idc marketscape: worldwide digital transformation ... 2017, idc #us41523517 idcmarketscape idc...

June 2017, IDC #US41523517

IDC MarketScape

IDC MarketScape: Worldwide Digital Transformation Consulting and Systems Integration Services 2017 Vendor Assessment

Gard Little Ali Zaidi

IDC MARKETSCAPE FIGURE

FIGURE 1

IDC MarketScape Worldwide Digital Transformation Consulting and Systems

Integration Services Vendor Assessment

Source: IDC, 2017

©2017 IDC #US41523517 2

Please see the Appendix for detailed methodology, market definition, and scoring criteria.

IDC OPINION

This IDC study represents a vendor assessment of the 2017 digital transformation (DX) information

technology (IT) consulting and systems integration (C&SI) services market through the IDC

MarketScape model. This research is a quantitative and qualitative assessment of the characteristics

that explain the success of a vendor in the marketplace and help anticipate its ascendancy. This IDC

MarketScape covers a variety of vendors participating in the worldwide digital transformation C&SI

services market. This evaluation is based on a comprehensive framework and a set of parameters

expected to be most conducive to success in providing DX C&SI services in both the short term and

the long term. A significant component of this evaluation is the inclusion of the perception of DX C&SI

services buyers of both the key characteristics and the capabilities of these providers. Buyers were

surveyed across all three of IDC's macroregions. Key findings include:

Across all 38 strategies and capabilities assessed, the "employee management strategy" and

"offering or functionality road map" attributes were rated most highly, on average, across all DX professional service providers. The strategy attribute that received the lowest mean scores

overall was "delivery model."

Based on the survey feedback from 44 of the evaluated vendors' customers, the subcategory "delivery model appropriateness and execution" received the highest aggregate scores. The

lowest aggregate score for any subcategory was for "cost competitiveness."

When buyers were asked what characteristics were required for a DX C&SI services project to

be successful at a worldwide level, the top 2 characteristics were "ability to achieve desired

business outcomes" and "ability to transform critical business processes for digital solutions."

IDC MARKETSCAPE VENDOR INCLUSION CRITERIA

This IDC study includes analysis of 10 major DX C&SI services providers with broad portfolios

spanning IDC's C&SI research coverage and with global scale. The assessment is designed to

evaluate the characteristics of each firm — as opposed to its size or the breadth of its services. Given

this approach, Lockheed Martin has been excluded even though it is among the top 10 systems

integrators based on worldwide revenue because the firm typically receives more than 80% of its

revenue from the U.S. government. Likewise, NEC has been excluded because it derived virtually all

its revenue from Asia/Pacific. The inclusion criteria also dictate at least $500 million revenue coming

from a vendor's aggregate IT consulting and systems integration services practice at a worldwide level,

as well as a minimum of 10% of this revenue located in at least two of IDC's three macroregions. In

addition, it is conceivable, and in fact the case, that specialty firms can compete with multidisciplinary

firms on an equal footing. As such, this evaluation should not be considered as a "final judgment" on

the firms to consider for a project. An enterprise's specific objectives and requirements will play a

significant role in determining which firms should be considered as potential candidates for an

engagement.

ADVICE FOR TECHNOLOGY BUYERS

Delivery model appropriateness and innovation/R&D pace and productivity. Include vendor performance on these factors among your highest selection criteria. These were the top 2 in

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terms of importance for project success as rated by customers that were surveyed for this IDC

MarketScape.

Business outcome and business process. Select services partners for your DX C&SI services engagements that have strong ability to help businesses achieve desired business outcome.

Successful organizations carried out DX C&SI services projects by partnering with DX C&SI services providers that helped them achieve the desired business outcome they were looking for. It is essential that the investments you put in DX solutions drive the business outcomes

they are planned to achieve and, therefore, it will be highly beneficial to partner with a provider that has a reputation to help you achieve these outcomes. Successful organizations also carried out DX C&SI services projects by partnering with DX C&SI services providers that

were able to transform critical business processes for digital solutions. A key to a successful DX initiative is to enhance and improve the underlying business processes to transform the way a business is run. Select a partner that can showcase the desired business process

consulting capabilities.

Using IDC MarketScape for vendor selection. Use this IDC MarketScape in contract

negotiations and as a tool to not only short list vendors for digital transformation implementation service bids but also evaluate vendors' proposals and oral presentations. Because this analysis shows that the breadth and depth of services offered are strong for the

majority of providers, make sure you understand where these players are truly differentiated

and determine if these areas are important to your selection.

