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MagicQuadrantforSAPImplementation ServiceProviders,Worldwide 31July2014 ID:G00261880 Analyst(s): SusanTan VIEWSUMMARY

MagicQuadrantforSAPImplementation

ServiceProviders,Worldwide

31July2014ID:G00261880

Analyst(s):SusanTan

VIEWSUMMARY

SAPhasalargeecosystemofimplementationserviceproviders,butproviders'investmentfocusand

strengthsvary.BuyersofSAPimplementationservicescanusethisMagicQuadranttoidentifyservice

providersforabroadrangeofglobalSAPimplementationservicesacrossmultipleSAPsolutions.

MarketDefinition/Description

MarketDefinition/Description

TheaimofthisMagicQuadrantistoevaluateserviceprovidersforabroadrangeofimplementation

servicesacrossmultipleSAPapplicationsandtechnologies.BuyersofSAPimplementationservicescan

usethisMagicQuadranttohelpidentifyandevaluatetherightprovidersofabroadrangeofSAPservices

fortheirorganization.ThisMagicQuadrantisnotsuitableforclientslookingforbest­of­breedservice

providersforaspecificmodule,applicationorindustry.GartnerdocumentscoveringCRMservices,supply

chainservices,testingservicesorbusinessintelligence(BI)servicesarebetter­suitedforsuchpurposes.

Inaddition,Gartnerpublishesacompaniondocument,"MagicQuadrantforSAPApplicationManagement

ServiceProviders,Worldwide,"tohelpclientsidentifyleadingprovidersofmanagedservicesfortheirSAP

productivesystems.

Thereareover3,200servicepartnersandover4,200channelpartners/distributorsintheSAPecosystem

worldwide.ThisMagicQuadrantassesses17oftheleadingserviceproviders.Eachproviderhasitsown

strengthsandweaknesses,andeachismoresuitableforsometypesofengagementsandsome

clients/industriesthanothers.Manycapableproviders,notincludedinthisstudybecauseofourinclusion

criteriaandmethodology,maybeabetterfitforspecificSAPimplementationprojects,dependingon

module,resourcingobjectives,sizeofproject,geographyandotherfactors.Clientsareadvisedtotalktoa

Gartneranalysttonarrowdownashortlistofbest­fitserviceproviders.

InthisMagicQuadrant,weevaluateserviceprovidersforSAPprogramsthatinclude:

Abilitytoprovideacomprehensivesetofconsulting,systemintegrationandimplementation

servicesacrossmultipleSAPapplications,productsandtechnologies

Abilitytoservicemultipleindustries(seeNote1)inmultiplegeographies(seeNote2)

Forthisreport,weusethefollowingdefinitions:

Consultingservicesareadvisoryservicesdesignedtohelpcompaniesanalyzeandimprovethe

effectivenessofbusinessoperationsandtechnologystrategies.Thesegobeyondtechnical

blueprintingtoincludeoperating­modelchanges,businessprocessimprovement,standardization

andharmonizationofprocesses,andsoforthwhentheyarepartoftheSAPprogram.Theyalso

includeprogrammanagement,changemanagementandgovernance.

Systemintegrationandimplementationservicesincludeconfiguration,customizationand

enhancementofexistingSAPfunctionalities;application,reportandinterfacedevelopment;and

dataloading,rollout,integration,testingandtrainingservices.

Methodology

GartnerevaluatesserviceprovidersontheirAbilitytoExecuteandtheirCompletenessofVision. Evaluationisinformedbyacomprehensivesetofprimaryandsecondaryresearchactivities,including

177clientreferencessuppliedbytheevaluatedserviceproviders;feedbackfromGartnerclientsand

insightsfromclientinquiriesthroughouttheyear;adetailedvendorsurvey;briefings;andpublicly

availableinformation.Thisresearchwaspeer­reviewedby14otherGartneranalysts;theirviewsand

commentsweretakenintoaccount.Inaddition,thisdocumentwaspresentedanddefendedataGartner

ApplicationServicesResearchCommunitysession.Formoredetailsregardingthemethodology,seethe

Evidence section.

MagicQuadrant

Figure1.MagicQuadrantforSAPImplementationServiceProviders,Worldwide

MagicQuadrantforSAPImplementationServiceProviders,Worldwide ACRONYMKEYANDGLOSSARYTERMS BI businessintelligence

ACRONYMKEYANDGLOSSARYTERMS

BI

businessintelligence

BPC

businessplanningandconsolidation

BPO

businessprocessoutsourcing

CPG

consumerpackagedgoods

GRC

governance,riskandcompliance

Hana

SAP'sin­memoryHigh­Performance

AnalyticAppliance

MCaaS

managedcloudasaservice

MII

ManufacturingIntegrationand

Intelligence

MRO

maintenance,repairandoperations

RDL

RiverDefinitionLanguage

RDS

RapidDeploymentSolutions

S&OP

SalesandOperationsPlanning

SaaS

softwareasaservice

SI

systemintegrator

TCO

totalcostofownership

EVIDENCE

EvaluationinthisMagicQuadrantisinformedby:

Primaryresearch—Face­to­faceandphone

briefingswiththe17participatingserviceproviders

intheMagicQuadrant. Primaryresearch—Gartnerinquiriesand

discussionsconductedinthepast12monthswith

serviceprovidersanduserorganizationclients. Primaryresearch—DiscussionswithGartner clientsthatgenerouslyprovidedimpartialfeedback ontheirserviceproviders.

Primaryresearch—Feedbackfrom177client

references,submittedbytheparticipatingservice providers,usingonlinesurveysandfollow­up interviewswithasubsetofthesereferences. Primaryresearch—Adetailedvendorsurvey coveringrevenue,staffing,geographiccapabilities, industryandprocessassets,partnerships,joint initiatives,investmentsandotherrelevant information. Secondaryresearch—Pressreleasesandpublicly availableinformation,includingcompanywebsites andfinancialreports. OtherGartneranalysts—Thisdocumentwaspeer­

reviewedby14otherGartneranalysts;theirviews

andcommentsweretakenintoaccount.In addition,thisdocumentwaspresentedand

defendedatthe5June2014GartnerApplication

ServicesResearchCommunitysession.

NOTE1

INDUSTRIES

ThisMagicQuadrantaddressesthecapabilitiesofthe

includedvendorsinthefollowing22industries:

Financialservices:Banking

Financialservices:Insurance

Financialservices:Otherfinancialservices

Manufacturing:Oilandgas,chemicals,processand

resource

Manufacturing:Automotive

Manufacturing:Aerospaceanddefense

Manufacturing:Industrialdiscrete

Manufacturing:Hightech

Manufacturing:Consumergoods

Manufacturing:Othermanufacturing

Manufacturing:Lifesciences

Healthcare(Provider)

Publicsector

Source:Gartner(July2014) VendorStrengthsandCautions Accenture

Source:Gartner(July2014)

VendorStrengthsandCautions

Accenture

AccenturehasthelargestSAPservicepracticeglobally,with38,500professionals,ofwhomaboutathird

areincost­competitivelocationswithinitsGlobalDeliveryNetwork.Inthelast12months,itdelivered

SAPservicestomorethan1,000clientsgloballyandisagainthesystemintegrator(SI)partnerdriving

thehighestSAPcollaborativerevenueglobally.Implementationaccountedforanestimated66%ofits

SAPbusinessgloballyin2013,withtherestcomingfrominfrastructureservices,hostingandapplication

managementservices.In2013,AccenturederiveditsSAPimplementationbusinessfrom16outofthe

22industriesdefinedinthisMagicQuadrant,withthemainonesbeingoilandgas/chemicals/resources,

consumergoods,energyandutilities,publicsector,hightech,retail,andminingandconstruction,butit

hasarepositoryof20,000processmodelsacross20SAPindustrysolutions.Accenturederivesthe

majorityofitsSAPimplementationbusinessfromcompanieswithmorethan10,000employees.

Accentureinvestsin20SAPindustriesbutprioritizesthefollowinggrowthindustries:financialservices,

retailandtelecommunications.

Strengths

Scaleandglobalreach—AccenturehasdeepandbroadcapabilitiesspanningtheSAPportfolioof

productsandtechnologies,acrossindustries,geographiesandservicelines.Ithasagoodspreadof

consultantsacrossdifferentregions,anditisaparticularlygoodfitforlargeglobalprogramsthat

requireglobalreachandonshore,nearshoreandoffshoreresources.

StrengthsandinvestmentsinnewSAPtechnologies—Accenturecontinuestoinvestin

solutionsandcapabilitiesinnewerSAPtechnologies,includingHana,mobilityandcloud.Itisalso

thelargestandmostexperiencedpartnerforAriba,SuccessFactorsandhybrisbecauseofits

partnershipwiththesesoftwarevendorsbeforetheiracquisitionbySAP.AccentureandSAP

BusinessSolutionsGroup,therecentco­innovationwithSAP,currentlyhavetwosolutionsinthe

market:aMarketingPerformanceSolutionbyAccentureandSAPforchiefmarketingofficersand

UpstreamProductionOperationsbyAccentureandSAPfortheoilandgasindustry.Bothsolutions

arebuiltonHana.Inaddition,AccenturedeliversitsownHRAuditandCompliancesoftwareasa

serviceontheSAPHanaCloudPlatform.

Deliverypredictabilityandleadership—Accenturebringsitsprovenmethodologies;astrict

disciplineandgovernance;abroadrangeoftools,frameworks,industryprocessmapsand

accelerators;andanindustrializedprocesstoitsengagements,ensuringahighlevelofpredictability

forthemostcomplexprograms.ClientsvalueAccenture'sabilitytoprovideleadership,discipline,an

independentpointofview,bestpracticesandstakeholderalignment.

Cautions

Lesssuitedtosmallerclients—Accenture'sSAPpracticemostlyservesthelargestenterprisesin

eachcountry.Smallandmidsizeclientsmaynotgettheresourceavailabilityandattentionthey

needfromAccenture.

Resourcinggapsandinconsistency—EvenwithAccenture'sscale,someclientsinsmaller

marketshavereportedchallengesinstaffingandfindingtherightresourcesfortheengagement.

Similarly,resourcequalityandexperienceforthesamerolescanvarywidelybycountry.

Premiumprice—ClientscontinuetoperceiveAccenture'spricing,especiallyinsubsequentrollout

phases,tobehigh.

Communications

Utilitiesandenergy

Wholesale

Retail

Services

Travelandtransportation

Agriculture,miningandconstruction

Education

Notforprofit

NOTE2

COUNTRIESPERREGION

ThisMagicQuadrantaddressesworldwidecapabilities

oftheincludedvendorsinthefollowingregions:

NorthAmerica:UnitedStatesandCanada

LatinAmerica:Argentina,Bolivia,Brazil,Chile,

Colombia,CostaRica,Ecuador,Guatemala,

Mexico,Panama,Peru,UruguayandVenezuela

Asia/PacificandJapan:Australia,Bangladesh,

China,HongKong,India,Indonesia,Japan,South

Korea,Malaysia,NewZealand,Pakistan,the

Philippines,Singapore,SriLanka,Taiwan,Thailand

andVietnam

EMEA:Austria,Algeria,Azerbaijan,Bahrain,

Belarus,Belgium,Bulgaria,Cameroon,Côte

d'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

AbilitytoExecute

Product/Service:Coregoodsandservicesofferedby

thevendorforthedefinedmarket.Thisincludes

currentproduct/servicecapabilities,quality,feature

sets,skillsandsoon,whetherofferednativelyor

throughOEMagreements/partnershipsasdefinedin

themarketdefinitionanddetailedinthesubcriteria.

OverallViability:Viabilityincludesanassessmentof

theoverallorganization'sfinancialhealth,thefinancial

andpracticalsuccessofthebusinessunit,andthe

likelihoodthattheindividualbusinessunitwillcontinue

investingintheproduct,willcontinueofferingthe

productandwilladvancethestateoftheartwithinthe

organization'sportfolioofproducts.

SalesExecution/Pricing:Thevendor'scapabilitiesin

allpresalesactivitiesandthestructurethatsupports

them.Thisincludesdealmanagement,pricingand

negotiation,presalessupport,andtheoverall

effectivenessofthesaleschannel.

