MagicQuadrantforSAPImplementationServiceProviders,Worldwide31July2014ID:G00261880

Analyst(s):SusanTan

VIEWSUMMARY

SAPhasalargeecosystemofimplementationserviceproviders,butproviders'investmentfocusandstrengthsvary.BuyersofSAPimplementationservicescanusethisMagicQuadranttoidentifyserviceprovidersforabroadrangeofglobalSAPimplementationservicesacrossmultipleSAPsolutions.

MarketDefinition/DescriptionTheaimofthisMagicQuadrantistoevaluateserviceprovidersforabroadrangeofimplementationservicesacrossmultipleSAPapplicationsandtechnologies.BuyersofSAPimplementationservicescanusethisMagicQuadranttohelpidentifyandevaluatetherightprovidersofabroadrangeofSAPservicesfortheirorganization.ThisMagicQuadrantisnotsuitableforclientslookingforbestofbreedserviceprovidersforaspecificmodule,applicationorindustry.GartnerdocumentscoveringCRMservices,supplychainservices,testingservicesorbusinessintelligence(BI)servicesarebettersuitedforsuchpurposes.Inaddition,Gartnerpublishesacompaniondocument,"MagicQuadrantforSAPApplicationManagementServiceProviders,Worldwide,"tohelpclientsidentifyleadingprovidersofmanagedservicesfortheirSAPproductivesystems.

Thereareover3,200servicepartnersandover4,200channelpartners/distributorsintheSAPecosystemworldwide.ThisMagicQuadrantassesses17oftheleadingserviceproviders.Eachproviderhasitsownstrengthsandweaknesses,andeachismoresuitableforsometypesofengagementsandsomeclients/industriesthanothers.Manycapableproviders,notincludedinthisstudybecauseofourinclusioncriteriaandmethodology,maybeabetterfitforspecificSAPimplementationprojects,dependingonmodule,resourcingobjectives,sizeofproject,geographyandotherfactors.ClientsareadvisedtotalktoaGartneranalysttonarrowdownashortlistofbestfitserviceproviders.

InthisMagicQuadrant,weevaluateserviceprovidersforSAPprogramsthatinclude:

Abilitytoprovideacomprehensivesetofconsulting,systemintegrationandimplementationservicesacrossmultipleSAPapplications,productsandtechnologiesAbilitytoservicemultipleindustries(seeNote1)inmultiplegeographies(seeNote2)

Forthisreport,weusethefollowingdefinitions:

Consultingservicesareadvisoryservicesdesignedtohelpcompaniesanalyzeandimprovetheeffectivenessofbusinessoperationsandtechnologystrategies.Thesegobeyondtechnicalblueprintingtoincludeoperatingmodelchanges,businessprocessimprovement,standardizationandharmonizationofprocesses,andsoforthwhentheyarepartoftheSAPprogram.Theyalsoincludeprogrammanagement,changemanagementandgovernance.Systemintegrationandimplementationservicesincludeconfiguration,customizationandenhancementofexistingSAPfunctionalitiesapplication,reportandinterfacedevelopmentanddataloading,rollout,integration,testingandtrainingservices.

MethodologyGartnerevaluatesserviceprovidersontheirAbilitytoExecuteandtheirCompletenessofVision.Evaluationisinformedbyacomprehensivesetofprimaryandsecondaryresearchactivities,including177clientreferencessuppliedbytheevaluatedserviceprovidersfeedbackfromGartnerclientsandinsightsfromclientinquiriesthroughouttheyearadetailedvendorsurveybriefingsandpubliclyavailableinformation.Thisresearchwaspeerreviewedby14otherGartneranalyststheirviewsandcommentsweretakenintoaccount.Inaddition,thisdocumentwaspresentedanddefendedataGartnerApplicationServicesResearchCommunitysession.Formoredetailsregardingthemethodology,seetheEvidencesection.

MagicQuadrant

Figure1.MagicQuadrantforSAPImplementationServiceProviders,Worldwide

ACRONYMKEYANDGLOSSARYTERMS

BI businessintelligence

BPC businessplanningandconsolidation

BPO businessprocessoutsourcing

CPG consumerpackagedgoods

GRC governance,riskandcompliance

Hana SAP'sinmemoryHighPerformanceAnalyticAppliance

MCaaS managedcloudasaservice

MII ManufacturingIntegrationandIntelligence

MRO maintenance,repairandoperations

RDL RiverDefinitionLanguage

RDS RapidDeploymentSolutions

S&OP SalesandOperationsPlanning

SaaS softwareasaservice

SI systemintegrator

TCO totalcostofownership

EVIDENCE

EvaluationinthisMagicQuadrantisinformedby:

PrimaryresearchFacetofaceandphonebriefingswiththe17participatingserviceprovidersintheMagicQuadrant.PrimaryresearchGartnerinquiriesanddiscussionsconductedinthepast12monthswithserviceprovidersanduserorganizationclients.PrimaryresearchDiscussionswithGartnerclientsthatgenerouslyprovidedimpartialfeedbackontheirserviceproviders.PrimaryresearchFeedbackfrom177clientreferences,submittedbytheparticipatingserviceproviders,usingonlinesurveysandfollowupinterviewswithasubsetofthesereferences.PrimaryresearchAdetailedvendorsurveycoveringrevenue,staffing,geographiccapabilities,industryandprocessassets,partnerships,jointinitiatives,investmentsandotherrelevantinformation.SecondaryresearchPressreleasesandpubliclyavailableinformation,includingcompanywebsitesandfinancialreports.OtherGartneranalystsThisdocumentwaspeerreviewedby14otherGartneranalyststheirviewsandcommentsweretakenintoaccount.Inaddition,thisdocumentwaspresentedanddefendedatthe5June2014GartnerApplicationServicesResearchCommunitysession.

NOTE1INDUSTRIES

ThisMagicQuadrantaddressesthecapabilitiesoftheincludedvendorsinthefollowing22industries:

Financialservices:BankingFinancialservices:InsuranceFinancialservices:OtherfinancialservicesManufacturing:Oilandgas,chemicals,processandresourceManufacturing:AutomotiveManufacturing:AerospaceanddefenseManufacturing:IndustrialdiscreteManufacturing:HightechManufacturing:ConsumergoodsManufacturing:OthermanufacturingManufacturing:LifesciencesHealthcare(Provider)Publicsector

Source:Gartner(July2014)

VendorStrengthsandCautionsAccentureAccenturehasthelargestSAPservicepracticeglobally,with38,500professionals,ofwhomaboutathirdareincostcompetitivelocationswithinitsGlobalDeliveryNetwork.Inthelast12months,itdeliveredSAPservicestomorethan1,000clientsgloballyandisagainthesystemintegrator(SI)partnerdrivingthehighestSAPcollaborativerevenueglobally.Implementationaccountedforanestimated66%ofitsSAPbusinessgloballyin2013,withtherestcomingfrominfrastructureservices,hostingandapplicationmanagementservices.In2013,AccenturederiveditsSAPimplementationbusinessfrom16outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingoilandgas/chemicals/resources,consumergoods,energyandutilities,publicsector,hightech,retail,andminingandconstruction,butithasarepositoryof20,000processmodelsacross20SAPindustrysolutions.AccenturederivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan10,000employees.

Accentureinvestsin20SAPindustriesbutprioritizesthefollowinggrowthindustries:financialservices,retailandtelecommunications.

Strengths

ScaleandglobalreachAccenturehasdeepandbroadcapabilitiesspanningtheSAPportfolioofproductsandtechnologies,acrossindustries,geographiesandservicelines.Ithasagoodspreadofconsultantsacrossdifferentregions,anditisaparticularlygoodfitforlargeglobalprogramsthatrequireglobalreachandonshore,nearshoreandoffshoreresources.StrengthsandinvestmentsinnewSAPtechnologiesAccenturecontinuestoinvestinsolutionsandcapabilitiesinnewerSAPtechnologies,includingHana,mobilityandcloud.ItisalsothelargestandmostexperiencedpartnerforAriba,SuccessFactorsandhybrisbecauseofitspartnershipwiththesesoftwarevendorsbeforetheiracquisitionbySAP.AccentureandSAPBusinessSolutionsGroup,therecentcoinnovationwithSAP,currentlyhavetwosolutionsinthemarket:aMarketingPerformanceSolutionbyAccentureandSAPforchiefmarketingofficersandUpstreamProductionOperationsbyAccentureandSAPfortheoilandgasindustry.BothsolutionsarebuiltonHana.Inaddition,AccenturedeliversitsownHRAuditandCompliancesoftwareasaserviceontheSAPHanaCloudPlatform.DeliverypredictabilityandleadershipAccenturebringsitsprovenmethodologiesastrictdisciplineandgovernanceabroadrangeoftools,frameworks,industryprocessmapsandacceleratorsandanindustrializedprocesstoitsengagements,ensuringahighlevelofpredictabilityforthemostcomplexprograms.ClientsvalueAccenture'sabilitytoprovideleadership,discipline,anindependentpointofview,bestpracticesandstakeholderalignment.

Cautions

LesssuitedtosmallerclientsAccenture'sSAPpracticemostlyservesthelargestenterprisesineachcountry.SmallandmidsizeclientsmaynotgettheresourceavailabilityandattentiontheyneedfromAccenture.ResourcinggapsandinconsistencyEvenwithAccenture'sscale,someclientsinsmallermarketshavereportedchallengesinstaffingandfindingtherightresourcesfortheengagement.Similarly,resourcequalityandexperienceforthesamerolescanvarywidelybycountry.PremiumpriceClientscontinuetoperceiveAccenture'spricing,especiallyinsubsequentrolloutphases,tobehigh.

CommunicationsUtilitiesandenergyWholesaleRetailServicesTravelandtransportationAgriculture,miningandconstructionEducationNotforprofit

NOTE2COUNTRIESPERREGION

ThisMagicQuadrantaddressesworldwidecapabilitiesoftheincludedvendorsinthefollowingregions:

NorthAmerica:UnitedStatesandCanadaLatinAmerica:Argentina,Bolivia,Brazil,Chile,Colombia,CostaRica,Ecuador,Guatemala,Mexico,Panama,Peru,UruguayandVenezuelaAsia/PacificandJapan:Australia,Bangladesh,China,HongKong,India,Indonesia,Japan,SouthKorea,Malaysia,NewZealand,Pakistan,thePhilippines,Singapore,SriLanka,Taiwan,ThailandandVietnamEMEA:Austria,Algeria,Azerbaijan,Bahrain,Belarus,Belgium,Bulgaria,Cameroon,Cted'Ivoire,Croatia,CzechRepublic,Denmark,Egypt,Finland,France,Germany,Greece,Hungary,Iceland,Ireland,Israel,Italy,Jordan,Kazakhstan,Kenya,Kuwait,Lebanon,Libya,Lithuania,Luxembourg,Morocco,Netherlands,Nigeria,Norway,Oman,Poland,Portugal,Qatar,Romania,Russia,SaudiArabia,Serbia,Slovakia,Slovenia,SouthAfrica,Spain,Sweden,Switzerland,Syria,Tunisia,Turkey,Ukraine,UnitedArabEmirates,theUnitedKingdomandYemen

EVALUATIONCRITERIADEFINITIONS

AbilitytoExecuteProduct/Service:Coregoodsandservicesofferedbythevendorforthedefinedmarket.Thisincludescurrentproduct/servicecapabilities,quality,featuresets,skillsandsoon,whetherofferednativelyorthroughOEMagreements/partnershipsasdefinedinthemarketdefinitionanddetailedinthesubcriteria.

OverallViability:Viabilityincludesanassessmentoftheoverallorganization'sfinancialhealth,thefinancialandpracticalsuccessofthebusinessunit,andthelikelihoodthattheindividualbusinessunitwillcontinueinvestingintheproduct,willcontinueofferingtheproductandwilladvancethestateoftheartwithintheorganization'sportfolioofproducts.

