HfS Blueprint Report. SAP Services. September 2014

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1 Architects of Global Business HfS Blueprint Report SAP Services September 2014 Dr. Thomas Mendel, Ph.D. Senior Vice President, Global IT Services HfS Research

2 Table of Contents Topic Page Executive Summary 3 Research Methodology 7 Service Provider Capabilities & Key Results 12 Service Provider Profiles & Detailed Results 21 About the Author HfS Research Ltd. Proprietary Page 2

3 Executive Summary

4 Introduction to the HfS Blueprint Report: SAP Services The SAP Services HfS Blueprint Report is the first annual update to cover high-profile IT markets in the series of upcoming Blueprints by HfS. Unlike other quadrants and matrices, the HfS Blueprint identifies relevant differentials between service providers across a number of facets under two main categories: Innovation Execution HfS Blueprint Report ratings are dependent on a broad range of stakeholders with specific weightings based on 1,355 crowd-sourced responses. Stakeholders include: SAP Enterprise Buyers SAP Service Providers SAP Industry Influencers (sourcing advisors) HfS Analysts 2014 HfS Research Ltd. Proprietary Page 4

5 What Has Changed in SAP Services for ? The Market View One global SAP system, SAP consolidation & SAP upgrades. Many clients told HfS in 2013 that they are investing in the traditional way of trying to contain SAP costs through consolidation. This trend is becoming a wave in 2014, with three of the top five investment areas falling into the overall consolidation space. This approach is prudent because many of the Cloud-based SAP options are still in their infancy in Rapid SAP deployment. Believe it or not, there are still enterprises out there which are deploying SAP software for the first time. The ones that do, expect to learn from experience, since they are the late majority. Rapid deployment solutions can help big time. SAP in the Cloud. Although still confusing for many, clients by far and large appreciate the stronger focus that SAP is putting on the Cloud. After all, it s the future, isn t it? HfS expects the Cloud topic to accelerate again by HANA is already mainstream. In mindshare at least, if not in actual implementations yet. SAP is putting a lot of pressure on Oracle and clients are following suit. However, many enterprises are considering stepping stones like MaxDB on the voyage to HANA. The general feeling is that HANA is the way to go, but SAP needs to reduce the HANA price point. HfS believes that this will happen in early 2015, which will result in a big HANA implementation wave shortly after HfS Research Ltd. Proprietary Page 5

6 What Has Changed in SAP Services for ? The Service Provider View A market with a very long tail. The SAP Services market has more than 5,000 active competitors. It is a very dynamic market with many different facets. The total market in 2014 will be around $50 billion, roughly ten times SAP s software revenue. Apart from the full range service providers, the landscape is compiled of companies specializing in one or more of the five market segments, like strategy consulting, or hosting. With such a diverse and dynamic environment, it is no surprise that the service provider landscape is constantly changing. To even stay within the top 20 year after year is a major achievement for most. The top three service providers are turning into the Big Three. The gap between the top three service providers and the rest of the market is widening. While Accenture continues to lead, SAP has managed to move past IBM in Accenture and IBM have the most extensive, yet balances set of capabilities, while clients increasingly value SAP having skin in the game when implementing and servicing new software capabilities. A lot of movement in the top 20. Six service providers entered the top 20 in our 2014 evaluation. They are a mix of highly specialized (EY, Realtech, Virtusa) and full service companies (Fujitsu, FIT, Dell) which shows the highly dynamic nature of the SAP Servicesmarket. Established service providers in danger of disappearing from the evaluation. On the flipside, standing still means going down. There are a number of well-known service providers (e.g. T- Systems, LH Systems, Tieto) trying to keep the status quo, which resulted in dropping of the top 20. Others, like the Scheer Group, suffered from clientconfusion caused by a reverse acquisition HfS Research Ltd. Proprietary Page 6

7 Research Methodology

8 Research Methodology Data Summary More than 850 data points were collected. Data was collected in Q1 and Q2 of 2014, covering 740 buyers, providers, and advisors/influencers of SAP Services. 31 providers of SAP Services were evaluated. This Report Is Based On: Tales from the Trenches: Interviews with buyers who have evaluated service providers and experienced their services. Some were supplied by service providers, but many were collected through interviews conducted with HfS Executive Council members and participants in our extensive market research. Sell-Side Executive Briefings: Structured discussions with service providers were intended to collect the data necessary to evaluate their innovation, execution, market share, and deal counts. HfS IT Budget &Trends Survey: Purchasing plans and buying decisions of buyers, providers, and influencers of SAP Services. HfS State of Outsourcing Survey: The industry s largest quantitative survey, conducted with the support of KPMG, covering the views, intentions, and dynamics of 1,355 buyers, providers, and influencers of outsourcing. Publicly Available Information: Financial data, website information, presentations given by senior executives, and other marketing collateral HfS Research Ltd. Proprietary Page 8

9 HfS Blueprint Scoring Percentage Breakdown INNOVATION 50% 1 Strength of vision & strategy 20% How well is the strategy articulated and is it in sync with where HfS believes the market is headed? 2 Co-innovation (SAP, partner ecosystem & clients) 20% How well does the vendor manage the process of co-innovation? 3 Processes & tools 10% How mature are the vendor's innovation and management processes? 4 SAP solution category innovation 25% Is the investment in innovation in sync with the overall strategy? Business applications Database and technology solutions (incl. HANA) Analytics & Business Intelligence Cloud solutions Mobile solutions 5 Competitive differentiation & USP 25% Does the vendor have a clearly articulated value proposition? EXECUTION 50% 1 Market share & growth of the SAP practice 20% How big is the market share and how fast is the vendor growing? 2 Global, vertical coverage & industry solutions 15% How well is the vendor positioned in all geographies, verticals and industries? 3 Value chain of services capabilities 25% How many areas of the SAP value chain does the vendor cover and to what extend? SAP strategy consulting & business process design SAP solution implementation SAP operational management support SAP hosting SAP upgrades, migrations & consolidation 4 Customer satisfaction & mindshare 20% How satisfied are the clients with the vendor? 5 Price versus value 20% How do clients rate the overall value delivered by the vendor? TOTAL 100% % 2014 HfS Research Ltd. Proprietary Page 9