MarketResponsiveness/Record:Abilitytorespond,

changedirection,beflexibleandachievecompetitive

successasopportunitiesdevelop,competitorsact,

customerneedsevolveandmarketdynamicschange.

Thiscriterionalsoconsidersthevendor'shistoryof

responsiveness.

MarketingExecution:Theclarity,quality,creativity

andefficacyofprogramsdesignedtodeliverthe

organization'smessagetoinfluencethemarket,

promotethebrandandbusiness,increaseawareness

oftheproducts,andestablishapositiveidentification

withtheproduct/brandandorganizationintheminds

ofbuyers.This"mindshare"canbedrivenbya

combinationofpublicity,promotionalinitiatives,

thoughtleadership,wordofmouthandsalesactivities.

CustomerExperience:Relationships,productsand

services/programsthatenableclientstobesuccessful

withtheproductsevaluated.Specifically,thisincludes

thewayscustomersreceivetechnicalsupportor

accountsupport.Thiscanalsoincludeancillarytools,

customersupportprograms(andthequalitythereof),

availabilityofusergroups,service­levelagreements

andsoon.

Operations:Theabilityoftheorganizationtomeet

itsgoalsandcommitments.Factorsincludethequality

oftheorganizationalstructure,includingskills,

experiences,programs,systemsandothervehicles

thatenabletheorganizationtooperateeffectivelyand

efficientlyonanongoingbasis.

CompletenessofVision

MarketUnderstanding:Abilityofthevendorto

understandbuyers'wantsandneedsandtotranslate

thoseintoproductsandservices.Vendorsthatshow

thehighestdegreeofvisionlistentoandunderstand

buyers'wantsandneeds,andcanshapeorenhance

thosewiththeiraddedvision.

MarketingStrategy:Aclear,differentiatedsetof

messagesconsistentlycommunicatedthroughoutthe

organizationandexternalizedthroughthewebsite,

Atos

Atoshasnearly10,700SAP­skilledprofessionals.Anestimated42%ofitsglobalSAPrevenueisderived

fromimplementationservices;theremainder(58%)isderivedfromapplicationmanagementand

infrastructureservices.AboutathirdofitsSAPprofessionalsarelocatedinglobaldeliverycenters

managedgloballyaspartofAtosglobalprofitandloss.In2013,AtosderiveditsSAPimplementation

businessfrom16outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeing

industrial,publicsector,energyandutilities,retail,andoilandgas.AtosderivesthemajorityofitsSAP

implementationbusinessfromlargecompanieswithmorethan10,000employees.

Atosfocusesitsinvestmentsinthefollowingkeyindustries:healthcare,processindustry,chemical,retail

andbanking.

Strengths

StrongpresenceinEurope—OneoftheleadingSIsinEurope,Atosisparticularlystrongin France,Germany,Benelux,theU.K.,andCentralandEasternEurope,anditisexpandingintothe MiddleEastandNorthAfrica,SouthAfrica,theCommonwealthofIndependentStates,Brazil,

MexicoandChina.Atosderivesnearly80%ofitsSAPservicerevenuefromEMEA.ItsEuropean­

centricheritageandpresencecontinuetodefineittothisday.

Industryfocus—Atosfocusesonasetofindustriesthatinclude:manufacturing,retail,utilities,

publicsector,automotive,chemicals,healthcareandfinancialservices.Atosactivelypartnerswith

SAPtodevelopnewsolutionsbasedontheirday­to­dayinteractionswiththeirclients,including

Atos'largestaccount,Siemens.

Expertiseinselectedofferings—Atoshasinvestedinandhasmorethan10yearsofexperience

withlargeandcomplexconsolidationandharmonizationprograms,mostlyforEurope­

headquarteredclientswithglobalreach.ItisaleadingproviderinapplyingSAPsustainability

solutionsforenergyandsustainableoperations.Itisakeyimplementationpartnerforenterprise

mobileproducts,aswellasdevelopingmobileappstoextendSAPproducts.Inaddition,Atoshasa

cloudfocusthroughCanopy—itsdedicatedcloudcompany—thatoffersinfrastructureasaservice,

aswellasbundledlicense/service/hostingcloudsolutions(forexample,anHRforFinancialServices

cloudsolution).AtosisacertifiedHanaEnterpriseCloudprovider.

Cautions

advertising,customerprogramsandpositioning

statements.

SalesStrategy:Thestrategyforsellingproductsthat

usestheappropriatenetworkofdirectandindirect

sales,marketing,service,andcommunication

affiliatesthatextendthescopeanddepthofmarket

reach,skills,expertise,technologies,servicesandthe

customerbase.

Offering(Product)Strategy:Thevendor'sapproach

toproductdevelopmentanddeliverythatemphasizes

differentiation,functionality,methodologyandfeature

setsastheymaptocurrentandfuturerequirements.

BusinessModel:Thesoundnessandlogicofthe

vendor'sunderlyingbusinessproposition.

Vertical/IndustryStrategy:Thevendor'sstrategy

todirectresources,skillsandofferingstomeetthe

specificneedsofindividualmarketsegments,including

verticalmarkets.

Innovation:Direct,related,complementaryand

synergisticlayoutsofresources,expertiseorcapital

forinvestment,consolidation,defensiveorpre­

emptivepurposes.

GeographicStrategy:Thevendor'sstrategytodirect

resources,skillsandofferingstomeetthespecific

needsofgeographiesoutsidethe"home"ornative

geography,eitherdirectlyorthroughpartners,

channelsandsubsidiariesasappropriateforthat

geographyandmarket.

Globalcoverage—AtoslagsbehinditsTier1competitorsoutsideitsmainmarketsinEurope.Its

brandandpresenceinNorthAmerica,AsiaandLatinAmericaislimited.However,itisimproving andcurrentlyhassevenoffshoreandnearshoreglobaldeliverycentersandhaslocalSAPpresence

in35countries.InAtos'mainmarketsinEurope(Benelux,France,GermanyandtheU.K.),itfaces

increasingcompetitionfromthelargeIndianserviceprovidersofferinglower­costoptions.

Lackofmindshareoutsideproductmanufacturingindustries—AlthoughAtoshasstrong

SAPapplicationsandtechnicalcapabilities,ithasnotbeenverysuccessfulingainingmindshare

broadlyasaleadingSAPserviceproviderorasaninnovativeprovideroutsideofEurope.Atosisnot

wellrepresentedincompetitiveshortlistsoutsidetheproductmanufacturingindustries.

Vision,consultingcapabilitiesandbusinessexpertise—WhileAtos'SAPapplicationand

systemintegrationexpertiseareratedhighlybyclients,clientsscoreAtosbelowaverageonits

visionandthoughtleadership,consulting/advisoryandprocessimprovementcapabilitiesand

businessacumen.

Capgemini

Capgeminihas14,870SAP­skilledprofessionals.Anestimated65%ofitsglobalSAPbusinessisderived

fromimplementation,and35%isderivedfrominfrastructureservices,hostingandapplication

management.Nearly40%ofitsSAPprofessionalsarelocatedinglobaldeliverycenters.Capgeminihad

morethan1,300SAPserviceclientsworldwidein2013.CapgeminideriveditsSAPimplementation

businessfrom21outofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingoil

andgas,consumergoods,energyandutilities,andservices.CapgeminiderivesitsSAPimplementation

businessfromcompaniesofallsizes.

Capgeminifocusesitsinvestmentsinthefollowingindustries:retail/consumerpackagedgoods(CPG),oil

andgas,utilities,manufacturing,publicsector,andfinancialservices.

Strengths

Heavyinvestmentsinnewertechnologies—Capgeminihasmadesignificantinvestmentsin SAP'snewertechnologies,whichhaveresultedinCapgeminiboastingatrackrecordofdoing/having

done10SuiteonHanaprojects(fivelive),30BWonHanaprojects,numerousnewapplicationson

Hana,amobileDirectStoreDeliveryapplicationco­innovationwithSAP,andproofsofconceptwith

HanaandHadoopforBigData.

Alternativedeliveryandpricing—Capgeminicontinuestoinnovateondeliveryandpricing

modelsthatofferclientsdifferentalternativestobuyingandpayingforSAPsystems.Itsmanaged

cloudasaservice(MCaaS)offering,branded"OnePath,"includesseveralofitspreconfigured

industrysolutionsthatareofferedasabundleofsoftwareandservices—SAPlicense,design,

implementation,infrastructureservices,applicationmanagement,hostingandbusinessprocess

outsourcing(BPO)—andthatcanbeboughtonasubscriptionbasis.TheseOnePathsolutionsare

builtonSuiteonHana.

SAPapplicationexpertiseandrapidimplementation—Clientsaregenerallyimpressedwith

Capgemini'sSAPapplicationandproductexpertise,seniorleadershipengagement,andrapid

implementation.

Cautions

LimitedcoverageandclientbaseinAsia/Pacific—Capgemini'straditionalregionisEMEA,

whichcontinuestoprovidemorethanhalfofitsbusiness.ItisgrowingrapidlyinNorthAmerica,

whichnowmakesupoverathirdofitsbusiness.ItsacquisitionofCPMBraxishasimprovedits

presenceanddeliverycapabilitiesinLatinAmerica,particularlyinBrazil.However,itslocalpresence

inAsia/Pacificiscurrentlylimited,despiteachievingtriple­digitgrowthandrecentlyannouncingthe

formationofadedicatedAsia/Pacificbusinessunitdesignedtoaccelerateitsgrowthfurther.

Currently,themajorityofitsconsultantsbasedinAsia/Pacificareinglobaldeliverycentersservicing

EuropeanandNorthAmericanclients.

Inconsistencyindeliveryquality—WhileCapgeminihasinvestedinmakingitsdeliverymore

globallyconsistentthroughitsiSAPmethodology,globalgovernanceandcommontools,delivery

qualityvarieswidely,withsomeclientsreportinghighlevelsofsatisfactionwhileotherswereless

thanthrilledwiththeirprojectteamperformance.Clientsarecautionedtobediligentinchecking

theprojectteam'squalifications.

Healthcare,educationandinsurance,Ariba,andhybris—Capgeminihasrelativelyless

experienceandexpertiseoutsidethefivekeysectorsofretail/CPG,utilities,manufacturing,public

sectorandbanking.Capgemini'sexperienceinAribaandhybrisisalsomorelimitedthanits

competitors',althoughitisrapidlybuildingitshybriscapability.

Cognizant

Cognizantisoneofthefastest­growingITservicesfirms.ItisbasedintheU.S.butknownforitsIndia­

basedoffshoremodel.Cognizanthasmorethan7,700SAP­skilledprofessionals.Anestimated57%ofits

globalSAPbusinessisderivedfromimplementation;theother43%isfrominfrastructureservices,

hostingandapplicationmanagement.About70%ofitsSAPprofessionalsarelocatedinglobaldelivery

centers.In2013,CognizantderiveditsSAPimplementationbusinessfrom17outofthe22industries

definedinthisMagicQuadrant,withthemainonesbeingmanufacturing,retail,consumergoods,life sciences,andutilitiesandenergy.CognizantderivesthemajorityofitsSAPimplementationbusiness

fromcompanieswithmorethan10,000employees.

Cognizantfocusesitsinvestmentsinthefollowingindustries:lifesciencesandhealthcare,retailand

hospitality,manufacturingandlogistics,consumergoods,financialservices,communication,technology,

andmedia.

Strengths

Stronggrowth—Cognizant'sSAPpracticehasconsistentlygrowninthe20%­to­30%rangeover

thelastfewyears,aresultofstrongsales,accountmanagementanddeliverycapabilities.In2013,

growthinEuropewasespeciallystrong;ithasgrownorganicallyandthroughacquisitions(suchas

theacquisitionofGermany­basedC1Group).StronggrowthhasenabledCognizanttoinvestinits

SAPpractice(suchasinnovationcenters,training,toolsandcapabilitiesinthenewerSAPfamilyof

products),aswellastoattractgoodtalent.Ittargetsspecificindustriesanddomainsfor

investments,anditcontinuestocapitalizeonitscost­effectiveoffshoredeliverymodelandstrength

intestingservices.