SalesExecution/Pricing:Thevendor'scapabilitiesinallpresalesactivitiesandthestructurethatsupportsthem.Thisincludesdealmanagement,pricingandnegotiation,presalessupport,andtheoveralleffectivenessofthesaleschannel.

MarketResponsiveness/Record:Abilitytorespond,changedirection,beflexibleandachievecompetitivesuccessasopportunitiesdevelop,competitorsact,customerneedsevolveandmarketdynamicschange.Thiscriterionalsoconsidersthevendor'shistoryofresponsiveness.

MarketingExecution:Theclarity,quality,creativityandefficacyofprogramsdesignedtodelivertheorganization'smessagetoinfluencethemarket,promotethebrandandbusiness,increaseawarenessoftheproducts,andestablishapositiveidentificationwiththeproduct/brandandorganizationinthemindsofbuyers.This"mindshare"canbedrivenbyacombinationofpublicity,promotionalinitiatives,thoughtleadership,wordofmouthandsalesactivities.

CustomerExperience:Relationships,productsandservices/programsthatenableclientstobesuccessfulwiththeproductsevaluated.Specifically,thisincludesthewayscustomersreceivetechnicalsupportoraccountsupport.Thiscanalsoincludeancillarytools,customersupportprograms(andthequalitythereof),availabilityofusergroups,servicelevelagreementsandsoon.

Operations:Theabilityoftheorganizationtomeetitsgoalsandcommitments.Factorsincludethequalityoftheorganizationalstructure,includingskills,experiences,programs,systemsandothervehiclesthatenabletheorganizationtooperateeffectivelyandefficientlyonanongoingbasis.CompletenessofVisionMarketUnderstanding:Abilityofthevendortounderstandbuyers'wantsandneedsandtotranslatethoseintoproductsandservices.Vendorsthatshowthehighestdegreeofvisionlistentoandunderstandbuyers'wantsandneeds,andcanshapeorenhancethosewiththeiraddedvision.

MarketingStrategy:Aclear,differentiatedsetofmessagesconsistentlycommunicatedthroughouttheorganizationandexternalizedthroughthewebsite,

AtosAtoshasnearly10,700SAPskilledprofessionals.Anestimated42%ofitsglobalSAPrevenueisderivedfromimplementationservicestheremainder(58%)isderivedfromapplicationmanagementandinfrastructureservices.AboutathirdofitsSAPprofessionalsarelocatedinglobaldeliverycentersmanagedgloballyaspartofAtosglobalprofitandloss.In2013,AtosderiveditsSAPimplementationbusinessfrom16outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingindustrial,publicsector,energyandutilities,retail,andoilandgas.AtosderivesthemajorityofitsSAPimplementationbusinessfromlargecompanieswithmorethan10,000employees.

Atosfocusesitsinvestmentsinthefollowingkeyindustries:healthcare,processindustry,chemical,retailandbanking.

Strengths

StrongpresenceinEuropeOneoftheleadingSIsinEurope,AtosisparticularlystronginFrance,Germany,Benelux,theU.K.,andCentralandEasternEurope,anditisexpandingintotheMiddleEastandNorthAfrica,SouthAfrica,theCommonwealthofIndependentStates,Brazil,MexicoandChina.Atosderivesnearly80%ofitsSAPservicerevenuefromEMEA.ItsEuropeancentricheritageandpresencecontinuetodefineittothisday.IndustryfocusAtosfocusesonasetofindustriesthatinclude:manufacturing,retail,utilities,publicsector,automotive,chemicals,healthcareandfinancialservices.AtosactivelypartnerswithSAPtodevelopnewsolutionsbasedontheirdaytodayinteractionswiththeirclients,includingAtos'largestaccount,Siemens.ExpertiseinselectedofferingsAtoshasinvestedinandhasmorethan10yearsofexperiencewithlargeandcomplexconsolidationandharmonizationprograms,mostlyforEuropeheadquarteredclientswithglobalreach.ItisaleadingproviderinapplyingSAPsustainabilitysolutionsforenergyandsustainableoperations.Itisakeyimplementationpartnerforenterprisemobileproducts,aswellasdevelopingmobileappstoextendSAPproducts.Inaddition,AtoshasacloudfocusthroughCanopyitsdedicatedcloudcompanythatoffersinfrastructureasaservice,aswellasbundledlicense/service/hostingcloudsolutions(forexample,anHRforFinancialServicescloudsolution).AtosisacertifiedHanaEnterpriseCloudprovider.

Cautions

GlobalcoverageAtoslagsbehinditsTier1competitorsoutsideitsmainmarketsinEurope.ItsbrandandpresenceinNorthAmerica,AsiaandLatinAmericaislimited.However,itisimprovingandcurrentlyhassevenoffshoreandnearshoreglobaldeliverycentersandhaslocalSAPpresencein35countries.InAtos'mainmarketsinEurope(Benelux,France,GermanyandtheU.K.),itfacesincreasingcompetitionfromthelargeIndianserviceprovidersofferinglowercostoptions.LackofmindshareoutsideproductmanufacturingindustriesAlthoughAtoshasstrongSAPapplicationsandtechnicalcapabilities,ithasnotbeenverysuccessfulingainingmindsharebroadlyasaleadingSAPserviceproviderorasaninnovativeprovideroutsideofEurope.Atosisnotwellrepresentedincompetitiveshortlistsoutsidetheproductmanufacturingindustries.Vision,consultingcapabilitiesandbusinessexpertiseWhileAtos'SAPapplicationandsystemintegrationexpertiseareratedhighlybyclients,clientsscoreAtosbelowaverageonitsvisionandthoughtleadership,consulting/advisoryandprocessimprovementcapabilitiesandbusinessacumen.

CapgeminiCapgeminihas14,870SAPskilledprofessionals.Anestimated65%ofitsglobalSAPbusinessisderivedfromimplementation,and35%isderivedfrominfrastructureservices,hostingandapplicationmanagement.Nearly40%ofitsSAPprofessionalsarelocatedinglobaldeliverycenters.Capgeminihadmorethan1,300SAPserviceclientsworldwidein2013.CapgeminideriveditsSAPimplementationbusinessfrom21outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingoilandgas,consumergoods,energyandutilities,andservices.CapgeminiderivesitsSAPimplementationbusinessfromcompaniesofallsizes.

Capgeminifocusesitsinvestmentsinthefollowingindustries:retail/consumerpackagedgoods(CPG),oilandgas,utilities,manufacturing,publicsector,andfinancialservices.

Strengths

HeavyinvestmentsinnewertechnologiesCapgeminihasmadesignificantinvestmentsinSAP'snewertechnologies,whichhaveresultedinCapgeminiboastingatrackrecordofdoing/havingdone10SuiteonHanaprojects(fivelive),30BWonHanaprojects,numerousnewapplicationsonHana,amobileDirectStoreDeliveryapplicationcoinnovationwithSAP,andproofsofconceptwithHanaandHadoopforBigData.AlternativedeliveryandpricingCapgeminicontinuestoinnovateondeliveryandpricingmodelsthatofferclientsdifferentalternativestobuyingandpayingforSAPsystems.Itsmanagedcloudasaservice(MCaaS)offering,branded"OnePath,"includesseveralofitspreconfiguredindustrysolutionsthatareofferedasabundleofsoftwareandservicesSAPlicense,design,implementation,infrastructureservices,applicationmanagement,hostingandbusinessprocessoutsourcing(BPO)andthatcanbeboughtonasubscriptionbasis.TheseOnePathsolutionsarebuiltonSuiteonHana.SAPapplicationexpertiseandrapidimplementationClientsaregenerallyimpressedwithCapgemini'sSAPapplicationandproductexpertise,seniorleadershipengagement,andrapidimplementation.

Cautions

LimitedcoverageandclientbaseinAsia/PacificCapgemini'straditionalregionisEMEA,whichcontinuestoprovidemorethanhalfofitsbusiness.ItisgrowingrapidlyinNorthAmerica,whichnowmakesupoverathirdofitsbusiness.ItsacquisitionofCPMBraxishasimproveditspresenceanddeliverycapabilitiesinLatinAmerica,particularlyinBrazil.However,itslocalpresenceinAsia/Pacificiscurrentlylimited,despiteachievingtripledigitgrowthandrecentlyannouncingtheformationofadedicatedAsia/Pacificbusinessunitdesignedtoaccelerateitsgrowthfurther.Currently,themajorityofitsconsultantsbasedinAsia/PacificareinglobaldeliverycentersservicingEuropeanandNorthAmericanclients.

advertising,customerprogramsandpositioningstatements.

SalesStrategy:Thestrategyforsellingproductsthatusestheappropriatenetworkofdirectandindirectsales,marketing,service,andcommunicationaffiliatesthatextendthescopeanddepthofmarketreach,skills,expertise,technologies,servicesandthecustomerbase.

Offering(Product)Strategy:Thevendor'sapproachtoproductdevelopmentanddeliverythatemphasizesdifferentiation,functionality,methodologyandfeaturesetsastheymaptocurrentandfuturerequirements.

BusinessModel:Thesoundnessandlogicofthevendor'sunderlyingbusinessproposition.

Vertical/IndustryStrategy:Thevendor'sstrategytodirectresources,skillsandofferingstomeetthespecificneedsofindividualmarketsegments,includingverticalmarkets.

Innovation:Direct,related,complementaryandsynergisticlayoutsofresources,expertiseorcapitalforinvestment,consolidation,defensiveorpreemptivepurposes.

GeographicStrategy:Thevendor'sstrategytodirectresources,skillsandofferingstomeetthespecificneedsofgeographiesoutsidethe"home"ornativegeography,eitherdirectlyorthroughpartners,channelsandsubsidiariesasappropriateforthatgeographyandmarket.

InconsistencyindeliveryqualityWhileCapgeminihasinvestedinmakingitsdeliverymoregloballyconsistentthroughitsiSAPmethodology,globalgovernanceandcommontools,deliveryqualityvarieswidely,withsomeclientsreportinghighlevelsofsatisfactionwhileotherswerelessthanthrilledwiththeirprojectteamperformance.Clientsarecautionedtobediligentincheckingtheprojectteam'squalifications.Healthcare,educationandinsurance,Ariba,andhybrisCapgeminihasrelativelylessexperienceandexpertiseoutsidethefivekeysectorsofretail/CPG,utilities,manufacturing,publicsectorandbanking.Capgemini'sexperienceinAribaandhybrisisalsomorelimitedthanitscompetitors',althoughitisrapidlybuildingitshybriscapability.

CognizantCognizantisoneofthefastestgrowingITservicesfirms.ItisbasedintheU.S.butknownforitsIndiabasedoffshoremodel.Cognizanthasmorethan7,700SAPskilledprofessionals.Anestimated57%ofitsglobalSAPbusinessisderivedfromimplementationtheother43%isfrominfrastructureservices,hostingandapplicationmanagement.About70%ofitsSAPprofessionalsarelocatedinglobaldeliverycenters.In2013,CognizantderiveditsSAPimplementationbusinessfrom17outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingmanufacturing,retail,consumergoods,lifesciences,andutilitiesandenergy.CognizantderivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan10,000employees.

Cognizantfocusesitsinvestmentsinthefollowingindustries:lifesciencesandhealthcare,retailandhospitality,manufacturingandlogistics,consumergoods,financialservices,communication,technology,andmedia.

