This included overall value and willingness to recommend to peers. Gartner, Inc. G Page 11 of 32

12 Project execution HCL had relatively low scores from references in meeting overall expectations and project management. The two most common reasons that HCL lost competitive bids were that the team members put forth did not meet expectations and responses to RFPs were poor. CRM vision and business consulting Despite its industry-specific focus, HCL scored relatively low for many consulting-related aspects of CRM projects. This included overall CRM vision, industry expertise, business acumen and user change management. HCL appears to have delivered CRM technology implementations well, especially for SAP, but has inconsistent business consulting and CRM transformational capabilities. IBM GBS IBM Global Business Services (GBS) remains positioned in the Leaders quadrant. IBM GBS is a good fit for enterprises seeking help with large, complex CRM initiatives that combine both business consulting and technology innovation. This is especially true for enterprises looking to transform their business to enable an improved approach to interactions with customers, partners and suppliers, as well as when the requirements span multiple geographies. IBM is among the two largest providers of CRM services, with global revenue for CRM-related implementations defined by the scope of this assessment estimated to be between $2.0 billion and $2.2 billion (11% of overall IBM GBS revenue) in IBM has very large practices in Siebel, SAP CRM and salesforce.com and also focuses on services surrounding IBM CRM software. Strengths Vision and CRM leadership Customer references rated IBM among the leaders for CRM vision, overall thought leadership and expertise in CRM marketing-related services. IBM has a vision of CRM that is an extension of its corporate strategies related to the Smarter Planet and Smarter Commerce initiatives. It informs that vision with research from the IBM Institute for Business Value. IBM seeks to bring together new approaches to heighten customer engagement that integrate commerce, analytics and social/mobile interactions to design a "digital front office" for customer interactions. Integrated services and software IBM has invested in analytics and marketing software, processes and services, and this is particularly deep with CRM. It has made more than $3 billion in investments in CRM-related software acquisitions, including SPSS, Unica, Coremetrics, Tealeaf, Varicent, Vivisimo and Cast Iron. IBM has worked to integrate these assets into its CRM analytics capabilities, as well as part of its CRM marketing services. References also rated IBM very high in consulting competencies, including business acumen, industry understanding, business value and change management. This coupling of software solution sets with extensive consulting competencies is compelling to many references. CRM analytics IBM's CRM services are aligned with corporate initiatives that include Smarter Planet, Smarter Commerce, SmartCloud, analytics and IBM MobileFirst. IBM stands out in its CRM analytic capabilities that are at the intersection of BI software, CRM software and CRM analytic services. IBM also views Smarter Commerce and CRM to be highly linked and integrated from both a solution and service perspective. Page 12 of 32 Gartner, Inc. G

13 Customer satisfaction with execution IBM references ranked IBM as quite high in overall customer satisfaction and among the highest in several domains related to execution, including project management, meeting expectations, technical skills, digital design and architectural skills. Cautions Price and business understanding According to Gartner reference checks who evaluated but did not select IBM, the two most common reasons IBM loses competitive bids were because of the premium price of its services and secondarily because IBM consultants did not demonstrate an understanding of the client's business needs during the bid process. IBM approaches the market from a complex CRM and solution perspective, and it is likely that some clients might interpret IBM's approach as not understanding their business needs. It is likely that customers looking for a predefined technology approach or who need only limited vertical expertise might look to other providers with lower price points. Overall value Although IBM scored very high in customer satisfaction and execution, references were not overly enthusiastic related to rehiring or referring IBM to peers. IBM also scored relatively low in overall value. These findings suggest that the highly effective project execution for large business-critical projects is IBM's forte, but due to the cost and size of these efforts, the desire to rehire IBM and/or refer it to peers may be reserved for selected large or complex initiatives. Infosys Infosys is positioned in the Challengers quadrant. Infosys is a good fit for enterprises that have a need for good value for price and/or multicountry technology-led CRM solution implementations. Gartner estimates that Infosys is the seventh largest CRM service provider worldwide, with estimated total CRM revenue of about $740 million, with about $570 million from CRM consulting and implementation services. This represents 12% growth in 2012, which is around the overall CRM market and considerably higher than overall Infosys revenue growth. Infosys has a very large practice in Siebel and significant practices in all other platforms (SAP CRM, Oracle Fusion, salesforce.com and Microsoft Dynamics CRM). Strengths Project execution and technical skills Infosys scored among the highest in project management, time quoted to completion and meeting all expectations. Infosys was also above average for skills in technical architecture and system integration competencies. Balanced global delivery and scale Infosys has one of the largest CRM practices in terms of resources, with more than 7,000 CRM practitioners globally. Infosys makes good use of offshore capabilities in India on all CRM implementation projects. Reference customers said that Infosys delivers 35% of the workload offshore, 2% nearshore, 12% off-site but in the same country, and 51% on-site, giving it a good balance of work globally, with scalability and leveragability of key technical staff and a mix very similar to the market leaders'. Gartner, Inc. G Page 13 of 32