10 Definition of SAP Services Innovation: SAP Solution Categories HISTORICAL BIG DATA CONSUMERIZATION PERFORMANCE FUTURE Business applications Analytics and business intelligence Mobile solutions Database and technology solutions (incl. HANA) Cloud solutions Execution: SAP Services Value Chain PLAN IMPLEMENT MANAGE OUTSOURCE OPTIMIZE SAP strategy consulting and business process design SAP solution implementation SAP operational management support SAP hosting SAP upgrades, migrations and consolidation HfS Value Chain Definition: Value chain refers to the series of departments that carry out value-creating activities to design, produce, market, deliver, and support a company s product or service. In this usage, we refer to the range of primary processes and support services that providers offer to their clients HfS Research Ltd. Proprietary Page 10

11 Winners Circle and High Performers Methodology To distinguish service providers that have gone above and beyond within a particular line of delivery, HfS awards outstanding providers with a Winner s Circle or High Performer designation. Below is a brief description of the characteristics of each designation: Winner's Circle. Organizations that demonstrate excellence in both execution and innovation. From an execution perspective, Winner s Circle service providers have developed strong relationships with clients, execute services beyond simply hitting green lights, and are highly flexible when meeting clients needs. From an innovation perspective, Winner s Circle service providers have a strong vision, concrete plans to invest in future capabilities, a healthy cross-section of vertical capabilities, and a demonstrated ability to leverage external drivers to increase value for their clients. High Performers. Organizations that demonstrate strong capabilities in both execution and innovation, but are lacking in an innovative vision or execution against their vision. From an execution perspective, High Performer service providers execute some of the following areas (but not all) with excellence: developing worthwhile relationships with clients, executing their services and hitting all of the green lights, and being very flexible when meeting clients needs. From an innovation perspective, High Performer service providers execute some (but not all) of the following areas with excellence: having a vision and demonstrating plans to invest in future capabilities, having experience in delivering services over multiple vertical capabilities, and illustratinga good ability to leverage external driversto increase value for their clients HfS Research Ltd. Proprietary Page 11

12 Service Provider Capabilities & Key Results

13 HfS Blueprint 2014: SAP Services Winner s Circle INNOVATION High Performers SAP IBM Fujitsu Infosys NTT Data EY Realtech Atos Wipro FIT HP Virtusa Dell Tech Mahindra IGATE Deloitte BearingPoint Cognizant CSC Scheer Group HCL CGI Capgemini LH Systems T-Systems PwC Tieto TCS Xerox Savvis (Ciber) Accenture EXECUTION 2014 HfS Research Ltd. Proprietary Page 13

14 Major Service Provider Dynamics Highlights EXECUTION Accenture: Moving ahead of IBM in Accenture has the largest SAP team and is the market share leader. The company continues to improve its SAP Services with new initiatives like the SAP Business Solutions Group Joint Venture with SAP unique in this market. IBM: A strong number two. Well ahead of the rest of the competition at number two in terms of market share, IBM continues to impress customers with strong integration capabilities of new topics like Cloud and Big data into the SAP story. SAP: Catching-up fast, solidifying the number three spot. SAP is the best partner for complex and innovative projects with very fast escalation capabilities. Focus on innovative engagements creates high value and high impact for the customers. NTT Data: A surprise number four. Long considered a well-kept secret, NTT Data is now becoming much more visible in the market. The company is much more active, and a stronger focus on marketing and positioning is already paying off. INNOVATION SAP: Leads. Unsurprisingly, SAP has the best integration and alignment with SAP s innovation and strategy, as well as the deepest knowledge about rapid deployment solutions. IBM & Accenture: Joint second. Both companies have very deep relationship with SAP for many years. Huge investments in innovation around the SAP ecosystem of solutions is paying off and both are far ahead of the rest of the market. This is also shown by the large number of SAP Pinnacle award wins by both companies. Infosys: Stable number three after successful acquisition. The Loadstone acquisition put Infosys on the map a serious competitor in the SAP Consulting market. After one year, client feedback shows that the integration with the traditional Infosys SAP tem has been highly successful and many SAP Services innovations have been brought to market e.g. for SAP Retail Execution. NTT Data & Fujitsu: The Asian force. Not just in execution, Asia is also becoming more and more important for SAP solution innovation and both NTT Data (M-SAP) as well as Fujitsu (HANA integration) are ahead of the pack HfS Research Ltd. Proprietary Page 14

15 HfS Blueprint 2014: SAP Services Vendor Positioning Changes From 2013 (Top 20) Accenture 1 WC 1 WC SAP 2 WC 3 WC IBM 3 WC 2 WC NTT Data 4 WC 11 HP Infosys 5 WC 5 WC Wipro 6 WC 6 WC Fujitsu 7 WC 22 EY 8 WC New Atos 9 WC 8 WC HP 10 WC 7 HP Tech Mahindra 11 WC 15 HP Deloitte 12 HP 9 HP Capgemini 13 HP 4 WC CGI 14 HP 21 FIT 15 HP New Dell 16 HP New Realtech 17 New CSC HP Cognizant HP Virtusa 20 New 2014 HfS Research Ltd. Proprietary Page 15

16 Unifying and Consolidation are Key Priorities for SAP IT Professionals What is your number one investment area in the SAP space for 2014 (Top 10 Results)? One Global SAP system New 13.5% SAP consolidation # % SAP in the Cloud # % Rapid SAP deployment New 10.2% SAP upgrade # 2 8.3% TCO reduction SAP for mobile Apps # 7 # 5 7.6% 7.4% Business analytics, Big Data and in-memory (HANA) # 4 6.5% SAP for Social Computing # 8 5.5% Global SAP BPaaS New 4.6% 0% 2% 4% 6% 8% 10% 12% 14% 16% # N=527 IT Managers in Enterprises x Changes from 2013 N= HfS Research Ltd. Proprietary Page 16

17 The Future of the SAP Services Market Please rate your ERP strategy IT COST IT VALUE PROCESS BUSINESS MODEL Focus on local automation Initiatives centered around system upgrades and replacements Local IT spending reduction Focus on global IT standardization Initiatives centered around system harmonization and standards rollout Global IT RoI optimization Focus on end-toend process redesign Initiatives centered around IT and business alignment Global business value of IT optimization Focus on revolutionary innovation Initiatives centered around new competitive differentiators Improving global competitiveness 27,6% 5,3% 36,1% 20,5% 13,1% 18,1% 43,8% 27,9% IT Project Business Transformation Initiative # x N=1048 IT and Business Managers in Enterprises Changes by 2020 N= HfS Research Ltd. Proprietary Page 17