Strengths

StronggrowthCognizant'sSAPpracticehasconsistentlygrowninthe20%to30%rangeoverthelastfewyears,aresultofstrongsales,accountmanagementanddeliverycapabilities.In2013,growthinEuropewasespeciallystrongithasgrownorganicallyandthroughacquisitions(suchastheacquisitionofGermanybasedC1Group).StronggrowthhasenabledCognizanttoinvestinitsSAPpractice(suchasinnovationcenters,training,toolsandcapabilitiesinthenewerSAPfamilyofproducts),aswellastoattractgoodtalent.Ittargetsspecificindustriesanddomainsforinvestments,anditcontinuestocapitalizeonitscosteffectiveoffshoredeliverymodelandstrengthintestingservices.ValueformoneyWhileCognizantisnottheleastexpensiveserviceprovider,clientsciteCognizantaspricecompetitiveandagoodvalueformoney.Cognizant'shighlyoffshoreleveragedbusinessmodel,coupledwithinvestmentsinlocalresourcestocreatewhatCognizantcallsthetwoinaboxmodelofpairingkeyonshoredeliveryroleswiththeiroffshorecounterpartsaswellasinvestmentsinknowledgemanagementsystems,suchastheCognizant2.0portal,andtoolsandreusableassetstoaccelerateimplementationhaveresultedinqualityworkatacompetitivepricepoint.DeliveryfocusClientsareimpressedbyCognizant'sfocusonsuccessfullydeliveringtheproject,itswillingnesstoworkwiththeclienttoovercomechallenges,itscommitmenttoalongtermpartnership,anditsflexibilityinstaffingandadaptingtotheclient'srequirements,suchastrainingitsstafftouseagilemethodologytoimplementSAPforaEuropeanconglomerate.

Cautions

LimitedpresenceinLatinAmericaandAsia/PacificNorthAmericaandEuropecontinuetoprovidethebulkofCognizant'sSAPbusiness,estimatedatover90%ofitsSAPimplementationbusinessin2013.ItslocalpresenceinLatinAmericaandAsia/Pacificissporadic,andthemajorityofitsconsultantsbasedinAsia/PacificareinglobaldeliverycentersservicingEuropeanandNorthAmericanclients.GapsinprojectdeliverycapabilitiesAlthoughrapidlyimproving,Cognizant'sSAPpracticeisstillmaturingasitmovesupthevaluechainintomorecomplexglobalprojects.Whileithasdeliveredprojectsincomplextransformationalprograms,itstrackrecordinthisspacelagsbehindthoseofitsmajorcompetitors.Itneedstoenhanceitsprogramandprojectmanagement,changemanagement,andadvisorycapabilities.LimitedindustrycapabilitiesoutsideitstargetverticalsOutsideitsfocusedindustries,Cognizanthaslimitedindustryandprocessskills.Evenwithinitstargetverticals,itsbenchofconsultantswithstrongindustryandprocessskillscanbedeeper.

CSCCSChasmorethan8,000SAPskilledprofessionals.AbouthalfoftheSAPprofessionalsarelocatedinglobaldeliverycenters.Anestimated40%ofitsSAPbusinessisderivedfromimplementation,andtherestisderivedfrominfrastructureservices,hostingandapplicationmanagement.In2013,CSCderiveditsSAPimplementationbusinessfrom19outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingpublicsector,aerospaceanddefense,oilandgas/chemicals,andbanking.CSCderivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan2,500employees.

CSChasfocuseditsrecentinvestmentsinthefollowingpriorityindustries:aerospaceanddefense,publicsector,banking,defenseandsecurity,chemicals,andautomotive.

Strengths

GlobalalignmentandrenewedinvestmentsAsaresultofCSC'sglobalreorganization,itsSAPimplementationpracticeisnowacorepartofitsconsultingpractice,makingiteasierorganizationallyforCSCtobringconsultingcapabilitiestoitsSAPengagements.Amongsomeofitskeyinvestmentsareindustryspecificsolutions,mobility,Hana,cloudsolutionsandcorebanking.PublicsectorCSChasperformedsomeofthemostcomplexSAPengagementsforseveralU.S.governmentagencies,includingtheU.S.Army'sLogisticsModernizationProgramandCustomsandBorderProtection.CSChasapproximately370U.S.federalSAPexperts,specializinginsolutionssuchasSAPfinancialmanagement,federallogisticssolutions,SAPfraud,wasteandabuse,SAPmobility,andanalytics/Hanasolutions.CSCalsoprovidessignificantSAPpublicsectorworkinAustraliaandinpartsofEurope.CapabilitiesanddeliverycommitmentClientsareimpressedbyCSC'sprojectmanagementcapabilities,SAPandITexpertise,commitmenttodelivery,andseniormanagementinvolvement.

CSCisalsostronginsystemintegration,inparticular,intheintegrationofSaaS/cloudenvironmentswithonpremisesSAPandlegacyenvironments.

Cautions

BusinesstransformationcapabilitiesAlthoughCSC'sSAPpracticeisnowpartofitsconsultingpractice,clientscontinuetoreportthatCSCcanbebetteratbusinesstransformationandorganizationalchangeanddesign,intermsofadeeperbench,aswellasdeeperexpertise.GlobalintegrationinprogressWhileCSCstrivestobecomegloballyintegrated,itisstillverymuchaworkinprogress.Ithaspocketsofstrongcapabilitiesinspecificindustriesincertaincountries,anddifferentindustriesinothercountries.Also,CSC'scoverageandclientbaseinAsiaandLatinAmericaaresomewhatlimited.SizeandgrowthoftheSAPimplementationbusinessCSCneedstobalanceitsportfolioofSAPservicestoincreasethepercentageofbusinessfromimplementation.Withanestimated40%ofitsSAPbusinessfromimplementation,itisoneofthesmallerprovidersinthisstudy.Additionally,itsSAPimplementationservicebusinesshasnotperformedaswellastheotherprovidersintermsofgrowth,whichaffectsitsscoresinoverallviability.

DeloitteDeloitteisaglobalnetworkofaccounting,tax,consultingandadvisorymemberfirmswithabroadITservicesportfolio.Ithasmorethan12,500SAPskilledprofessionalsworldwide.AboutaquarterofitsSAPprofessionalsarelocatedinglobaldeliverycenters.Around88%ofitsSAPbusinessisderivedfromimplementation,andtherestisfromitsemergingapplicationmanagementpractice.In2013,DeloittederiveditsSAPimplementationbusinessfrom20outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingconsumergoods,retail,lifesciences,manufacturingandhightech.DeloittederivesthevastmajorityofitsSAPimplementationbusinessfromcompanieswithmorethan2,500employees.

Deloittefocusesitsinvestmentsinthefollowingindustries:consumerbusiness,energyandresources,financialservices,lifesciencesandhealthcare,manufacturing,technology/mediaandtelecom,andpublicsector.

Strengths

MultiplecompetenciesDeloittehasmultiplecompetenciesthatitcandrawontoassistanSAPenabledbusinesstransformation.Thesecompetenciesincludestrategyandoperations,technology,humancapital,tax,andenterpriseriskservices.Inaddition,Deloittehas"feetontheground"in150countries,allowingittobringknowledgeoflocallaws,regulations,businesspracticesandculturetoanyengagement.QualitydeliveryskillsClientsperceiveDeloittetobegoodatleadingcomplexchangeprograms,withtherightlevelofpartnership,flexibilityandqualityofservice.Industryexpertise,processknowledgeandabilitytobringbestpracticestotheengagementarealsocitedasstrengths.TrackrecordandexperienceinnewertechnologiesandinnovationDeloittehasdemonstratedtheabilitytorespondandachievecompetitivesuccessasopportunitiesdevelopedfornewerSAPtechnologies.Specifically,ithasimplementedanaboveaveragenumberofengagementsinHana,SuccessFactors,Ariba,hybrisandmobile.Inaddition,Deloittehasinvestedinanumberofinnovativesolutions,includingaHanabasedriskondemandanalyticplatformthatconsolidatesandaggregatesdatatogiveacompleteunderstandingofriskacrosstheentireorganizationinrealtime.

Cautions

PremiumpricePricingisoneofthemostcommonreasonsforclientstodisqualifyDeloitteduringthecompetitivebiddingprocess.Itshigherpriceisduetoacombinationofalargernumberofresourcesproposedandahigherpercentageofmoreexpensiveresourcesintheprojectteammix.Althoughithassignificantlygrownitsoffshorecapabilities,Deloittealsotendstoutilizealowerpercentageofoffshoreresourcescomparedwithsomeofitscompetitors,whichalsodrivesupitsoverallpriceinhighpricelocations.GlobalconsistencyAlthoughDeloittehastakenstepsinrecentyearstoimproveglobalconsistency,capabilitiescontinuetobeunevenacrossdifferentcountries.Capabilitiesinsinglecountryengagementsinsmallermarketsarestillmaturingthelevelofcapabilitiesanduseoftoolscansometimesdifferbycountry.InconsistentresourceskillsWhileDeloitteistraditionallyknownforitschangemanagementcapabilities,severalclientshavebeenlessthansatisfiedwiththechangemanagementresourcesassignedtotheirSAPprograms.ClientshavealsonotedweakerresourcesinsystemintegrationandauxiliaryworkonnonSAPtechnologies.Integrationacrossdifferentservicelinesissometimesnotasseamlessasclientsexpect.

EYEY(formerlyErnst&Young)isaglobalnetworkofmemberfirmsthatprovideassurance,taxandadvisoryservices.Ithasmorethan3,600SAPskilledprofessionalsworldwide.About10%ofitsSAPprofessionalsarelocatedinglobaldeliverycenters.AllofitsSAPbusinessisderivedfromimplementation.In2013,EYderiveditsSAPimplementationbusinessfrom18outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingenergyandutilitiesandautomotive.EYderivesthevastmajorityofitsSAPimplementationbusinessfromcompanieswithmorethan2,500employees.

EYreneweditscommitmenttotheSAPimplementationmarketin2010.Sincethen,ithasgrownveryrapidly,chalkingupover50%growthin2013.Itisalsoexpandedthroughacquisitions,havingboughtLogiStarSolutionsforitsSAPsupplychainexecutioncapabilitiesandFivePointforitscustomercareandbillingsystemimplementationservicesforthepowerandutilityindustry.EYfocusesitsinvestmentsinthefollowingindustries:manufacturing,lifesciences,financeandinsurance,consumergoods,powerandutilities,andcommunications.

EY'spositionintheVisionariesquadrantreflectsitsstrongvisionintheapplicationofnewertechnologies,useofalternativedeliverymodels,andinvestmentininnovation,suchasanalytics,fraudmanagementandgovernance,riskandcompliance(GRC)cloud.However,EYhasanemergingtrackrecordinlargeglobalSAPimplementationandneedstocontinueitsaggressivegrowthinsomeregions.

Strengths

RapidgrowthbuiltontraditionalstrengthsEY'sstrengthsinitsSAPpracticearebuiltuponitscoretraditionalstrengthsinperformanceimprovement,finance,tax,controlsandriskmanagement.ServiceofferingstrengthsincludeprogrammanagementbusinessengagementandreadinessrequirementdefinitionandprocessdesignfinanceperformanceimprovementplanningbudgetingforecastingimplementingGRC,businessplanningandconsolidation(BPC)andsalesandoperationsplanningandtaxeffectivesupplychain.Clients'feedbackindicatesthatEYconsultantsdemonstratestrongleadershipandindustryexpertise,areabletorecommendmoreefficientbusinessprocesses,andarecommittedtoprojectsuccess.InvestmentsininnovationEYisrapidlybuildingupcredentialsinthenewertechnologies,includingHana,cloudandSuccessFactors.Inaddition,ithasananalyticsasaserviceofferingandhasseveralcoinnovationinitiativeswithSAP,includingpredictivefraudmanagement,integratedbusinessplanningonHanaEnterpriseCloud,taxtransformationandGRCCloudServicesimpressiveforarelativenewcomertotheSAPimplementationscene.TrustedadvisorstatusLeveragingtheEYbrandandotherservicelinecapabilities,EY'sSAPpracticehascredibilitywithbusinessusersandisabletoaligntheSAPchangeprogramtotheneedsofthebusiness,makingEYastrongcontendertohelpitsclientsinqualityassuranceandbenefitrealizationinanSAPprogram.

