Magic Quadrant for CRM and Customer Experience Implementation Services, Worldwide

Transcription

1 Magic Quadrant for CRM and Customer Experience Implementation Services, Worldwide Published: 1 December 2016 ID: G Analyst(s): Patrick J. Sullivan, Ed Thompson Customer experience and CRM implementation services continue to be in high demand, fueled by digital business transformation. Here, we position the largest customer experience and CRM consulting and implementation service providers to help enterprises identify providers that best fit their needs. Strategic Planning Assumptions Through 2019, the total market for consulting and implementation services for CRM and customer experience (CX) will be 1.4 times the market for CRM software, with the ratio of service to software growing over that time. By 2018, more than half of organizations will implement significant business model changes in their efforts to improve CX. Market Definition/Description Gartner defines the CRM and CX implementation service market as project-based services to help form a customer relationship or CX strategy and/or design, build, integrate and deploy process change and technology solutions that improve interactions between organizations and their customers. These projects have goals set out by sales, marketing, customer service, field service and digital commerce leaders, such as improving customer satisfaction, acquiring new customers, retaining existing customers, creating a single view of the customer, cross-selling or upselling to customers, improving campaign response rates, driving up customer advocacy or referrals, and gaining better margins through improved pricing. There are seven primary differences between CRM and CX: 1. The roles involved with CRM in an organization are a subset of those involved with CX.

2 2. The permanence of CX operational capability differs from the transience of a CRM project. 3. A CX initiative typically coordinates several projects, while a CRM project stands alone. 4. More time is needed to demonstrate the benefits of a superior CX. 5. The association with technology is greater in CRM. 6. The focus for CRM is on actions taken; in CX, it is the customer's perception of the actions. 7. A rational approach is more important in CRM; in CX, the customer emotions matter more. For more, see "How to Tell the Difference Between Customer Experience and CRM Projects." CRM projects tend to focus on more-traditional CRM technology implementations for sales, marketing, customer service, field services and digital commerce. They primarily first deploy core CRM system-of-record applications and then add supporting technologies to enhance the core. Over 80% of these projects involve the deployment of technology, and over 75% of these projects utilize CRM packaged software (rather than building custom solutions). The CRM software packages that are the most typical systems of record include Salesforce, Microsoft Dynamics CRM, SAP CRM, Oracle Siebel, Oracle CX Cloud, SAP Hybris, Adobe Marketing Cloud, Pegasystems and IBM Commerce. Salesforce and Microsoft Dynamics CRM together account for 54% of the CRM implementation service projects, with the remaining 46% spread across all other CRM packages. This part of the market includes projects that upgrade or adapt existing CRM applications, particularly when extending this to improve usability and analytics. CX projects encompass a far wider range of activities that are enterprisewide initiatives reaching beyond sales, marketing and customer experiences and extend into operations, supply chain, billing, logistics and other departments. Only 50% of these projects involve the deployment of technology (see "Survey Analysis: Customer Experience Management Leadership"). They are often driven to change or transform the business operations and modes of interaction with customers. The goals of these projects are aiming to increase customer satisfaction, loyalty and advocacy (see "The Definition of Customer Experience Management"). The skills needed for these projects tend to be more creative and design-oriented, but it also requires analytics and process skills, including business process transformation, digital commerce knowledge, information architecture/migration, customer analytics and digital design. This market includes the work done by digital agencies as part of CRM or CX implementation efforts, but it excludes work done by brand agencies for chief marketing officers in branding, media buying, image projection and strategic marketing initiatives. Page 2 of 37 Gartner, Inc. G

3 Magic Quadrant Figure 1. Magic Quadrant for CRM and Customer Experience Implementation Services, Worldwide Source: Gartner (December 2016) Gartner, Inc. G Page 3 of 37

4 Vendor and Cautions Accenture Accenture is positioned in the Leaders quadrant due to market presence, vision and digital orientation. Accenture leverages resources across business units, with Accenture Strategy setting the vision, Accenture Consulting leading in business transformation and Accenture Digital providing design, digital marketing and analytics, while Accenture Technology takes the lead on CRM technology integration. Accenture is a good fit for large enterprises needing complex or industryspecific transformational efforts requiring multiple disciplines. Gartner estimates that Accenture is the largest CRM and CX service provider, with revenue estimated to be $3 billion (around 10% of Accenture's total revenue and 20% of its consulting and implementation revenue). The top five industries for its CRM and CX services are banking, retail, consumer goods, telecom/media and utilities/energy. Digital business transformation and CX vision Accenture is strongest at the intersection of business and technology with a focus on digital and CX services. It has steadily invested in solutions, skills, practitioners and practices that encompass business, technical and domain skills across all major CRM software and CX. Accenture perceives CX services to be outcomedriven, requiring end-to-end services to improve clients' business results. Accenture is strong at leveraging resources across business units, with Accenture Consulting leading business transformation, Accenture Interactive providing design, digital marketing and analytics, and Accenture Technology providing CRM technology integration. Accenture conducts extensive market research enabling the firm to identify new patterns of demand, set out a vision for CX and then innovate its services to match. Market presence and scale Accenture leads the market in terms of revenue and staff, as well as being referenced most frequently on competitive bids according to references that reported shortlist candidates. Accenture has the ability to support global and multinational accounts due to its extensive scale and global breadth. Partnership with CRM software providers Accenture has the largest practices in terms of both staff and revenue for most of the major CRM software platforms (Salesforce, Siebel, Pegasystems, Adobe and SAP). Accenture is also the largest Microsoft Dynamics CRM provider due to the Avanade relationship (a joint venture with Microsoft). Accenture works closely with all these software firms to develop industry- and process-specific solutions. Cautions Price If pricing is a top criterion for selection, then evaluate Accenture with care. Among companies named as references by other providers, most companies that evaluated but did not select Accenture said the reason for not selecting Accenture was that the price was too high. References also rated Accenture below average for the total cost for the contracted services. Page 4 of 37 Gartner, Inc. G

