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Gartner MQ for SAP Implementation Service Providers, Worldwide, 2014

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Gartner MQ for SAP Implementation Service Providers, Worldwide, 2014
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Magic Quadrant for SAP Implementation Service Providers, Worldwide 31 July 2014 ID:G00261880 Analyst(s): Susan Tan VIEW SUMMARY SAP has a large ecosystem of implementation service providers, but providers' investment focus and strengths vary. Buyers of SAP implementation services can use this Magic Quadrant to identify service providers for a broad range of global SAP implementation services across multiple SAP solutions. Market Definition/Description The aim of this Magic Quadrant is to evaluate service providers for a broad range of implementation services across multiple SAP applications and technologies. Buyers of SAP implementation services can use this Magic Quadrant to help identify and evaluate the right providers of a broad range of SAP services for their organization. This Magic Quadrant is not suitable for clients looking for bestofbreed service providers for a specific module, application or industry. Gartner documents covering CRM services, supply chain services, testing services or business intelligence (BI) services are bettersuited for such purposes. In addition, Gartner publishes a companion document, "Magic Quadrant for SAP Application Management Service Providers, Worldwide," to help clients identify leading providers of managed services for their SAP productive systems. There are over 3,200 service partners and over 4,200 channel partners/distributors in the SAP ecosystem worldwide. This Magic Quadrant assesses 17 of the leading service providers. Each provider has its own strengths and weaknesses, and each is more suitable for some types of engagements and some clients/industries than others. Many capable providers, not included in this study because of our inclusion criteria and methodology, may be a better fit for specific SAP implementation projects, depending on module, resourcing objectives, size of project, geography and other factors. Clients are advised to talk to a Gartner analyst to narrow down a shortlist of bestfit service providers. In this Magic Quadrant, we evaluate service providers for SAP programs that include: Ability to provide a comprehensive set of consulting, system integration and implementation services across multiple SAP applications, products and technologies Ability to service multiple industries (see Note 1) in multiple geographies (see Note 2) For this report, we use the following definitions: Consulting services are advisory services designed to help companies analyze and improve the effectiveness of business operations and technology strategies. These go beyond technical blueprinting to include operatingmodel changes, business process improvement, standardization and harmonization of processes, and so forth when they are part of the SAP program. They also include program management, change management and governance. System integration and implementation services include configuration, customization and enhancement of existing SAP functionalities; application, report and interface development; and data loading, rollout, integration, testing and training services. Methodology Gartner evaluates service providers on their Ability to Execute and their Completeness of Vision. Evaluation is informed by a comprehensive set of primary and secondary research activities, including 177 client references supplied by the evaluated service providers; feedback from Gartner clients and insights from client inquiries throughout the year; a detailed vendor survey; briefings; and publicly available information. This research was peerreviewed by 14 other Gartner analysts; their views and comments were taken into account. In addition, this document was presented and defended at a Gartner Application Services Research Community session. For more details regarding the methodology, see the Evidence section. Magic Quadrant Figure 1. Magic Quadrant for SAP Implementation Service Providers, Worldwide ACRONYM KEY AND GLOSSARY TERMS BI business intelligence BPC business planning and consolidation BPO business process outsourcing CPG consumer packaged goods GRC governance, risk and compliance Hana SAP's inmemory HighPerformance Analytic Appliance MCaaS managed cloud as a service MII Manufacturing Integration and Intelligence MRO maintenance, repair and operations RDL River Definition Language RDS Rapid Deployment Solutions S&OP Sales and Operations Planning SaaS software as a service SI system integrator TCO total cost of ownership EVIDENCE Evaluation in this Magic Quadrant is informed by: Primary research — Facetoface and phone briefings with the 17 participating service providers in the Magic Quadrant. Primary research — Gartner inquiries and discussions conducted in the past 12 months with service providers and user organization clients. Primary research — Discussions with Gartner clients that generously provided impartial feedback on their service providers. Primary research — Feedback from 177 client references, submitted by the participating service providers, using online surveys and followup interviews with a subset of these references. Primary research — A detailed vendor survey covering revenue, staffing, geographic capabilities, industry and process assets, partnerships, joint initiatives, investments and other relevant information. Secondary research — Press releases and publicly available information, including company websites and financial reports. Other Gartner analysts — This document was peer reviewed by 14 other Gartner analysts; their views and comments were taken into account. In addition, this document was presented and defended at the 5 June 2014 Gartner Application Services Research Community session. NOTE 1 INDUSTRIES This Magic Quadrant addresses the capabilities of the included vendors in the following 22 industries: Financial services: Banking Financial services: Insurance Financial services: Other financial services Manufacturing: Oil and gas, chemicals, process and resource Manufacturing: Automotive Manufacturing: Aerospace and defense Manufacturing: Industrial discrete Manufacturing: High tech Manufacturing: Consumer goods Manufacturing: Other manufacturing Manufacturing: Life sciences Healthcare (Provider) Public sector
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  • 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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