18 The Future of the SAP Services Market TCO (Total Cost of Ownership) reduction. Running SAP today is an expensive proposition. The RoI (Return on Investment) is there, but the overall cost is still significant. Clients expect SAP to provide an answer maybe Cloud? One global SAP system. But first, Once over the first the growing necessity for compliance and faster time-to-market reasons will drive companies to consolidate the zoo of existing SAP systems into a global one. This will be achievedby most companies until the end of So, what s next? SAP in the Cloud and HANA. Clients, as well as SAP, know that Cloud and in-memory are the future. That is why long-term, clients want SAP to provide a realistic Cloud road map and a more attractive HANA price point, but not too fast! Moving from business support to business model innovation. We ve always been told that competitive advantage comes from own software development. With the huge penetration of SAP in the enterprise market, this is changing. Companies will increasing use SAP to drive business model transformation to achieve breakthrough competitive advantages which in turn will further increase the SAP share of wallet HfS Research Ltd. Proprietary Page 18

19 The Future of the SAP Services Market Where Service Providers Need To Invest to Stay Ahead of the Game in 2015 The SAP-automation journey. At the 2014 SAPPHIRE (the annual SAP conference), simplification was revealed as the new company mantra. This new strategic focus will accelerate the trends towards consolidation, one global SAP System and TCO reduction. Service providers have to invest in making the SAP spending more transparent, and also making it easier to fulfill the full automation potential SAP has to offer. End-to-end process re-design. As discussed before, the share of wallet of SAP is increasing quickly in many enterprises. One of the major consequences will be the heavy use of SAP for another round of (this time really) more global business process re-design. This is another huge area for potential differentiation for service providers in the SAP Services space HfS Research Ltd. Proprietary Page 19

20 Key Results: HfS Blueprint on SAP Services Innovation Execution Total Revenue ($m)* Market Share* Employees* Top 3 Verticals 1 Accenture 4,45 4,90 4, ,00% Consumer products/retail, oil, utilities 2 SAP 4,70 4,45 4, ,60% Automotive, consumer products, manufacturing 3 IBM 4,45 4,60 4, ,70% Life sciences, consumer products, retail 4 NTT Data 3,90 4,15 4, ,87% Manufacturing, high-tech, financial services 5 Infosys 3,95 3,90 3, ,89% Life sciences, manufacturing, consumer products/retail 6 Wipro 3,60 4,00 3, ,95% Utilities, manufacturing, consumer goods 7 Fujitsu 3,90 3,60 3, ,11% Manufacturing, consumer products, oil 8 EY 3,75 3,60 3, ,50% Financial services, life sciences, utilities 9 Atos 3,50 3,75 3, ,70% Manufacturing, public sector, consumer products/retail 10 HP 3,45 3,75 3, ,40% Manufacturing, consumer products, transportation 11 Tech Mahindra 3,30 3,60 3, ,70% Manufacturing, retail, TIMES 12 Deloitte 3,15 3,25 3, ,30% Consumer products, aerospace and defense, utilities 13 Capgemini 2,80 3,60 3, ,78% Utilities, retail, public sector 14 FIT 3,35 3,05 3, ,29% 700 Automotive, manufacturing, high tech electronics 15 CSC 2,95 3,45 3, ,62% Manufacturing, public sector, aerospace and defense 16 Dell 3,20 3,10 3, ,40% 750 Discrete manufacturing, process manufacturing, financial services 17 Realtech 3,40 2,70 3, ,08% 210 Manufacturing, financial services, IT services 18 CGI 2,80 3,30 3, ,50% Utilities, public sector, financial services 19 Cognizant 3,05 3,00 3, ,20% Manufacturing, utilities, retail 20 Virtusa 3,25 2,70 2, ,14% 600 Financial services, insurance 21 T-Systems 2,65 3,25 2, ,40% Automotive, telecommunications, public sector 22 BearingPoint 3,10 2,65 2, ,50% Public sector, financial services, professional services 23 IGATE 3,15 2,55 2, ,30% Consumer products, high tech, chemicals 24 PwC 2,40 3,20 2, ,56% Utilities, professional services, chemical 25 HCL 2,75 2,80 2, ,25% Oil, utilities, aerospace and defense 26 LH Systems 2,70 2,70 2, ,41% 720 Travel, transportation, logistics 27 Scheer Group 2,75 2,50 2, ,35% 500 Manufacturing, process industries, public sector 28 TCS 2,20 2,95 2, ,33% Utilities, retail, automotive 29 Tieto 2,25 2,65 2, ,22% Retail, manufacturing, forest 30 Xerox 1,80 2,40 2, ,36% Financial services, healthcare, public sector 31 Savvis (Ciber) 1,85 2,30 2, ,55% Retail, high tech, manufacturing * HfS Estimates Y HfS Research Ltd. Proprietary Page 20

21 Service Provider Profiles & Detailed Results

22 Accenture WINNER S CIRCLE Market Share: % Overall Score: 4.68 Innovation Score: 4.45 Strong overall vision for the SAP Services space. The new co-innovation SAP business group promises continued future leadership in the SAP Services innovation space. Execution Score: 4.90 Market share leader with strong growth. Clients are very happy with the value they receive for their money. Well positioned for continued market leadership. Accenture continues to charge ahead and to innovate with the new co-innovation SAP business group. Key Strengths Overall global market leader for SAP Services, covering the whole SAP lifecycle with significant resources in all key geographies. Accenture has the largest SAP team of all the service providers. Very deep relationship with SAP for more than 30 years. The recently founded Accenture and SAP Business Solutions Group (ASBSG) is unique in the market place and targets a continued leadership in the codevelopment and co-innovation space together with SAP. Accenture is the right partner for clients looking for one stop shopping solutions and the full scope of services and hosting. The company is capable of staffing even the largest SAP projects. Clients report that Accenture is very capable of linking generic SAP topics to industry-specific solutions given its long track record of successful business transformation projects. SAP Services Scale Market Share: % Estimated revenues: $ 5,000 M Consulting: $ 3,800 M Hosting: $ 1,200 M Market share leader with continuing strong growth. SAP Services Coverage # of SAP practitioners: 39,000 Top 3 Verticals: Consumer products/retail, oil, utilities. All regions and relevant countries covered extremely well. All relevant services covered extensively. Breadth and depth second to none. Key Challenges Very large global clients report a very high satisfaction level with Accenture. Some small to midsize clients feel alienated by Accenture s strong commitment to process quality and delivery on agreed goals. This is something, smaller clients are not always used to. North American success, although impressive, is still lagging the European strength. Accenture is aware of this and is showing increased marketing efforts and hiring seasoned SAP specialists in the American theater. Accenture is not a low price service provider. As topics like ERP consolidation mature and become more and more mainstream, competition on price will become more prevalent by mid Customer Satisfaction And Competitive Differentiation Highest level of customer satisfaction. The combination of business and IT capabilities is a huge point of competitive differentiation. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 22