5 Flexibility and resource allocation References praised Accenture for vision, thought leadership and consulting competencies, but some also desired Accenture to be more flexible in the approach to projects and to manage scope change. Clients also noted that, at times, Accenture would utilize junior staff both onshore and offshore who were not as skilled as expected. Smaller stand-alone CRM implementations Accenture is optimized for large complex engagements that include business change. The average scale and costs of its engagements are large relative to most other providers. Accenture is not typically the best fit for small CRM implementation projects unless there are other services also being provided. Atos Atos is positioned in the Niche Players quadrant due to being a European-centric provider. Atos Customer Experience (ACE) is one of Atos' key digital focus areas, where it works on the connected CX primarily for consumer-centric industries. Atos approaches CX from a digital technology perspective, leveraging an integrated approach to digital, cloud, mobility, analytics and CRM technology integration, especially related to commerce using Worldline. Atos is a good fit for European enterprises that are looking to increase revenue and customer interaction through technology. Atos is the 10th-largest CX and CRM service provider worldwide, with 2015 implementation revenue of about $600 million representing 5% of its total service revenue and 18% of its consulting and implementation revenue. The top five industries for its CRM and CX services are retail, public sector, transportation, financial services and utilities/energy. Addressing business objectives Customer references repeatedly stated that Atos was very good at listening to their objectives, understanding their business models and processes, and then being able to adapt CRM and CX technologies to support the customers' processes. Atos utilizes its UX Lab and Business Transformation Innovation Center network to help clients envision these solutions. This enables IT organizations to support business objectives in a pragmatic and effective manner and is particularly true within its focus industries. Technical and committed execution Atos has a wide range of deep technology competencies, particularly those needed for CRM and CX projects, including information architecture and commerce. References scored Atos well on technical skills, customer information architecture, system integration and project management. References commented on technical skills and ability to mobilize quickly. Comments from references cited a culture of reliable execution and commitment to the client's success as strengths. Commerce and mobility Atos has aligned its CX strategy to the "connected customer" with the attitude that everything is digital and mobile. The investments into Canopy, Worldline and the CX practice enable Atos to bring together commerce, mobility and analytics in end-to-end solutions. Atos has the highest percentage of revenue from commerce enablement of all providers, and mobility enablement is part of virtually all services. Gartner, Inc. G Page 5 of 37

6 Cautions Project management and execution Atos references score it lower than most competitors in project management, project methodology and meeting expectations. Some references described issues with cost control and coordination of project resources and said Atos was not proactive in directing some projects. Geographical coverage Non-European buyers may find a lower base of skills in CRM and CX implementation in their regions. Atos generates over 85% of its CRM and CX revenue in Europe. Atos provides support to customers globally and is building more CRM and CX capabilities in North America and Asia/Pacific. CX thought leadership and business consulting References scored Atos relatively low on key criteria related to business transformation and change. These included business acumen, business process functional skills and CX thought leadership. The ability to work with clients on business issues is strong when Atos serves as the technical and commerce partner. BearingPoint BearingPoint with its global network partners is positioned in the Visionaries quadrant because it utilizes an effective consultative and innovative approach to CX transformations but with limited scale. BearingPoint, West Monroe Partners, ga and ABeam are all regional consulting and strategy firms that support clients globally through a strategic partnership. BearingPoint in Europe and West Monroe in North America lead CX initiatives and are a good fit for enterprises seeking businessdriven CRM strategy and/or complex CX solutions. Gartner estimates that BearingPoint, combined with its partners, makes up the 14th-largest CX and CRM service provider worldwide, with 2015 revenue of about $350 million. BearingPoint is a good choice for European enterprises looking for CX strategy and consulting, along with analytics, as part of their solution. West Monroe is a good choice for North American enterprises looking for CX strategy and transformation with limited scale of implementation. ABeam is a good choice for Asian clients looking for CRM software implementation. ga is a good choice for Latin American clients looking for CX consulting and CRM implementation. The top five industries for CRM and CX services are banking, insurance, automotive/manufacturing, public sector and telecom/media. Business-driven CX approach BearingPoint and West Monroe lead projects with business and industry orientation and a consultative approach. The collaborative and consultative approach enables them to understand the objectives and nuances of the client situation and then bring CX best practices, analytics and business frameworks to address the client objectives. References cited the ability to understand their issues and the collaborative approach as strengths. Project management and execution BearingPoint and West Monroe both received strong ratings for project management and execution by the team. References referred to effective project management and change management competencies from both business and technical perspectives. Page 6 of 37 Gartner, Inc. G