Valueformoney—WhileCognizantisnottheleastexpensiveserviceprovider,clientscite Cognizantasprice­competitiveandagoodvalueformoney.Cognizant'shighlyoffshore­leveraged businessmodel,coupledwithinvestmentsinlocalresourcestocreatewhatCognizantcallsthetwo­ in­a­boxmodelofpairingkeyonshoredeliveryroleswiththeiroffshorecounterparts—aswellas

investmentsinknowledgemanagementsystems,suchastheCognizant2.0portal,andtoolsand

reusableassetstoaccelerateimplementation—haveresultedinqualityworkatacompetitiveprice

point.

Deliveryfocus—ClientsareimpressedbyCognizant'sfocusonsuccessfullydeliveringtheproject,

itswillingnesstoworkwiththeclienttoovercomechallenges,itscommitmenttoalong­term

partnership,anditsflexibilityinstaffingandadaptingtotheclient'srequirements,suchastraining

itsstafftouseagilemethodologytoimplementSAPforaEuropeanconglomerate.

Cautions

LimitedpresenceinLatinAmericaandAsia/Pacific—NorthAmericaandEuropecontinueto

providethebulkofCognizant'sSAPbusiness,estimatedatover90%ofitsSAPimplementation

businessin2013.ItslocalpresenceinLatinAmericaandAsia/Pacificissporadic,andthemajorityof

itsconsultantsbasedinAsia/PacificareinglobaldeliverycentersservicingEuropeanandNorth

Americanclients.

Gapsinprojectdeliverycapabilities—Althoughrapidlyimproving,Cognizant'sSAPpracticeis

stillmaturingasitmovesupthevaluechainintomore­complexglobalprojects.Whileithas

deliveredprojectsincomplextransformationalprograms,itstrackrecordinthisspacelagsbehind

thoseofitsmajorcompetitors.Itneedstoenhanceitsprogramandprojectmanagement,change

management,andadvisorycapabilities.

Limitedindustrycapabilitiesoutsideitstargetverticals—Outsideitsfocusedindustries,

Cognizanthaslimitedindustryandprocessskills.Evenwithinitstargetverticals,itsbenchof

consultantswithstrongindustryandprocessskillscanbedeeper.

CSC

CSChasmorethan8,000SAP­skilledprofessionals.AbouthalfoftheSAPprofessionalsarelocatedin

globaldeliverycenters.Anestimated40%ofitsSAPbusinessisderivedfromimplementation,andthe

restisderivedfrominfrastructureservices,hostingandapplicationmanagement.In2013,CSCderived

itsSAPimplementationbusinessfrom19outofthe22industriesdefinedinthisMagicQuadrant,with

themainonesbeingpublicsector,aerospaceanddefense,oilandgas/chemicals,andbanking.CSC

derivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan2,500

employees.

CSChasfocuseditsrecentinvestmentsinthefollowingpriorityindustries:aerospaceanddefense,public

sector,banking,defenseandsecurity,chemicals,andautomotive.

Strengths

Globalalignmentandrenewedinvestments—AsaresultofCSC'sglobalreorganization,its

SAPimplementationpracticeisnowacorepartofitsconsultingpractice,makingiteasier

organizationallyforCSCtobringconsultingcapabilitiestoitsSAPengagements.Amongsomeofits

keyinvestmentsareindustry­specificsolutions,mobility,Hana,cloudsolutionsandcorebanking.

Publicsector—CSChasperformedsomeofthemostcomplexSAPengagementsforseveralU.S. governmentagencies,includingtheU.S.Army'sLogisticsModernizationProgramandCustomsand

BorderProtection.CSChasapproximately370U.S.federalSAPexperts,specializinginsolutions

suchasSAPfinancialmanagement,federallogisticssolutions,SAPfraud,wasteandabuse,SAP

mobility,andanalytics/Hanasolutions.CSCalsoprovidessignificantSAPpublicsectorworkin

AustraliaandinpartsofEurope.

Capabilitiesanddeliverycommitment—ClientsareimpressedbyCSC'sprojectmanagement

capabilities,SAPandITexpertise,commitmenttodelivery,andseniormanagementinvolvement.

CSCisalsostronginsystemintegration,inparticular,intheintegrationofSaaS/cloudenvironments

withon­premisesSAPandlegacyenvironments.

Cautions

Businesstransformationcapabilities—AlthoughCSC'sSAPpracticeisnowpartofits

consultingpractice,clientscontinuetoreportthatCSCcanbebetteratbusinesstransformationand

organizationalchangeanddesign,intermsofadeeperbench,aswellasdeeperexpertise.

Globalintegrationinprogress—WhileCSCstrivestobecomegloballyintegrated,itisstillvery

muchaworkinprogress.Ithaspocketsofstrongcapabilitiesinspecificindustriesincertain

countries,anddifferentindustriesinothercountries.Also,CSC'scoverageandclientbaseinAsia

andLatinAmericaaresomewhatlimited.

SizeandgrowthoftheSAPimplementationbusiness—CSCneedstobalanceitsportfolioof

SAPservicestoincreasethepercentageofbusinessfromimplementation.Withanestimated40%

ofitsSAPbusinessfromimplementation,itisoneofthesmallerprovidersinthisstudy.Additionally,

itsSAPimplementationservicebusinesshasnotperformedaswellastheotherprovidersinterms

ofgrowth,whichaffectsitsscoresinoverallviability.

Deloitte

Deloitteisaglobalnetworkofaccounting,tax,consultingandadvisorymemberfirmswithabroadIT

servicesportfolio.Ithasmorethan12,500SAP­skilledprofessionalsworldwide.AboutaquarterofitsSAP

professionalsarelocatedinglobaldeliverycenters.Around88%ofitsSAPbusinessisderivedfrom

implementation,andtherestisfromitsemergingapplicationmanagementpractice.In2013,Deloitte

deriveditsSAPimplementationbusinessfrom20outofthe22industriesdefinedinthisMagicQuadrant,

withthemainonesbeingconsumergoods,retail,lifesciences,manufacturingandhightech.Deloitte

derivesthevastmajorityofitsSAPimplementationbusinessfromcompanieswithmorethan2,500

employees.

Deloittefocusesitsinvestmentsinthefollowingindustries:consumerbusiness,energyandresources,

financialservices,lifesciencesandhealthcare,manufacturing,technology/mediaandtelecom,andpublic

sector.

Strengths

Multiplecompetencies—DeloittehasmultiplecompetenciesthatitcandrawontoassistanSAP­ enabledbusinesstransformation.Thesecompetenciesincludestrategyandoperations,technology, humancapital,tax,andenterpriseriskservices.Inaddition,Deloittehas"feetontheground"in

150countries,allowingittobringknowledgeoflocallaws,regulations,businesspracticesand

culturetoanyengagement.

Qualitydeliveryskills—ClientsperceiveDeloittetobegoodatleadingcomplexchangeprograms,

withtherightlevelofpartnership,flexibilityandqualityofservice.Industryexpertise,process

knowledgeandabilitytobringbestpracticestotheengagementarealsocitedasstrengths.

Trackrecordandexperienceinnewertechnologiesandinnovation—Deloittehas

demonstratedtheabilitytorespondandachievecompetitivesuccessasopportunitiesdevelopedfor

newerSAPtechnologies.Specifically,ithasimplementedanabove­averagenumberofengagements

inHana,SuccessFactors,Ariba,hybrisandmobile.Inaddition,Deloittehasinvestedinanumberof

innovativesolutions,includingaHana­basedrisk­on­demandanalyticplatformthatconsolidatesand

aggregatesdatatogiveacompleteunderstandingofriskacrosstheentireorganizationinrealtime.

Cautions

Premiumprice—PricingisoneofthemostcommonreasonsforclientstodisqualifyDeloitte

duringthecompetitivebiddingprocess.Itshigherpriceisduetoacombinationofalargernumberof

resourcesproposedandahigherpercentageofmoreexpensiveresourcesintheprojectteammix.

Althoughithassignificantlygrownitsoffshorecapabilities,Deloittealsotendstoutilizealower

percentageofoffshoreresourcescomparedwithsomeofitscompetitors,whichalsodrivesupits

overallpriceinhigh­pricelocations.

Globalconsistency—AlthoughDeloittehastakenstepsinrecentyearstoimproveglobal

consistency,capabilitiescontinuetobeunevenacrossdifferentcountries.Capabilitiesinsingle­

countryengagementsinsmallermarketsarestillmaturing;thelevelofcapabilitiesanduseoftools

cansometimesdifferbycountry.

Inconsistentresourceskills—WhileDeloitteistraditionallyknownforitschangemanagement

capabilities,severalclientshavebeenlessthansatisfiedwiththechangemanagementresources

assignedtotheirSAPprograms.Clientshavealsonotedweakerresourcesinsystemintegrationand

auxiliaryworkonnon­SAPtechnologies.Integrationacrossdifferentservicelinesissometimesnot

asseamlessasclientsexpect.

EY

EY(formerlyErnst&Young)isaglobalnetworkofmemberfirmsthatprovideassurance,taxand

advisoryservices.Ithasmorethan3,600SAP­skilledprofessionalsworldwide.About10%ofitsSAP

professionalsarelocatedinglobaldeliverycenters.AllofitsSAPbusinessisderivedfromimplementation.

In2013,EYderiveditsSAPimplementationbusinessfrom18outofthe22industriesdefinedinthis

MagicQuadrant,withthemainonesbeingenergyandutilitiesandautomotive.EYderivesthevast

majorityofitsSAPimplementationbusinessfromcompanieswithmorethan2,500employees.

EYreneweditscommitmenttotheSAPimplementationmarketin2010.Sincethen,ithasgrownvery

rapidly,chalkingupover50%growthin2013.Itisalsoexpandedthroughacquisitions,havingbought

LogiStarSolutionsforitsSAPsupplychainexecutioncapabilitiesandFivePointforitscustomercareand

billingsystemimplementationservicesforthepowerandutilityindustry.EYfocusesitsinvestmentsin

thefollowingindustries:manufacturing,lifesciences,financeandinsurance,consumergoods,powerand

utilities,andcommunications.

EY'spositionintheVisionariesquadrantreflectsitsstrongvisionintheapplicationofnewertechnologies,

useofalternativedeliverymodels,andinvestmentininnovation,suchasanalytics,fraudmanagement

andgovernance,riskandcompliance(GRC)cloud.However,EYhasanemergingtrackrecordinlarge

globalSAPimplementationandneedstocontinueitsaggressivegrowthinsomeregions.

Strengths

Rapidgrowthbuiltontraditionalstrengths—EY'sstrengthsinitsSAPpracticearebuiltupon

itscoretraditionalstrengthsinperformanceimprovement,finance,tax,controlsandrisk

management.Serviceofferingstrengthsincludeprogrammanagement;businessengagementand

readiness;requirementdefinitionandprocessdesign;financeperformanceimprovement;planning;

budgeting;forecasting;implementingGRC,businessplanningandconsolidation(BPC)andsalesand

operationsplanning;andtax­effectivesupplychain.Clients'feedbackindicatesthatEYconsultants

demonstratestrongleadershipandindustryexpertise,areabletorecommendmore­efficient

businessprocesses,andarecommittedtoprojectsuccess.

Investmentsininnovation—EYisrapidlybuildingupcredentialsinthenewertechnologies,

includingHana,cloudandSuccessFactors.Inaddition,ithasananalytics­as­a­serviceofferingand

hasseveralco­innovationinitiativeswithSAP,includingpredictivefraudmanagement,integrated

businessplanningonHanaEnterpriseCloud,taxtransformationandGRCCloudServices—

impressiveforarelativenewcomertotheSAPimplementationscene.

Trustedadvisorstatus—LeveragingtheEYbrandandotherservicelinecapabilities,EY'sSAP

practicehascredibilitywithbusinessusersandisabletoaligntheSAPchangeprogramtotheneeds

ofthebusiness,makingEYastrongcontendertohelpitsclientsinqualityassuranceandbenefit

realizationinanSAPprogram.

Cautions

Lackofscale—Althoughgrowingrapidly,EYhasastaffbenchthatcanlimititsabilitytoservice

multiplelarge­scaleglobalprojects.Itpartnerswithotherservicecompaniesforsuchprojects.