23 Atos WINNER S CIRCLE Moving out of the European-centric cage will enable Atos to remain one of the tier-one SAP service providers. Market Share: 2.70 % Overall Score: 3.63 Innovation Score: 3.50 Atos is leveraging the long-established relationships with SAP to once again position itself a though leader in the SAP ecosystem. Key Strengths Atos has one of the most well rounded SAP Services portfolio across all areas. Atos is capable to provide the full life cycle of SAP Services, starting with consulting and implementation through hosting and upgrades and consolidations. Well in the top ten of SAP teams by size, Atos is no longer as European-centric as it used to be. Atos is strong in processes and invests heavily in the SAP partnership. Atos is also making good progress in becoming an important force in the area of SAP-related services innovation. Key Challenges The size of the SAP team together with the branding and marketing in North America still needs to be improved. Although overall client satisfaction is high, a number of clients complained about the perceived high price for standard services. Atos is very strong in certain industries, but not across the board. Despite the size and revenue of the SAP practice, it is still not able to satisfy all client requests. Execution Score: 3.75 SAP Services Scale SAP Services Coverage Customer Satisfaction And Competitive Differentiation Solid capabilities without major weaknesses. A tried and tested tier-one player. Market Share: 2.70 % Estimated revenues: $ 1,350 M Consulting: $ 1,200 M Hosting: $ 150 M Large global player. # of SAP practitioners: 11,000 Top 3 Verticals: Manufacturing, public sector, consumer products/retail. All areas covered with a well rounded portfolio without particular weaknesses. Focus industries are particularly well covered. High level of customer satisfaction. Atos is heavily focused on certain industries and there, it is by far and large a great choice across the board of SAP Services. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 23

24 EY WINNER S CIRCLE Market Share: 1.50 % Overall Score: 3.68 Innovation Score: 3.75 Not bogged down by legacy. SAP is the largest global alliance partner of EY. The commitment level is high. Execution Score: 3.60 Very lean in business transformation projects. More likely to go for outcome-based results than the competition. The only specialized strategy and business consulting service provider in the top ten of the SAP Services market. Key Strengths EY today is one of the fastest growing advisory firms and can build on its trusted brand in the industry EY is one of the most globally integrated partner-lead consulting firms, combining global strategic thinking with local market knowledge. As EY has ramped up its advisory business and SAP practice over the last few years it had not to deal with legacy and has been able to be more innovative with newer technologies such as SAP HANA, Cloud, providing analytics as a service, whilst being involved in variety of co-innovation projects with SAP EY's strengths in its SAP practice are based on its key areas of performance improvement, finance, compliance, tax, controls and risk management. One of only a few strategy consulting firms with the combination of deep technology and business expertise specific to the SAP market. SAP Services Scale Market Share: 1.50 % Estimated revenues: $ 750 M Consulting: $ 750 M Hosting: $ 0 M Impressive growth trajectory for a focused consulting vendor. SAP Services Coverage # of SAP practitioners: 4,000 Top 3 Verticals: Financial services, life sciences, utilities. Focused on a few key verticals, close the accounting, tax and performance management sweet spot. Key Challenges The downside of not having a legacy to deal with is that EY has to built everything from scratch and has fewer established client relationships. Traditionally, EY are the friends of the CFO. Future growth in the SAP market will rely on EY s capability to further extend their appeal to the CIO, CMO and others. EY today is only covering parts of the market. EY s strategic positioning needs to be updated. The overall size of the practice will become an issue over time. Do they want to stay a niche consulting player with ultimately limited growth potential, or do they want to become a full service player which would also mean expanding into lower-margin business like implementation and hosting? However, EY does have aggressive growth targets for Customer Satisfaction And Competitive Differentiation High level of customer satisfaction. EY is good at leading technology transformation project with a strong link to business outcomes. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 24

25 Fujitsu WINNER S CIRCLE Excellent client feedback propels Fujitsu into the top ten of SAP service providers. Market Share: 1.11 % Overall Score: 3.75 Innovation Score: 3.90 TDS Informationstechnologie AG (now Fujitsu TDS GmbH) as a well known player in the German market place creates a nice bridge between innovation centers in Europe and Asia. Key Strengths Large and diversified global IT company with good capabilities across the SAP Services spectrum. Client satisfaction has improved significantly. This is mostly due to a renewed focus on the SAP space by Fujitsu as a whole. Strong position in many IT departments, thanks to its role as one of the few remaining serious server hardware players. Clients running their private SAP Clouds in particular like the company s long SAP experience, coupled with the fact that they can also get the hardware expertise. Fujitsu is less likely to try to upsell than other competitors, which is greatly appreciated by clients. Key Challenges Client surveys show that Fujitsu is best known in Asia and Europe and less well-known in the Americas. In order to stay competitive long-term, the American position needs to be improved. Despite the renewed focus on SAP, some clients tell us that they still do not perceive Fujitsu as a strong SAP Services player. Consequently, Fujitsu s SAP branding needs to sharpened to allow continued growth. Overall, Fujitsu is a perceived as an IT only player. The SAP strategy consulting story needs to be further developed. Execution Score: 3.60 SAP Services Scale SAP Services Coverage Customer Satisfaction And Competitive Differentiation Renewed focus on the SAP space has revitalized the SAP team. Market Share: 1.11 % Estimated revenues: $ 555 M Consulting: $ 270 M Hosting: $ 285 M Well balanced revenue split. HfS expects accelerated growth rates. # of SAP practitioners: 3,500 Top 3 Verticals: Manufacturing, consumer products, oil. Fujitsu covers most global geographies well, with particular strength in Asia and Europe. Most areas are well covered, strategy consulting capabilities need to be improved. High level of customer satisfaction. The competitive strength lies in its slightly different regional focus, yet broad overall capabilities. Particular strength in the combination of hardware and SAP. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 25