7 Transforming CX vision into reality References gave BearingPoint and West Monroe strong scores and comments related to the ability to address business objectives. Comments alluded to the ability to understand the client's business model and project needs, and then develop business and technology solutions and support business change in a rapid yet pragmatic manner. West Monroe was recognized as having great CX vision and thought leadership to guide clients. Cautions Limited scale and varied focus by geography The partners operate in each region and support each other's clients for global coverage, but there is scale only with BearingPoint in Europe (58% of revenue) and ABeam in Asia (32% of revenue). BearingPoint's efforts in Europe are very CX-oriented with an emphasis on sales and commerce leveraging analytics. BearingPoint and ABeam's combined activities in Asia/Pacific now represent 32% of revenue, mostly in Japan for technology-oriented CRM sales and service initiatives. North America, led by West Monroe, contributes only 9% of revenue from CX initiatives, mostly in mutichannel commerce and marketing leveraging analytics. While still small, ga CRM and CX services grew in 2015 to 2% of revenue focusing on automotive. Proactive innovation Although BearingPoint understood the client's situation and objectives, references expressed a desire for BearingPoint to provide more proactive guidance, innovation and insight and a desire to be pushed by BearingPoint further than it provided. Price BearingPoint and partners were viewed as having high cost, and some clients cited reduced value for these high costs. These firms are optimized for on-site and nearshore delivery and execution, and the consultative approach leverages senior talent. BearingPoint is not a good choice when cost-efficiencies are a driving factor. Business & Decision Business & Decision (B&D) is positioned in the Niche Players quadrant due to its specialty focus on European enterprises seeking revenue generation from sales and marketing with a heavy focus on customer analytics. Gartner estimates that B&D is the 20th-largest CRM service provider worldwide, with 2015 revenue of about $200 million. B&D has its largest practices on Microsoft Dynamics CRM and Adobe, as well as practices in Salesforce, Siebel, Oracle Cloud and Coheris. The top five industries for its CRM and CX services are banking, insurance, life sciences, manufacturing and consumer goods. Business marketing solutions B&D focuses its CRM efforts and skills on marketing and sales organizations. The percentage of revenue from marketing solutions was the highest of all providers, and the company also generates significant revenue from sales enablement. This orientation has a technology focus on Adobe and analytics, which are applied to consumercentric industries of banking, insurance, hospitality, retail and telecommunications/media. Gartner, Inc. G Page 7 of 37

8 Customer analytics and information architecture B&D approaches the CX market from an information and analytics perspective, integrating and leveraging internal and external data to generate value and business impact for clients. Business intelligence and CX are the primary focus of B&D, and the two disciplines generate more than 80% of revenue. This strong customer analytics competency is utilized in marketing areas such as lead management, loyalty programs, segmentation and campaign automation. There have been targeted investments to develop frameworks that deliver incremental value creation through return on information. Flexibility References praised B&D for flexibility, professionalism and understanding of their business operations. With this approach, B&D delivers increased sales and marketing effectiveness through the use of analytics to make better decisions and increase productivity. Cautions Project management B&D executes projects that are unique and highly adapted to each client to achieve value. However, multiple clients gave B&D relatively low ratings in project management, implementation methodologies and change management skills. B&D is investing in client success programs to assure quality project execution. Resource management and scale B&D is the smallest of the service providers in this assessment and specializes in analytics, sales and marketing solutions. References stated that the breadth of skills was limited, and that at times, there was less expertise than needed. References also noted there was turnover on projects, and at times, there were delays in filling key roles. Geographic reach Non-European companies may not be as well-supported by B&D, which has a strong presence in France, Belgium and Switzerland. There is a growing presence in North Africa (15% of revenue); but 83% of its revenue comes from Europe and more than 50% of that from France. B&D has only a small presence in Latin America (Peru) and India and has limited presence in other parts of Europe (the Nordics, Italy and Central Europe) and other regions of the world compared with market leaders. Capgemini Capgemini is positioned in the Leaders quadrant due to market presence, growing market share and a focus on solutions for large or complex projects that require a combination of business innovation and CRM technical advisory and implementation skills. Capgemini's Digital Customer Experience brings a wide range of competencies that integrate industry, consulting, CRM technology and analytics capabilities. Gartner estimates that Capgemini is the fourth-largest CX and CRM implementation provider worldwide, with 2015 CX and CRM revenue estimated to be around $2 billion (accounting for about 25% of its global consulting and technology service revenue) and above-average market growth. Capgemini has very large practices in SAP CRM, Siebel, Oracle Cloud and Salesforce, with additional competencies in Microsoft Dynamics CRM, Pegasystems and Adobe. Page 8 of 37 Gartner, Inc. G