Cautions

LackofscaleAlthoughgrowingrapidly,EYhasastaffbenchthatcanlimititsabilitytoservicemultiplelargescaleglobalprojects.Itpartnerswithotherservicecompaniesforsuchprojects.MaturingglobaldeliverymodelClientsreportedEYasbeingahighercostproviderduetoitslimitedoffshoreplay.Globalizationofitspracticeisstillaworkinprogress:NorthAmericaaccountsforoverthreefourthsofitsrevenueinglobalprojects,clientsreportthattheyneedtoworkwithEYpartnersineachmemberfirminthecountriesratherthanaglobalteamwhichEYseesasanadvantagegivingclientsaccesstotheirlocalleadershipbutsomeclientspreferaconsistentpointofcontact.LessmatureassetsWhileEYisfuriouslyinvestinginSAPimplementationspecifictoolsandassets,typicallycustomizingthenontechnologyspecificonesitalreadyhas,theyarenotyetwelltestedinmultipleclientengagements,hardenedorindustrialized.Clientsreportthatitstoolsandacceleratorsarenotasstrongasdemonstratedintheproposal,andimplementationmethodologiesarelessdefined.

HCLTechnologiesHCLTechnologieshasmorethan8,600SAPskilledprofessionals,ofwhomabout60%arelocatedinglobaldeliverycenters.Anestimated66%ofHCL'sSAPbusinessisderivedfromimplementation,andtherestisderivedfrominfrastructureservices,hostingandapplicationmanagement.In2013,HCLderivedSAPimplementationrevenuefrom18ofthe22industriesdefinedinthisMagicQuadrant,thekeyonesbeingaerospaceanddefense,oilandgas,utilitiesandenergy,transportation,consumergoods,andpublicsector.HCLderivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan2,500employees.

HCLfocusesitsinvestmentsinthefollowingindustries:aerospaceanddefense,utilities,manufacturing,CPG/retail,andlifesciences.

Strengths

DeepexpertiseandbalancedinvestmentsOverall,HCLhasstrongexpertiseacrossthecoresetofSAPproductsandisinvestinginimplementingbothtraditionalandnewerSAPtechnologies.IthasbuiltupgoodexperienceinHanaandhybrisandisinvestinginSuccessFactors.Byindustry,ithasaparticularfocusandstrengthinaerospaceanddefense,hightechandmanufacturing,consumergoods,lifesciences,utilitiesandenergy,andtravelandtransportation.Inparticular,ithasdeepindustryknowledgeinmaintenance,repairandoperations(MRO)foraerospaceanddefense,anditbringstoengagementsitsiMROproduct,anSAPendorsed,upgradecompatibleindustrysolutionaddon.ItsiCAREsolutionisaCRMtemplatethathelpscallcenterstaffprovideeffectiveandefficientcustomerservice.FocusonbenefitrealizationOneofthefirstservicepartnerstoembedformalbenefitrealizationmethodologyintoSAPprogramdelivery,HCLworkswithclientstodeploysolutionswithtangiblebusinessbenefits,enabledthroughacomprehensivesetofprocesses.Theseprocessesincludeidentifyingbusinessbenefitsandconvertingthesebenefitsintoquantifiablefinancialgains,aswellasensuringdecisionsmadeduringimplementationarealignedwithbusinessbenefitsidentifiedtherebymaximizingthepotentialfortheprogramtoachieveitsdesiredbusinessvalue.Itswillingnesstoput"skininthegame"throughtyingaportionofitsfeestotherealizationofidentifiedbenefitsatteststoitsconfidenceinitsdelivery.PartnershipapproachClientsreportthatHCLiseasytoworkwith,deliverswhatitsaysitwoulddeliverconsistently,providesstaffwithexcellentSAPskillsanddedicationtosupportprogramobjectives,andiscommittedtothesuccessoftheimplementation.ClientsalsoappreciateHCL'sabilitytogiveclearguidanceandbringbestpractices.

Cautions

LimitedpresenceinLatinAmericaandAsia/PacificMorethan90%ofHCL'sSAPbusinesscomesfromNorthAmericaandEurope.AlthoughHCLisdeliveringsomelargeSAPprogramsinAsia/Pacific,itslocalpresenceinAsia/Pacificissporadic,andithasverylimitedbusinessinLatinAmerica.ThemajorityofitsconsultantsbasedinAsia/PacificandLatinAmericaareinglobaldeliverycentersservicingEuropeanandNorthAmericanclients.Geographicandlanguagecoveragearebelowthoseofitscompetitors,whichhasledtosubcontractingandtheneedforahighlevelofsupportfrombiggerpractices,suchastheU.K.andIndia.BenchstrengthHCL'sbenchstrengthofconsultantsgloballyisnotasdeepasitskeycompetitors.ClientshavenoticedthatwhileHCLhasstrongprojectmanagers,subjectmatterexpertsandotherkeyprojectresources,thereisaverylimitednumberofbackupresourcesincasesofattritionwhichishigherthanaverageorleaveofabsence,increasingtheriskoftheproject.Ithasalsoresultedinsomeclientsgettingweakerresourceswhoneededtobereplacedorsupplemented.TooflexibleWhileflexibilityisappreciatedbyclients,theynotethatHCLconsultantsaresometimestooflexibleandcouldhavepushedbackonthemwithindustrybestpracticesthatmayhavereducedsomecustomconfigurationintheend.Clientsalsocommentthattheywouldliketo

seestrongerprojectmanagement.

HPHPisaglobalproviderofendtoendSAPserviceswithmorethan9,200SAPskilledprofessionals.HPdeliverstheseservicesatclientsitesandthrough18globaldeliverycenters,whereabout40%ofitsSAPprofessionalsarelocated.Anestimated48%ofitsSAPbusinessisderivedfromimplementations,andtherestisderivedfromapplicationmanagement,infrastructureservicesandhostingsupport.In2013,HPderiveditsSAPimplementationbusinessfrom14outofthe22industriesdefinedinthisMagicQuadrant,withthemainindustriesbeingconsumergoods,industrialmanufacturingandautomotive.ThemajorityofitsSAPimplementationbusinessisfromcompanieswithmorethan10,000employees,ofwhichmanyarealsoitsoutsourcingclients.

HPfocusesitsinvestmentsinthefollowingindustries:consumerservicesandretail,manufacturing,travelandtransportation,healthcare,andlifesciences.

Strengths

EndtoendservicesHPbringstoclientsafullcomplementofcoreandnewSAPsolutions,includingonpremisesandcloudsolutions.Buildingonitstraditionalstrengthsininfrastructureandoperations,HPoffersendtoendservicesdesign,build,runandoptimizetonewandexistingclients.HPisextendingitsfocusondeliveringbusinessoutcomesinitsRunSAPServicestoitsimplementationprograms.StrongtechnicalcapabilitiesandinvestmentsHPisparticularlystrongintechnologybasedservices,includinginfrastructureservices,includingnetworks,datacenterandvirtualization,securityandintegration,andBasisskills.HPhasmadesignificantinvestmentsinHanaservices,Hanabasedapplications,andtheHanaapplianceandcanprovideabundledsolution,includingHanaasaservice.HPalsoexcelsinSAPRapidDeploymentSolutions(RDS)togetclientsupandrunningquickly.ClientfocusClientsreportthatHPdisplaysastrongsenseofresponsibilityinprojectsuccess,focusesonunderstandingbusinessrequirementsindetail,andoftenadvocatesandrecommendsindustrybestpractices.

Cautions

GlobaldeliverymodelisstillmaturingWhileithasmadealotofprogressinitsglobaldeliverymodel,someclientsreportthatthequalityofresourcesinHP'sglobaldeliverycentersisinconsistent,andcostisperceivedtobehigherthanaverage.CapabilitygapsClientshaveobservedthatHPhassomegapsinimplementationcapabilitiesforsomeproductsintheSAPstackandlimitedbenchstrengthinothers.Someskillsetsarenotreadilyavailableinsomegeographies,andseveralclientshavenotedthatturnoverofprojectteammembersisachallengeevenasoverallattritionatHPisquitemuted.HPpartnerswithfirmstodelivertofullclientdemandwheretherearecapabilitygaps.BusinessconsultingWhileHPisstronginimplementation,itdoesnotyethavethefullspectrumofbusinessconsultingcapabilitiestobeaonestopproviderinbusinesstransformationalprograms.Forthese,HPcontinuestopartnerselectivelywithitsbusinessconsultingalliancepartners,suchasPwC.

IBMIBMhasmorethan34,200SAPskilledprofessionals.AbouthalfofitsSAPprofessionalsarelocatedinglobaldeliverycenters.Anestimated55%ofitsSAPbusinessisderivedfromimplementation,andtherestisderivedfrominfrastructureservices,hostingandapplicationmanagement.In2013,IBMderiveditsSAPimplementationbusinessfrom18outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingautomotive,consumergoods,publicsector,oilandgas,utilitiesandenergy,lifesciences,andtravelandtransportation.IBMderivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan10,000employees,butitsgeneralbusinessdivisionoffersSAPservicestomidsizeclientsusingamoretemplatedapproach.

IBMfocusesitsSAPpracticeinvestmentsinthefollowingindustries:automotive,consumerproducts,financialservices,lifesciences,travelandtransportation,telecommunications,andutilitiesandenergy.

Strengths

GlobalreachandscaleIBMhasthedepthandbreadthoftechnical,functionalandprocesscapabilitiesacrossalargenumberofindustries,aswellastheglobalreachforthelargestandmostcomplexglobalimplementationsforthelargestcompanies.Itoffersmidsizeclientspackagedofferingsusingitspreconfiguredindustryspecificsolutions.IBMoffersendtoendservices,includingdesign,build,rollout,host,manage/operateandBPO.DeliverypredictabilityIBMhaswelltestedmethodologiesandanimpressivecollectionofreusableassetlibrariesandtoolstohelpdrivesuccessfulcompletionofSAPprograms.ClientsappreciateIBM'sstrongexpertiseinSAPapplicationsandmultivendorcapabilitiestohelpintegratecomplexhybridonpremise/cloudenvironments,aswellasitsprojectmanagement,andcommitmentandabilitytodeliverundertighttimelines.StrengthsandinvestmentsinSAP'snewertechnologiesIBMhasshowncommitmenttoSAPbyinvestinginSAP'snewertechnologiesandproducts,includingdevelopingnewsolutionsonHana,evenwhilehavingoverlapwithsomeofitsownproductofferings.Its"LabforSAPSolutions"showcasesendtoendindustryspecificofferings(suchasConnectedCare,loyaltymanagementandpredictiveanalytics),drivescoinnovationactivities,andprovidesaforumforcustomizedclientworkshopstotackleproblemsorintroduceinnovativethinkingthroughleveragingthebroaderIBMcapabilitiesfromIBMResearch,Watson,IBMStrategyandAnalytics,IBMInteractiveExperienceandIBMindustryspecialists.

Cautions

LesssuitablesegmentsIBMdoesimplementationinawiderangeofindustries,focusingonselectedonesforincreasedinvestments.Clientsinotherindustriesincludingaerospaceanddefense,mediaandentertainment,education,andnotforprofitbenefitlessfullyfromthesespecificIBMinvestments.Smallorganizationsespeciallythosebelow$500millioninrevenuewillnotgettheattentiontheyneedfromIBM.

TightcontrolsandbureaucracyGivenIBM'ssizeandreach,clientscansometimesbechallengedwhenworkingacrossIBM'svastinternallandscapeandprocesses.IBM'sSAPpracticeiscurrentlysimplifyingitsorganizationalstructureandprocessestomakeiteasiertoworkwithandpoolresources,butinthemeantime,someclientsindicatethatdecisionmakingoncontracts,approaches,changesandaccesstospecializedresourcescantakelongerthananticipated.ResourcingchallengesDespiteIBM'sscale,someclientsfacechallengesinprojectteamresourcing.Abilitytosecurelocalskilledresourceswithappropriatelocalknowledge,especiallyinthenewergeographiesandsmallercountries,canbeachallenge,andthequalityofIBM'sresourcescanattimesbeinconsistent.Inthelasttwoyears,IBMhasmadesignificantinvestmentsineducationtoincreasehighqualityresourcecapacity.