VENDOR SUMMARY PROFILES

This section briefly explains IDC's key observations resulting in a vendor's position in the IDC

MarketScape. While every vendor is evaluated against each of the criteria outlined in the Appendix,

the description here provides a summary of each vendor's strengths and challenges. IDC's

assessment includes 10 vendors (profiled in alphabetical order): Accenture, Cognizant, Deloitte, EY,

HCL, IBM, KPMG, NTT DATA, PwC, and Wipro.

Accenture

According to IDC analysis and buyer perception, Accenture is a Leader in the IDC MarketScape for DX

consulting and systems integration services worldwide.

Accenture Digital is one of the five global growth platform areas for Accenture and its value proposition

is to help clients harness digital innovation to improve efficiency, generate growth, and create new

business models that drive higher performance across the entire organization. Accenture Digital

includes Accenture Interactive, Accenture Analytics, and Accenture Mobility sub-practices. In addition,

Accenture has the ability to combine and integrate these end-to-end capabilities — strategy, consulting,

digital, technology, and operations — in an industry context to help clients in the digital transformation

journey. Accenture Digital practice harnesses a large pool of business and technology skilled talent,

ecosystem partnerships, technology platforms, and assets to support its value proposition.

Strengths

Buyers rate Accenture highly for the appropriateness and execution of its delivery model and customer

service capability and the way it manages its resources during customer projects. Similarly, IDC rates

Accenture highly in terms of its offerings/functionality road map, its innovation/R&D pace and

productivity, and its end-to-end life cycle of digital services portfolio.

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Challenges

IDC believes Accenture's delivery model could be improved by increasing codevelopment of IP and

solutions with other services providers in the DX ecosystem. Likewise, financial/funding model could

be improved by upskilling junior resources to be able to deliver more higher value services to its

customers. Finally, Accenture would benefit from proactively offering value-added use case

development to its customers.

Consider Accenture When

You are looking for end-to-end digital transformation solutions that include not only experience

strategy and design but also the enablement of underlying digital technology. Accenture with its strong

industry knowledge and breadth of digital technology services offerings that span from consulting all

the way to managed services can fulfil experience creation, industry expertise, and technology

implementation needs at a global scale.

Cognizant

According to IDC analysis and buyer perception, Cognizant is a Leader in the IDC MarketScape for DX


Cognizant has four business segments (financial services, healthcare, manufacturing/retail/logistics,

and others) matrixed against solutions and services areas (consulting, information technology, and

outsourcing services), all working together to deliver digital transformation C&SI services. Its business

consulting group indicates that most deals have a digital component, and Cognizant's thought

leadership over the past several years has addressed business-IT issues (e.g., in books Code Halosand What to Do When Machines Do Everything). Cognizant offers digital transformation planning,

enterprise architecture services, infrastructure services, program management, compliance and

governance, and security and vulnerability assessments. Historically, Cognizant has made an implicit

"promise" with investors that it will deliver higher revenue growth in return for the "privilege" of

delivering lower operating margins; Cognizant's emphasis on digital transformation services will be yet

another growth lever.

Strengths

Buyers rate Cognizant highly for cost competitiveness, employee management, and the

pace/productivity of its R&D/innovation. Similarly, IDC rates Cognizant highly in terms of not only its

pricing models and employee strategy but also on the visibility of its digital transformation practice at a

corporate level as well as externally.

Challenges

IDC believes Cognizant's marketing could be improved with more customer events related to digital

transformation across all three major geographies. Likewise, customer service could be improved by

adding more digital transformation–related customer councils where like-minded executives could

share information. Finally, Cognizant would benefit from an extension into support services that are

complementary to its digital transformation offers.

Consider Cognizant When

You not only want to implement a digital transformation but understand why it's so hard to do.

Cognizant believes its primary goal is not only to lead and educate companies to understand the value

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of digital transformation and help them get started but also to grasp the complexity (e.g., of the

hardware and software engineering) needed to deliver digital transformation at scale.

Deloitte

According to IDC analysis and buyer perception, Deloitte is a Major Player in the IDC MarketScape for

DX consulting and systems integration services worldwide.