Maturingglobaldeliverymodel—ClientsreportedEYasbeingahigher­costproviderduetoits

limitedoffshoreplay.Globalizationofitspracticeisstillaworkinprogress:NorthAmericaaccounts

foroverthree­fourthsofitsrevenue;inglobalprojects,clientsreportthattheyneedtoworkwith

EYpartnersineachmemberfirminthecountriesratherthanaglobalteam—whichEYseesasan

advantagegivingclientsaccesstotheirlocalleadership—butsomeclientspreferaconsistentpoint

ofcontact.

Less­matureassets—WhileEYisfuriouslyinvestinginSAPimplementation­specifictoolsand

assets,typicallycustomizingthenon­technology­specificonesitalreadyhas,theyarenotyetwell­

testedinmultipleclientengagements,hardenedorindustrialized.Clientsreportthatitstoolsand

acceleratorsarenotasstrongasdemonstratedintheproposal,andimplementationmethodologies

arelessdefined.

HCLTechnologies

HCLTechnologieshasmorethan8,600SAP­skilledprofessionals,ofwhomabout60%arelocatedin

globaldeliverycenters.Anestimated66%ofHCL'sSAPbusinessisderivedfromimplementation,andthe

restisderivedfrominfrastructureservices,hostingandapplicationmanagement.In2013,HCLderived

SAPimplementationrevenuefrom18ofthe22industriesdefinedinthisMagicQuadrant,thekeyones

beingaerospaceanddefense,oilandgas,utilitiesandenergy,transportation,consumergoods,andpublic sector.HCLderivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan

2,500employees.

HCLfocusesitsinvestmentsinthefollowingindustries:aerospaceanddefense,utilities,manufacturing,

CPG/retail,andlifesciences.

Strengths

Deepexpertiseandbalancedinvestments—Overall,HCLhasstrongexpertiseacrossthecore

setofSAPproductsandisinvestinginimplementingbothtraditionalandnewerSAPtechnologies.It

hasbuiltupgoodexperienceinHanaandhybrisandisinvestinginSuccessFactors.Byindustry,it

hasaparticularfocusandstrengthinaerospaceanddefense,high­techandmanufacturing,

consumergoods,lifesciences,utilitiesandenergy,andtravelandtransportation.Inparticular,it

hasdeepindustryknowledgeinmaintenance,repairandoperations(MRO)foraerospaceand

defense,anditbringstoengagementsitsiMROproduct,anSAP­endorsed,upgrade­compatible

industrysolutionadd­on.ItsiCAREsolutionisaCRMtemplatethathelpscallcenterstaffprovide

effectiveandefficientcustomerservice.

Focusonbenefitrealization—Oneofthefirstservicepartnerstoembedformalbenefit

realizationmethodologyintoSAPprogramdelivery,HCLworkswithclientstodeploysolutionswith

tangiblebusinessbenefits,enabledthroughacomprehensivesetofprocesses.Theseprocesses

includeidentifyingbusinessbenefitsandconvertingthesebenefitsintoquantifiablefinancialgains,

aswellasensuringdecisionsmadeduringimplementationarealignedwithbusinessbenefits

identified—therebymaximizingthepotentialfortheprogramtoachieveitsdesiredbusinessvalue.

Itswillingnesstoput"skininthegame"throughtyingaportionofitsfeestotherealizationof

identifiedbenefitsatteststoitsconfidenceinitsdelivery.

Partnershipapproach—ClientsreportthatHCLiseasytoworkwith,deliverswhatitsaysit

woulddeliverconsistently,providesstaffwithexcellentSAPskillsanddedicationtosupportprogram

objectives,andiscommittedtothesuccessoftheimplementation.ClientsalsoappreciateHCL's

abilitytogiveclearguidanceandbringbestpractices.

Cautions

LimitedpresenceinLatinAmericaandAsia/Pacific—Morethan90%ofHCL'sSAPbusiness

comesfromNorthAmericaandEurope.AlthoughHCLisdeliveringsomelargeSAPprogramsin

Asia/Pacific,itslocalpresenceinAsia/Pacificissporadic,andithasverylimitedbusinessinLatin

America.ThemajorityofitsconsultantsbasedinAsia/PacificandLatinAmericaareinglobaldelivery

centersservicingEuropeanandNorthAmericanclients.Geographicandlanguagecoverageare

belowthoseofitscompetitors,whichhasledtosubcontractingandtheneedforahighlevelof

supportfrombiggerpractices,suchastheU.K.andIndia.

Benchstrength—HCL'sbenchstrengthofconsultantsgloballyisnotasdeepasitskey

competitors.ClientshavenoticedthatwhileHCLhasstrongprojectmanagers,subjectmatter

expertsandotherkeyprojectresources,thereisaverylimitednumberofbackupresourcesincases

ofattrition—whichishigherthanaverage—orleaveofabsence,increasingtheriskoftheproject.

Ithasalsoresultedinsomeclientsgettingweakerresourceswhoneededtobereplacedor

supplemented.

Tooflexible—Whileflexibilityisappreciatedbyclients,theynotethatHCLconsultantsare

sometimestooflexibleandcouldhavepushedbackonthemwithindustrybestpracticesthatmay

havereducedsomecustomconfigurationintheend.Clientsalsocommentthattheywouldliketo

seestrongerprojectmanagement.

HP

HPisaglobalproviderofend­to­endSAPserviceswithmorethan9,200SAP­skilledprofessionals.HP

deliverstheseservicesatclientsitesandthrough18globaldeliverycenters,whereabout40%ofitsSAP

professionalsarelocated.Anestimated48%ofitsSAPbusinessisderivedfromimplementations,andthe

restisderivedfromapplicationmanagement,infrastructureservicesandhostingsupport.In2013,HP

deriveditsSAPimplementationbusinessfrom14outofthe22industriesdefinedinthisMagicQuadrant,

withthemainindustriesbeingconsumergoods,industrialmanufacturingandautomotive.Themajority

ofitsSAPimplementationbusinessisfromcompanieswithmorethan10,000employees,ofwhichmany

arealsoitsoutsourcingclients.

HPfocusesitsinvestmentsinthefollowingindustries:consumerservicesandretail,manufacturing,

travelandtransportation,healthcare,andlifesciences.

Strengths

End­to­endservices—HPbringstoclientsafullcomplementofcoreandnewSAPsolutions,

includingon­premisesandcloudsolutions.Buildingonitstraditionalstrengthsininfrastructureand

operations,HPoffersend­to­endservices—design,build,runandoptimize—tonewandexisting

clients.HPisextendingitsfocusondeliveringbusinessoutcomesinitsRunSAPServicestoits

implementationprograms.

Strongtechnicalcapabilitiesandinvestments—HPisparticularlystrongintechnology­based

services,includinginfrastructureservices,includingnetworks,datacenterandvirtualization,

securityandintegration,andBasisskills.HPhasmadesignificantinvestmentsinHanaservices,

Hana­basedapplications,andtheHanaapplianceandcanprovideabundledsolution,includingHana

asaservice.HPalsoexcelsinSAPRapidDeploymentSolutions(RDS)togetclientsupandrunning

quickly.

Clientfocus—ClientsreportthatHPdisplaysastrongsenseofresponsibilityinprojectsuccess,

focusesonunderstandingbusinessrequirementsindetail,andoftenadvocatesandrecommends

industrybestpractices.

Cautions

Globaldeliverymodelisstillmaturing—Whileithasmadealotofprogressinitsglobal

deliverymodel,someclientsreportthatthequalityofresourcesinHP'sglobaldeliverycentersis

inconsistent,andcostisperceivedtobehigherthanaverage.

Capabilitygaps—ClientshaveobservedthatHPhassomegapsinimplementationcapabilitiesfor

someproductsintheSAPstackandlimitedbenchstrengthinothers.Someskillsetsarenotreadily

availableinsomegeographies,andseveralclientshavenotedthatturnoverofprojectteam

membersisachallengeevenasoverallattritionatHPisquitemuted.HPpartnerswithfirmsto

delivertofullclientdemandwheretherearecapabilitygaps.

Businessconsulting—WhileHPisstronginimplementation,itdoesnotyethavethefull

spectrumofbusinessconsultingcapabilitiestobeaone­stopproviderinbusinesstransformational

programs.Forthese,HPcontinuestopartnerselectivelywithitsbusinessconsultingalliance

partners,suchasPwC.

IBM

IBMhasmorethan34,200SAP­skilledprofessionals.AbouthalfofitsSAPprofessionalsarelocatedin

globaldeliverycenters.Anestimated55%ofitsSAPbusinessisderivedfromimplementation,andthe

restisderivedfrominfrastructureservices,hostingandapplicationmanagement.In2013,IBMderived

itsSAPimplementationbusinessfrom18outofthe22industriesdefinedinthisMagicQuadrant,with

themainonesbeingautomotive,consumergoods,publicsector,oilandgas,utilitiesandenergy,life sciences,andtravelandtransportation.IBMderivesthemajorityofitsSAPimplementationbusinessfrom

companieswithmorethan10,000employees,butitsgeneralbusinessdivisionoffersSAPservicesto

midsizeclientsusingamoretemplatedapproach.

IBMfocusesitsSAPpracticeinvestmentsinthefollowingindustries:automotive,consumerproducts,

financialservices,lifesciences,travelandtransportation,telecommunications,andutilitiesandenergy.

Strengths

Globalreachandscale—IBMhasthedepthandbreadthoftechnical,functionalandprocess

capabilitiesacrossalargenumberofindustries,aswellastheglobalreachforthelargestandmost

complexglobalimplementationsforthelargestcompanies.Itoffersmidsizeclientspackaged

offeringsusingitspreconfiguredindustry­specificsolutions.IBMoffersend­to­endservices,including

design,build,rollout,host,manage/operateandBPO.

Deliverypredictability—IBMhaswell­testedmethodologiesandanimpressivecollectionof

reusableassetlibrariesandtoolstohelpdrivesuccessfulcompletionofSAPprograms.Clients

appreciateIBM'sstrongexpertiseinSAPapplicationsandmultivendorcapabilitiestohelpintegrate

complexhybridon­premise/cloudenvironments,aswellasitsprojectmanagement,and

commitmentandabilitytodeliverundertighttimelines.

StrengthsandinvestmentsinSAP'snewertechnologies—IBMhasshowncommitmentto

SAPbyinvestinginSAP'snewertechnologiesandproducts,includingdevelopingnewsolutionson

Hana,evenwhilehavingoverlapwithsomeofitsownproductofferings.Its"LabforSAPSolutions"

showcasesend­to­endindustry­specificofferings(suchasConnectedCare,loyaltymanagementand

predictiveanalytics),drivesco­innovationactivities,andprovidesaforumforcustomizedclient

workshopstotackleproblemsorintroduceinnovativethinking—throughleveragingthebroader

IBMcapabilitiesfromIBMResearch,Watson,IBMStrategyandAnalytics,IBMInteractiveExperience

andIBMindustryspecialists.

Cautions

Less­suitablesegments—IBMdoesimplementationinawiderangeofindustries,focusingon selectedonesforincreasedinvestments.Clientsinotherindustries—includingaerospaceand defense,mediaandentertainment,education,andnot­for­profit—benefitlessfullyfromthese

specificIBMinvestments.Smallorganizations—especiallythosebelow$500millioninrevenue—

willnotgettheattentiontheyneedfromIBM.

Tightcontrolsandbureaucracy—GivenIBM'ssizeandreach,clientscansometimesbe

challengedwhenworkingacrossIBM'svastinternallandscapeandprocesses.IBM'sSAPpracticeis

currentlysimplifyingitsorganizationalstructureandprocessestomakeiteasiertoworkwithand

poolresources,butinthemeantime,someclientsindicatethatdecisionmakingoncontracts,

approaches,changesandaccesstospecializedresourcescantakelongerthananticipated.

Resourcingchallenges—DespiteIBM'sscale,someclientsfacechallengesinprojectteam

resourcing.Abilitytosecurelocalskilledresourceswithappropriatelocalknowledge,especiallyinthe

newergeographiesandsmallercountries,canbeachallenge,andthequalityofIBM'sresourcescan

attimesbeinconsistent.Inthelasttwoyears,IBMhasmadesignificantinvestmentsineducation

toincreasehigh­qualityresourcecapacity.

