Leading Providers of Application Management in Germany 2013

Transcription

1 Application Management I Germany I 2013 Leading Providers of Application Management in Germany 2013 SITSI I Vendor Analysis I PAC RADAR Scoring results Accenture - Unlimited reprint rights -

2 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I Table of contents Objective of this report... 4 Report license... 5 Introduction... 6 Application management definition... 7 PAC RADAR methodology... 8 Introduction to the methodology... 8 Evaluation methodology in the PAC RADAR General PAC methodology PAC RADAR: the leading providers of application management in Germany Positioning within the PAC RADAR Scoring results Accenture Best in Class : Accenture (final grade: 1.66) About Pierre Audoin Consultants (PAC) About the PAC RADAR... 18

3 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I List of figures Clusters and sub-clusters of the PAC RADAR according to which the providers are evaluated... 8 Description of the PAC methodology The PAC RADAR for Application Management in Germany Document information Author: Philipp Schalla Co-authors: Karsten Leclerque Publication date: September 2013 Latest update: n/a Scope ID: Application Management I Germany I 2013 Portfolio ID: SITSI I Vendor Analysis I PAC RADAR Related Reports: SITSI I Vendor Analysis I PAC RADAR AM France/UK

4 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I Objective of this report The purpose of the PAC RADAR from the market research and strategic consultancy Pierre Audoin Consultants (PAC) is to provide a holistic evaluation and visual positioning of leading IT providers within a defined services segment on a local market. Using predefined criteria, the providers revenue volumes and development and market share are assessed and compared alongside their performance and specific competences in the relevant market segment. Please note Due to some methodological and organizational changes, the results of the PAC RADAR Leading Providers of Application Management in Germany 2013 are not comparable to the predecessor report Leading Service Providers of Application Management in Germany Among other things these changes include: A different peer group in the focus of the analysis, The adaptation of individual criteria within clusters & sub-clusters, The adaptation of weightings of individual criteria. The reasons for these changes are end-user feedback as well as the joint country approach (UK, FR, DE) of this year s report.

5 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I Report license PAC RADAR Leading Providers of Application Management in Germany 2013 PAC RADAR report license unlimited reprint rights Within the framework of the license with unlimited reprint rights the customer receives a PAC RADAR short report and a PAC RADAR graphic. Their usage and distribution to external parties is expressly permitted, without any limitations. The customer is entitled to use the contents of this PAC RADAR short report as well as the PAC RADAR graphic, either completely or partially (e.g. individual text sections or graphics), for all marketing and communications purposes. In any usage and distribution, all contents of the PAC RADAR short report and the PAC RADAR graphic must always be marked with the PAC source reference. However, the contents must not be manipulated or deployed in such a way that changes the context. The usage rights defined within the license with unlimited reprint rights refer to the PAC RADAR short report and the PAC RADAR graphic, however, under no circumstances include the usage of the contents of the full version of the PAC RADAR report. In addition, the PAC RADAR copyright terms and conditions apply (see About the PAC RADAR on the last page of this document).

6 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I Introduction Over the last years, the number of different applications used within an organization has significantly increased. Accordingly, the number of interfaces, security patches and release upgrades that need to be managed has increased as well. At the same time, companies need to monitor and evaluate new innovative technologies and solutions that become available on the market. The maintenance of such complex application landscapes with economic constraints represents a major challenge for many companies. Furthermore, this requires matching the demands of subject matter experts with technological progress as well as economic and legal conditions. Due to a mostly fix allocation of resources, companies are more and more requesting support from external service providers. This type of service is called application management and this market has reported strong growth rates in Germany in recent years. While in the past this sub-segment of the outsourcing market was regarded critically by IT users and companies, cost pressure and limited availability of adequate internal resources have meanwhile resulted in an increasing acceptance of this topic. The market for stand-alone application management in Germany has reached a volume of EUR 1.7 billion. This does not include those application management services that are part of more comprehensive outsourcing agreements. PAC estimates the total market volume of application management in Germany to amount to EUR 2.9 billion. In this highly dynamic market environment, various service providers compete for a good positioning. The PAC RADAR Leading Providers of Application Management in Germany 2013 evaluates their capabilities and positions these companies in the German provider landscape.