Deloitte Digital is the organization's focal point of digital transformation at the firm, but digital

transformation capabilities are found across all its lines of business. Deloitte believes its three

differentiators, while timeless, apply nicely to the digital age: business value and industry experience, a

partnership collaboration culture focused on quality, and delivery and integrity at pace. Deloitte's digital

transformation offers span the entire plan, design, build and run spectrum, and it is also a digital

agency of record for numerous clients. Deloitte Digital is building a network (or ecosystem) of providers

into a platform, combined with its own IP and know-how, because it believes that how it brings

partners/providers to an engagement on behalf of its clients will be a distinct competitive advantage.

Strengths

Deloitte's primary strengths are the breadth and scope of the company's offers for digital

transformation, combined with the wider set of complementary professional and advisory services, and

the structure and capabilities of its sales/distribution model.

Challenges

IDC believes Deloitte's delivery strength could be improved with more product and service partners'

staffs included in the work done by the company's delivery centers. While it delivers strong value for

fees paid, Deloitte's cost competitiveness remains a challenge. Finally, Deloitte's customer service

strategy could be improved by including more external sources to capture client feedback about

recently completed engagements.

Consider Deloitte When

You want to be pushed out of your comfort zone about the ambition for your digital transformation so

you can come up with some truly audacious goals that are still implementable. Deloitte Digital is not

afraid to say so when it thinks you are aiming too low by simply looking for problems to be solved.

EY

According to IDC analysis and buyer perception, EY is a Major Player in the IDC MarketScape for DX


EY has chosen not to create a separately branded organization for digital transformation to underscore

that digital approaches are embedded across all service lines. Its five global offers are digital

experience strategy, innovation incubation, continuous experience implementation, digital operations,

and digital trust. EY differentiates on how it brings innovation into digital transformation consulting

engagements, believing the "what" of innovation is no longer a differentiation. This innovation

enablement involves several strategies: evolving an innovation culture, expanding internal innovation

networks, providing actionable innovation knowledge, establishing innovation as part of brand,

developing an external innovation ecosystem, and identifying/quantifying growth markets. EY has

created hubs around the world for digital, analytics, and cybersecurity to accelerate the flow of

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innovations and knowledge gained from acquisitions, across the firm; it colocates multidisciplinary

teams in these studio environments to execute on its strategy.

Strengths

Buyers rate EY highly for the pricing model options it provides and how those models align with each

client's organization, the appropriateness and execution of its delivery model, and the breadth and

scope of its offers for digital transformation. IDC rates EY highly in terms of the business strategy

behind its financial/funding model, the breadth of its services portfolio, and its customer service

strategy.

Challenges

IDC believes EY's sales/distribution strategy could be improved with more go-to-market alliances with

other complementary services suppliers or customers. IDC believes the visibility of EY's digital

transformation practice at a corporate level as well as externally could be improved. Finally, EY's

delivery strength could be improved with more product and service partners' staffs included in the work

done by the company's delivery centers.

Consider EY When

The idea of business-led technology-enabled transformation sounds like the right approach compared

with a technology-led business transformation. EY likes to help clients focus on the disruption digital

technologies cause in an industry rather than the technology itself.

HCL

According to IDC analysis and buyer perception, HCL is a Major Player in the IDC MarketScape for DX


HCL digital transformation services are focused on the fundamentals of customers' business

transformation, which begins with reimagining existing business processes and user experiences. HCL

value proposition for digital services is about combining deep knowledge of business processes with

user-centered design principles to truly visualize the potential of digital technology. With a product

engineering heritage, HCL excels in creating automated solutions across all aspects of a customer's

digital technology needs. HCL utilizes digital business architectures, technology platforms, and data

innovation to drive business transformation for its customers. HCL offers end-to-end digital services

capabilities including managed services, which it delivers utilizing its GDCs spread across the globe.

Strengths

Buyers rate HCL highly for the appropriateness and execution of its delivery model, its

offering/functionality road map, and the value it delivers for the fee charged for a customer solution.

Likewise, IDC rates HCL highly in terms of its sales and distribution strategy, growth strategy, and

pace and productivity of its innovation/R&D initiatives.

Challenges

IDC believes HCL's delivery model could be improved by increasing codevelopment of IP and

solutions with other services providers in the DX ecosystem. Likewise, the financial/funding model

could be improved by upskilling junior resources to be able to deliver more higher value services to its

customers and by utilizing crowdsourcing to augment internal skill sets. Finally, HCL would benefit

from increasing visibility of its digital transformation practice at a corporate level as well as externally.

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Consider HCL When

When the need for both services automation and digital technology is at the core of the transformation

initiative, HCL offers end-to-end application as well as underlying infrastructure services to support

clients' digital transformation needs.