9 CX vision and thought leadership Capgemini has invested heavily in CX and digital marketing initiatives. The Digital Customer Experience team brings together a wide range of business and technology competencies. Capgemini's Digital Transformation Institute partners with the Massachusetts Institute of Technology to research digital CX to stay ahead of the market on trends and initiatives. Industry specialization Capgemini has become focused on selected industries for business and CX expertise, particularly for customer service and omnichannel commerce. These industries include banking, insurance, automotive, consumer goods, retail, energy/utilities and public sector. Capgemini also has broad and deep technology skills in all major CRM technologies, as well as analytics, commerce and industry experience. Flexibility and collaboration Capgemini is best in situations that require client-specific adaptation to solutions that require a combination of business and technology. Capgemini is praised by clients for being flexible, as well as understanding the business needs and bringing innovation and technology-based solutions to address CX challenges. Cautions Price If lower-cost pricing is a top criterion for selection, then evaluate Capgemini with care. The most common reason cited by other providers' client references that evaluated but did not select Capgemini was its high price points. Capgemini appears to be one of the higher-priced providers for CRM and CX services. This appears to be the case in continental Europe and China, where the desire to have on-site and in-country resources may result in higher prices due to limiting the leverage of Capgemini's global delivery capabilities. Mobility and UX design Capgemini does not have the creative advertising agency level of digital design that some of its direct competitors possess. References gave relatively low scores to Capgemini related to digital design and UX capabilities. The acquisition and continuing organic expansion of Backelite are addressing this issue. Resource management Some references cited instances in which senior staff and subject matter experts were not readily available, placing too much reliance on junior staff in executing projects. This resulted in some project inefficiencies and frustrations with project teams not being adaptable to project requirements. Cognizant Cognizant is positioned in the Challengers quadrant due to market traction, growth and strong technical implementation skills. Cognizant is a good fit for firms looking for a collaborative partner for complex CRM and CX technology solutions, particularly within the selected industries. Cognizant's Digital Works business unit takes the lead on CRM and CX implementation projects with a combination of industry understanding, deep CRM technology capabilities, design thinking and client-centric execution. The acquisition of Odecee and partnership with ReD have brought additional consulting and digital design skills. Gartner estimates that Cognizant is the sixth-largest Gartner, Inc. G Page 9 of 37

10 CX and CRM service provider worldwide, with total 2015 revenue from CX and CRM implementation services of about $1 billion, as well as growth considerably above the market growth from Cognizant has large practices in Salesforce, Pegasystems, Adobe and Microsoft Dynamics CRM with additional competencies in SAP CRM, Siebel and Oracle Cloud. Industry focus Cognizant goes to market by industry, focused on retail, banking, insurance, life sciences and healthcare providers. Cognizant invests in these industries and deepens its capabilities with acquisitions, industry-specific solutions and senior staff that are focused within these industries. This focus brings industry understanding to clients and also enables Cognizant to gain market traction with industry-specific solutions and expertise on par with or greater than its larger competitors. Collaborative partner and project management Cognizant is very strong at working with clients as a partner while executing projects efficiently and effectively. Account executives and senior Cognizant delivery leaders collaborate with clients to design solutions and assure issues are addressed. When issues arise, such as when the staff is not performing as expected, Cognizant is responsive and addresses the issues. References pointed to project management, responsiveness to issues and flexibility in execution as key strengths. Client satisfaction References give Cognizant above-average ratings in overall satisfaction, realized value and willingness to rehire. This satisfaction stems from the combination of client intimacy and industry understanding, which results in a high percentage of clients that extend their services. Cautions Resource management Cognizant delivery and execution are highly dependent upon senior staff who are on-site working closely with the client. References noted occasions when staffing of these critical roles required more time than desired, as well as instances in which remote and junior staff did not have the depth of competency that was anticipated. Business transformation Cognizant CRM and CX buyers are predominantly IT executives, and Cognizant is effective in supporting them through CRM or CX initiatives that focus on technology integration. Cognizant was rated relatively low in business change management and its ability to be more proactive with innovation related to CX strategy and business transformation. Geographic coverage Cognizant is strongest when leveraging its large India-based delivery model for English-language customers. Of Cognizant's CRM and CX revenue, 77% percent is generated from North America, 16% within Europe (dominated by the U.K.) and 7% in Asia/ Pacific. Cognizant has a growing presence in France, Germany, Italy, Japan and China but may still need to supplement with resources from other countries to address client needs. Page 10 of 37 Gartner, Inc. G