26 HP WINNER S CIRCLE Successful hardware history in the SAP space is still a competitive differentiator for HP. Market Share: 3.40 % Overall Score: 3.60 Innovation Score: 3.45 Good innovation capabilities. Winner of many Pinnacle Awards over the years. Many initiatives based on the HP hardware expertise. Execution Key Strengths Strong global hosting and application management capabilities, highly innovative in the Cloud and big data space. Strong brand awareness as the global market leader for SAP hardware. Like IBM, HP can offer the full lifecycle service for SAP and beyond - for hardware and a growing software portfolio. Market leading SAP management solution within the HP Software portfolio. Highly capable of adopting to global and local client needs. Very customer-focused. Key Challenges Past corporate branding and management issues are having more serious consequences for client satisfaction as expected. Internal coordination within HP one face to the customer is still a long way away. Size and revenue of the SAP practice is well below the top three market leaders. HP is not in the same league as Accenture or IBM in this market. The SAP strategy consulting is an area HP is investing in to broaden its portfolio, in order to improve revenue, customer feedback and mindshare. A number of clients report that HP s SAP solutions are often over-engineered. Potential future issues in the SAP partnership through a growing overlap between HP s SAP management solution and SAP s Solution Manager. Score: 3.75 At the lower end of the top ten. Still strong in most areas but client satisfaction is going down. SAP Services Scale Market Share: 3.40 % Estimated revenues: $ 1,700 M Consulting: $ 1,290 M Hosting: $ 410 M Large player. Good global coverage with more focus on technology than verticals. SAP Services Coverage # of SAP practitioners: 9,250 Top 3 Verticals: Manufacturing, consumer products, transportation. Good coverage of the entire value chain, with particular strength in operational management and implementation consulting, as well as hosting. Customer Satisfaction And Competitive Differentiation Average level of customer satisfaction. Big drop from HP has traditionally been the number one hardware choice for SAP. This remains a huge branding plus. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 26

27 IBM WINNER S CIRCLE Market Share: 8.70 % Overall Score: 4.53 Innovation Score: 4.45 Strong overall vision for the SAP Services space. Innovation capabilities well ahead of the market, only slightly behind SAP itself. Execution Score: 4.60 IBM has unique capabilities when it comes to implementation and hosting. Well positioned for future growth and continued market leadership. The only service provider to globally cover all aspects of SAP Services from A to Z. Key Strengths The go-to vendor for a true one-stop shopping solutions, including hardware, middleware, application development tools, databases and IT operations management software. One of the earliest SAP partners with a long history and many success stories. Strong partnership with the IBM Cloud team to bring to market innovative Cloud solutions. IBM offers many standardized solutions for vertical applications. Leading player in Big Data. Very high acceptance in local markets, even difficult ones like Japan. SAP Services Scale Market Share: 8.70 % Estimated revenues: $ 4,350 M Consulting: $ 2,250 M Hosting: $ 2,100 M Second in terms of overall market share. Global market share leader in SAP hosting. SAP Services Coverage # of SAP Services practitioners: 35,000 Top 3 Verticals: Life sciences, consumer products, retail. All regions and relevant countries covered extremely well. All relevant services covered extensively. Breadth and depth second to none. Key Challenges While customer satisfaction remains high, HfS hears especially from smaller clients complaints about the continuous upsell approach by IBM as a whole. Smaller clients also report difficulties navigating IBM s complex internal structure. Some CIOs are increasingly upset about IBM s tendency to circumvent IT and go straight to business decision makers for large projects. While IBM is well ahead of other competitors, it has yet to find a way to move past Accenture in the SAP space as far as revenue and headcount are concerned. Customer Satisfaction And Competitive Differentiation High level of customer satisfaction. IBM is one of the few service providers capable of covering the complete SAP life cycle well. The combination with own hardware, database and management products makes IBM truly unique in the market. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 27

28 Infosys WINNER S CIRCLE Infosys is now a top five SAP service provider and also needs to be taken seriously for strategic SAP projects. Market Share: 2.89 % Overall Score: 3.93 Innovation Score: 3.95 One of only a few Indian service providers that is driving innovation in the SAP Services space with a number of codevelopment agreements with SAP. Execution Key Strengths One of two primarily offshore-oriented service providers that have moved up into the Winner s Circle for SAP Services. Infosys is making heavy investments in broadening its global footprint outside the offshore centers and is scaling up onshore capabilities across the globe. Infosys has a good track record for keeping large projects in time and on budget. Clients are impressed by Infosys willingness to enter outcome-based pricing deals. With the Lodestone acquisition, Infosys has seriously strengthened its strategy consulting capabilities. This is increasingly being appreciated by clients and is helping the Infosys brand. Key Challenges Infosys Lodestone acquisition done almost two years ago has proven to be the right measure to extend the Infosys footprint in the high value space. However, compared to the other Winner s Circle players, the Infosys overall price point is still lower and the consulting and advisory space needs further expansion to provide high value capabilities globally. This is good for clients but hurts the Infosys profit margins. Overall, Infosys still has some work to do on the merging of Lodestone with almost 3,000 consultants and a partnerled model and the more IT Services-oriented Infosys organization. Infosys hosting capabilities and revenues are still weak. To remain competitive long-term, the company needs to develop a hybrid cloud strategy for its SAP Services offering. Score: 3.90 Below the top three but still very strong across the whole SAP services spectrum. SAP Services Scale Market Share: 2.89 % Estimated revenues: $ 1,445 M Consulting: $ 1,350 M Hosting: $ 150 M Largest one of the Indian vendors by revenue. SAP Services Coverage # of SAP practitioners: 12,500 Top 3 Verticals: Life sciences, manufacturing, consumer products/retail. Good vertical coverage with growing onshore presence. Good and broad portfolio mix, but hosting and cloud capabilities need to be improved. Customer Satisfaction And Competitive Differentiation High level of customer satisfaction. Through the Lodestone and other acquisitions, Infosys is now able to bridge the gap between the traditional bread and butter mainstream implementation projects and more complex initiatives. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 28