IBM

According to IDC analysis and buyer perception, IBM is a Major Player in the IDC MarketScape for DX


IBM iX (Interactive Experience) places customer experience at the center of everything it does;

however, iX also includes deep implementation skills in areas like salesforce (with the acquisition of

Bluewolf in 2016) and IBM Watson. In addition, IBM has a dedicated IoT services practice within

Digital Operations, a domain practice which is part of the overall IBM Digital service line. IBM also

formed the IBM Watson IoT–independent business unit in late 2015, which is responsible for providing

the IoT platform and ecosystem components across IBM. Across these multidisciplinary teams

implementing different technologies, IBM strives for a digital reinvention of its clients' organizations by

ensuring that clients' strategies are ambitious enough, and executions are fast enough, to transform

clients' capabilities in the context of their changing industries.

Strengths

Buyers rate IBM highly for the appropriateness and execution of its delivery model, execution of its

growth strategy, and employee management. Likewise, IDC rates IBM highly in terms of not only its

employee strategy but also its marketing, as well as its ability to offer customers a wide range of

pricing options.

Challenges

IDC believes IBM's growth strategy could be improved with more focus on specific geographies and

buyer roles. IBM's customer service strategy could be improved by including more external sources to

capture client feedback about recently completed engagements. Finally, IBM's sales/distribution

strategy could be improved with more go-to-market alliances with other complementary services

suppliers, or customers, or via more joint ventures with product/service partners.

Consider IBM When

Cognitive systems or machine learning technology is more than a bolt-on afterthought for your DX

implementation. IBM has the longest experience and deepest base of research related to building and

implementing cognitive systems.

KPMG

According to IDC analysis and buyer perception, KPMG is a Leader in the IDC MarketScape for DX


KPMG has not created a digital practice but rather has a global digital community of resources with a

broad set of capabilities, and digital is its single, largest global focus. Digital plays a role in almost

every project it delivers and all its resources have digital skills with different areas of focus. KPMG has

several global delivery centers located around the globe and a portion of its digital community is

located accordingly. While it has pursued several acquisitions to complement its digital transformation

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skills, KPMG has chosen to partner with digital agencies rather than include that skill set inside the

firm.

Strengths

Buyers rate KPMG highly for the structure and capabilities of its sales and distribution model, the

pace/productivity of its R&D/innovation, and employee management. Likewise, IDC rates KPMG highly

in terms of its employee strategy, its ability to offer customers a wide range of pricing options, and the

breadth and scope of its offers for digital transformation.

Challenges

IDC believes the visibility of KPMG's digital transformation practice at a corporate level as well as

externally could be improved. KPMG's delivery model could be improved by including complementary

service partners more often in the development of tools and methodologies for implementation

services. Finally, KPMG's sales/distribution strategy could be improved with more go-to-market

alliances with other complementary services suppliers or via more joint ventures with product/service

partners.

Consider KPMG When

You want a firm where the single, largest, focus it has is on digital transformation but also one where

digital is not being called out as a separate practice or brand. KPMG is a highly credible partner when

you need to have a board-level conversation about how not to get left behind by the forces of digital

disruption in your industry.

NTT DATA

According to IDC analysis and buyer perception, NTT DATA is a Major Player in the IDC MarketScape

for DX consulting and systems integration services worldwide.

NTT DATA, now with a significant part of Dell Services acquired, creates a global IT services firm with

a broader range of both application- and infrastructure-related services to enable digital

transformation. It offers expertise and scale for custom and packaged application development to help

clients modernize, upgrade, and integrate hybrid environments and a full range of managed services

and support services to help clients leverage resources and manage costs more effectively. NTT

DATA's Digital Experience Studios in Plano, Texas and Bangalore, India are dedicated to support

digital transformation projects and host digital discovery workshops to assess the digital needs of

customers. It offers industry-specific consulting in vertical segments such as banking, insurance,

healthcare, manufacturing, and other commercial segments.

Strengths

Buyers rate NTT DATA highly for pricing models, execution of its growth strategy, and the

appropriateness and execution of its delivery model. IDC rates NTT DATA highly in terms of its

functionality offering road map, its ability to offer customers a wide range of pricing options, and the

breadth and scope of its offers for digital transformation.

Challenges

IDC believes the visibility of NTT DATA's digital transformation practice at a corporate level as well as

externally could be improved. NTT DATA's delivery model could be improved by including

complementary service partners more often in the development of tools and methodologies for

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implementation services. Finally, NTT DATA's sales/distribution strategy could be improved with more

go-to-market alliances with other complementary services suppliers, or with customers.