7 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I Application management definition This PAC RADAR focuses on the topic of application management in Germany. Application management (AM) describes the maintenance and enhancement of existing applications, sometimes even their initial development, under a long-term (multi-year) contract with a commitment to fulfilling pre-defined service level agreements (SLAs) on a fixed-price basis, often complemented by a variable pricing component. Often, staff is transferred. In this PAC RADAR, PAC considers both stand-alone application management as well as application management embedded in application outsourcing, business process outsourcing or complete outsourcing deals. Compared to outsourcing in general, stand-alone application management in particular differs as to the scope: Whereas complete outsourcing, application outsourcing and business process outsourcing (including embedded AM!) comprise the takeover of infrastructure, applications and business processes over the entire service value chain, stand-alone application management only covers the maintenance and enhancement of the applications in question without taking over the infrastructure. Unlike project services in general, the application management contracts analyzed in this PAC RADAR do not involve pure development or implementation, but only support and further development. In terms of duration, stand-alone application management contracts usually run for 1 to 5 years whereas embedded application management contracts typically run for more than 3 years as part of long-term outsourcing contracts.

8 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I PAC RADAR methodology Introduction to the methodology The aim of the PAC RADAR is to aid the holistic evaluation of IT providers. PAC publishes the PAC RADAR two to four times per year for different segments. Every PAC RADAR targets a specific IT services sector, for which up to 15 leading providers in a local market are assessed. In the PAC RADAR, the performance, competence and market position of the key providers in a services segment are assessed and compared using approx. 50 pre-defined criteria. The criteria are arranged according to clusters and can be assigned to the main features, "Competence" and "Relative Market Strength" as well as the underlying clusters and sub-clusters (see the graph below). There is an overall rating from the evaluation of the criteria as well as sub-ratings per cluster and sub-cluster. With the help of the weighted evaluation of all criteria and the resulting overall rating, each provider is given a characteristic position in the PAC RADAR (see chapter Position within the PAC RADAR). The following applies to the PAC RADAR: The better the evaluation for competence and relative market strength, the closer a provider is to the center. The closer to the center a provider is, the closer the provider is to customer requirements for that segment. Evaluation of Criteria at Cluster and Sub-Cluster Levels Main Cluster Cluster Know-how & Expertise Offering & Sales Competence Delivery & Support Strategy & Stability Relative Market Strength Sub-Cluster Skills & Qualifications Experience Value of Offering Quality of Sales & After-Sales Maturity & Quality of Delivery Local & Global Support Importance of Topic for the Supplier Company s Stability Market Power Performance PAC Clusters and sub-clusters of the PAC RADAR according to which the providers are evaluated

9 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I SAMPLE CRITERIA FOR APPLICATION MANAGEMENT IN GERMANY 2013 Cluster 1 Know-how & experience : Knowledge/qualification History in application management global & local Strength of resources and level of experience Maturity mix of consultants - global & local Cluster 1 Know-how & experience : Experience Industry coverage global & local Strength in focus industries - global & local Cluster 2 Offering & sales : Value of portfolio Breadth of Portfolio Ability to provide AM transformation Coverage of software expertise (packaged, custom-specific,...) Cluster 2 Offering & sales : Sales & after-sales quality Maturity of sales organization & innovation in pricing models Sustainability of customer relationships Bidding process - rating by customers Account management - rating by customers Cluster 3 Delivery & support : Maturity and quality in delivery Global delivery organization - overall rating Maturity of GDN (virtualization, methods, processes, tools,...) Ability to provide business transformation Industrialization of GDN (degree of shared services) Certifications Cluster 3 Delivery & support : Local & global support Ability to serve global customers Flexibility (regarding sales & delivery) Focus on medium-sized customers

10 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I Cluster 4 Strategy & stability : Significance of the offering for the provider Capabilities in stand-alone & embedded AM R&D investments Significance of local AM business in WW revenues Cluster 4 Strategy & stability : Company stability Financial stability Dependence of few large customers global & local Sustainability of customer relationships Cluster 5 Relative market strength : Market position Revenue and market share Strength of references Strategic partnerships Cluster 5 Relative market strength : Performance Deal track record - local Revenue growth over past 3 years Overall customer satisfaction - rating by customers