14 CRM vision and business consulting Infosys scored very well on overall CRM vision by references. References also rated Infosys highly in functional business skills, as well as architectural skills. Infosys has organized by vertical sector: In Europe, the greatest proportion of Infosys' CRM resource skills and project experience is heavily focused on telecommunications, consumer goods, retail and utilities, while in North America, the focus is prevalently on automotive, high technology, financial services, consumer packaged goods and retail. Infosys also scored well on business consulting, change management and business process design. Customer satisfaction Infosys was rated among the highest in multiple aspects related to customer satisfaction, including overall customer satisfaction, overall value and willingness of customer references to rehire. This is a significant improvement from past years and reflects more consistent execution and business value. Cautions Understanding the business and platform According to some references from other providers who evaluated but did not select Infosys, the two most common reasons that Infosys lost competitive bids in 2012 were their proposal did not demonstrate an understanding of the business problems and at times it did not have an established practice focused on a particular software platform. Geographic coverage Infosys generates most of its work in the U.S., the U.K., Australia, Switzerland and Norway. The company still has a few gaps in emerging markets, such as Latin America, Eastern Europe and Africa, compared with the market leaders. In Europe, Infosys has a limited local presence of CRM resources in 10 other European countries, notably in France, Sweden and Finland, and limited teams in China and Japan. The recent Lodestone acquisition will help expand Infosys' presence in some of these markets. Price Although Infosys is rated very high in overall value, some references cited higher than expected prices, and some competitive losses were due to high price points. This may be due to an increased focus on business and consultative-led CRM services, as well as being positioned as a competitive alternative to traditional global providers and losing deals to offshore-centric competitors based on price. NTT Data NTT Data is a Challenger on the 2013 Magic Quadrant. NTT Data has grown rapidly from the acquisition of multiple firms and is rapidly integrating these into a global application service provider. NTT Data is a good fit for enterprises that require CRM solutions that have complex business and technical requirements, particularly related to customer service and in selected industries. Gartner estimates that NTT Data is the fourth largest CRM service provider worldwide, with CRM implementation revenue estimated to be about $1.1 billion, due largely to a strong presence in Japan. NTT Data has large practices in Siebel and salesforce.com, and it also has competencies in SAP CRM and Microsoft Dynamics CRM. Page 14 of 32 Gartner, Inc. G