Consider NTT DATA When

You are interested in a provider that focuses on experiential design and takes a systemic focus on

removing the friction points between customers and their interactions with your organization. Likewise,

consider NTT DATA if access to Dimension Data (part of the larger NTT Group), or NTT

Communications, or the over $2 billion it spends each year on R&D sound intriguing for your

implementation.

PwC

According to IDC analysis and buyer perception, PwC is a Major Player in the IDC MarketScape for DX


PwC digital transformation services covers its advisory, assurance, and tax services lines and provides

clients solutions from strategy planning through tactical execution. PwC's value proposition for digital

services revolves around providing an industry-led, business-focused and technology-enabled

approach to digital that integrates knowledge of industries, business processes, and technology that

are necessary to effectively and comprehensively deliver digital solutions and services. PwC has

digital services practitioners across business strategy, experience design, and technology services.

PwC helps client achieve new/enhance operating model for their digital transformation needs across

the following elements of clients' operating model: portfolio, funding, organization, team/resources,

ecosystem, governance, process, culture, metrics/motivators, and leadership.

Strengths

PwC's primary strengths are the breadth and scope of its offers for digital transformation, its pricing

model strategy, and its employee management strategy.

Challenges

IDC believes PwC's sales and distribution strength could be improved by utilizing services and

customers as sales channels to augment its direct sales outreach. Likewise, financial/funding model

could be improved by further utilizing IP to automate services delivery and augmenting internal skill

sets via crowdsourcing. Finally, PwC would benefit from increasing visibility of its digital transformation

practice at a corporate level as well as externally.

Consider PwC When

The idea of business-led technology-enabled transformation sounds like the right approach compared

with a technology-led business transformation. PwC's approach to digital transformation is about

solving business problems in a way that they are supported and enabled by technology, but not driven

by technology alone.

Wipro

According to IDC analysis and buyer perception, Wipro is a Leader in the IDC MarketScape for DX


Wipro Digital is the branded customer-facing digital practice within Wipro that offers human-centered

creative design capabilities coupled with technology services that span across strategy consulting to

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technology implementation and managed services. Wipro Digital's value proposition revolves around

the notion that successful digital transformations occur at the intersection of enhanced customer

experience and greater operational efficiencies, and therefore, Wipro helps enable client organizations

to reimagine the way they serve their customers by supporting unique customer journeys. Wipro digital

technology solutions, particularly those around analytics, are enabled heavily by IP/asset such as

Wipro HOLMES, an artificial intelligence platform. Wipro digital resources, tools, and industry solutions

cut across all services lines across Wipro, including its global infrastructure services practice.

Strengths

Buyers rate Wipro highly for the appropriateness and execution of its delivery model, the pricing model

options it offers, and its end-to-end life cycle of digital services portfolio. Likewise, IDC rates Wipro

highly in terms of its functionality/offerings road map, sales and distribution strategy, and employee

management strategy.

Challenges

IDC believes Wipro's cost management strategy could be improved by proactively offering value-

added use case development to its customers. Likewise, growth strategy could be improved by

targeting customers outside of Wipro's traditional customer base. Finally, Wipro would benefit from

adding external elements to its delivery process oversight to improve delivery consistency.

Consider Wipro When

Artificial intelligence–enabled automation and human-centric design approach for digital transformation

are your top priorities. Wipro couples its DesignIT human-centered design capabilities with highly

automated business process and technology solutions enabled by artificial intelligence IP-based

assets to cater to your industry-specific digital transformation needs.

APPENDIX

Reading an IDC MarketScape Graph

For the purposes of this analysis, IDC divided potential key measures for success into two primary

categories: capabilities and strategies.

Positioning on the y-axis reflects the vendor's current capabilities and menu of services and how well

aligned the vendor is to customer needs. The capabilities category focuses on the capabilities of the

company and product today, here and now. Under this category, IDC analysts will look at how well a

vendor is building/delivering capabilities that enable it to execute its chosen strategy in the market.

Positioning on the x-axis, or strategies axis, indicates how well the vendor's future strategy aligns with

what customers will require in three to five years. The strategies category focuses on high-level

decisions and underlying assumptions about offerings, customer segments, and business and go-to-

market plans for the next three to five years.

The size of the individual vendor markers in the IDC MarketScape represents the market share of each

individual vendor within the specific market segment being assessed.