InfosysInfosyshasnearly12,400SAPskilledprofessionals.Anestimated70%ofitsSAPprofessionalsarelocatedinglobaldeliverycenters.About60%ofitsSAPbusinessisderivedfromimplementation,andtherestisderivedfrominfrastructureservices,hostingandapplicationmanagement.In2013,InfosysderiveditsSAPimplementationbusinessfrom17outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingautomotive,lifesciences,consumergoods,oilandgas/chemicals,hightech,utilitiesandenergy,retail,andagriculture,miningandconstruction.InfosysderivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan10,000employees.

InfosysfocusesitsSAPpracticeinvestmentsinthefollowingindustries:lifesciences,retail,CPGandlogistics,hightech,processmanufacturing,automotive,utilities,financialservicesandinsurance.

Strengths

FocusonvaluerealizationInfosyshasdevelopedframeworksandmethodologiestofocustheimplementationteamonvaluerealization,aligningtheclient'sSAPprogramswithdesiredbusinessoutcomes.Itswillingnesstosignupforoutcomebasedpricingbasedonvaluerealizationalthoughseldomtakenupbyclientsisalsoaplus.InvestmentsinnewertechnologiesanddeliverymodelsInfosysisinvestinginnewerSAPtechnologies,includingmobile,cloudandSuccessFactors,Hana,UI5andFioritechnologies.Investmentsinnewdeliverymodelsincludemanagedcloudasaservicesolutionsforoilfieldservicesandmedicaldevices,aswellasabusinessplatformsolutionforindirectprocurementthatispricedpertransaction.StrongcapabilitiesatacompetitivepriceClientsindicateInfosysoffersstrongdeliverycapabilitiesincludingprogrammanagement(feedbackfromlegacyLodestoneclients),SAPapplicationandtechnologyexpertise,andflexibleandknowledgeableresourcesatacompetitiveprice.

Cautions

NeedtoexpandpresenceinLatinAmericaandAsia/PacificWhileithasclientsinLatinAmericaandAsia/Pacific,InfosyshaslimitedSAPimplementationbusinessfromtheseregionsandfewimplementationprofessionalsonsiteinmanycountriesintheseregions.ConsultingskillsWhileInfosyshasinvestedsignificantlyinconsultingcapabilities,includingtheacquisitionofLodestone,clientfeedbackindicatesthatInfosyscanimproveitsdepthofbenchinprogram/projectmanagement,changemanagement,depthofknowledgearoundbusinessprocesses,localknowledge,thoughtleadershipandabilitytobringbestpracticestotheengagements.AttritionAttritionatInfosysisaboveaverageforthispeergroup.Atthecorporatelevel,thedepartureofnumerouskeyexecutivesisdistractingattheprojectlevel,continuityofconsultantshasbeenacauseforconcernamongsomeclients.

NeorisNeoriswasoriginatedin2000fromtheinhousetechnologyarmofCemex,aleadingcompanyinthebuildingmaterialsindustry.CemexcontinuestorelyonNeorisforitsSAPimplementationandglobalplatformsupport,armingNeoriswithexperienceinglobalrolloutsinmultiplecountriesaswellasexperimentationwithinnovationslikeHana,highperformanceanalyticsandsupplychainfunctions.Followingacquisitionsandorganicgrowth,Neoristodayhasnearly3,000SAPconsultants,andSAPmakesupthreequartersofitstotalbusiness.ItisthelargestandmostexperiencedLatinAmericanheritageSAPimplementationserviceprovider,servinglocalandPanLatinAmericanclients,aswellasglobalclientsinanearshoremodel.Nearly90%ofitsSAPbusinessisderivedfromimplementationtherestisderivedfrominfrastructureservices,hostingandapplicationmanagement.About60%ofitsSAPprofessionalsarelocatedinglobaldeliverycenters.

In2013,NeorisderiveditsSAPimplementationbusinessfrom14outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingmanufacturing,financialservices,hightech,utilitiesandenergy,CPG,andagriculture,miningandconstruction.NeorisderivesthemajorityofitsSAPimplementationbusinessfromcompaniesandbusinessunitswithmorethan2,500employees.Neorisfocusesinvestmentsinmanyindustries(manufacturing,naturalresources,consumergoods,agribusiness,healthcare,highereducation,financialservices,telecommunications,retailandutilities),butitscorestrengthsareinmanufacturing.

Neorisisaverystrongcandidateforselectedsolutions,suchasManufacturingIntegrationandIntelligence(MII)andanalytics,forimplementationsinLatinAmericaandfornearshoresupport.ClientsaregenerallyhighlysatisfiedwithNeoris.ItispositionedintheNichePlayersquadrantchieflybecauseofitssmallerscaleandincompletecoverageforlargergeographicallydispersedSAPprojects.

Strengths

LatinAmericanandnearshorecapabilitiesNeorisisparticularlystronginLatinAmericanrollouts,andclientfeedbackconfirmsthatNeorisconsultantsdisplaytheskillsandknowledgeoflocalbusinessandstatutoryrequirementsthatclientsseek.InadditiontoLatinAmericanrollouts,NeorisisalsoastrongcandidatefornearshoresupportofclientsinNorthAmericaduetoasimilartimezone,culturalfit,operationalreliabilityandclientsinSpanishandPortuguesespeakingEuropeduetoitslanguagecapabilities.TargetedinvestmentsininnovationNeorisisinvestingininnovationinareaswhereithasatrackrecord:MIImanufacturingsolutionsandmachineautomationthroughMII3Ddigitalfactory

(connectingshopfloortobusinessoperationsusingSAPVirtualEnterpriseandMicrosoftKinect)Hanaandhighperformanceanalyticshybris,omnichannelandretailvideowallvisualizationofsupplychainandotheroperations(leveragingMIIinthebackend)asolutionutilizingGoogleGlassforshopfloorandwarehousemanagementandmobilesolutions(suchasSAPMIIonmobiledevicestoallowemployeestoaccessshopfloordatabasesandcreatetheirownpersonalizedcontrolpanel).ApplicationandtechnicalexpertiseClientsreporthighsatisfactionwithNeoris,commentingthatitsconsultantsgenerallypossesshighlevelsofbusinessandtechnicalcapabilitiesandknowledgeofSAP.TheyalsociteNeoris'goodservicequalityandunderstandingofclients'requirements,aswellasgoodvalueformoney(althoughnotthelowestprice)asstrengths.

Cautions

LimitedpresenceoutsideLatinAmericaNeorisisglobalizingitsSAPpracticethroughitssupportofitsglobalclients,especiallyCemex.However,presenceoutsideLatinAmerica,SpainandPortugalisstillsmall.WhileNeorishasmadeexpansionintheU.S.akeygrowthstrategy,itscurrentpenetrationintheU.S.isstilllow.PartialcapabilitiesandexperienceinsomesolutionsNeoris'smallerscaleandfocusonselectsolutionsmeansthatithaslimitedresourcesandexperienceinothersolutions,suchasAdvancedPlanningandOptimization(APO),TransportationManagement(TM),ExtendedWarehouseManagement(EWM)andhumancapitalmanagement(HCM).NeoriscontinuestorelyonthesupportofitsestablishedpartnernetworkfortheimplementationofthesesolutionsoutsideofLatinAmerica.SomeresourcingchallengesClientshavereporteddifficultyinstaffingscalabilityinquickturnaroundsituationsorsomegeographicallocationsoutoftheirimmediatereachandhencetheneedforNeoristoworkwithitsestablishednetworkofsubcontractors.

NTTDataNTTData'sSAPpracticewasinitiallyformedthroughtheacquisitionofanumberofanchorcompanies:Keane,itelligenceandIntelligroup.AcquiredcompaniesinNorthAmericaareorganizedandintegratedundertheNTTDatabrand.Itelligencecontinuestouseitsownbrand,butitisnowundertheumbrellaofNTTDataBusinessSolutions.Theacquisitionspreecontinuedin2013,addingOptimal(U.S.basedSAPspecialist),Everis(SpanishITfirmwithLatinAmericanreach),ebs(Romaniabasednearshoreapplicationmanagementservicesprovider),AsterGroup(U.S.basedSAPBPCspecialist),4CManagementConsulting(Danishanalyticsandperformancemanagementcompany)andSoftwareAG/IDSScheerinCentralandEasternEurope(SAPregionalpartnerNTTDatahadearlieracquireditsCanadiancounterpart).

NTTData'sSAPGlobalOneinitiativeintegratesthevariousskills,resourcesandbestpracticesundertheNTTDatabrand,bringingtogethernearly8,000SAPconsultantsin40countries.Anestimated40%ofitsSAPprofessionalsarelocatedinglobaldeliverycenters.About54%ofitsSAPbusinessisderivedfromimplementation,andtherestfrominfrastructureservices,hosting,applicationmanagementandlicensesales.

In2013,NTTDataderiveditsSAPimplementationbusinessfromallthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingmanufacturing,consumergoods,hightech,automotive,services,andlifesciences.NTTDatafocusesitsinvestmentsinthefollowingindustries:discretemanufacturing,chemicals,hightech,pharmaceuticals,medicaldevices,distribution,consumergoods,automotiveandhighereducation.NTTDataderivesitsSAPimplementationbusinessfromcompaniesofallsizesfromsmallenterprisestolargecorporations.

Strengths

BroadgeographicalreachwithlocalpresenceThroughnumerousacquisitions,NTTDatanowhassignificantlyincreaseditsreachandscaleinNorthandLatinAmericaandSouthernandEasternEurope,withnearshorecapabilitiesforEuropeandLatinAmerica,inadditiontoitsIndianoffshorecenters.TheresultisthatitsSAPrevenueissplitfairlyevenlyacrossNorthAmerica,EMEAandAsia/Pacific.NTTDataclientscitegoodperformanceoverallwithkeystrengthsinSAPknowledgeandtheabilitytoeffectivelydeliverasuccessfulprojectInvestmentsandexperienceinnewerproductsanddeliverymodelsNTTDataisquicklyamassingexperienceinSAP'snewerproducts.Ithasgarneredover50engagementsandproofsofconceptinHana/SuiteonHanaandover50engagementsinBusinessByDesignin2013,makingitoneofthemostexperiencedprovidersinthesetwoproducts.Italsohasover20clientsinSuccessFactorsandisinvestinginhybris,mobile,MCaaSandHanaEnterpriseCloud.SmallandmidmarketsegmentNTTDataisastrongproviderforsmallandmidmarketenterprises,becauseithasinvestedsignificantlyinprescriptivetemplates,includingover70RDSand20industrysolutions,toreducecosts,aswellasincreasespeedandpredictabilityofimplementationinsuchorganizations.Thesmallandmidmarketsegmentisalsoasweetspotforseveraloftheacquiredcompanies,andhencetheyhaveastrongtrackrecordwithgreenfieldSAPimplementationsforsuchenterprises.

Cautions

LimitedlargedealtrackrecordNTTDatahasnumerouslargeenterpriseclientshowever,mostengagementsarerelativelysmallcomparedwithothervendors.Thisreflectsitsfocusbutcouldsignallessabilitytosupportlargecomplexdeals.FocusneedsfinetuningWith8,000consultants,NTTDatarunstheriskofspreadingitselftoothinlybyexpandinginallgeographiesandnearlyallsectors,andservingcompaniesofallsizes.Asharpenedfocusisneededtobuildmoredepth,differentiationandclarityarounditssweetspots.IntegrationisstillinprogressDuetoNTTData'songoingacquisitionstrategy,itsstrengths,weaknessesandtargetmarketsstillvarybygeography.Capabilitiesofconsultantsstilltendtoalignwitheachofthelegacycompanies'traditionalstrengths,andsomeclientshavereportedchallengesinworkingbetweencountries.NTTData'sOneMethodinitiativehasbeenlaunchedforglobalconsistency,butsomeNTTDataconsultantsarenotfamiliarwithordonotpracticetheprojectmethodologiesused.