11 Deloitte Deloitte is positioned in the Leaders quadrant due to market traction, digital consulting and CX transformation competencies. Deloitte Digital is the primary practice for CX and positions itself as a "creative digital consultancy." Deloitte is a good fit for enterprises that seek business-consulting-led comprehensive solutions or complex digital or CX solutions, particularly when the business is looking for innovative CX solutions for competitive differentiation. Gartner estimates that Deloitte is the second-largest CX and CRM implementation service provider worldwide, with 2015 CX and CRM revenue estimated to be $2.9 billion (accounting for 13% of its consulting and implementation revenue) and growth from 2014 through 2015 significantly above average. Deloitte has very large practices in Salesforce, Siebel and SAP CRM. It also has significant staff with skills in other major CRM software products, including Adobe, Oracle Cloud, Pegasystems and Microsoft Dynamics CRM. Full range of capabilities (strategy though execution) Deloitte has the broadest set of capabilities from strategy through design and integration and on to the digital marketing agency, as well as leveraging the audit, risk and strategy practices. Project execution with clients is consistently good, leveraging relationships with business buyers for CX strategy and digital transformation engagements, but also can address technology and marketing buyers (digital agency and customer analytics). References gave Deloitte high ratings for business acumen, business process consulting, industry expertise and business change management, as well as in technology integration and architectural skills. CX vision Deloitte approaches CX services as part of digital business transformation, leveraging business and industry consulting, along with digital and CX expertise. Customer references rated Deloitte well above average for vision, CX thought leadership and CX strategy capabilities. Collaborative, agile and flexible References commented on Deloitte's cultural style as a differentiator. This included being collaborative, flexible and reliable and being an excellent partner with both the business and IT. Deloitte Digital's culture and style are more similar to a small digital agency than a global consulting firm, and the culture from acquisitions is now the norm. Cautions Price If pricing is a top criterion for selection, then evaluate Deloitte with care. Deloitte was perceived as expensive by clients who commented on high rates (particularly for on-site efforts). According to other providers' client references that evaluated but did not select Deloitte, high price was the primary reason Deloitte was rejected by buyers. Value for fees Some Deloitte references gave lower-than-average scores to Deloitte relative to overall satisfaction, willingness to rehire and overall value. The low scores may be tied to premium fees in some instances. Gartner, Inc. G Page 11 of 37

12 Microsoft partnership Deloitte's clients and prospects may find barriers to working with Deloitte when there is an existing audit relationship. Governmental bodies and regulators for independence policies mandate restrictions on the consulting services that the audit/attest industry can provide to the same client. For example, Deloitte has a Microsoft Dynamics CRM practice, but the audit relationship with Microsoft limits Deloitte's participation in certain go-tomarket programs. EY EY is positioned in the Niche Players quadrant due to a focus on digital consulting and CX transformation competencies, but with limited scale. EY is a good fit for enterprises that seek business-consulting-led CX strategy, design and roadmaps. Gartner estimates that EY is the 17thlargest CX and CRM consulting and implementation service provider worldwide, with 2015 CX and CRM revenue estimated to be about $280 million (accounting for 2% of its consulting and implementation revenue). The top five industries for its CRM and CX services are manufacturing, consumer goods, energy/utilities, transportation and life sciences. EY has practices in Microsoft Dynamics CRM, Pegasystems and Adobe, with a focus on omnichannel commerce. Vision and CX Strategy EY helps clients visualize how the business can be transformed through bringing together business strategy, design and technology to develop CX strategies. References score EY high on business consulting and process consulting capabilities and cited the ability to bring vision to pragmatic CX designs and develop roadmaps to implement and execute those designs. Flexibility and project management EY largely utilizes small teams of senior consultants for strategy, vision and design efforts, supplemented by technicians. References pointed to effective execution of these teams with strong project management and flexible approaches that are responsive to their unique needs. Customer satisfaction References were consistently satisfied with the outcomes, giving EY high rankings for overall satisfaction, value and references' willingness to recommend to others. The buyers are predominantly business managers looking at CX transformation. Cautions Price Due to using teams of relatively senior consultants that EY assembles for most engagements that are on-site or onshore, references cited high price points for engagements. If cost is a primary driver, other providers may be better; however, EY value for consulting and design is quite high. Large CRM implementation scale EY's primary focus is on business and CX transformation rather than large-scale technical deployment. There is limited scale related to CRM technologies, and EY does not focus on stand-alone CRM technology implementation services. EY will partner with other technology providers to supplement its own staff when additional scale and technical skills are needed for implementation. Page 12 of 37 Gartner, Inc. G