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IDC MarketScape Methodology

IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC

judgment about the market and specific vendors. IDC analysts tailor the range of standard

characteristics by which vendors are measured through structured discussions, surveys, and

interviews with market leaders, participants, and end users. Market weightings are based on user

interviews, buyer surveys, and the input of IDC experts in each market. IDC analysts base individual

vendor scores, and ultimately vendor positions on the IDC MarketScape, on detailed surveys and

interviews with the vendors, publicly available information, and end-user experiences in an effort to

provide an accurate and consistent assessment of each vendor's characteristics, behavior, and

capability.

Note: All numbers in this document may not be exact due to rounding.

Market Definition

Digital transformation refers to the changes associated with the application of 3rd Platform technology

in all aspects of business and society. It is a process by which enterprises apply technical innovations

to business strategies, revenue models, products, customer engagement, operations, and services.

Digital transformation is accomplished through business or IT lead project-oriented initiatives. Figure 2

illustrates that buyers consume IT and business services for these service segments (denoted as the

four activities in the outer circle) to help them conceive of, execute, manage, and support digital

transformation (DX) initiatives. The scope of this IDC MarketScape is the IT consulting and systems

integration services required to build and implement digital transformations. For detailed definitions of

IT consulting or systems integration, see IDC's Worldwide Services Taxonomy, 2017 (IDC

#US42356617, March 2017).

Digital transformation initiatives contain elements of the five dimensions illustrated in Figure 3. Digital

transformation includes at least one of the following 3rd Platform technologies: cloud, business

analytics, enterprise mobility, and social. IDC also includes all innovation accelerators in digital

transformation spending (IoT, next-generation security, robotics, cognitive computing, and

augmented/virtual reality). The core of Figure 2 illustrates this definition. For digital transformation

examples, see IDC's Worldwide Digital Transformation Use Case Taxonomy, 2017: Engineering-Oriented Value Chains in the Manufacturing Industry (IDC #US42203716, January 2017).

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FIGURE 2

Business and IT Services Enable Digital Transformation

Source: IDC, 2017

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FIGURE 3

The Five Dimensions of Digital Transformation

Source: IDC, 2017

Digital transformations can be applied to any function within an organization. For example, creative

design typically provided by digital agencies can be included as part of Internet of Things or a mobile

application or in the planning of digital media campaigns. While not a requirement, digital

transformations can create innovations that disrupt business processes, functions, or entire industry

value chains, for example, by disaggregating or reaggregating these elements, by introducing

consumers earlier in a process, or by changing their role to that of a prosumer — one which is also a

coproducer of products or services created in a value chain.

Customer Perceptions of Digital Transformation Consulting and Systems Integration Services Vendors

A significant component of this evaluation is the inclusion of the perceptions of DX C&SI services

buyers of both the key characteristics and the capabilities of the vendors evaluated. The buyers

participating in IDC's 2017 Digital Transformation Consulting and Systems Integration Services Buyer Perception Survey have partnered with at least one of the participating vendors directly on a DX C&SI

project within their organization. The survey findings highlight key areas where buyers expect DX IT

project-based services providers to showcase a range of capabilities. The buyers consider these

capabilities a must-have for DX C&SI services to be able to fulfill the requirements of many challenging

business and IT issues.

Figure 4 illustrates 17 business drivers for DX C&SI services projects for the customers surveyed in

2017. Customers sighted "create a more effective business that caters to changing customer needs"

and "improve the digital design and digital consumability of products/services" as the two primary

business drivers for DX C&SI services projects.

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FIGURE 4

Business Drivers for Digital Transformation Consulting and Systems Integration Services Projects, 2017

Q. How important a business priority do you believe each of the following is currently for your company?

n = 44

Note: Mean scores are based on a scale of 1–5, where 1 is not a priority, and 5 is a critical business priority.

Source: IDC's Digital Transformation Consulting and Systems Integration Services Buyer Perception Survey, 2017

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Figure 5 illustrates the rank order of factors important for a successful DX C&SI services project for the

DX customers surveyed in 2017. Survey findings suggest that the "able to achieve desired business

outcome" as the most critical factor for the successful completion of the project. Customers also

indicated a vendor's "ability to transform critical business processes for digital solutions" as one of the

top success factors. In addition, customers regard a vendor's "ability to deliver innovation that

produces results" for the project to be critical for a project's success.