15 Strengths Industries NTT Data approaches CRM services from a business and vertical solution perspective, with a focus on discrete manufacturing, automotive, telecommunications, insurance and banking. In Japan, NTT Data has an additional focus on the public sector and banking. In North America, its focus has been on discrete manufacturing and retail. Project team and cultural fit NTT Data customer references gave high ratings in cultural fit, as well as in the quality of project team members and their specific geographic capabilities. Focused solutions NTT Data has invested in selected solutions within each geography that resonate with the local market. In the U.S., the focus is on salesforce.com and Microsoft Dynamics CRM for manufacturing, consumer products, financial services and the public sector. In Europe, the focus is on Siebel, SAP CRM, Microsoft Dynamics CRM and salesforce.com, with additional solutions for customer service and customer loyalty for automotive, retail, insurance, telecommunications and banking. In Japan, the focus is on customer service centers for telecommunications, automotive, banking and the public sector. Cautions Awareness NTT Data is the aggregation of multiple acquisitions over the past several years, including Cirquent, Keane, The Revere Group, Value Team and Intelligroup, which have been integrated into the NTT Data brand, while Centerstance remains a separate brand working with NTT Data across regions. NTT Data is well-known in Japan but less visible in other regions. This limited market awareness of NTT Data overall and its CRM services in particular, has limited the number of opportunities that NTT Data is invited to participate in, despite excellent capabilities. As NTT Data continues to acquire small consulting firms that have geographic and/or domain specialization, it will be critical that an overall NTT Data brand emerges and becomes more prevalent. Global delivery NTT Data lags its competitors in its use of global delivery. It utilizes nearshore centers heavily for North America (Halifax) and Europe (rural Italy and Romania). Although it has significant delivery centers in India and China, there is a relatively small use of offshore centers to support U.S. and Japanese clients. This may be a competitive disadvantage for CRM implementations that require price-sensitive technology efforts. Geographic coverage NTT Data is now a global provider, but due the acquisitions, coverage is inconsistent. Seventy-eight percent of all CRM revenue is derived in Asia and mostly in Japan, and in terms of telecommunications, largely in conjunction with NTT Group entities. Nineteen percent of revenue is generated in Europe, largely from Germany, Switzerland, Austria, Italy and the U.K. Only 3% of revenue is generated in the Americas. It is expected that its North American revenue will increase rapidly as more recent NTT acquisitions (Centerstance, for example) are integrated into the global NTT Data practice. Gartner, Inc. G Page 15 of 32

16 PwC PwC is positioned in the Leaders quadrant for the first time. PwC has a focus on business transformation enabled by technology in general and CRM in particular. The CRM focus has had a significant impact on customers and has become a hallmark of PwC's CRM competitive differentiation the past few years. PwC is a good fit for enterprises seeking business-consulting-led complex solutions in specific industries and geographies. Gartner estimates that PwC is the eighth largest CRM service provider worldwide, with CRM revenue estimated to be about $330 million. PwC has a large practice in Microsoft Dynamics CRM and also has competencies in salesforce.com, SAP CRM and Siebel. Strengths Growth Gartner estimates that PwC's CRM solution implementation service growth is well above the market growth rate and was more than 40% from 2011 through 2012, making it the highest-organic-growth provider, fueled only in part by acquisitions (such as Ant's Eye View). Business and consulting skills PwC was rated very high by references in CRM competencies related to business and CRM technology, including industry expertise, business consulting, change management, project management, knowledge transfer, technical skills and architectural skills. PwC has the one of the highest percentages of revenue derived from CRM consulting services compared with all providers profiled here. Customer satisfaction Customers rated PwC among the highest in customer satisfaction, and as well as in their willingness to recommend PwC to peers. PwC also received among the highest scores for value in terms of both cost to return and realized business benefits. Industries The greatest proportion of PwC's resource skills and project experience is in insurance, banking, business services, utilities, discrete manufacturing, healthcare, telecommunications, hospitality and travel. Cautions Team members and poor RFPs According to references from other providers who evaluated but did not select PwC, the two most common reasons that PwC lost competitive bids in 2012 were that the proposed team members put forth did not meet expectations and that the responses to RFPs were poor. These reasons were cited as especially acute when the customer focus was on CRM-technology-centric deployments rather than on business transformation. Breadth and depth Enterprises that need specific CRM business or technology skills may find their needs met; however, those seeking both advisory and implementation capabilities across a wide range of technologies (such as mainframe, legacy client server or custom solutions) will need to carefully assess whether PwC has the necessary talent for all technology domains. Geographic coverage PwC's CRM coverage is strong within the U.S., the U.K. and Germany. Its CRM coverage in Asia/Pacific is focused on Japan and Australia. Beyond that, PwC's CRM coverage is limited in other countries, such as France, Spain, Italy, China and the Page 16 of 32 Gartner, Inc. G