13 Salesforce partnership EY is limited in focusing on Salesforce due to the existing audit relationship with Salesforce. Governmental bodies and regulators for independence policies mandate restrictions on the consulting services that the audit/attest industry can provide to the same client. EY has a Salesforce practice, but the audit relationship with Salesforce limits EY's participation in certain partner and go-to-market programs. HCL Technologies HCL Technologies (HCL) is positioned in the Niche Players quadrant due to reliable execution of CRM implementation services within selected industries in a flexible manner. HCL is a good fit for clients that are looking for CRM technology implementation and integration services, particularly for commerce and when cost is a key consideration. Gartner estimates HCL to be the 15th-largest provider with total CX and CRM implementation service revenue of about $360 million for Project management and execution References praised HCL for project management, commitment to execution and taking ownership of project deliverables. HCL is also very flexible in contracting and agreeing to work as a partner and sharing risks on projects, relying on the dedicated project teams that consistently execute. Technical and platform skills HCL has large practices in Microsoft Dynamics CRM (PowerObjects acquisition) and SAP (CRM and Hybris) along with significant practices in most other platforms (Salesforce, Siebel, Oracle Cloud and Adobe). This was particularly strong with commerce solutions. References gave HCL high marks for technical architecture, integration and quality of software implementation. Industry orientation HCL goes to market by industry with a focus on financial services, life sciences, manufacturing, consumer goods/retail and telecommunications/media. Its consultants bring a combination of technology skills and experience within these selected industries to understand and then address the client challenges to be solved though technology. Cautions Business domain and transformation HCL has strong relationships within IT organizations but limited direct relationships with chief marketing officers or other senior business buyers. References gave HCL relatively low scores related to business process consulting, business change management, CX strategy and thought leadership. Project initiation References commented on HCL having difficulty in bringing key resources onto the project in a timely manner, particularly for key on-site staff, which reflects limited scale for critical skills. Once staffed, the skills were appropriate, and HCL was also flexible in shifting resources when needed. References also suggested that HCL could have been more proactive and decisive to initiate project scoping and approach. Gartner, Inc. G Page 13 of 37

14 Analytics and design Some references said HCL was viewed as relatively weak in customer analytics, information architecture, digital design and the ability to develop complex mobile solutions. HPE Hewlett Packard Enterprise (HPE) is positioned in the Niche Players quadrant due to the ability to apply CRM technology solutions to address business issues but within a limited scale and focus. Gartner estimates that HPE is the 18th-largest CRM service provider worldwide, with CX and CRM implementation revenue in 2015 estimated to be $250 million. HPE is a good fit for enterprises seeking CRM capabilities with global reach to address front-office transformation. The top five industries of focus are consumer goods, public sector, telecommunications/media, natural resources/oil/gas and manufacturing industries. HPE has its deepest strengths in Microsoft Dynamics CRM, along with practices for Oracle Cloud, Siebel, SAP CRM and Salesforce. Digital business and consulting orientation HPE formed the Digital Business Acceleration Services team in 2015 focused on supporting clients in the definition, design and implementation of digital operations, particularly focused on front-office transformation, CX and commerce. Consultants within selected industries (manufacturing, consumer goods, retail and financial services) lead the CX visualization that addresses business needs. Focused technology partnerships HPE has a very strong focus on Microsoft Dynamics CRM and Oracle, encompassing both the implementation and hosting services. HPE has partnerships with SAP integrated with infrastructure platform practices, mostly to upgrade, run and manage CRM applications. HPE references gave HPE relatively high scores for partnerships, technical skills, system integration and ability to be flexible and creative in applying CRM technology solutions to the needs of the business. Global scope and midsize enterprises HPE has a primary focus on large enterprises, but it also has more of a focus on smaller enterprises (500 to 5,000 employees) than other global providers due to HPE's sales team and channel partners around the globe that serve these clients. HPE has strength in project execution with smaller project teams and against tight budgets that can support both large and small businesses with Microsoft CRM services. Cautions HPE service transition and focus on CRM Even though CRM and CX services are an area of growth for HPE at 5% from 2014 through 2015, CRM and CX implementation is not a primary focus of HPE and represents only 4% of its overall consulting and system integration revenue. HPE had a significant reduction in overall service revenue from 2014 to 2015 ( 15%), and this continued into HPE announced that the service team will become part of CSC in 2017; in the long term, this change will stabilize HPE services but likely will continue to impact market traction into Page 14 of 37 Gartner, Inc. G

15 Technology-centric approach to market Although HPE demonstrates good consulting capabilities, CX services are driven by technology and platform responses to business needs, rather than leading with CX business transformation. Client references said that HPE's ability to develop technical solutions is effective, but they also cited limited business process depth. Limited scale and focus HPE has one of the smaller CX practices, and references alluded to high turnover within project teams and the availability of key staff. Most projects are relatively small and short with the project team working locally with clients. HPE also has limited utilization of offshore delivery for CRM and CX efforts, and the combination of on-site teams also has higher costs and expenses. IBM ix IBM Interactive Experience (ix) is the business unit within IBM Global Business Services (GBS) that leads CX services focused on front-office transformation, digital design, cognitive (analytics) and commerce efforts. IBM ix is positioned in the Leaders quadrant due to its vision, scale and integrated approach to providing solutions. IBM ix is a good fit for enterprises looking to transform their businesses to enable interactions with customers, partners and suppliers, especially using analytics. IBM ix is the third-largest provider of CX and CRM implementation services, with 2015 global revenue for CRM-related implementations estimated to be around $2.5 billion (16% of IBM GBS's overall consulting and implementation revenue). The top five industries for its CRM and CX services are banking, insurance, securities, transportation and retail/consumer goods. IBM ix has very large practices in Salesforce, Siebel, SAP CRM and Adobe, and also focuses on services surrounding IBM cognitive, commerce and marketing software. CX vision and strategy IBM ix was first to make large investments to assemble the full range of capabilities needed for CX strategy, business consulting, customer analytics, digital design, design thinking and studios around the globe. References recognized strengths in CX strategy and CX consulting, as well as the ability to apply these strengths to bring insight and designs specific to their needs. Architecture, technical and platform competencies IBM ix's core strengths are tied to making complex technologies work together to address business issues. References noted strengths in architectural design and CRM platform expertise (Salesforce, Pegasystems, Adobe, Microsoft Dynamics CRM and SAP Hybris). The 2016 acquisition of Bluewolf dramatically expanded the Salesforce competencies. IBM ix also has strengths in digital design, digital marketing and mobile enablement. IBM ix's cognitive and analytic capabilities (including Watson) are often utilized for customer analytics and marketing. Client satisfaction References scored IBM ix very high in critical satisfaction rankings, including clients' willingness to refer IBM ix to others and willingness to hire again, and IBM ix's meeting all expectations and overall value for fees. Gartner, Inc. G Page 15 of 37