11 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I The following companies have been positioned in the PAC RADAR Leading Providers of Application Management in Germany 2013 : Accenture All for One Steeb Atos Capgemini CSC HP IBM Infosys CGI Tech Mahindra Steria T-Systems Tata Consulting Services (TCS) Wipro The following assessments are based on a comparison within the peer group, i.e. these leading providers among one another. Evaluation methodology in the PAC RADAR The evaluation of every provider is carried out on the basis of an extensive voluntary disclosure form, an assessment of the provider by their customers, and supplementary estimates based on tried-andtested PAC methodology. Voluntary disclosure by the providers In the voluntary disclosure process, the providers were asked about aspects such as topic-oriented experience, skills and resources, portfolio, service provision, sales structures, customer focal points and other relevant issues, such as the degree of standardization in their services. The providers were asked to give their view on, among others: Their history in the AM business and partnerships Certifications, resources, and project experience Portfolio, service provision, and quality management Sales trends and investments Information from the providers local end customers Apart from the voluntary disclosure process, evaluations from AM customers were also considered. However, not all providers submitted four customer evaluations. As a result, for the rating we considered not only the evaluations themselves, but also the number of submitted evaluations. With fewer than four customer evaluations, the rating was set at average, i.e. with statements of satisfactory or service provision in accordance with agreement. Submitting customer evaluations thus provided an opportunity to rise above mediocrity. If more than four customer evaluations were submitted, we used the four best grades for the final evaluation.

12 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I The providers were evaluated by their customers using the following criteria for a grading scale of 1.0 ( agreement clearly exceeded or extremely satisfied ) to 5.0 ( clearly fallen short of agreement or very dissatisfied ): SUBJECTS FOR CUSTOMER EVALUATION (INCL. EXAMPLE CRITERIA) Quotation phase Reaction time, completeness Comprehensibility, transparency Flexibility/ innovation: Pricing structure/ models Level of coverage with the requirements Pro-active approach Consulting services during pre-sales phase General behavior/ communication Account management Response to change requests Availability of account manager Reaction time of account manager Specialist competence of account manager General behavior/ communication Behavior in the event of escalation/ under stress Service provision Budget and deadline compliance Realization of requirements Quality of results Specialist competence (technology & processes) Industry competence Teamwork with the customer Proactive approach, contributing innovation Implemented methods & tools

13 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I Project management competence Knowledge transfer If applicable: Collaboration with offshore resources Weighting of the criteria CRITERIA FROM THE VOLUNTARY DISCLOSURE PROCESS AND CUSTOMER EVALUATION WITH HEAVIER WEIGHTING Strength of resources and level of experience Strength in focus industries - local Breadth of Portfolio Ability to provide AM transformation Sustainability of customer relationships Bidding process - rating by customers Account management - rating by customers Maturity of global delivery network (virtualization, methods, processes, tools, ) Industrialization of global delivery network (degree of shared services) Service provision - rating by customers Level of attrition Significance of offering in local market Significance of local AM business in WW revenues Overall customer satisfaction - rating by customers

14 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I General PAC methodology The following overview describes PAC's methodology for market analysis and key differentiation features. SUPPLY DEMAND Vendor database Qualitative approach Quantitative approach Face-toface and phone interviews Situations and trends Quantitative results IT user database Market volumes Situations and trends Quantitative data Face-toface and phone interviews Qualitative approach Quantitative approach Market forecasts Bottom-up methodology Top-down methodology PAC references 35+ years of data tracking Macro-economic data/statistics Market modeling Key vendors, key market segments, key success factors, key trends Description of the PAC methodology Local research and face-to-face communication are two core elements of PAC s methodology. In our market studies, we can draw on over 35 years of experience in Europe.