29 NTT Data WINNER S CIRCLE Market Share: 2.87 % Overall Score: 4.03 Innovation Score: 3.90 Well recognized innovation partner for SAP globally, but especially in the high growth markets of the Asia Pacific region. Four key activities around emobility, automotive, higher education and analytics. Execution Score: 4.15 Capabilities were well hidden from the market for a long time but are now becoming more and more visible. The long-hidden secret in SAP Services finally makes it to the forefront in customer mindshare. Key Strengths The NTT Data is the fifth largest IT Services vendor globally and the largest one in the Asia Pacific region. The SAP practice is a combination of a number of acquisitions which can satisfy almost all SAP needs throughout the whole lifecycle with the One Method as a global delivery Center of Excellence. NTT Data was a good partner in Asia for a long time, but today NTT DATA has grown a solid global SAP practice with acquisitions in Latin America and Europe. Over the last few years, the company increased their focus on SAP. The company has a good track record for SAP upgrades and consolidations. In 2013, NTT Data started to market their capabilities globally. This has started to pay off. Clients are now taking NTT Data seriously. One of the globally best positioned companies offering industry-specific All-In-One solutions. SAP Services Scale Market Share: 2.87 % Estimated revenues: $ 1,436 M Consulting: $ 1,278 M Hosting: $ 158 M Hosting revenues within the NTT Group may actually be much higher but not easy to quantify due to the decentralized company structure. SAP Services Coverage # of SAP practitioners: 8,000 Top 3 Verticals: Manufacturing, high-tech, financial services. All regions and relevant countries covered well. Good coverage through acquired companies. Key Challenges NTT DATA needs to talk more about its successes in coinnovation and competitive differentiation things that many clients are not aware of. Although all acquired companies are now fully integrated under The NTT DATA umbrella, past local branding still confuses some clients. NTT DATA still needs to work on brand perception of its SAP capabilities. Clients in North America and Europe are often unaware of the local NTT DATA strength. Customer Satisfaction And Competitive Differentiation High level of customer satisfaction. NTT DATA is extremely well positioned in top investment areas like consolidation, one-sap and global initiatives with a heavy Asianinvolvement. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 29

30 SAP WINNER S CIRCLE Market Share: 6.60 % Overall Score: 4.58 Innovation Score: 4.70 Best integration and alignment with SAP s innovation and strategy. SAP is highly committed to helping clients implement new solutions fast. Execution Score: 4.45 Services outside of pure product support was not a focus area for SAP in the past. This has changed. SAP has embraced the services market in a major way. SAP plays a very important role for clients looking to implement leading-edge innovative SAP solutions. Key Strengths SAP is serious about their services capabilities. The number of employees directly dealing with services is now 18,000 and still growing. Industry benchmarks show that SAP has the most mature services processes in the industry. This is exceptional for a product company. Clients want SAP to be part of their project teams for innovative and complex initiatives. This is prudent. SAP now also supports application modifications if SAP s Services team is leading the project. Deepest knowledge about rapid deployment solutions. Best partner for complex and innovative projects with very fast escalation capabilities. Focus on innovative engagements creates high value and high impact. The in-house SAP management tool (Solution Manager) is becoming a strong market force. SAP Services Scale Market Share: 6.60 % Estimated revenues: $ 3,300 M Consulting: $ 3,300 M Hosting: $ 0 M SAP s SaaS revenues fall under software, therefore SAP has no hosting revenues. SAP Services Coverage # of SAP practitioners: 18,000 Top 3 Verticals: Automotive, consumer products, manufacturing. SAP has established itself over the years as a true global player for SAP services. Key Challenges SAP has to be careful not to alienate the important consulting partner ecosystem. Individual consulting teams may not always adhere to the corporate strategy, when their bonuses are at risk. Solution Manager is becoming a true competitor to established management solutions like IBM Tivoli, CA Unicenter and BMC Software, also long-time SAP partners. Some clients also feel alienated by SAP. For clients it is difficult to understand the SAP sweet spot in strategy and implementation. Many are looking at SAP for mainstream deployment projects, something that is out of focus for SAP. Customer Satisfaction And Competitive Differentiation Highest level of customer satisfaction. Focused on strategy and implementations services, primarily for high value innovative solutions, as well as rapid deployment solutions. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 30

31 Tech Mahindra WINNER S CIRCLE Reliable player in the SAP Services space. One of the best price/value ratios in the industry. Market Share: 0.70 % Overall Score: 3.45 Innovation Score: 3.30 Solid innovation capabilities, e.g. the TechM SAP Solution Studio. Embracing Successfactors, Ariba, HANA and mobility wholeheartedly with new services coming to market in Key Strengths Tech Mahindra has a sizable and mature SAP practice. The company is considered as a reliable and attractively priced player. Client feedback continues to be excellent. Global footprint is now on a competitive level. The acquisition of Complex IT in Brazil (the second fastest growing market for SAP) is showing good improvement for Tech Mahindra s customer mindshare. Existing customers are very satisfied and will by far and large buy again. New customers like a leading University press based in the UK are selecting Tech Mahindra over larger competitors. Key Challenges Despite strong growth of the SAP practice, margins are still too low to be long-term sustainable. Tech Mahindra still has some gaps when it comes to full SAP lifecycle coverage, compared to other Winner s Circle competitors. The Tech Mahindra branding still needs work. Potential clients are confused by the Tech Mahindra and Mahindra Satyam label, others still perceive Tech Mahindra as a pure low-cost player. A consistent messaging over a longer period of time instead of point activities will be necessary. Execution Score: 3.60 SAP Services Scale SAP Services Coverage Customer Satisfaction And Competitive Differentiation Very strong in the bread and butter SAP implementation and maintenance business. Market Share: 0.70 % Estimated revenues: $ 351 M Consulting: $ 256 M Hosting: $ 95 M Good global coverage across the board. # of SAP practitioners: 4,800 Top 3 Verticals: Manufacturing, retail/consumer packaged goods, TIMES. Examples of new vertical solutions: Fasttrack for retail, CARE for life sciences. Very high level of customer satisfaction. One of the best price versus value for money ratio in the SAP Services space. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 31

32 Wipro WINNER S CIRCLE Market Share: 1.95 % Overall Score: 3.80 Innovation Score: 3.60 Wipro invests heavily in its innovation capabilities to develop future competitive differentiation in addition to the current ones. Execution Score: 4.00 Below the top three but still very strong across the mainstream SAP services spectrum. Wipro is able to provide solid expertise at an excellent price which results in very high client retention rate. Wipro is now a top-tier SAP Services player and needs to be on the shortlist for major SAP projects. Key Strengths One of two primarily offshore-oriented service providers that have moved up into the Winner s Circle for SAP Services. Wipro continues to invest heavily in its SAP Services capabilities. Examples include the Co-innovation center in Bangalore, the managed mobility services, NextGen AMS platform, Service NXT and the expansion of the SAP Services partnership to areas like South Africa. The portfolio is already broad and it continues to grow quickly. Over time, Wipro has built one of the largest sets of templates and accelerators to speed up implementation times and simultaneously ensure the quality of deliverables. Wipro is also one of the service providers investing most heavily in co-innovation with SAP across the full spectrum of big data, HANA and mobility. SAP Services Scale Market Share: 1.95 % Estimated revenues: $ 975 M Consulting: $ 900 M Hosting: $ 75 M On a great trajectory to break though the magic $ 1 bn mark soon. SAP Services Coverage # of SAP practitioners: 9,600 Top 3 Verticals: Utilities, manufacturing, consumer goods. Good vertical coverage with growing onshore presence. Good and broad portfolio mix, but cloud capabilities and strategy consulting need to be improved. Key Challenges Despite the huge success in breaking into the Winner s Circle, Wipro needs to continue to invest on the strategy side of the SAP Services to stay ahead of the pack. Wipro has an opportunity to further expand its SAP hosting offerings levering Wipro s investments in their data centers. Wipro has had some wins in this area and further expansion on this offering will help them remain competitive in long-term. The company needs to accelerate their hybrid cloud strategy for its SAP Services offering. Wipro has made significant investments in technology assets, dedicated country specialists and its domain consulting capabilities to ensure higher client satisfaction. However, this is yet to translate into higher services revenue per employee. Customer Satisfaction And Competitive Differentiation Clients report a very high satisfaction level with both results as well as value for money. Well positioned in the mainstream implementation section with templates and accelerators. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 32