17 Nordics, and in regions such as Latin America and the Middle East when compared with other Leaders in this Magic Quadrant. Tata Consultancy Services Tata Consultancy Services (TCS) is positioned in the Challengers quadrant. TCS is a good fit for enterprises seeking multicountry and technology-heavy CRM projects, particularly for Siebel and salesforce.com. Gartner estimates that TCS is the ninth largest CRM service provider worldwide, with total CRM revenue of about $370 million, with about $240 million from CRM consulting and implementation services. TCS has a very large Siebel practice and significant practices in salesforce.com, SAP CRM, Pegasystems and Microsoft Dynamics CRM. Strengths Growth Gartner estimates that TCS's CRM service growth was significantly higher than the market's in 2012, with a growth rate of about 18%. Customer satisfaction and value TCS had above-average feedback from references related to several aspects, including overall customer satisfaction, meeting project expectations, willingness to rehire and propensity to refer to peers. References also rated TCS the highest in terms of overall value for investment and also in total cost of services. This corresponds to a pattern of a high level of revenue generation from existing accounts. Global delivery and coverage TCS utilizes a good blend of onshore and offshore resources for CRM services. TCS reference customers said that TCS utilized on-site resources for 39% of its efforts, off-site in-country and nearshore for 19%, and offshore delivery for 43%, which is a shift from the past and more aligned with complex CRM solutions. TCS also has a good mix of revenue from North America (54%), Europe (38%) and Asia/Pacific (8%), which is similar to the market leaders. Industries TCS focuses on a few key industries, with the greatest portion of its CRM resource skills and project experience in North America being in banking, insurance, healthcare, discrete manufacturing and telecommunications. In Europe, TCS's CRM services are focused mostly on telecommunications and retail. TCS has invested with software partners (Oracle and SAP) into CRM solutions for specific vertical segments, such as automotive, airlines and retail. Cautions Understanding the business and RFP responses According to some references from other providers who evaluated but did not select TCS, the three most common reasons that TCS lost competitive bids was that the team members being proposed did not meet requirements, their proposals did not demonstrate an understanding of the client's business requirements during the bid process, and the RFP response was poor. Cultural fit TCS was rated by its reference customers as relatively low in cultural fit in both North America and Europe. TCS is addressing this through building local practices through both increased hiring and acquisitions in Europe and North America. Gartner, Inc. G Page 17 of 32

18 Business consulting While TCS aims for more business roles, clients continue to perceive the company as being more technology-focused. Only 10% of references said that the project mix was more than 50% business strategy or process redesign, compared with technology or software implementation. This compares with an average of 22% for all vendors. TCS was also rated lower than most other providers in business acumen, business process skills, change management and CRM strategy. Tech Mahindra Tech Mahindra is positioned as a Niche provider in the 2013 CRM Magic Quadrant. It is the first time it has been included in the assessment. Tech Mahindra recently completed the integration with Mahindra Satyam, and the two now go to market as a single entity. Tech Mahindra is a good fit for enterprises seeking CRM technology implementation skills for major CRM platforms, especially in the telecommunications and automotive industries. Gartner estimates that Tech Mahindra is the 13th largest CRM service provider worldwide, with total CRM revenue of about $160 million, with only about $125 million from CRM consulting and implementation services. Tech Mahindra has large practices focused on portals and Siebel, as well as competencies in salesforce.com, Pegasystems, Microsoft Dynamics CRM and SAP CRM. Strengths Customer satisfaction Tech Mahindra received positive ratings from references related to overall satisfaction, meeting project expectations, and willingness to rehire as well as support through implementation. Geographic coverage Tech Mahindra generates significant revenue from three regions (North America, EMEA and Asia/Pacific) in a manner that is similar to the overall market, which in unique for India-centric providers. It is particularly adept in the emerging regions of the Middle East, Africa and India. Industry-specific solutions Tech Mahindra has invested in CRM solutions and intellectual property for selected industries and platforms. For telecommunications, this includes order management and retail order fallout; for automotive, this includes warranty management and dealer management; and for retail, this includes multichannel analytics. Tech Mahindra has also developed solutions for horizontal solutions, with examples including an e-commerce jumpstart, Web/portal channel management and contact center modernization. Tech Mahindra has also invested in horizontal SAP Rapid Deployment Solutions specific to CRM. Cautions Business and industry consulting References for Tech Mahindra consistently scored it low in consulting-related competencies, including business acumen, industry expertise, change management and business process consulting relative to market leaders. Its scores for CRM strategy and CRM thought leadership also need to improve. Page 18 of 32 Gartner, Inc. G