PwCPwCisaglobalnetworkofmemberfirmsthatprovideassurance,taxandadvisoryservices.PwChasmorethan6,200SAPskilledprofessionals.Lessthan20%ofitsSAPprofessionalsarelocatedinglobal

deliverycenters.VirtuallyallofPwC'sSAPbusinessisderivedfromimplementation.In2013,PwCderiveditsSAPimplementationbusinessfrom21ofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingconsumergoods,retail,utilitiesandenergy,manufacturing:hightech,manufacturing:lifesciences,manufacturing:industrialdiscrete,andmanufacturing:oilandgas/chemicals,andprocessandresource.

PwCderivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan1,000employees.

Strengths

BusinesstransformationapproachPwCtakesabusinesstransformationapproachtoitsSAPengagementsandisabletobringtogetherstrategy,industry,process,taxandsoftwareexpertisetobearonaprogram.Itemphasizesputtingprocessimprovementandbestpracticesbeforesystemleveldecisions,whichmakesitaclearfitforadvisoryandconsultingrelatedtoSAPenabledtransformation,andimplementationprojectsinvolvingsignificantchangemanagementorprocesstransformation.RelationshipswithbusinessexecutivesPwC'sbrandandrelationshipswithClevelexecutivesandfinanceprofessionalspositionitwellinSAPprojectsthatinvolvesponsorship,buyinandengagementoftheseprofessionals.ClientspointtoPwC'sdedicationtoresultsandtheclient'ssuccessaskeystrengths.PwCisoftenthepreferredproviderforSAPimplementationfollowingitsbusinessconsultingworkforthesameclient,anditisabletouseitspriorexperienceofclientorganizationtoovercometechnicalandorganizationalchallenges.PwC'sexpertiseinfinance,riskmanagementandoperationsenablesitsconsultantstotranslatetechnicaltopicsintobusinesslanguage,providingtheabilitytobuildstrongrelationshipswiththebusinessandIT.BroadeningcapabilitiesPwC'sstrongestsegmentscontinuetobefinancialtransformation,performancemanagement,enterpriseassetmanagement,supplychainmanagementandGRC.PwCisincreasinginvestmentsinitsimplementationcapabilitiesinmanynewerareasoftheSAPportfolio,includingSuccessFactors,Ariba,FioriandSalesandOperationsPlanning(S&OP)onHana.

Cautions

ToolsandprebuiltsolutionsPwCapproachestheclient'sbusinessproblemsasuniqueand,insomecases,investsinandleveragesfewerautomatedtools,repositories,andprebuiltHanaapplicationsorindustrysolutions.PwCtrailscompetitorsinnewbusinessmodels,suchasMCaaS.InconsistentresourcequalityWhilePwCcontinuestoshinewithhighqualityresourcesinitsmoretraditionalconsultingspaces,suchasprojectmanagementanddesign,afewclientshavenoticedsomevariationinqualityofitstechnicalandapplicationspecificresources,andinsomecases,difficultyinfindingqualifiedstaff.PriceWhilePwChasimproveditspricing,clientscontinuetopointtoitshigherpriceasanareaforimprovement.AcommoncommentisthatPwCdoesagoodjobbutitcomesatapremiumprice.AfewclientsalsosuggestPwCcanimproveonchallengingusersonbusinessrequirementstosteerthemtowardusingthestandardSAPapplications.

SAPServicesSAPServices,theservicearmofSAP,deliversSAPimplementationservicesgloballythroughabout16,000deliveryconsultants,aswellasmorethan1,200customdevelopmentconsultantsandcollaborationwithmorethan8,000activesupportprofessionals.SAPServicesprovidesprimeintegratorservicesthatcompetedirectlywithitsSIpartnerecosystem,butitisaligningmorecloselywithSAP'soverallstrategybyfocusingonsupportingadoptionofSAPinnovations,especiallyHana,bigdataandcloud.Anestimated15%ofitsdeliveryprofessionalsarelocatedinglobaldeliverycenters.In2013,SAPServicesderiveditsSAPimplementationbusinessfromallindustries,butitsstrategicindustriesarefinancialservices,retail,healthcare,publicsectorandtelecommunications.SAPServicesderivesthemajorityofitsimplementationbusinessfromcompanieswithmorethan2,500employees.

Strengths

ProductexpertiseClientsaregenerallyimpressedbySAPServices'indepthknowledgeacrossthemajorproducts,includingtheacquiredSuccessFactorsandAriba.SAPServicesisalsoinvolvedwithmoreclientsinnewerproducts,makingitagoodfitforsuchproductsbothforitsexperienceandfortheabilitytohave"onethroattochoke."ClientscanalsotapintoSAPServices'deepproductexpertisethroughspecificserviceofferings,suchasitsInnovationControlCentertominimizecustomizationduringimplementation,itsValuePartnershipprogramforconsultingservices,anditsLearningHubforstateofthearttraining.AcomprehensiveportfolioofservicesalignedtocustomerneedsSAPServiceshasdevelopedafullspectrumofservicesthatallowsclientstobuytheservicesmostrelevanttotheirneeds:transformationservicesforhighvalueconsulting,technologyservicesforadoptingnewproducts,customdevelopmentservicesforuniquefunctionalities,deploymentservicesforindustrializedsolutions,premiumengagementservicesformanagementandsupport,andlearningservicesforworkforcetraining.Increasingdeliveryspeedandminimizingthetotalcostofownership(TCO)SAPServiceshasbeenfocusingonwaystoincreasedeliveryspeedandminimizeTCO.Initiativeshaveincludedanextensivesetoffixedfee/fixedscopeRDS,"assembletoorder"and"industrialized"deliverymodelsthatemphasizereuseandrepeatability,anda"worldtemplate"thatfacilitatesrapidrolloutstomultiplecountries.

Cautions

LessexperienceworkingwithmultipletechnologyvendorsTheflipsideofbeingspecializedandhighlyskilledinonefamilyofproductsislimitedcapabilitiesinothersoftwarevendortechnologies.SAPServiceshaslimitedcapabilitiestoassistinhighlyheterogeneousprojectsinvolvingmultiplesoftwarevendorsinwhichSAPsolutionsareonlyoneofanumberofonpremisesandcloudapplicationsandtechnologies.HighhourlyratesSAPServices'hourlyrateishigherthanitsservicepartners'.SAPServicesclaimsthatefficientdeliveryandfasterresultsforcustomersresultinloweroveralltotalcostofimplementationandlowerTCO.SAPServiceshascommittedtoan"outcomebased"approachthatguaranteesagreeduponoutcomes.Clientsareadvisedtocomparelikeforlikebycontractingonafixedpricebasis,anapproachalsofavoredbySAPServices.

CapabilitygapsSAPServicesisnotasbroadordeepassomeofitspartnersinbusinessconsultingcapabilities,suchasindustryknowledge,processchange,largescaleprogram/projectmanagementandchangemanagement.Fornicheproducts,likeservicepartsplanning,SAPServicesreliesonitsecosystemforscale,expertiseandcostreasons.Itisalsorapidlyrampingupitsresourcestomeetdemand,resultinginchallengesstaffingthehighlyqualifiedconsultantsthatclientsexpectfromSAPServices.

TataConsultancyServicesTataConsultancyServices(TCS),thelargestIndianITservicesfirm,hasmorethan13,500SAPskilledprofessionals.Anestimated67%ofitsSAPprofessionalsarelocatedinglobaldeliverycenters.About52%ofitsSAPbusinessisderivedfromimplementation,andtherestisderivedfrominfrastructureservices,applicationmanagementandhosting.In2013,TCSderiveditsSAPimplementationbusinessfrom18outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingindustrial,hightech,utilitiesandenergy,lifesciences,consumergoodsandretail.TCSderivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan2,500employees.

TCSfocusesitsinvestmentsinthefollowingindustries:manufacturing,retail,consumergoods,hightech,financialservices,media/informationservices,travel/transportationandhospitality.

Strengths

StronggrowthTCShasoneofthehighestgrowthratesintheSAPimplementationmarketin2013:over30%(versusamidteengrowthrateforTCSasawhole).Asaconsequence,TCS'sSAPpracticeenjoyspriorityfundingforinvestments,includingacquisitionsinnewgeographiesandforadditionalcapabilities.InvestmentsinnewertechnologiesTCSisinvestingheavilyinnewerSAPproductsandtechnologies,includingtrainingover50hybrisprofessionalsandover500Hanaconsultants,settingupacustomerexperiencelabforhybrisandauserexperiencecenterofexcellencewithafocusonFioriandpersonas,andbuildingindustryspecificHanaappsandaccelerators,suchaspricinganalyticsandassortmentplanningfortheretailindustryandsmartmeteranalyticsforutilities.TCShaspartneredwithSAPforsevenRDSpackages,includingintheareasofmobilityandHana.CommitmenttosuccessfuldeliveryTCShasknowledgeable,welltrainedanddiligentresourcesthatdemonstratestrongcommitmenttosuccessfuldeliveryandmeetingchallengingtimelinesatanattractiveprice.ClientsalsoindicatethatTCSisaccommodatingandflexibleinmeetingtheirchangingprogramdemands.

Cautions

BusinesstransformationcapabilitiesTCSisastrongcontenderinprovidingSAPtechnicalandfunctionalresourcesinsupportofclientledbusinesstransformationprograms,butbusinessconsultingandadvisorycapabilitieslag.Itistakingsignificantstepstostrengthenitsconsultingandadvisoryservicesbyformingatransformationteam,whichfocusesonprovidingbusinessconsulting,businessprocessreengineering,facilitation,changemanagement,communications,businessstakeholderengagement,andprogramleadershipskills.OnshoreresourcechallengesAsTCSisheavilyorientedtowardanoffshoredeliverymodel,clientshavenoticedchallengesinfindingappropriatelyskilledresourcesonshoreinmultiplelocationsglobally.DelayingettingworkvisasforIndianconsultantstocomeonshorealsocontributestostaffingchallenges,whichcanleadtoaslowrampupofaprojectand/orresourcerotationfromoneclienttoanother.TCS'sacquisitionofAlti,aFrenchcompany,willhelptoaddresssomeofthesechallengesinFranceandpartsofEurope,butavailabilityoflocalresources,particularlyinNorthAmericaandEurope,fallsshortofclientrequirements.TCSisaddressingthisissuebyrampinguplocalrecruitmentinthesegeographies.StructuredknowledgesharingprocessesTCScanimproveonitsknowledgesharingatthecompanywidelevel.ClientsreportthattheyseemtogetonlytheexpertiseoftheteamontheirprojectwhentheythinktheyarebuyingtheinstitutionalknowledgebaseofTCS.ClientsstatethattheywouldliketoseemoresupportfromTCS'swidercommunity,includingitstopmanagement,andmorestructuredknowledgesharingpractices.TCSisaddressingthisissuethroughitsinternalknowledgemanagementportal,whereallsolutions,bestpractices,assetsandtemplatesfromtheprojectsarecapturedandavailabletoallassociatesforuse.Also,TCShasformeditsinternalonlinediscussionplatformforsharingissuesandgettinghelpfromtheinternalassociatesonsolutionsandideas.

WiproWiprohasnearly10,300SAPskilledprofessionals.Anestimated66%ofitsSAPprofessionalsarelocatedinglobaldeliverycenters.About50%ofitsSAPbusinessisderivedfromimplementation,andtherestisderivedfrominfrastructureservices,hostingandapplicationmanagement.In2013,WiproderiveditsSAPimplementationbusinessfrom20outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingindustrial,consumergoods,oilandgas/chemicals,andutilitiesandenergy.WiproderivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan2,500employees.

WiprofocusesitsSAPinvestmentsinthefollowingindustries:retail/consumergoods,utilities,discreteandprocessmanufacturing,energyandnaturalresources,healthcare/pharmaceuticals,andengineeringandconstruction.