Infosys

Infosyshasnearly12,400SAP­skilledprofessionals.Anestimated70%ofitsSAPprofessionalsare

locatedinglobaldeliverycenters.About60%ofitsSAPbusinessisderivedfromimplementation,andthe

restisderivedfrominfrastructureservices,hostingandapplicationmanagement.In2013,Infosys

deriveditsSAPimplementationbusinessfrom17outofthe22industriesdefinedinthisMagicQuadrant,

withthemainonesbeingautomotive,lifesciences,consumergoods,oilandgas/chemicals,hightech, utilitiesandenergy,retail,andagriculture,miningandconstruction.Infosysderivesthemajorityofits

SAPimplementationbusinessfromcompanieswithmorethan10,000employees.

InfosysfocusesitsSAPpracticeinvestmentsinthefollowingindustries:lifesciences,retail,CPGand

logistics,hightech,processmanufacturing,automotive,utilities,financialservicesandinsurance.

Strengths

Focusonvaluerealization—Infosyshasdevelopedframeworksandmethodologiestofocusthe

implementationteamonvaluerealization,aligningtheclient'sSAPprogramswithdesiredbusiness

outcomes.Itswillingnesstosignupforoutcome­basedpricingbasedonvaluerealization—

althoughseldomtakenupbyclients—isalsoaplus.

Investmentsinnewertechnologiesanddeliverymodels—InfosysisinvestinginnewerSAP

technologies,includingmobile,cloudandSuccessFactors,Hana,UI5andFioritechnologies.

Investmentsinnewdeliverymodelsincludemanaged­cloud­as­a­servicesolutionsforoilfield

servicesandmedicaldevices,aswellasabusinessplatformsolutionforindirectprocurementthatis

pricedpertransaction.

Strongcapabilitiesatacompetitiveprice—ClientsindicateInfosysoffersstrongdelivery

capabilities—includingprogrammanagement(feedbackfromlegacyLodestoneclients),SAP

applicationandtechnologyexpertise,andflexibleandknowledgeableresources—atacompetitive

price.

Cautions

NeedtoexpandpresenceinLatinAmericaandAsia/Pacific—WhileithasclientsinLatin

AmericaandAsia/Pacific,InfosyshaslimitedSAPimplementationbusinessfromtheseregionsand

fewimplementationprofessionalson­siteinmanycountriesintheseregions.

Consultingskills—WhileInfosyshasinvestedsignificantlyinconsultingcapabilities,includingthe

acquisitionofLodestone,clientfeedbackindicatesthatInfosyscanimproveitsdepthofbenchin

program/projectmanagement,changemanagement,depthofknowledgearoundbusiness

processes,localknowledge,thoughtleadershipandabilitytobringbestpracticestothe

engagements.

Attrition—AttritionatInfosysisaboveaverageforthispeergroup.Atthecorporatelevel,the

departureofnumerouskeyexecutivesisdistracting;attheprojectlevel,continuityofconsultants

hasbeenacauseforconcernamongsomeclients.

Neoris

Neoriswasoriginatedin2000fromthein­housetechnologyarmofCemex,aleadingcompanyinthe

buildingmaterialsindustry.CemexcontinuestorelyonNeorisforitsSAPimplementationandglobal platformsupport,armingNeoriswithexperienceinglobalrolloutsinmultiplecountriesaswellas experimentationwithinnovationslikeHana,high­performanceanalyticsandsupplychainfunctions.

Followingacquisitionsandorganicgrowth,Neoristodayhasnearly3,000SAPconsultants,andSAP

makesupthree­quartersofitstotalbusiness.ItisthelargestandmostexperiencedLatinAmerican­ heritageSAPimplementationserviceprovider,servinglocalandPan­LatinAmericanclients,aswellas

globalclientsinanearshoremodel.Nearly90%ofitsSAPbusinessisderivedfromimplementation;the

restisderivedfrominfrastructureservices,hostingandapplicationmanagement.About60%ofitsSAP

professionalsarelocatedinglobaldeliverycenters.

In2013,NeorisderiveditsSAPimplementationbusinessfrom14outofthe22industriesdefinedinthis

MagicQuadrant,withthemainonesbeingmanufacturing,financialservices,hightech,utilitiesand energy,CPG,andagriculture,miningandconstruction.NeorisderivesthemajorityofitsSAP

implementationbusinessfromcompaniesandbusinessunitswithmorethan2,500employees.Neoris

focusesinvestmentsinmanyindustries(manufacturing,naturalresources,consumergoods,

agribusiness,healthcare,highereducation,financialservices,telecommunications,retailandutilities),but

itscorestrengthsareinmanufacturing.

Neorisisaverystrongcandidateforselectedsolutions,suchasManufacturingIntegrationand

Intelligence(MII)andanalytics,forimplementationsinLatinAmericaandfornearshoresupport.Clients

aregenerallyhighlysatisfiedwithNeoris.ItispositionedintheNichePlayersquadrantchieflybecauseof

itssmallerscaleandincompletecoverageforlargergeographicallydispersedSAPprojects.

Strengths

LatinAmericanandnearshorecapabilities—NeorisisparticularlystronginLatinAmerican

rollouts,andclientfeedbackconfirmsthatNeorisconsultantsdisplaytheskillsandknowledgeof

localbusinessandstatutoryrequirementsthatclientsseek.InadditiontoLatinAmericanrollouts,

NeorisisalsoastrongcandidatefornearshoresupportofclientsinNorthAmericaduetoasimilar

timezone,culturalfit,operationalreliabilityandclientsinSpanishandPortuguese­speakingEurope

duetoitslanguagecapabilities.

Targetedinvestmentsininnovation—Neorisisinvestingininnovationinareaswhereithasa

trackrecord:MIImanufacturingsolutionsandmachineautomationthroughMII;3Ddigitalfactory

(connectingshopfloortobusinessoperationsusingSAPVirtualEnterpriseandMicrosoftKinect);

Hanaandhigh­performanceanalytics;hybris,omnichannelandretail;videowallvisualizationof

supplychainandotheroperations(leveragingMIIinthebackend);asolutionutilizingGoogleGlass

forshopfloorandwarehousemanagement;andmobilesolutions(suchasSAPMIIonmobile

devicestoallowemployeestoaccessshop­floordatabasesandcreatetheirownpersonalizedcontrol

panel).

Applicationandtechnicalexpertise—ClientsreporthighsatisfactionwithNeoris,commenting

thatitsconsultantsgenerallypossesshighlevelsofbusinessandtechnicalcapabilitiesand

knowledgeofSAP.TheyalsociteNeoris'goodservicequalityandunderstandingofclients'

requirements,aswellasgoodvalueformoney(althoughnotthelowestprice)asstrengths.

Cautions

LimitedpresenceoutsideLatinAmerica—NeorisisglobalizingitsSAPpracticethroughits

supportofitsglobalclients,especiallyCemex.However,presenceoutsideLatinAmerica,Spainand

Portugalisstillsmall.WhileNeorishasmadeexpansionintheU.S.akeygrowthstrategy,its

currentpenetrationintheU.S.isstilllow.

Partialcapabilitiesandexperienceinsomesolutions—Neoris'smallerscaleandfocuson

selectsolutionsmeansthatithaslimitedresourcesandexperienceinothersolutions,suchas

AdvancedPlanningandOptimization(APO),TransportationManagement(TM),ExtendedWarehouse

Management(EWM)andhumancapitalmanagement(HCM).Neoriscontinuestorelyonthe

supportofitsestablishedpartnernetworkfortheimplementationofthesesolutionsoutsideofLatin

America.

Someresourcingchallenges—Clientshavereporteddifficultyinstaffingscalabilityinquick­

turnaroundsituationsorsomegeographicallocationsoutoftheirimmediatereachandhencethe

needforNeoristoworkwithitsestablishednetworkofsubcontractors.

NTTData

NTTData'sSAPpracticewasinitiallyformedthroughtheacquisitionofanumberofanchorcompanies:

Keane,itelligenceandIntelligroup.AcquiredcompaniesinNorthAmericaareorganizedandintegrated undertheNTTDatabrand.Itelligencecontinuestouseitsownbrand,butitisnowundertheumbrellaof

NTTDataBusinessSolutions.Theacquisitionspreecontinuedin2013,addingOptimal(U.S.­basedSAP

specialist),Everis(SpanishITfirmwithLatinAmericanreach),ebs(Romania­basednearshoreapplication

managementservicesprovider),AsterGroup(U.S.­basedSAPBPCspecialist),4CManagementConsulting

(Danishanalyticsandperformancemanagementcompany)andSoftwareAG/IDSScheerinCentraland

EasternEurope(SAPregionalpartner;NTTDatahadearlieracquireditsCanadiancounterpart).

NTTData'sSAPGlobalOneinitiativeintegratesthevariousskills,resourcesandbestpracticesunderthe

NTTDatabrand,bringingtogethernearly8,000SAPconsultantsin40countries.Anestimated40%ofits

SAPprofessionalsarelocatedinglobaldeliverycenters.About54%ofitsSAPbusinessisderivedfrom

implementation,andtherestfrominfrastructureservices,hosting,applicationmanagementandlicense

sales.

In2013,NTTDataderiveditsSAPimplementationbusinessfromallthe22industriesdefinedinthis

MagicQuadrant,withthemainonesbeingmanufacturing,consumergoods,hightech,automotive,

services,andlifesciences.NTTDatafocusesitsinvestmentsinthefollowingindustries:discrete

manufacturing,chemicals,hightech,pharmaceuticals,medicaldevices,distribution,consumergoods,

automotiveandhighereducation.NTTDataderivesitsSAPimplementationbusinessfromcompaniesof

allsizes—fromsmallenterprisestolargecorporations.

Strengths

Broadgeographicalreachwithlocalpresence—Throughnumerousacquisitions,NTTData

nowhassignificantlyincreaseditsreachandscaleinNorthandLatinAmericaandSouthernand

EasternEurope,withnearshorecapabilitiesforEuropeandLatinAmerica,inadditiontoitsIndian

offshorecenters.TheresultisthatitsSAPrevenueissplitfairlyevenlyacrossNorthAmerica,EMEA

andAsia/Pacific.NTTDataclientscitegoodperformanceoverallwithkeystrengthsinSAPknowledge

andtheabilitytoeffectivelydeliverasuccessfulproject

Investmentsandexperienceinnewerproductsanddeliverymodels—NTTDataisquickly

amassingexperienceinSAP'snewerproducts.Ithasgarneredover50engagementsandproofsof

conceptinHana/SuiteonHanaandover50engagementsinBusinessByDesignin2013,makingit

oneofthemostexperiencedprovidersinthesetwoproducts.Italsohasover20clientsin

SuccessFactorsandisinvestinginhybris,mobile,MCaaSandHanaEnterpriseCloud.

Small­and­midmarketsegment—NTTDataisastrongproviderforsmallandmidmarket

enterprises,becauseithasinvestedsignificantlyinprescriptivetemplates,includingover70RDS

and20industrysolutions,toreducecosts,aswellasincreasespeedandpredictabilityof

implementationinsuchorganizations.Thesmall­and­midmarketsegmentisalsoasweetspotfor

severaloftheacquiredcompanies,andhencetheyhaveastrongtrackrecordwithgreenfieldSAP

implementationsforsuchenterprises.

Cautions

Limitedlarge­dealtrackrecord—NTTDatahasnumerouslarge­enterpriseclients;however,

mostengagementsarerelativelysmallcomparedwithothervendors.Thisreflectsitsfocusbut

couldsignallessabilitytosupportlargecomplexdeals.

Focusneedsfine­tuning—With8,000consultants,NTTDatarunstheriskofspreadingitselftoo

thinlybyexpandinginallgeographiesandnearlyallsectors,andservingcompaniesofallsizes.A

sharpenedfocusisneededtobuildmoredepth,differentiationandclarityarounditssweetspots.

Integrationisstillinprogress—DuetoNTTData'songoingacquisitionstrategy,itsstrengths,

weaknessesandtargetmarketsstillvarybygeography.Capabilitiesofconsultantsstilltendtoalign

witheachofthelegacycompanies'traditionalstrengths,andsomeclientshavereportedchallenges

inworkingbetweencountries.NTTData'sOneMethodinitiativehasbeenlaunchedforglobal

consistency,butsomeNTTDataconsultantsarenotfamiliarwithordonotpracticetheproject

methodologiesused.