16 Cautions Program management Some references noted that, at times, IBM's size and multiple units make it difficult for IBM to work seamlessly with large clients across multiple projects, initiatives and geographies. They suggested that IBM ix could be more proactive in managing its internal organizational dynamics. Small project execution IBM ix was more effective with large complex initiatives than smaller projects. The Bluewolf acquisition is moving IBM toward offering more nimble, costeffective solutions for smaller projects due to its collaborative approach and smaller dynamic teams. Business change management Some references communicated the desire for IBM ix to be more directive in supporting the business process changes as part of CX transformation efforts. Business change management received below-average ratings from references. Infosys Infosys is positioned in the Challengers quadrant. Infosys is a good fit for enterprises that have a need for multicountry technology-led CRM implementations. Gartner estimates that Infosys is the ninth-largest CRM service provider worldwide, with estimated total CX and CRM implementation revenue in 2015 of about $725 million, which represents 13% of its consulting and implementation revenue. Infosys is focused on North America as the primary market, with 60% of revenue generated there, along with 24% from Europe, 15% from Asia/Pacific and 1% from Latin America. Infosys is organized by vertical sector: In Europe, the greatest proportion of Infosys' CRM efforts are focused on telecommunications, consumer goods, retail, life sciences and energy/utilities, while in North America, the focus is on automotive, high technology, financial services, consumer goods and retail. Working style and commitment Infosys was cited by references as being a committed and supportive partner with an attitude for going the extra mile, understanding the client objectives and dedication to successful completion. Infosys has been training consultants in design thinking, which will extend this client-centric attitude and also become more proactive. Technology and platform expertise Client references rated Infosys as strong both in technology skills and in strengths related to major CRM technologies. Infosys has large practices in Salesforce, Microsoft Dynamics CRM, Siebel, SAP CRM and Oracle Cloud. References gave Infosys high ratings for information architecture, technology skills, customer analytics and mobility skills. These were particularly strong with the implementation of sales and customer service CRM technologies. Client satisfaction References scored Infosys very high in satisfaction, including meeting all expectations and overall value for fees. The satisfaction also includes the consistent ability to deliver projects within budget and time commitments. Page 16 of 37 Gartner, Inc. G

17 Cautions Project and resource management Infosys execution is highly dependent upon senior staff working closely with the client and coordination with remote staff. References noted that project management and coordination of resources was not smooth at times, particularly with remote staff and in managing critical scarce resources. CX thought leadership Infosys received low scores from references related to CX vision and thought leadership. References perceived Infosys to be strong from a technology perspective but not strong in helping shape CX and front-office transformation strategies, business consulting and CX strategy formulation. Digital marketing and transformation Infosys is best-suited to core CRM implementations supporting sales and customer service. Digital marketing that includes branding, advertising and marketing campaign execution often requires business transformation and agency-level creative digital design, for which Infosys may have limited scale. NTT Data NTT Data is positioned in the Leaders quadrant due to strong capabilities from both CX consulting and CRM technology expertise while approaching in a pragmatic manner. NTT Data is a good fit for enterprises that require CRM and CX solutions that have complex business and technical requirements, particularly related to customer service and in selected industries. NTT Data is rapidly building scale and has had significant growth in North America and Europe both organically and from multiple acquisitions. Growth in Asia was minimal due to low growth in the Japanese market. Gartner estimates that NTT Data is the fifth-largest CX and CRM implementation service provider worldwide, with 2015 revenue estimated to be around $1.2 billion, composing 18% of its total consulting and implementation revenue. The integration of Dell Services will have a significant impact on scale and revenue. The top five industries for NTT Data's CRM and CX services are telecom/media, automotive, banking, public sector and services. CX business operational consulting NTT Data approaches CX from a pragmatic operatinglevel business change perspective, working with clients to envision and change sales, customer services and commerce operations. References in North America and Europe gave NTT Data very high ratings for many of the CX transformation competencies, including CX strategy, business acumen, business process consulting, technology consulting and digital design. Technology and platform expertise Client references rated NTT Data as strong in a wide range of CRM technology skills, including information architecture, technical architecture, system integration and analytics. NTT Data also has large and deep CRM platform practices with difference by region. Asia (mostly Japan) has a large SAP CRM practice. Western Europe has large practices in Siebel, Microsoft Dynamics CRM and Salesforce (including the recently acquired Nefos). North America has a large practice in Salesforce and SAP CRM. Gartner, Inc. G Page 17 of 37