19 Cultural fit Tech Mahindra was rated by its reference customers as relatively low in cultural fit in both North America and Europe compared with reference customers of other service providers. Scale Tech Mahindra has focused practices in all the major platforms, but only the Pegasystems and Siebel practices are large enough to scale to the demand of multiple engagements for large new implementations. For other technologies, Tech Mahindra can provide a small number of excellent technicians who are appropriate for smaller engagements requiring only a few on-site technology specialists. This is particularly true when consulting and change management is required on large multiregion engagements. Tech Mahindra is wellsuited for technically complex implementations that pull together networks and technology solutions. Wipro Wipro is positioned in the Niche Players quadrant. Wipro is a good fit for enterprises seeking strong CRM technology implementation skills for the major CRM platforms (Siebel, SAP, salesforce.com and Microsoft Dynamics). Gartner estimates that Wipro is the 10th largest CRM service provider worldwide, with total CRM revenue of about $270 million, of which about $200 million is from CRM consulting and implementation services. Wipro has a very large Siebel practice and significant practices in salesforce.com, SAP CRM, Pegasystems and Microsoft Dynamics CRM. Strengths Total cost of services Customer references rated Wipro as high in managing project costs as well as in delivering within time and initial budget. Balanced global delivery Wipro utilizes solid offshore-centric teams that have been very effective and efficient in complementing on-site teams. Wipro has a good mix of revenue from North America (58%), Europe (30%) and Asia/Pacific (10%), with 1% generated in Latin America. Wipro also utilizes a good blend of onshore and offshore resources for CRM services on most implementation projects. Wipro's staffing profile has about 33% of CRM consultants in-region and 66% offshore. However, a small set of Wipro reference customers said that Wipro utilized on-site and off-site in-country resources for 70% of efforts and 30% for offshore delivery. This suggests that Wipro adapts its staffing mix to projects and can execute in a flexible manner. Industries Wipro's greatest portion of CRM resource skills and project experience in North America is in discrete manufacturing, banking and insurance, retail, and telecommunications. In Europe, its skills are focused in the same industries but with an additional focus on utilities. Cautions Customer satisfaction In our reference checks, Wipro had one of the lower overall customer satisfaction ratings compared with reference customers of others in this Magic Quadrant; references' willingness to provide referrals to peers was also relatively low. Gartner, Inc. G Page 19 of 32

20 Understanding the business and RFP responses According to Gartner reference checks, the two most common reasons that Wipro lost competitive bids in 2012 were that it did not demonstrate an understanding of the business during the bid process and it had poor RFP responses. Geographic coverage Wipro's CRM local resource coverage is limited outside the U.S., the U.K., France, Germany, Australia and Saudi Arabia. Approximately 60% of revenue is from North America. The company is still relatively weak in Spain, Italy, Belgium, Denmark, Austria, Norway, China and South Korea compared with the market leaders. Business consulting References gave Wipro relatively low scores for business acumen and business process consulting. According to Gartner reference checks who evaluated but did not select Wipro, the most common reasons Wipro lost competitive bids were lack of process depth/expertise and its proposed team members' not fitting expectations. Vendors Added and Dropped We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or MarketScope may change over time. A vendor appearing in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. This may be a reflection of a change in the market and, therefore, changed evaluation criteria, or a change of focus by a vendor. Added We added HCL Technologies and Tech Mahindra to the 2013 CRM Services Magic Quadrant. Dropped The 2013 CRM Services Magic Quadrant has shifted to a global focus, while in past years it focused only on North America and Western Europe. The qualification criteria changed this year to require revenue generation from at least three regions (including Japan-Asia/Pacific or Latin America). All providers except one were retained; the one that did not fit this requirement was Logica (now part of CGI). Inclusion and Exclusion Criteria The scope of this document is worldwide. Approximately 50% of all CRM consulting and implementation work is done in North America and a further 35% in Europe, but this Magic Quadrant also looks at the abilities of the market participants in all geographies. The services being evaluated include CRM strategy development, business case creation, CRM solution architectures and designs, deployment of CRM solutions (from software vendors including Oracle, SAP, salesforce.com and Microsoft but also a further 400 other vendors see "The Gartner Page 20 of 32 Gartner, Inc. G