PwC

PwCisaglobalnetworkofmemberfirmsthatprovideassurance,taxandadvisoryservices.PwChas

morethan6,200SAP­skilledprofessionals.Lessthan20%ofitsSAPprofessionalsarelocatedinglobal

deliverycenters.VirtuallyallofPwC'sSAPbusinessisderivedfromimplementation.In2013,PwCderived

itsSAPimplementationbusinessfrom21ofthe22industriesdefinedinthisMagicQuadrant,withthe

mainonesbeingconsumergoods,retail,utilitiesandenergy,manufacturing:hightech,manufacturing:

lifesciences,manufacturing:industrialdiscrete,andmanufacturing:oilandgas/chemicals,andprocess

andresource.

PwCderivesthemajorityofitsSAPimplementationbusinessfromcompanieswithmorethan1,000

employees.

Strengths

Businesstransformationapproach—PwCtakesabusinesstransformationapproachtoitsSAP

engagementsandisabletobringtogetherstrategy,industry,process,taxandsoftwareexpertiseto

bearonaprogram.Itemphasizesputtingprocessimprovementandbestpracticesbeforesystem­

leveldecisions,whichmakesitaclearfitforadvisoryandconsultingrelatedtoSAP­enabled

transformation,andimplementationprojectsinvolvingsignificantchangemanagementorprocess

transformation.

Relationshipswithbusinessexecutives—PwC'sbrandandrelationshipswithC­level

executivesandfinanceprofessionalspositionitwellinSAPprojectsthatinvolvesponsorship,buy­in

andengagementoftheseprofessionals.ClientspointtoPwC'sdedicationtoresultsandtheclient's

successaskeystrengths.PwCisoftenthepreferredproviderforSAPimplementationfollowingits

businessconsultingworkforthesameclient,anditisabletouseitspriorexperienceofclient

organizationtoovercometechnicalandorganizationalchallenges.PwC'sexpertiseinfinance,risk

managementandoperationsenablesitsconsultantstotranslatetechnicaltopicsintobusiness

language,providingtheabilitytobuildstrongrelationshipswiththebusinessandIT.

Broadeningcapabilities—PwC'sstrongestsegmentscontinuetobefinancialtransformation,

performancemanagement,enterpriseassetmanagement,supplychainmanagementandGRC.

PwCisincreasinginvestmentsinitsimplementationcapabilitiesinmanynewerareasoftheSAP

portfolio,includingSuccessFactors,Ariba,FioriandSalesandOperationsPlanning(S&OP)onHana.

Cautions

Toolsandprebuiltsolutions—PwCapproachestheclient'sbusinessproblemsasuniqueand,in

somecases,investsinandleveragesfewerautomatedtools,repositories,andprebuiltHana

applicationsorindustrysolutions.PwCtrailscompetitorsinnewbusinessmodels,suchasMCaaS.

Inconsistentresourcequality—WhilePwCcontinuestoshinewithhigh­qualityresourcesinits

moretraditionalconsultingspaces,suchasprojectmanagementanddesign,afewclientshave

noticedsomevariationinqualityofitstechnicalandapplication­specificresources,andinsome

cases,difficultyinfindingqualifiedstaff.

Price—WhilePwChasimproveditspricing,clientscontinuetopointtoitshigherpriceasanarea

forimprovement.AcommoncommentisthatPwCdoesagoodjobbutitcomesatapremiumprice.

AfewclientsalsosuggestPwCcanimproveonchallengingusersonbusinessrequirementstosteer

themtowardusingthestandardSAPapplications.

SAPServices

SAPServices,theservicearmofSAP,deliversSAPimplementationservicesgloballythroughabout

16,000deliveryconsultants,aswellasmorethan1,200customdevelopmentconsultantsand

collaborationwithmorethan8,000activesupportprofessionals.SAPServicesprovidesprimeintegrator

servicesthatcompetedirectlywithitsSIpartnerecosystem,butitisaligningmorecloselywithSAP's overallstrategybyfocusingonsupportingadoptionofSAPinnovations,especiallyHana,bigdataand

cloud.Anestimated15%ofitsdeliveryprofessionalsarelocatedinglobaldeliverycenters.In2013,SAP

ServicesderiveditsSAPimplementationbusinessfromallindustries,butitsstrategicindustriesare financialservices,retail,healthcare,publicsectorandtelecommunications.SAPServicesderivesthe

majorityofitsimplementationbusinessfromcompanieswithmorethan2,500employees.

Strengths

Productexpertise—ClientsaregenerallyimpressedbySAPServices'in­depthknowledgeacross

themajorproducts,includingtheacquiredSuccessFactorsandAriba.SAPServicesisalsoinvolved

withmoreclientsinnewerproducts,makingitagoodfitforsuchproductsbothforitsexperience

andfortheabilitytohave"onethroattochoke."ClientscanalsotapintoSAPServices'deep

productexpertisethroughspecificserviceofferings,suchasitsInnovationControlCenterto

minimizecustomizationduringimplementation,itsValuePartnershipprogramforconsulting

services,anditsLearningHubforstate­of­the­arttraining.

Acomprehensiveportfolioofservicesalignedtocustomerneeds—SAPServiceshas

developedafullspectrumofservicesthatallowsclientstobuytheservicesmostrelevanttotheir

needs:transformationservicesforhigh­valueconsulting,technologyservicesforadoptingnew

products,customdevelopmentservicesforuniquefunctionalities,deploymentservicesfor

industrializedsolutions,premiumengagementservicesformanagementandsupport,andlearning

servicesforworkforcetraining.

Increasingdeliveryspeedandminimizingthetotalcostofownership(TCO)—SAP

ServiceshasbeenfocusingonwaystoincreasedeliveryspeedandminimizeTCO.Initiativeshave

includedanextensivesetoffixed­fee/fixed­scopeRDS,"assembletoorder"and"industrialized"

deliverymodelsthatemphasizereuseandrepeatability,anda"worldtemplate"thatfacilitatesrapid

rolloutstomultiplecountries.

Cautions

Lessexperienceworkingwithmultipletechnologyvendors—Theflipsideofbeing

specializedandhighlyskilledinonefamilyofproductsislimitedcapabilitiesinothersoftwarevendor

technologies.SAPServiceshaslimitedcapabilitiestoassistinhighlyheterogeneousprojects

involvingmultiplesoftwarevendorsinwhichSAPsolutionsareonlyoneofanumberofon­premises

andcloudapplicationsandtechnologies.

Highhourlyrates—SAPServices'hourlyrateishigherthanitsservicepartners'.SAPServices

claimsthatefficientdeliveryandfasterresultsforcustomersresultinloweroveralltotalcostof

implementationandlowerTCO.SAPServiceshascommittedtoan"outcomebased"approachthat

guaranteesagreed­uponoutcomes.Clientsareadvisedtocomparelike­for­likebycontractingona

fixed­pricebasis,anapproachalsofavoredbySAPServices.

Capabilitygaps—SAPServicesisnotasbroadordeepassomeofitspartnersinbusiness

consultingcapabilities,suchasindustryknowledge,processchange,large­scaleprogram/project

managementandchangemanagement.Fornicheproducts,likeservicepartsplanning,SAP

Servicesreliesonitsecosystemforscale,expertiseandcostreasons.Itisalsorapidlyrampingupits

resourcestomeetdemand,resultinginchallengesstaffingthehighlyqualifiedconsultantsthat

clientsexpectfromSAPServices.

TataConsultancyServices

TataConsultancyServices(TCS),thelargestIndianITservicesfirm,hasmorethan13,500SAP­skilled

professionals.Anestimated67%ofitsSAPprofessionalsarelocatedinglobaldeliverycenters.About52%

ofitsSAPbusinessisderivedfromimplementation,andtherestisderivedfrominfrastructureservices,

applicationmanagementandhosting.In2013,TCSderiveditsSAPimplementationbusinessfrom18out

ofthe22industriesdefinedinthisMagicQuadrant,withthemainonesbeingindustrial,hightech,

utilitiesandenergy,lifesciences,consumergoodsandretail.TCSderivesthemajorityofitsSAP

implementationbusinessfromcompanieswithmorethan2,500employees.

TCSfocusesitsinvestmentsinthefollowingindustries:manufacturing,retail,consumergoods,hightech,

financialservices,media/informationservices,travel/transportationandhospitality.

Strengths

Stronggrowth—TCShasoneofthehighestgrowthratesintheSAPimplementationmarketin

2013:over30%(versusamidteengrowthrateforTCSasawhole).Asaconsequence,TCS'sSAP

practiceenjoyspriorityfundingforinvestments,includingacquisitionsinnewgeographiesandfor

additionalcapabilities.

Investmentsinnewertechnologies—TCSisinvestingheavilyinnewerSAPproductsand

technologies,includingtrainingover50hybrisprofessionalsandover500Hanaconsultants,setting

upacustomerexperiencelabforhybrisandauserexperiencecenterofexcellencewithafocuson

Fioriandpersonas,andbuildingindustry­specificHanaappsandaccelerators,suchaspricing

analyticsandassortmentplanningfortheretailindustryandsmartmeteranalyticsforutilities.TCS

haspartneredwithSAPforsevenRDSpackages,includingintheareasofmobilityandHana.

Commitmenttosuccessfuldelivery—TCShasknowledgeable,well­trainedanddiligent

resourcesthatdemonstratestrongcommitmenttosuccessfuldeliveryandmeetingchallenging

timelinesatanattractiveprice.ClientsalsoindicatethatTCSisaccommodatingandflexiblein

meetingtheirchangingprogramdemands.

Cautions

Businesstransformationcapabilities—TCSisastrongcontenderinprovidingSAPtechnical

andfunctionalresourcesinsupportofclient­ledbusinesstransformationprograms,butbusiness

consultingandadvisorycapabilitieslag.Itistakingsignificantstepstostrengthenitsconsultingand

advisoryservicesbyformingatransformationteam,whichfocusesonprovidingbusinessconsulting,

businessprocessre­engineering,facilitation,changemanagement,communications,business

stakeholderengagement,andprogramleadershipskills.

Onshoreresourcechallenges—AsTCSisheavilyorientedtowardanoffshoredeliverymodel,

clientshavenoticedchallengesinfindingappropriatelyskilledresourcesonshoreinmultiplelocations

globally.DelayingettingworkvisasforIndianconsultantstocomeonshorealsocontributesto

staffingchallenges,whichcanleadtoaslowramp­upofaprojectand/orresourcerotationfromone

clienttoanother.TCS'sacquisitionofAlti,aFrenchcompany,willhelptoaddresssomeofthese

challengesinFranceandpartsofEurope,butavailabilityoflocalresources,particularlyinNorth

AmericaandEurope,fallsshortofclientrequirements.TCSisaddressingthisissuebyrampingup

localrecruitmentinthesegeographies.

Structuredknowledgesharingprocesses—TCScanimproveonitsknowledgesharingatthe

companywidelevel.Clientsreportthattheyseemtogetonlytheexpertiseoftheteamontheir

projectwhentheythinktheyarebuyingtheinstitutionalknowledgebaseofTCS.Clientsstatethat

theywouldliketoseemoresupportfromTCS'swidercommunity,includingitstopmanagement,

andmorestructuredknowledgesharingpractices.TCSisaddressingthisissuethroughitsinternal

knowledgemanagementportal,whereallsolutions,bestpractices,assetsandtemplatesfromthe

projectsarecapturedandavailabletoallassociatesforuse.Also,TCShasformeditsinternalonline

discussionplatformforsharingissuesandgettinghelpfromtheinternalassociatesonsolutionsand

ideas.

Wipro

Wiprohasnearly10,300SAP­skilledprofessionals.Anestimated66%ofitsSAPprofessionalsarelocated

inglobaldeliverycenters.About50%ofitsSAPbusinessisderivedfromimplementation,andtherestis

derivedfrominfrastructureservices,hostingandapplicationmanagement.In2013,WiproderiveditsSAP

implementationbusinessfrom20outofthe22industriesdefinedinthisMagicQuadrant,withthemain

onesbeingindustrial,consumergoods,oilandgas/chemicals,andutilitiesandenergy.Wiproderivesthe

majorityofitsSAPimplementationbusinessfromcompanieswithmorethan2,500employees.