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FIGURE 5

Important Factors for a Successful Digital Transformation Consulting and Systems Integration Services Projects, 2017

Q. For a digital transformation consulting and systems integration services project to be successful, please indicate the importance of each of the following characteristics.

n = 44

Note: Mean scores are based on a scale of 1–5, where 1 is detrimental to success, and 5 is most essential to success.


©2017 IDC #US41523517 17

Figure 6 illustrates the relative proportion of key sponsors for DX C&SI services projects for the DX

customers surveyed in 2017. CIOs/CTOs have the largest share (21.9%), followed by other (15.9%).

Perhaps the key takeaway from this information is that the IT department (IT managers + CIO/CTO) is

the key sponsors for DX C&SI services projects only 27.9% of the time, which means almost three-

fourths of DX C&SI services projects are sponsored from outside the IT department.

FIGURE 6

Key Sponsors for Digital Transformation Consulting and Systems Integration Services Projects, 2017

Note: Others include IT managers, CFO, VP of digital, parent company, GM of commercial operations, deputy director of news,

development manager, and CHRO.


Interestingly, the buyer perception survey highlights that when it comes to taking on DX C&SI services

projects, only 16% of projects are purchased as standalone projects most of the time (see Figure 7). In

most cases, enterprises buy DX C&SI services projects in conjunction with another service. Among

these, 39% of clients responded they buy custom application development for DX solutions or platform

on most projects when they consume DX C&SI services. The same percentage (34%) of clients

indicated consumption of creative content design and management solutions was the most frequent

bundling for most projects.

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FIGURE 7

Solutions Bundled with Digital Transformation Consulting and Systems Integration Services Projects, 2017

n = 44


Strategies and Capabilities Criteria

This section includes an introduction of market-specific weighting definitions and weighting values.

IDC believes DX C&SI services vendors must exhibit the characteristics shown in Tables 1 and 2 to be

completely successful when crafting a future strategy and in leveraging existing capabilities to their

best advantage. The factors were weighted because IDC believes that some factors are more

important than others in maximizing market opportunity and realizing market success (see Tables 1

and 2).

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TABLE 1

Key Strategy Measures for Success: Worldwide Digital Transformation Consulting and Systems Integration Services

Strategies Criteria Criteria for Success Subcriteria Weight

Subcriteria Weight as

Percentage of Total

Strategy Score

Offering strategy

Functionality or offering

road map

Excellence is marked by plans to increase

offerings across all phases of digital

transformation (DX) consulting and systems

integration (C&SI) services practice as well as

around all major DX areas such as leadership,

information, customer experience, operating

models, and workplace.

0.60 6.0

Delivery model Excellence is marked by plans to support

consulting services utilizing more efficient tools

and methodologies.

1.05 10.5

Cost management strategy Superior service calls for ways by which the

vendor can help clients justify expenditures

including ROI models and by providing clear

paths by which the client can lower costs.

0.90 9.0

Portfolio strategy A strong portfolio strategy dictates that well-

thought-out plans are in place to ensure

development of offerings across the entire

market of digital services (i.e., more than just

consulting and integration).

0.45 4.5

Subtotal 3.00 30.0

Go-to-market strategy

Pricing model Vendor exhibits superior planning for future

pricing alignment with market buying pattern.

0.45 4.5

Sales/distribution strategy Excellence is demonstrated by plans to serve

new markets or specific industries.

0.75 7.5

Marketing strategy Successful firms have an eye toward a well-

articulated plan for how they will market their

capabilities in the future.

0.82 8.2

©2017 IDC #US41523517 20

TABLE 1

Key Strategy Measures for Success: Worldwide Digital Transformation Consulting and Systems Integration Services

Strategies Criteria Criteria for Success Subcriteria Weight


Percentage of Total

Strategy Score

Customer service strategy Superior firms have a well-articulated plan for

lowering client churn in the future. Successful

firms also continuously focus on ways to bring

consistency in delivering DX C&SI services.

0.90 9.0

Other go-to-market

strategy

Excellence is marked by the vendor's DX

services practice having high visibility on their

main homepage and ranking in terms of visibility

of the DX services practice in the web search

engines.

0.08 0.8

Subtotal 3.00 30.0

Business strategy

Growth strategy The vendor has strategic plans for both organic

and inorganic growth and ones that align well

with the overall IT trends in the next one to three

years.

1.60 16.0

Innovation/R&D pace and

productivity

The vendor has strategic plans for attaining or

retaining functional superiority over competition

by improving innovation in DX C&SI services

delivery methodologies and tools.