33 Capgemini HIGH PERFORMER Market Share: 3.78 % Overall Score: 3.20 Innovation Score: 2.80 Overall good innovation capabilities. Big effort in the HANA space e.g. Market Basket Analyses and Next Best Action for retail and the HANA adoption Pinnacle award Client perception does not adequately reflect the company's capabilities. Execution Score: 3.60 Still strong in most areas but client satisfaction is going down significantly. Strong global player in all areas of the SAP Services value chain, but clients demand fresh blood. Key Strengths Over the years, Capgemini has developed an impressive set of capabilities in the SAP Services space, with a good mix between all SAP value chain elements. The company has successfully moved out of the European niche. Both size of the global team and revenues are well ahead of the next competitor. Mature rightsourcing approach that makes use of offshoring capabilities when they are useful. Capgemini makes significant investment in the SAP partnership and innovation around SAP solutions. SAP Services Scale Market Share: 3.78 % Estimated revenues: $ 1,890 M Consulting: $ 790 M Hosting: $ 1,100 M Large player. Good global coverage. Balanced mix between hosting and consulting. SAP Services Coverage # of SAP practitioners: 13,500 Top 3 Verticals: Utilities, retail, public sector. Good coverage of all SAP Services, strong push in the retail sector. Key Challenges Clients tell us that they perceive Capgemini s SAP practice as more of the same and that the delivery quality has declined. Despite being no longer the case, many client still perceive Capgemini as a predominantly French company. The company has to work harder than before to change that perception. A number of clients report a still exiting divide between the project teams and the hosting organization and consequently of handover issues. Historically, Capgemini has often been the junior partner in many larger projects. Partners still have to get used to the more important role that Capgemini now plays in the market. Customer Satisfaction And Competitive Differentiation Below average level of customer satisfaction and price versus value assessment. Big drop from Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 33

34 CSC HIGH PERFORMER Solid High Performer with few weaknesses but also few true market differentiators. Market Share: 1.62 % Overall Score: 3.20 Innovation Score: 2.95 For the past 12 months, CSC has been quiet on the innovation front. The score is now only just average. Execution Key Strengths Existing customers are highly satisfied with the services and solutions that are being provided. Solid High Performer with well-balanced global coverage. Capable of providing full lifecycle support to clients across the globe. One stop shopping solution without the Accenture or IBM overhead. Go-to-market by industry which is appreciated by clients. Strong push towards cloud by CSC with accompanying investment by the SAP practice with the CSC ServiceMesh Agility Platform and legacy architectures into cloud-based transformation partnership with HCL. Key Challenges Hugely successful in the US public sector. Other industries are lagging by comparison and that can be especially so internationally. The involvement in the NSA spying scandal is having a seriously negative effect on the brand in Continental Europe. In general, branding in international markets needs to be improved. Behind global competitors in leveraging best practices and lessons learnt. Customers report that CSC appears to be less innovative than the market as a whole, with the exception of Cloud. Score: 3.45 CSC s execution capabilities are above average. Existing clients are satisfied with the project performance and the global scale. SAP Services Scale Market Share: 1.62 % Estimated revenues: $ 810 M Consulting: $ 540 M Hosting: $ 270 M Large player. Balanced mix between hosting and consulting. SAP Services Coverage # of SAP practitioners: 8,400 Top 3 Verticals: Manufacturing, public sector, aerospace and defense. Good coverage of all SAP Services. Customer Satisfaction And Competitive Differentiation High level of customer satisfaction, but only average price versus value assessment. CSC is going through a rough phase. Corporate issues increasingly influence the SAP practice. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 34

35 Deloitte HIGH PERFORMER Deloitte is still living on client goodwill acquired in the past. Market Share: 4.30 % Overall Score: 3.20 Innovation Score: 3.15 Good innovation capabilities, e.g. the Deloitte and SAP Hybris commerce platform alliance. Key Strengths The largest pure play SAP consulting practice with a well-balanced global footprint. By revenue and market share alone, a clear top 5 service provider. Deloitte is particularly strong in business transformation initiatives that include software implementations. The SAP area is one of these strongholds. Deloitte is extremely good at managing large, complex multi-year initiatives. The company is very good at bridging the business/it gap. Much better at global coordination and global delivery than other primarily consulting-oriented competitors. Deloitte invests heavily in big data, HANA and mobility. Key Challenges It seems that Deloitte has grown too big for its own good. Client satisfaction is low, which if not addressed quickly will lead to diminishing market share. Because of the clear focus on business transformation, Deloitte is not well suited for bred and butter mainstream SAP consolidation projects. However, these can be highly profitable if based on templates and best practices. Clients report that Deloitte is not the best partner for rapid deployment solutions. Cannot offer the full SAP Services spectrum due to lack of hosting capabilities. Execution Score: 3.25 From a consulting only perspective, Deloitte is the largest global player with a long and successful track record. SAP Services Scale Market Share: 4.30 % Estimated revenues: $ 2,150 M Consulting: $ 2,150 M Hosting: $ 0 M Very large global player. All geographies and verticals covered. SAP Services Coverage # of SAP practitioners: 11,000 Top 3 Verticals: Consumer products, aerospace and defense, utilities. As a focused consulting player, Deloitte does not cover all SAP Services. Customer Satisfaction And Competitive Differentiation Customer satisfaction is well below average for the second year in a row. Clients also rate Deloitte low on price versus value. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 35