15 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I PAC RADAR: the leading providers of application management in Germany 2013 The PAC RADAR for Application Management in Germany 2013

16 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I Positioning within the PAC RADAR Positioning within the rings Using the calculated overall grade, each provider receives a characteristic positioning within a PAC RADAR ring. The following applies here: The closer the position is to the center, the closer the provider is to the customer requirements for that segment. The "customer requirements" at the center represent a cross-section of the market; the position of the provider represents the completeness with which the provider's offerings and competence correspond with the requirements of all potential customers; i.e. purely German clients, international key accounts and SMBs alike. The providers have been positioned with the 1st ring (inside) to the 4th (outside). The PAC RADAR rings have the following attributes: 1st ring: "Best in Class" (grade between 1 and 1.99) 2nd ring: "Excellent" (grade between 2 and 2.99 ) 3rd ring: "Strong" (grade between 3 and 3.99 ) 4th ring: "Solid" (grade between 4 and 4.99) Positioning around the ring The position of a provider along a ring does not represent an evaluation but additional information. It indicates the provider's specifications within the core business: National vs. international: a rather national business focus in application management vs. a rather international business focus (referring to the share of application management revenues in Germany in total application management revenues globally). Stand-alone vs. embedded application management: business focus is rather on stand-alone application management or rather on embedded application management (referring to the share of stand-alone application management revenues in total application management revenues in Germany). Size of the circles The size of the circles denotes the market strength of the provider, i.e. the revenue and market share of the relevant provider in terms of application management in Germany.

17 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I Scoring results Accenture In the following, those criteria are highlighted have led to a considerably better evaluation of Accenture compared to all other providers under assessment or have led to a downgrading in comparison. Best in Class : Accenture (final grade: 1.66) ABOVE-AVERAGE EVALUATED CRITERIA Evolution of AM penetration in total business - local Ability to deliver large deals Ability to provide business transformation Maturity of GDN (virtualization, methods, processes, tools,...) Maturity of sales organization Coverage of software expertise (packaged, custom-specific,...) Revenue & market share (application-related project services - local) Revenue & market share (AM - global) Ability to provide AM transformation General company stability - PAC estimation Capability of service delivery Focus on large customers Capabilities in stand-alone AM Revenue & market share (IT services - global) Ability to serve global customers Industry coverage global Strategic partnerships CRITERIA THAT HAVE LED TO A DOWNGRADING Flexibility (regarding sales & delivery)

18 SITSI I Vendor Analysis I PAC RADAR I Application Management I Germany I About Pierre Audoin Consultants (PAC) From strategy to execution, PAC delivers focused and objective responses to the growth challenges of Information and Communication Technology (ICT) players. Founded in 1976, PAC is a privately held research & consulting firm for the software and ICT services market. PAC helps ICT vendors to optimize their strategies by providing quantitative and qualitative market analysis as well as operational and strategic consulting. We advise CIOs and financial investors in evaluating ICT vendors and solutions and support their investment decisions. Public institutions and organizations also rely on our key analyses to develop and shape their ICT policies. For more information, please visit About the PAC RADAR The PAC RADAR is protected by Pierre Audoin Consultants (PAC) s copyright. The PAC RADAR is a graphical representation and written analysis of the positioning of various IT suppliers within a defined market segment at a specific point in time. The positioning and characterization of selected companies within the PAC RADAR is conducted on the basis of an analytical assessment of criteria which PAC previously defined for this analysis. The selection, positioning, and characterization of companies within the PAC RADAR is not subject to any vested interests whatsoever. PAC does not support any suppliers that are represented in the PAC RADAR, and does not give any recommendations to technology users. The PAC RADAR represents a result from market research only and must not be taken as a recommendation for action. The contents of the PAC RADAR have been created with utmost diligence and care. However, PAC cannot be held responsible for any errors or omissions. PAC excludes all express or implied claims, also if derived from warranties with respect to the PAC RADAR report, including any implied warranties of merchantability or fitness for a particular purpose. The PAC RADAR may only be used for a license fee and with the consent of PAC. Moreover, the use and publication of the contents and the results of the PAC RADAR are subject to the Terms & Conditions of Pierre Audoin Consultants (PAC) for the Use of PAC RADAR Licenses. Copyright Pierre Audoin Consultants (PAC), All rights reserved.