WiprofocusesitsSAPinvestmentsinthefollowingindustries:retail/consumergoods,utilities,discrete

andprocessmanufacturing,energyandnaturalresources,healthcare/pharmaceuticals,andengineering

andconstruction.

Strengths

StrongSAPcapabilitiesatacompetitiveprice—Leveragingtools,areuse­ledfactorymodel andoffshore/landedlabor,Wiproisabletoprovidesolidexpertiseatanexcellentprice.Itisalso

investinginpreconfiguredtemplates,morethan700processmapsthatincludekeyperformance

indicators,andRDStoreducethetotalcostofimplementation.ClientsgenerallyfindthatWiprois

abletomeetorexceedtheirtechnicalneeds,anditsprojectteamsingeneralpossessstrong

technicalandSAPapplicationcapabilities.

Commitmentandflexibility—ClientsreportthatWiproconsultantsshowgreatcommitmentand

flexibilitytodelivertheproject,despiteallodds.Theydisplayastrongpartnershipapproachtohelp

clientsreachtheirgoals,includingcreativeandpredictablepricing.

Investmentsinnewertechnologies—WiprocontinuestobealeadingpartnerfornewerSAP

productsandtechnologies.Ithasanabove­averagetrackrecordinconsultingandimplementing

projectsandproofsofconceptinHana(includingSuiteonHana),hybris,SAPmobiletechnologies

andAriba.Ithasinvestedinmanagedcloudasaserviceandnowofferssubscription­basedindustry

solutionsontheHanaplatformforthemining,chemicalsandwaterindustries.Inaddition,Wiprois

SAP'spartnerfortheRiverDefinitionLanguage(RDL)development,anewlanguageforbuilding

nativeHanaapplications.

Cautions

Businessknowledge—WhileresourcesfromWiproConsultingServicesareknowledgeableabout

businessprocessesandhowtheyareexpressedinSAP,clientsnoticethatWipro'soffshoredelivery

resourcesneedtoscaleupintheirbusinessprocessunderstandingandindustryandfunctional

depth.

Proactiveguidance—ClientscontinuetonoticethatWiprotendstobeshyaboutofferingadvice

andinsteadismorecomfortableexecutingdecisionsandsolvingtechnicalproblems.Givenitsvast

experienceinconsultingandimplementingSAP,clientswouldliketoseeWiprobemoreproactivein

proposingalternativestobusinessdesignrequirementsandapproaches,andchallengingclients'

decisions

Projectplanningandcommunications—ClientsnotethatWiprocanimproveonproject

planningandcommunications.AfewcommentedthattheywouldliketoseeWiproconductamore

thoroughanddetailedscopingoftheprojecteffortanddeliverablesattheoutsetofaproject,and

communicateinamoretimelyfashion,especiallywhenthingsdonotgosmoothly.

VendorsAddedandDropped

WereviewandadjustourinclusioncriteriaforMagicQuadrantsandMarketScopesasmarketschange.As

aresultoftheseadjustments,themixofvendorsinanyMagicQuadrantorMarketScopemaychange

overtime.Avendor'sappearanceinaMagicQuadrantorMarketScopeoneyearandnotthenextdoes

notnecessarilyindicatethatwehavechangedouropinionofthatvendor.Itmaybeareflectionofa

changeinthemarketand,therefore,changedevaluationcriteria,orofachangeoffocusbythatvendor.

Added

EYhasbeenaddedbecauseitmeetstheinclusioncriteria.

Dropped

CGIandFujitsuweredroppedbecausetheydonotmeettheinclusioncriteriaforrevenue.

InclusionandExclusionCriteria

ThecriteriaforinclusionofserviceprovidersfortheMagicQuadrantarebasedonacombinationof

quantitativeandqualitativemeasures.

QuantitativeCriteria

Providersmusthaveaminimumof$250millioninrevenue(estimatedforfiscalyear2013)in

worldwideSAPimplementationservices.

SAPimplementationservicerevenuemustbederivedfromclientsinatleastthreeofthefour

regions:NorthAmerica,EMEA,LatinAmericaandAsia/Pacific(includingJapan).

Nomorethan80%oftherevenueshouldbederivedfromthelargestregion.Aminimumof$50

millioninrevenue(estimatedforfiscalyear2013)mustbederivedfromthesecond­largestregion.

QualitativeCriteria

ClientinterestinspecificSAPserviceproviders,asrevealedbyGartneranalysts'interactionswith

enterprisebuyersand/orGartneranalysts'opinionontheattractivenessofspecificprovidersto

Gartnerenterpriseclients

Overallmarketinterestinandvisibilityoftheprovider,determinedbyseriousconsiderationfor

selectionfromenterpriseclients

AbilitytoprovideconsultingandsolutionimplementationservicesacrossmultipleSAPmodulesand

withmultiplecompetencies

EvaluationCriteria

AbilitytoExecute

GartnerevaluatesserviceprovidersontheirAbilitytoExecuteandtheirCompletenessofVision—asper

thedefinitionsbelow.Whenthetwosetsofcriteriaareevaluatedtogether,theresultinganalysisprovides

aviewofhowwelltheproviderperformsaspectrumofservicescomparedwithitspeersandhowwellitis

positionedforthefuture.

MagicQuadrantsandMarketScopes."

Gartneranalystsevaluatetechnologyprovidersonthequalityandefficacyoftheprocesses,systems,

methodsorproceduresthatenableITproviderperformancetobecompetitive,efficientandeffective,and

topositivelyimpactrevenue,retentionandreputation.Ultimately,technologyprovidersarejudgedon

theirabilityandsuccessincapitalizingontheirvision.

ProductorService:Thiscriterionassessescoreservicesthatareofferedbytheproviderandthat

competein/servethedefinedmarket.Thisincludescurrentservicecapabilities,quality,skills,andsoon.

Subcategoriesinclude:

BreadthanddepthofcapabilitiesinthefullportfolioofSAPapplications

Capabilitiesinbusiness/processconsultingandindustryknowledge

Capabilitiesinotherkeydeliverysuccessfactors:projectmanagement,changemanagement,

communication,andsoon

Demonstratedtrackrecordinsuccessfullyexecutinglargecomplexglobalengagements

OverallViability:Viabilityincludesanassessmentoftheoverallorganization'sfinancialhealthandthe

financialandpracticalsuccessofthebusinessunit,andthelikelihoodoftheindividualbusinessunitto

continuetoinvestintheserviceandcontinuetooffertheservice,advancingthestateoftheartwithin

theorganization'sportfolioofservices.SpecificassessmentincludesthesizeandgrowthoftheSAP

implementationbusiness.

SalesExecution/Pricing:Thiscriterionassessestheserviceprovider'scapabilitiesinallpresales

activitiesandthestructurethatsupportsthem.Theseincludedealmanagement,pricingandnegotiation,

presalessupport,andtheoveralleffectivenessofthesaleschannel.Subcategoriesinclude:

Pricingstrategyandalternativepricingmodels

Customerfeedbackonvalueformoney

MarketResponsiveness/TrackRecord:Thiscriterionassessesthevendor'sabilitytorespond,change

direction,beflexibleandachievecompetitivesuccessasopportunitiesdevelop,competitorsact,customer

needsevolve,andmarketdynamicschange.Thiscriterionalsoconsiderstheprovider'shistoryof

responsivenessandabilitytoquicklybuildcapabilitiestosuccessfullyimplementnewSAPproducts(cloud,

mobilityandHana)andinnewmarkets(emergingcountriesandnewindustries)

CustomerExperience:Thiscriterionassessestherelationships,productsandservices/programsthat

enableclientstobesuccessfulwiththeirSAPprograms.Thiscriterionalsoconsidersclientfeedbackon

overallexperienceworkingwiththeSAPapplicationserviceprovider.

Operations:Thiscriterionassessestheabilityoftheorganizationtomeetitsgoalsandcommitments.

Factorsincludethequalityoftheorganizationalstructure,abilitytomanageutilizationandattrition,tools,

methodologies,knowledgemanagementsystems,trainingprograms,globalpresence,globaldelivery

centers,centersofexcellence,andothervehiclesthatenabletheorganizationtooperateeffectivelyand

efficientlyonanongoingbasis.

Table1.AbilitytoExecuteEvaluationCriteria

Criteria

Weight

ProductorService

High

OverallViability

Medium

SalesExecution/Pricing

Medium

MarketResponsiveness/TrackRecord

Medium

MarketingExecution

NoRating

CustomerExperience

High

Operations

Medium

Source:Gartner(July2014)

CompletenessofVision

Gartneranalystsevaluatetechnologyprovidersontheirabilitytoconvincinglyarticulatelogical

statementsaboutcurrentandfuturemarketdirection,innovation,customerneeds,andcompetitive

forcesandhowwelltheymaptotheGartnerposition.Ultimately,technologyprovidersareratedontheir

understandingofhowmarketforcescanbeexploitedtocreateopportunityfortheprovider.

MarketUnderstanding:Thiscriterionassessestheabilityoftheprovidertounderstandbuyers'needs

andtranslatetheseneedsintoproductsandservices.Vendorsthatshowthehighestdegreeofvision

listenandunderstandbuyers'wantsandneeds,andtheycanshapeorenhancethosewantswiththeir

addedvision.Subcategoriesincludetheserviceprovider'sknowledgeandarticulationofkeymarket

directionandtrends,andtheserviceprovider'sreputationasathoughtleader.

MarketingStrategy:Thiscriterionassessesaclear,differentiatedsetofmessagesthatareconsistently

communicatedthroughouttheorganizationandareexternalizedviacommunications,advertising,

customerprogramsandpositioningstatements.

SalesStrategy:Thiscriterionassessesthestrategyforsellingservices,whichusestheappropriate

networkofdirectandindirectsales,marketing,service,andcommunicationsaffiliatesthatextendthe

scopeanddepthofmarketreach,skills,expertise,technologies,servicesandcustomerbase.

Subcategoriesinclude:

Serviceprovider'sstrategiesforpartnershipsandalliances

Accountmanagementandvisionforcreatingnewand/oradditionalSAPservicebusiness

Offering(Product)Strategy:Thiscriterionassessesaserviceprovider'sapproachtoSAP

implementationservicedevelopmentanddeliverythatemphasizesdepthandbreadthofcapabilities,

differentiation,andmethodologiesastheymaptocurrentandfuturerequirements,suchas

enhancements/extensionstoSAPproducts,innovativeusecasesforHanaandmobility,benefit

realization,andcontinualinvestmentsintomakingdeliveryspeedier,lesscostlyandwithreducedrisks.

Vertical/IndustryStrategy:Thiscriterionassessesthetechnologyprovider'sstrategytodirect

resources,skillsandofferingstomeetthespecificneedsofindividualmarketsegments,including

verticals.Thisincludesvertical,industryandprocessinvestments,asrevealedbydedicatedresources,

trainingandrelatedtemplates/preconfiguredsolutions/processmapsandotherintellectual­property

developmentinselectedverticals,industriesandprocesses.

Innovation:Thiscriterionassessesthedirect,related,complementaryandsynergisticlayoutsof

resources,expertiseorcapitalforinvestment,consolidation,defensiveorpre­emptivepurposes.Italso

includesreputationasaninnovatorandco­innovationactivitieswithSAP.

GeographicStrategy:Thiscriterionassessestheprovider'sstrategytodirectresources,skillsand

offeringstomeetthespecificneedsofgeographiesoutsidethe"home"ornativegeography,including

globaldeliverylocations,eitherdirectlyorthroughpartners,channelsandsubsidiaries,asappropriatefor

thatgeographyandmarket.

Table2.CompletenessofVision

EvaluationCriteria

EvaluationCriteria

Weighting

MarketUnderstanding

High

MarketingStrategy

Medium

SalesStrategy

Medium

Offering(Product)Strategy

Medium

BusinessModel

NoRating

Vertical/IndustryStrategy

Medium

Innovation

Medium

GeographicStrategy

Medium

Source:Gartner(July2014)

QuadrantDescriptions

Leaders

Leadersareperformingwelltoday,gainingtractionandmindshareinthemarket;theyhaveaclear

visionofmarketdirectionandareactivelybuildingcompetenciestosustaintheirleadershippositioninthe

market.Theplayersinthisquadrantgenerallyhaveaglobalclientbase,atrackrecordofimplementing

complexSAPprogramsgloballythatsupportbusinesstransformation,andwell­balancedbusiness,process

andindustryconsultingandimplementationcapabilitiesthataresupportedbyrigoroustoolsand

methodologies.