18 Collaborative engagement execution References noted that NTT Data engages with clients in a highly flexible and collaborative manner to execute projects in an efficient and pragmatic way. References rated NTT Data high on project management, cultural fit, satisfaction and value. Cautions Regional delivery variation NTT Data operates on a regional model with each region having strategies and operations aligned to the local markets, but the different operations translate into different market characteristics. Asia, with 60% of revenue, is heavily focused on SAP CRM and customer service with telecommunications, banking and government. Twenty-nine percent of revenue comes from EMEA with strength in commerce, sales and marketing transformation, with a focus on automotive, retail, consumer goods and financial services industries. North America generates 10% of revenue focused on sales and customer service transformation for banking, insurance, automotive and healthcare. The addition of Dell Services will increase the North American presence, especially with healthcare and government. Latin America has a small CX practice (1% of revenue) that is business-consulting-driven from the everis acquisition. Marketing and brand awareness Even though NTT Data is the fifth-largest IT services provider globally, the brand awareness outside Asia is less than that of competitors. This is in part due to the many acquisitions and subsidiaries within NTT Data and NTT Group that have not been unified under one brand in the eyes of buyers because they exist at a regional level. The NTT Data service marketing initiative driven by the Dell Services integration should improve this. Change management References noted that there were instances in which NTT Data should have been more directive and assertive in change management. This was true on selected engagements from the perspectives of technology change management and business change management. PwC PwC is positioned in the Leaders quadrant due to market traction, vision and a consultative approach. PwC has a focus on CX strategy that is part of larger business transformations. PwC is a good fit for enterprises seeking business-consulting-led complex CX solutions in specific industries and geographies. Gartner estimates that PwC is the seventh-largest CX and CRM service provider worldwide, with revenue estimated to be about $970 million, and it has continued to demonstrate very high growth relative to other providers. This CX and CRM revenue accounts for 7% of PwC's overall advisory revenue and 16% of its consulting and implementation services. PwC has large practices in Salesforce and Oracle Cloud with significant practices in Microsoft Dynamics CRM and SAP CRM. Business and technology consulting PwC's CX practice focuses on business transformation and innovation, often using design thinking and design centers. PwC was rated very highly by client references in competencies related to business consulting, thought Page 18 of 37 Gartner, Inc. G

19 leadership, business acumen, business industry expertise and business change management. PwC was also rated highly for technical skills, including information architecture, technical architecture and system integration, particularly when applied to sales/commerce and marketing initiatives. This combination enables the development of vision followed by execution through technology-enabled business change. Industry depth of expertise PwC goes to market by industry with deep industry expertise and insight that enable clients in those industries to differentiate through the use of CX execution and technology. Industries of focus include financial services, life sciences, consumer goods, manufacturing, public sector, utilities/energy and telecommunications/media. PwC references gave very high rating for business process consulting and industry understanding and commented on the industry solutions. Cultural fit and collaborative style PwC is viewed as a collaborative and flexible partner. Multiple references commented on PwC's culture, style and approach as very flexible and accommodating, and they said PwC is passionate and innovative in helping the business through the change process. Cautions Price and value PwC often utilizes a team of senior consultants due to the nature of business transformation services. References commented on the high fees, and some references did not feel that the value provided by all the team members and partners was commensurate with the fees. PwC is not be the best firm for a technology-oriented CRM implementation without broader business transformation. Scope management Transformation projects typically are not fully defined at the outset, and multiple PwC references commented on how the scope and scale of projects were larger than anticipated. References also commented on PwC being aggressive in adjusting scope more than expected as the CX vision evolved. Geographic coverage PwC's CX and CRM coverage is strong within the U.S., from which it derives 75% of its CRM and CX implementation revenue. Only 10% of the revenue is generated in Europe, mostly from the U.K. and Germany. Its coverage in Asia/Pacific (14%) is focused on Japan, China and Australia. Beyond that, PwC's CX and CRM coverage is limited in other countries, such as France, Spain, Italy and the Nordics, and in regions such as Latin America and the Middle East. Reply Reply is positioned in the Niche Players quadrant due to a narrow market focus on revenue and sales improvement. Reply is a good fit for European clients looking for revenue growth from sales and commerce fueled with customer analytics. Gartner estimates that Reply is the 13th-largest CX and CRM service provider worldwide, with revenue estimated to be around $380 million in CX and CRM services are the major focus of the company, with 55% of all its revenue coming from CX and CRM implementation services. Reply has large practices in Salesforce, SAP (Hybris and Cloud for Customer [C4C]) and Adobe, but it also has practices for Oracle Cloud and Microsoft Dynamics Gartner, Inc. G Page 19 of 37