Strengths

StrongSAPcapabilitiesatacompetitivepriceLeveragingtools,areuseledfactorymodelandoffshore/landedlabor,Wiproisabletoprovidesolidexpertiseatanexcellentprice.Itisalsoinvestinginpreconfiguredtemplates,morethan700processmapsthatincludekeyperformanceindicators,andRDStoreducethetotalcostofimplementation.ClientsgenerallyfindthatWiproisabletomeetorexceedtheirtechnicalneeds,anditsprojectteamsingeneralpossessstrongtechnicalandSAPapplicationcapabilities.CommitmentandflexibilityClientsreportthatWiproconsultantsshowgreatcommitmentandflexibilitytodelivertheproject,despiteallodds.Theydisplayastrongpartnershipapproachtohelpclientsreachtheirgoals,includingcreativeandpredictablepricing.InvestmentsinnewertechnologiesWiprocontinuestobealeadingpartnerfornewerSAPproductsandtechnologies.IthasanaboveaveragetrackrecordinconsultingandimplementingprojectsandproofsofconceptinHana(includingSuiteonHana),hybris,SAPmobiletechnologies

andAriba.IthasinvestedinmanagedcloudasaserviceandnowofferssubscriptionbasedindustrysolutionsontheHanaplatformforthemining,chemicalsandwaterindustries.Inaddition,WiproisSAP'spartnerfortheRiverDefinitionLanguage(RDL)development,anewlanguageforbuildingnativeHanaapplications.

Cautions

BusinessknowledgeWhileresourcesfromWiproConsultingServicesareknowledgeableaboutbusinessprocessesandhowtheyareexpressedinSAP,clientsnoticethatWipro'soffshoredeliveryresourcesneedtoscaleupintheirbusinessprocessunderstandingandindustryandfunctionaldepth.ProactiveguidanceClientscontinuetonoticethatWiprotendstobeshyaboutofferingadviceandinsteadismorecomfortableexecutingdecisionsandsolvingtechnicalproblems.GivenitsvastexperienceinconsultingandimplementingSAP,clientswouldliketoseeWiprobemoreproactiveinproposingalternativestobusinessdesignrequirementsandapproaches,andchallengingclients'decisionsProjectplanningandcommunicationsClientsnotethatWiprocanimproveonprojectplanningandcommunications.AfewcommentedthattheywouldliketoseeWiproconductamorethoroughanddetailedscopingoftheprojecteffortanddeliverablesattheoutsetofaproject,andcommunicateinamoretimelyfashion,especiallywhenthingsdonotgosmoothly.

VendorsAddedandDroppedWereviewandadjustourinclusioncriteriaforMagicQuadrantsandMarketScopesasmarketschange.Asaresultoftheseadjustments,themixofvendorsinanyMagicQuadrantorMarketScopemaychangeovertime.Avendor'sappearanceinaMagicQuadrantorMarketScopeoneyearandnotthenextdoesnotnecessarilyindicatethatwehavechangedouropinionofthatvendor.Itmaybeareflectionofachangeinthemarketand,therefore,changedevaluationcriteria,orofachangeoffocusbythatvendor.

AddedEYhasbeenaddedbecauseitmeetstheinclusioncriteria.

DroppedCGIandFujitsuweredroppedbecausetheydonotmeettheinclusioncriteriaforrevenue.

InclusionandExclusionCriteriaThecriteriaforinclusionofserviceprovidersfortheMagicQuadrantarebasedonacombinationofquantitativeandqualitativemeasures.

QuantitativeCriteriaProvidersmusthaveaminimumof$250millioninrevenue(estimatedforfiscalyear2013)inworldwideSAPimplementationservices.SAPimplementationservicerevenuemustbederivedfromclientsinatleastthreeofthefourregions:NorthAmerica,EMEA,LatinAmericaandAsia/Pacific(includingJapan).Nomorethan80%oftherevenueshouldbederivedfromthelargestregion.Aminimumof$50millioninrevenue(estimatedforfiscalyear2013)mustbederivedfromthesecondlargestregion.

QualitativeCriteriaClientinterestinspecificSAPserviceproviders,asrevealedbyGartneranalysts'interactionswithenterprisebuyersand/orGartneranalysts'opinionontheattractivenessofspecificproviderstoGartnerenterpriseclientsOverallmarketinterestinandvisibilityoftheprovider,determinedbyseriousconsiderationforselectionfromenterpriseclientsAbilitytoprovideconsultingandsolutionimplementationservicesacrossmultipleSAPmodulesandwithmultiplecompetencies

EvaluationCriteriaAbilitytoExecuteGartnerevaluatesserviceprovidersontheirAbilitytoExecuteandtheirCompletenessofVisionasperthedefinitionsbelow.Whenthetwosetsofcriteriaareevaluatedtogether,theresultinganalysisprovidesaviewofhowwelltheproviderperformsaspectrumofservicescomparedwithitspeersandhowwellitispositionedforthefuture.

FormoreinformationonGartner'sMagicQuadrantresearchmethodology,refertoourResearchMethodologiesontheGartnerwebsiteand/orreview"HowGartnerEvaluatesVendorsandMarketsinMagicQuadrantsandMarketScopes."

Gartneranalystsevaluatetechnologyprovidersonthequalityandefficacyoftheprocesses,systems,methodsorproceduresthatenableITproviderperformancetobecompetitive,efficientandeffective,andtopositivelyimpactrevenue,retentionandreputation.Ultimately,technologyprovidersarejudgedontheirabilityandsuccessincapitalizingontheirvision.

ProductorService:Thiscriterionassessescoreservicesthatareofferedbytheproviderandthatcompetein/servethedefinedmarket.Thisincludescurrentservicecapabilities,quality,skills,andsoon.Subcategoriesinclude:

BreadthanddepthofcapabilitiesinthefullportfolioofSAPapplicationsCapabilitiesinbusiness/processconsultingandindustryknowledgeCapabilitiesinotherkeydeliverysuccessfactors:projectmanagement,changemanagement,communication,andsoonDemonstratedtrackrecordinsuccessfullyexecutinglargecomplexglobalengagements

OverallViability:Viabilityincludesanassessmentoftheoverallorganization'sfinancialhealthandthefinancialandpracticalsuccessofthebusinessunit,andthelikelihoodoftheindividualbusinessunittocontinuetoinvestintheserviceandcontinuetooffertheservice,advancingthestateoftheartwithintheorganization'sportfolioofservices.SpecificassessmentincludesthesizeandgrowthoftheSAPimplementationbusiness.

SalesExecution/Pricing:Thiscriterionassessestheserviceprovider'scapabilitiesinallpresalesactivitiesandthestructurethatsupportsthem.Theseincludedealmanagement,pricingandnegotiation,presalessupport,andtheoveralleffectivenessofthesaleschannel.Subcategoriesinclude:

PricingstrategyandalternativepricingmodelsCustomerfeedbackonvalueformoney

MarketResponsiveness/TrackRecord:Thiscriterionassessesthevendor'sabilitytorespond,changedirection,beflexibleandachievecompetitivesuccessasopportunitiesdevelop,competitorsact,customerneedsevolve,andmarketdynamicschange.Thiscriterionalsoconsiderstheprovider'shistoryofresponsivenessandabilitytoquicklybuildcapabilitiestosuccessfullyimplementnewSAPproducts(cloud,mobilityandHana)andinnewmarkets(emergingcountriesandnewindustries)

CustomerExperience:Thiscriterionassessestherelationships,productsandservices/programsthatenableclientstobesuccessfulwiththeirSAPprograms.ThiscriterionalsoconsidersclientfeedbackonoverallexperienceworkingwiththeSAPapplicationserviceprovider.

Operations:Thiscriterionassessestheabilityoftheorganizationtomeetitsgoalsandcommitments.Factorsincludethequalityoftheorganizationalstructure,abilitytomanageutilizationandattrition,tools,methodologies,knowledgemanagementsystems,trainingprograms,globalpresence,globaldeliverycenters,centersofexcellence,andothervehiclesthatenabletheorganizationtooperateeffectivelyandefficientlyonanongoingbasis.

Table1.AbilitytoExecuteEvaluationCriteria

Criteria Weight

ProductorService High

OverallViability Medium

SalesExecution/Pricing Medium

MarketResponsiveness/TrackRecord Medium

MarketingExecution NoRating

CustomerExperience High

Operations Medium

Source:Gartner(July2014)

CompletenessofVisionGartneranalystsevaluatetechnologyprovidersontheirabilitytoconvincinglyarticulatelogicalstatementsaboutcurrentandfuturemarketdirection,innovation,customerneeds,andcompetitiveforcesandhowwelltheymaptotheGartnerposition.Ultimately,technologyprovidersareratedontheirunderstandingofhowmarketforcescanbeexploitedtocreateopportunityfortheprovider.

MarketUnderstanding:Thiscriterionassessestheabilityoftheprovidertounderstandbuyers'needsandtranslatetheseneedsintoproductsandservices.Vendorsthatshowthehighestdegreeofvisionlistenandunderstandbuyers'wantsandneeds,andtheycanshapeorenhancethosewantswiththeiraddedvision.Subcategoriesincludetheserviceprovider'sknowledgeandarticulationofkeymarketdirectionandtrends,andtheserviceprovider'sreputationasathoughtleader.

MarketingStrategy:Thiscriterionassessesaclear,differentiatedsetofmessagesthatareconsistentlycommunicatedthroughouttheorganizationandareexternalizedviacommunications,advertising,customerprogramsandpositioningstatements.

SalesStrategy:Thiscriterionassessesthestrategyforsellingservices,whichusestheappropriatenetworkofdirectandindirectsales,marketing,service,andcommunicationsaffiliatesthatextendthescopeanddepthofmarketreach,skills,expertise,technologies,servicesandcustomerbase.Subcategoriesinclude:

Serviceprovider'sstrategiesforpartnershipsandalliancesAccountmanagementandvisionforcreatingnewand/oradditionalSAPservicebusiness

Offering(Product)Strategy:Thiscriterionassessesaserviceprovider'sapproachtoSAPimplementationservicedevelopmentanddeliverythatemphasizesdepthandbreadthofcapabilities,differentiation,andmethodologiesastheymaptocurrentandfuturerequirements,suchasenhancements/extensionstoSAPproducts,innovativeusecasesforHanaandmobility,benefitrealization,andcontinualinvestmentsintomakingdeliveryspeedier,lesscostlyandwithreducedrisks.

Vertical/IndustryStrategy:Thiscriterionassessesthetechnologyprovider'sstrategytodirectresources,skillsandofferingstomeetthespecificneedsofindividualmarketsegments,includingverticals.Thisincludesvertical,industryandprocessinvestments,asrevealedbydedicatedresources,trainingandrelatedtemplates/preconfiguredsolutions/processmapsandotherintellectualpropertydevelopmentinselectedverticals,industriesandprocesses.

Innovation:Thiscriterionassessesthedirect,related,complementaryandsynergisticlayoutsofresources,expertiseorcapitalforinvestment,consolidation,defensiveorpreemptivepurposes.ItalsoincludesreputationasaninnovatorandcoinnovationactivitieswithSAP.

GeographicStrategy:Thiscriterionassessestheprovider'sstrategytodirectresources,skillsandofferingstomeetthespecificneedsofgeographiesoutsidethe"home"ornativegeography,includingglobaldeliverylocations,eitherdirectlyorthroughpartners,channelsandsubsidiaries,asappropriateforthatgeographyandmarket.

Table2.CompletenessofVisionEvaluationCriteria

EvaluationCriteria Weighting

MarketUnderstanding High

MarketingStrategy Medium

SalesStrategy Medium

Offering(Product)Strategy Medium

BusinessModel NoRating

Vertical/IndustryStrategy Medium

Innovation Medium

GeographicStrategy Medium

Source:Gartner(July2014)

QuadrantDescriptionsLeadersLeadersareperformingwelltoday,gainingtractionandmindshareinthemarkettheyhaveaclearvisionofmarketdirectionandareactivelybuildingcompetenciestosustaintheirleadershippositioninthemarket.Theplayersinthisquadrantgenerallyhaveaglobalclientbase,atrackrecordofimplementingcomplexSAPprogramsgloballythatsupportbusinesstransformation,andwellbalancedbusiness,processandindustryconsultingandimplementationcapabilitiesthataresupportedbyrigoroustoolsandmethodologies.