Challengers

Challengersexecutewelltodayfortheportfolioofworkselected,buttheyhavealess­definedviewof

marketdirection.Consequently,theseserviceprovidersarethe"upandcomers"ofthefuture.Vendors

inthisquadrantgenerallyhavesomegapsinconsultingorothercapabilities,sales,marketing,

innovation,geographicpresenceorofferingstrategy.

Visionaries

Visionariesarticulateimportantmarkettrendsanddirection.Theyhaveavisionforchangingmarket

rules,buttheyarenotinapositiontofullydeliverandconsistentlyexecute.

NichePlayers

NichePlayersfocusonafewsegmentsofthemarket,suchascertaingeographies,verticalindustries,

clientsegmentsorfunctionalareas.Theirabilitytoexecuteislimitedtothesefocusareasand,therefore,

isassessedaccordingly.Theirabilitytoinnovateisalsoaffectedbythisnarrowfocus.Manyofthe

providersinthissegmentwereratedhighlyforcustomersatisfaction,andmanycanbeconsideredtobe

leadingplayerswithintheirnichemarketfocus.NichePlayersneedtoincreasetheirgeographicsalesand

delivery,aswellasincreaseoverallbreadthanddepthofcapabilities,innovationandbenchstrength.

Context

Alargeserviceecosystemofover7,400servicesandchannelpartnerssupportsSAP'scustomersand

helpsitsellintoorganizations.Needlesstosay,the17serviceprovidersincludedinthisMagicQuadrant

makeupasmallfractionofthethousandsofserviceprovidersthatimplementSAP.Manycapable

providersarenotincludedinthisstudyduetoourinclusioncriteriaandmethodology.Theseinclude(but

arenotlimitedto)ABeamConsulting,BluefinSolutions,Bristlecone,CGI,Ciber,ClarkstonConsulting,Dell

Services,Epi­Use,Fujitsu,HitachiConsulting,Igate,KPMG,Keneos,Keytree,L&TInfotech,Tech

Mahindra,NGAHumanResources,SitaCorp,Softtek,KPIT,TEKsystemsandYashTechnologies.Market

Guides,CoolVendorsandHypeCyclereportsfeaturesmallerand/ornicheSAPserviceprovidersthatmay

beabetterfitforspecificSAPimplementationprojects,dependingontheSAPmodule,resourcing

objectives,sizeofprojectandotherfactors.

ThisMagicQuadrantanalyzesthelargestprovidersofSAPimplementationservices.Therelative

positioningofvendorsinthisMagicQuadrantisbasedonGartner'sstandardMagicQuadrant

methodology.Weanalyzeconsultingandsystemintegrationprojectsthattypicallyrequireablendof

process,industry,SAPapplicationandtechnology,andprogramandprojectmanagementskills.

Whenconsideringimplementationpartnersforarequestforinformationorrequestforproposal,clients

areadvisednottosimplyselectserviceprovidersintheLeadersquadrant.Allselectionrequirementsare

enterprise­specific;consequently,vendorsintheChallengers,VisionariesorNichePlayersquadrantsmay

provetobemoreappropriatefortheirengagement.Forexample,eachproviderwillhaveadifferentdeal

sweetspot,reflectingthescaleofdealsinwhichitperformswell,itscultureandindustrycoverage,as

wellasthematurityofserviceprovisionthatitsclientsvalue(see"Deal'SweetSpot'AnalysisAccelerates

ServiceProviderEvaluationandSelection").Additionally,becausetheinclusioncriteriaintheMagic

QuadrantresultintheanalysisofthemostestablishedprovidersintheSAPimplementationmarket,

clientsshouldnotdisqualifyanypotentialcompetitors.OtherITservicesprovidersnotevaluatedinthis

MagicQuadrantmaypresentbetteralternativesforyourbusinessrequirements.AGartneranalystcan

helpwithashortlistofthemostsuitablecandidatesbasedonclientrequirements.

ThisMagicQuadrantevaluatesonlytheconsultingandsystemintegrationcapabilitiesrequiredfor

discreteprojectworkandexcludesmultiyearcontractualengagementstypicalofoutsourcingagreements.

Forthisdocument,weobtained177referencestothe17leadingSAPserviceproviderstosupplement

ourviewsbasedondailyinteractionwithGartnerclientsandvendors.

MarketOverview

WhilegreatstrideshavebeenmadeinSAPimplementation,clientscontinuetostrugglewithage­old

challenges:

Howcanenterprisesimplementfasterandlessexpensively,withlessriskandmorepredictability?

Howcanenterprisesensurethattheimplementationbringsaboutthebusinessbenefitspromisedin

thebusinesscase?

Addedtotheseage­oldissuesarenewopportunitiesandchallengestohelpclientswiththeirdigital

transformation,enabledbytheever­expandingSAPfamilyofnewandacquiredproductsandtechnologies

—suchasHana,mobility,Ariba,hybris,Fiori,cloudandSaaS.

ServiceProvidersHaveSteppedUpInvestmentstoAddressOpportunitiesand

Challenges

WhiletheSAPservicemarketisalargeone,competitionisintensewithover7,400servicesandchannel

partnersintheecosystem.Serviceprovidersarefuriouslyinvestingtodifferentiatethemselvestowinin

thismarketplace.Serviceproviders'investmentsfordifferentiationthataddressthechallengesand

opportunitiesintheSAPimplementationmarketinclude:

Capabilitiesandofferingsinnewproductsanddisruptivetechnologies:SIsdifferentiateon

capabilitiesinnewerproductsanddisruptivetechnologies,suchasinHana,hybris,SuccessFactors

andmobile.ThesenewproductsaredrivingaflurryofinvestmentactivitiesamongSIseagertoget

infrontofdemand,suchashiringand(re)trainingtalent,investinginnewusecasesandcentersof

excellence,puttingtogetherafullsetofofferingsfromassessmentandroadmapstomigration

factories.

Alternativedeliverymodels:SIsalsoinnovateonnewerdeliveryandconsumptionmodels,such

asfinancialre­engineeringofbundledhardware,softwareandservicesintosubscription­based

billing,knownasmanagedcloudasaservice(MCaaS).ExamplesincludeCapgemini'sOnePathand

industry­specificMCaaSofferingsbyNTTData(forexample,education),Infosys(forexample,oil

fieldservices),Wipro(forexample,mining,waterandchemicals)andothers.As­a­servicemodels

areparticularlyembracedbyserviceprovidersinHanaandmobilitytomakeiteasierandfasterfor

clientstobuyandconsumethesenewerSAPproductswithoutmakingalargecapitalinvestmentor

hiringin­housestaffwiththerightskillsets.Forexample,HPhasanas­a­servicesolutionforHana,

Accenturehasitssubscription­basedMarketingPerformanceSolutionbuiltonHana,EYismaking

investmentsinanalyticsasaservice,andAtosoffersacloud­basedmobilitysolutionbasedonSAP

MobilePlatform.

Benefitrealization:On­timeandon­budgetdeliverycontinuestobetheyardstickofsuccessfor

manyenterprises,butincreasingly,sophisticatedclientsaredemandingmeasurablereturns.More

serviceproviders—includingAccenture,Deloitte,HCL,IBMandInfosys—arenowsteppingupto

offerbothmethodologyandfee­at­riskcontractsthatmorelikelyleadtobenefitrealization.

Businesscapabilities:Leadingserviceprovidersareinvestinginindustry,businessprocessand

localknowledgetodifferentiatefromtheirmoretechnicallyorientedcompetitors.India­centric

providers,suchasCognizant,Infosys,TCSandWipro,arehiringconsultantswithspecificindustry

experienceandlocalconsultantsinspecificgeographies,inadditiontoacquisitionsinsomecases,for

suchcapabilities.

Reusableassets:LeadingSIshaveinvestedheavilyinaccelerators,reusableassetsinindustry­

specificorhorizontalnichefunctionalities,andpreconfiguredsolutions.SAPhasdevelopedaportfolio

ofRDSthatencompasseshighlytargetedfixed­scopesolutionsthatcanbeimplementedquicklyso

clientsreapbenefitsearly.SomeSIs—includingCSC,NTTData,InfosysandWipro—arealso

developingRDStooffertotheirclients.Leadingserviceprovidersalsoco­innovatewithSAPor

developapplicationsontopofSAPproductstoroundoutthestandardfunctionalitiesandmakethe

combinedproductsabetterfittoclients'requirementsinaspecificsubverticalorprocess.Examples

includeInfosys'OilFieldServicessolution,HCLiMROandPwC's"GRCinabox."

Toolsandautomation:Toolsandautomationcutcostsofimplementationandoftenindicatea

serviceproviderfocusinthatparticularserviceoffering.ToolssuchasAccenture'sBOSSand

Deloitte'sProcessX­Rayautomateprocessdiscovery,ofteneliminatinglengthy—andoften

erroneous—manualgatheringofinformation,whileAtos'LiveTools,IBM'scloud­basedtraceability

toolforregulatoryreporting,Cognizant'sUpgradePlusandNTTData'sUptimizeraccelerate

implementationandreduceitscosts.Whilecommercialtools—suchasPanaya—exist,tools

broughtbyserviceproviderstoaprojectaretypicallyincludedintheservicefees,andclientsdonot

explicitlypayfortheuseofthesetools.

Localcapabilities:Clientsareincreasinglyexpectingmorelocalsupportandcapabilities.India­ centricprovidersarerespondingbyactivelybuildinguptheirlocalconsultingcapabilitiesthrough bothhiringoflocalsandacquisitions.ExamplesincludeTCS'sacquisitionofParis­basedAlti,Infosys'

acquisitionofLodestoneandCognizant'sacquisitionofGermany'sC1.

SAPImplementationIs,intheFinalAnalysis,aPeopleBusiness

Whiletheadvantagesthatcomewithmethodologies,tools,automationandpreconfiguredsolutionsare

veryreal,SAPimplementationis,inthefinalanalysis,apeoplebusiness.ThisMagicQuadrantevaluates

theproviders'institutionalstrengthsandcautions;everyprojectteamanditsteammembersfromany

onefirmvarybyexpertise,experience,peopleskillsandtemperament.Consistencyinqualityis,by

definition,difficult.LeadingSIshaveamelioratedthisthroughtraining,enforceduseofcommontools,

methodologiesandknowledgemanagementsystems,amongotherthings.ButasthisMagicQuadrant

shows,consistencycontinuestobeachallenge,evenforthemostmatureSIs.Consistencyisespecially

problematicinsmalleroremergingcountrieswherelocalresourcesarespottyandexperiencewithSAP

implementationisnotproven.Clientsareadvisedtoevaluateboththeinstitutionalcapabilitiesandthe

keypeopleproposedfortheengagementwhenselectingimplementationpartners.

LeadingSIshavecontinuedtokeeptheirutilizationofresources—especiallyonshoreresources—high,

whichhasbroughtaboutchallenges,suchasdifficultyinstaffingprojects,delaysinfindingprofessionals

withtherightskillsets(especiallyfornewerSAPproducts),andprojectattrition.Someleveragethe

contractormarkettosupplementtheirownemployees,whichcanbeabooninthatthesecontractorsare

typicallyhighlyspecializedintheirfields,butthisapproachcanalsobeabigchallengebecausetheyare

notfamiliarwiththeSI'smethodologyandtools,andtheyhavelessvestedinterestinstayingontothe

endoftheproject.ClientsareadvisedtoensuretheirchosenSIhastherightresourcesinplacewithin

thetimeframerequiredandhaveincentivesinplacetoencouragestafftostaytotheendofthe

engagementor,ataminimum,totheendofasignificantmilestone.

Withsomeexceptions,clientsaregenerallypleasedwiththe"hard"(forexample,applicationand

technical)skillsdemonstratedbySIsbutfindmanyoftheSIs'"soft"skillssomewhatlimited.Change

management,communications,industryandbusinessprocessknowledge,businessacumenandproject

managementcontinuetobechallenges.ClientsareadvisedtoevaluatetheSIonthesefactorsandinsist

onstrongcandidateswiththesesoftskillsinstaffingkeyroles.

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