36 Dell HIGH PERFORMER Clients appreciate the extension of the hardware strength into the SAP Services space. Market Share: 0.40 % Overall Score: 3.15 Innovation Score: 3.20 Dell is an SAP VAR in the US. Most of the innovation still comes from Dell s hardware strength in private and hybrid Clouds and HANA. Key Strengths Dell is a globally recognized brand. Dell has an extensive global partner ecosystem that is driving a large number of opportunities. Dell is one of the strongest and most viable server hardware player remaining in the market. Our surveys show that an increasing number of hardware customers look to Dell to assist them with their SAP initiatives, also for private and hybrid Cloud implementations. Dell s move to become a private company was largely perceived as positive by customers. Key Challenges While it is driving opportunities today, our surveys show that Dell s brand recognition still too hardware-heavy which will limit growth medium to long-term. Dell needs to scale up its SAP practice in order to compete head to head with other strong hardware players like HP and IBM. Clients tell us that many of Dell s SAP capabilities are still mostly unknown in the market place. Dell needs to intensify marketing in these areas. Some clients fear that becoming a private company will make Dell complacent about innovation and speed to market. Execution Score: 3.10 Clients point out the close link between technology and SAP Services as a strong positive as well as the good global support structure. SAP Services Scale Market Share: 0.40 % Estimated revenues: $ 200 M Consulting: $ 80 M Hosting: $ 120 M Comparatively small size of the SAP practice. Consulting often driven by existing hardware customers. SAP Services Coverage # of SAP practitioners: 750 Top 3 Verticals: Discrete manufacturing, process manufacturing, financial services. Most services covered with the exception of strategy consulting. Customer Satisfaction And Competitive Differentiation Average level of customer satisfaction and price versus value assessment. Dell s hardware legacy is today the most often pointed out area of differentiation by clients. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 36

37 FIT HIGH PERFORMER Up and coming player for mid-market manufacturing and automotive clients in Continental Europe, the US and China. Market Share: 0.29 % Overall Score: 3.20 Innovation Score: 3.35 FIT innovates in key areas of its target industries, e.g. HANA, Sybase ASE and mobile operations. Key Strengths Close connection to SAP both geographically as well as historically (40+ years of partnership). Deep understanding of SAP implementations for manufacturing, automotive and shop floor optimization. Successful focus on mid-market companies, an area many competitors are struggling with. Customers report a high level of satisfaction with FIT s performance. FIT has a very high customer retention rate. One of only three SAP outsourcing operations partners that cover five of the six categories (AMS, hosting, Cloud, HANA and mobile). Key Challenges Despite impressive capabilities and high customer satisfaction, FIT is a small player. The chosen market niche, however, promises big growth potential. This is also being recognized by the competition. Necessary fast growth rates will not be easy to achieve. The FIT brand is not well known. It is time for FIT to execute more targeted PR and marketing activities. Many mid-market companies today are global in nature. FIT s global coverage is not yet able to satisfy these needs. Execution Score: 3.05 Despite the high customer satisfaction level, the small overall size results in an average execution score. SAP Services Scale Market Share: 0.29 % Estimated revenues: $ 145 M Consulting: $ 48 M Hosting: $ 97 M Niche player with concentration on Continental Europe, US and China. SAP Services Coverage # of SAP practitioners: 700 Top 3 Verticals: Automotive, manufacturing, high tech electronics. Good coverage of all SAP Services with focus on target industries. Customer Satisfaction And Competitive Differentiation High level of customer satisfaction and price versus value assessment, especially important for the midmarket, FIT s target customers. Scale Explanation: 1 (Low) To 5 (High) Innovation 50%, Execution 50% 2014 HfS Research Ltd. Proprietary Page 37

38 About the Author

39 Dr. Thomas Mendel, Ph.D. Senior Vice President, Global IT Services, HfS Research Bonn Area, Germany Overview Primary focus on Cloud Computing and SAP Services. Maintains research interests in the areas of infrastructure and applications outsourcing, converging IT, and telecommunication technologies and markets, as well as IT for business alignment. Previous Experience IT industry veteran with over 15 years of experience in advising IT vendor and end-user clients and performing research-based writing and consulting. Internationally recognized authority on Cloud Computing and IT Service Management. 9+ years of service at Forrester Research, where he held various analyst and management positions. Vice president of the Solution Center Global Network and program director of Global Information Technology Infrastructure at Heidelberger Druckmaschinen AG. IT manager at ABB Kraftwerke AG. Education A native of Germany, Thomas is a graduate of business studies at Mannheim University and holds a Ph.D. in computer science from the University of Wales in Swansea HfS Research Proprietary Page 39

40 About HfS Research HfS Research is the leading analyst authority and global network for IT and business services, with specific focus on global business services, digital transformation and outsourcing. HfS serves the research, governance and services strategy needs of business operations and IT leaders across finance, supply chain, human resources, marketing, and core industry functions. The firm provides insightful and meaningful analyst coverage of best business practices and innovations that impact successful business outcomes, such as the digital transformation of operations, cloud-based business platforms, services talent development strategies, process automation and outsourcing, mobility, analytics and social collaboration. HfS applies its acclaimed Blueprint Methodology to evaluate the performance of service and technology in terms of innovating and executing against those business outcomes. HfS educates and facilitates discussions among the world's largest knowledge community of enterprise services professionals, currently comprising 150,000 subscribers and members. HfS Research facilitates the HfS Sourcing Executive Council, the acclaimed elite group of sourcing practitioners from leading organizations that meets bi-annually to share the future direction of the global services industry and to discuss the future enterprise operations framework. HfS provides sourcing executive council members with the HfS Governance Academy and Certification Program to help its clients improve the governance of their global business services and vendor relationships. In 2010 and 2011, HfS Research's Founder and CEO, Phil Fersht, was named Analyst of the Year by the International Institute of Analyst Relations (IIAR), the premier body of analyst-facing professionals and achieved the distinctive award of being voted the research analyst industry's Most Innovative Analyst Firm in In 2013, HfS was named first in rising influence among leading analyst firms, according to the 2013 Analyst Value Survey, and second out of the 44 leading industry analyst firms in the 2013 Analyst Value Index. Now in its seventh year of publication, HfS Research s acclaimed blog Horses for Sources is widely recognized as the most widely-read and revered destination for unfettered collective insight, research and open debate about sourcing industry issues and developments. Horses for Sources today receives over a million web visits a year. To learn more about HfS Research, please [email protected] HfS Research Ltd. Proprietary Page 40