ChallengersChallengersexecutewelltodayfortheportfolioofworkselected,buttheyhavealessdefinedviewofmarketdirection.Consequently,theseserviceprovidersarethe"upandcomers"ofthefuture.Vendorsinthisquadrantgenerallyhavesomegapsinconsultingorothercapabilities,sales,marketing,innovation,geographicpresenceorofferingstrategy.

VisionariesVisionariesarticulateimportantmarkettrendsanddirection.Theyhaveavisionforchangingmarketrules,buttheyarenotinapositiontofullydeliverandconsistentlyexecute.

NichePlayersNichePlayersfocusonafewsegmentsofthemarket,suchascertaingeographies,verticalindustries,clientsegmentsorfunctionalareas.Theirabilitytoexecuteislimitedtothesefocusareasand,therefore,isassessedaccordingly.Theirabilitytoinnovateisalsoaffectedbythisnarrowfocus.Manyoftheprovidersinthissegmentwereratedhighlyforcustomersatisfaction,andmanycanbeconsideredtobeleadingplayerswithintheirnichemarketfocus.NichePlayersneedtoincreasetheirgeographicsalesanddelivery,aswellasincreaseoverallbreadthanddepthofcapabilities,innovationandbenchstrength.

ContextAlargeserviceecosystemofover7,400servicesandchannelpartnerssupportsSAP'scustomersandhelpsitsellintoorganizations.Needlesstosay,the17serviceprovidersincludedinthisMagicQuadrantmakeupasmallfractionofthethousandsofserviceprovidersthatimplementSAP.Manycapableprovidersarenotincludedinthisstudyduetoourinclusioncriteriaandmethodology.Theseinclude(butarenotlimitedto)ABeamConsulting,BluefinSolutions,Bristlecone,CGI,Ciber,ClarkstonConsulting,DellServices,EpiUse,Fujitsu,HitachiConsulting,Igate,KPMG,Keneos,Keytree,L&TInfotech,TechMahindra,NGAHumanResources,SitaCorp,Softtek,KPIT,TEKsystemsandYashTechnologies.MarketGuides,CoolVendorsandHypeCyclereportsfeaturesmallerand/ornicheSAPserviceprovidersthatmaybeabetterfitforspecificSAPimplementationprojects,dependingontheSAPmodule,resourcingobjectives,sizeofprojectandotherfactors.

ThisMagicQuadrantanalyzesthelargestprovidersofSAPimplementationservices.TherelativepositioningofvendorsinthisMagicQuadrantisbasedonGartner'sstandardMagicQuadrantmethodology.Weanalyzeconsultingandsystemintegrationprojectsthattypicallyrequireablendofprocess,industry,SAPapplicationandtechnology,andprogramandprojectmanagementskills.

Whenconsideringimplementationpartnersforarequestforinformationorrequestforproposal,clientsareadvisednottosimplyselectserviceprovidersintheLeadersquadrant.Allselectionrequirementsareenterprisespecificconsequently,vendorsintheChallengers,VisionariesorNichePlayersquadrantsmayprovetobemoreappropriatefortheirengagement.Forexample,eachproviderwillhaveadifferentdealsweetspot,reflectingthescaleofdealsinwhichitperformswell,itscultureandindustrycoverage,aswellasthematurityofserviceprovisionthatitsclientsvalue(see"Deal'SweetSpot'AnalysisAcceleratesServiceProviderEvaluationandSelection").Additionally,becausetheinclusioncriteriaintheMagicQuadrantresultintheanalysisofthemostestablishedprovidersintheSAPimplementationmarket,clientsshouldnotdisqualifyanypotentialcompetitors.OtherITservicesprovidersnotevaluatedinthisMagicQuadrantmaypresentbetteralternativesforyourbusinessrequirements.AGartneranalystcanhelpwithashortlistofthemostsuitablecandidatesbasedonclientrequirements.

ThisMagicQuadrantevaluatesonlytheconsultingandsystemintegrationcapabilitiesrequiredfordiscreteprojectworkandexcludesmultiyearcontractualengagementstypicalofoutsourcingagreements.

Forthisdocument,weobtained177referencestothe17leadingSAPserviceproviderstosupplement

ourviewsbasedondailyinteractionwithGartnerclientsandvendors.

MarketOverviewWhilegreatstrideshavebeenmadeinSAPimplementation,clientscontinuetostrugglewithageoldchallenges:

Howcanenterprisesimplementfasterandlessexpensively,withlessriskandmorepredictability?Howcanenterprisesensurethattheimplementationbringsaboutthebusinessbenefitspromisedinthebusinesscase?

Addedtotheseageoldissuesarenewopportunitiesandchallengestohelpclientswiththeirdigitaltransformation,enabledbytheeverexpandingSAPfamilyofnewandacquiredproductsandtechnologiessuchasHana,mobility,Ariba,hybris,Fiori,cloudandSaaS.

ServiceProvidersHaveSteppedUpInvestmentstoAddressOpportunitiesandChallengesWhiletheSAPservicemarketisalargeone,competitionisintensewithover7,400servicesandchannelpartnersintheecosystem.Serviceprovidersarefuriouslyinvestingtodifferentiatethemselvestowininthismarketplace.Serviceproviders'investmentsfordifferentiationthataddressthechallengesandopportunitiesintheSAPimplementationmarketinclude:

Capabilitiesandofferingsinnewproductsanddisruptivetechnologies:SIsdifferentiateoncapabilitiesinnewerproductsanddisruptivetechnologies,suchasinHana,hybris,SuccessFactorsandmobile.ThesenewproductsaredrivingaflurryofinvestmentactivitiesamongSIseagertogetinfrontofdemand,suchashiringand(re)trainingtalent,investinginnewusecasesandcentersofexcellence,puttingtogetherafullsetofofferingsfromassessmentandroadmapstomigrationfactories.Alternativedeliverymodels:SIsalsoinnovateonnewerdeliveryandconsumptionmodels,suchasfinancialreengineeringofbundledhardware,softwareandservicesintosubscriptionbasedbilling,knownasmanagedcloudasaservice(MCaaS).ExamplesincludeCapgemini'sOnePathandindustryspecificMCaaSofferingsbyNTTData(forexample,education),Infosys(forexample,oilfieldservices),Wipro(forexample,mining,waterandchemicals)andothers.AsaservicemodelsareparticularlyembracedbyserviceprovidersinHanaandmobilitytomakeiteasierandfasterforclientstobuyandconsumethesenewerSAPproductswithoutmakingalargecapitalinvestmentorhiringinhousestaffwiththerightskillsets.Forexample,HPhasanasaservicesolutionforHana,AccenturehasitssubscriptionbasedMarketingPerformanceSolutionbuiltonHana,EYismakinginvestmentsinanalyticsasaservice,andAtosoffersacloudbasedmobilitysolutionbasedonSAPMobilePlatform.Benefitrealization:Ontimeandonbudgetdeliverycontinuestobetheyardstickofsuccessformanyenterprises,butincreasingly,sophisticatedclientsaredemandingmeasurablereturns.MoreserviceprovidersincludingAccenture,Deloitte,HCL,IBMandInfosysarenowsteppinguptoofferbothmethodologyandfeeatriskcontractsthatmorelikelyleadtobenefitrealization.Businesscapabilities:Leadingserviceprovidersareinvestinginindustry,businessprocessandlocalknowledgetodifferentiatefromtheirmoretechnicallyorientedcompetitors.Indiacentricproviders,suchasCognizant,Infosys,TCSandWipro,arehiringconsultantswithspecificindustryexperienceandlocalconsultantsinspecificgeographies,inadditiontoacquisitionsinsomecases,forsuchcapabilities.Reusableassets:LeadingSIshaveinvestedheavilyinaccelerators,reusableassetsinindustryspecificorhorizontalnichefunctionalities,andpreconfiguredsolutions.SAPhasdevelopedaportfolioofRDSthatencompasseshighlytargetedfixedscopesolutionsthatcanbeimplementedquicklysoclientsreapbenefitsearly.SomeSIsincludingCSC,NTTData,InfosysandWiproarealsodevelopingRDStooffertotheirclients.LeadingserviceprovidersalsocoinnovatewithSAPordevelopapplicationsontopofSAPproductstoroundoutthestandardfunctionalitiesandmakethecombinedproductsabetterfittoclients'requirementsinaspecificsubverticalorprocess.ExamplesincludeInfosys'OilFieldServicessolution,HCLiMROandPwC's"GRCinabox."Toolsandautomation:Toolsandautomationcutcostsofimplementationandoftenindicateaserviceproviderfocusinthatparticularserviceoffering.ToolssuchasAccenture'sBOSSandDeloitte'sProcessXRayautomateprocessdiscovery,ofteneliminatinglengthyandoftenerroneousmanualgatheringofinformation,whileAtos'LiveTools,IBM'scloudbasedtraceabilitytoolforregulatoryreporting,Cognizant'sUpgradePlusandNTTData'sUptimizeraccelerateimplementationandreduceitscosts.WhilecommercialtoolssuchasPanayaexist,toolsbroughtbyserviceproviderstoaprojectaretypicallyincludedintheservicefees,andclientsdonotexplicitlypayfortheuseofthesetools.Localcapabilities:Clientsareincreasinglyexpectingmorelocalsupportandcapabilities.Indiacentricprovidersarerespondingbyactivelybuildinguptheirlocalconsultingcapabilitiesthroughbothhiringoflocalsandacquisitions.ExamplesincludeTCS'sacquisitionofParisbasedAlti,Infosys'acquisitionofLodestoneandCognizant'sacquisitionofGermany'sC1.

SAPImplementationIs,intheFinalAnalysis,aPeopleBusinessWhiletheadvantagesthatcomewithmethodologies,tools,automationandpreconfiguredsolutionsareveryreal,SAPimplementationis,inthefinalanalysis,apeoplebusiness.ThisMagicQuadrantevaluatestheproviders'institutionalstrengthsandcautionseveryprojectteamanditsteammembersfromanyonefirmvarybyexpertise,experience,peopleskillsandtemperament.Consistencyinqualityis,bydefinition,difficult.LeadingSIshaveamelioratedthisthroughtraining,enforceduseofcommontools,methodologiesandknowledgemanagementsystems,amongotherthings.ButasthisMagicQuadrantshows,consistencycontinuestobeachallenge,evenforthemostmatureSIs.ConsistencyisespeciallyproblematicinsmalleroremergingcountrieswherelocalresourcesarespottyandexperiencewithSAPimplementationisnotproven.Clientsareadvisedtoevaluateboththeinstitutionalcapabilitiesandthekeypeopleproposedfortheengagementwhenselectingimplementationpartners.

LeadingSIshavecontinuedtokeeptheirutilizationofresourcesespeciallyonshoreresourceshigh,whichhasbroughtaboutchallenges,suchasdifficultyinstaffingprojects,delaysinfindingprofessionalswiththerightskillsets(especiallyfornewerSAPproducts),andprojectattrition.Someleveragethecontractormarkettosupplementtheirownemployees,whichcanbeabooninthatthesecontractorsare

typicallyhighlyspecializedintheirfields,butthisapproachcanalsobeabigchallengebecausetheyarenotfamiliarwiththeSI'smethodologyandtools,andtheyhavelessvestedinterestinstayingontotheendoftheproject.ClientsareadvisedtoensuretheirchosenSIhastherightresourcesinplacewithinthetimeframerequiredandhaveincentivesinplacetoencouragestafftostaytotheendoftheengagementor,ataminimum,totheendofasignificantmilestone.

Withsomeexceptions,clientsaregenerallypleasedwiththe"hard"(forexample,applicationandtechnical)skillsdemonstratedbySIsbutfindmanyoftheSIs'"soft"skillssomewhatlimited.Changemanagement,communications,industryandbusinessprocessknowledge,businessacumenandprojectmanagementcontinuetobechallenges.ClientsareadvisedtoevaluatetheSIonthesefactorsandinsistonstrongcandidateswiththesesoftskillsinstaffingkeyroles.

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