0.60 6.0

Financial/funding model The vendor's funding strategy is viable for the

next one to three years, and the vendor has

solid plans for growing revenue per employee

and a strong corporate-level support for the DX

C&SI services practice.

1.00 10.0

Employee strategy The vendor has solid plans for retaining and

hiring top-performing employees.

0.80 8.0

Subtotal 4.00 40.0

Total 10.00 100.0

Source: IDC, 2017

©2017 IDC #US41523517 21

TABLE 2

Key Capability Measures for Success: Worldwide Digital Transformation Consulting and Systems Integration Services

Capabilities Criteria Criteria for Success Subcriteria Weight


Percentage of Total

Capability Score

Offering capabilities

Functionality/offering

delivered

The vendor offers full spectrum of DX C&SI

services across the plan, design, build,

implement, sustain (e.g., custom addition), and

upgrade continuum and provides sound industry

expertise, technical insights and competence

related to social, mobile, analytics, cloud

services, and innovation accelerators. It also

has the ability to transform critical business

processes for digital solutions, ability to achieve

desired business outcomes, drive/support IT

change (people/process changes related to

digital transformation initiatives) across the client

organization, and ability to provide creative

content design solutions. And, it offers across

DX areas of leadership, customer experience,

information, operating model, and worksource

(HR).

1.40 14.0

Delivery model

appropriateness and

execution

The appropriate delivery model must include an

ability to meet project timeline, ability to handle

changes in project scope, utilize proven

methodologies/tools (horizontal- and vertical-

specific integration accelerators and templates),

and integrate project team with client. Higher

capability reflects buyer perception of a firm's

capability. The vendor should have strength in

terms of colocation with partners, above

average number of tools, above average

number of studios/labs, above average

percentage of resources located in GDCs, and

above average percentage of resources located

at client sites.

1.20 12.0

Cost competitiveness Cost competitiveness can best be measured by

the ability to deliver an appropriate and

sustainable return on investment. Higher


capability. Blended rates are suitable to attract

clients.

0.80 8.0

©2017 IDC #US41523517 22

TABLE 2




Percentage of Total

Capability Score

Portfolio benefits delivered Evolved vendor firms will necessarily be

required to provide a digital services (business

consulting, custom apps development, on-

premise/hosted app/infra management, support

services). Higher capability reflects buyer

perception of a firm's capability.

0.60 6.0

Subtotal 4.00 40.0

Go-to-market capabilities

Pricing model options and

alignment

The vendor offers flexible pricing models to

meet client needs for DX C&SI services. Higher


capability. Variety of pricing models are offered

to the clients.

0.60 6.0

Sales/distribution structure

and capabilities

A firm is able to communicate the value of its

services/solution and delivery

methodologies/tools that the clients are currently

consuming as well of other services/solution that

the clients are not currently consuming. Higher


capability. It has a number of dedicated sales

resources for the practice.

0.90 9.0

Marketing A firm should be able to communicate the value

of its services/solution and delivery

methodologies/tools that are currently being

consumed by the clients as well as those that

are not being currently consumed. Higher


capability. Variety of marketing channels are

utilized to market the practice.

0.60 6.0

Customer service The firm should have the ability to provide

customer service particularly onsite and to

resolve problems/issues related to customer

service. Higher capability reflects buyer

perception of a firm's capability. Customer

retention ratio was attained for the practice.

0.90 9.0

Subtotal 3.00 30.0

©2017 IDC #US41523517 23

TABLE 2




Percentage of Total

Capability Score

Business capabilities

Growth strategy execution This involves growth sustainability — client

willingness to spend more and client willingness

to recommend to other buyers within their own

firm or outside. Higher capability reflects buyer

perception of a firm's capability. Growth rates

are achieved for the practice in FY16.

1.20 12.0

Innovation/R&D pace and

productivity

A firm's ability to innovative can be showcased

in the way the firm transfers this innovation to its

clients via innovative service delivery as well as

the thought leadership it brings to the table.

Higher capability reflects buyer perception of a

firm's capability.

0.75 7.5

Employee management Success is measured by the head count

associated with the practice as well as how well

an implementation services vendor manages its

staff turnover during a project's lifetime and the

quality of resources on the projects based on

client perception. Higher capability reflects buyer

perception of a firm's capability.

1.05 10.5

Subtotal 3.00 30.0

Total 10.00 100.0

Source: IDC, 2017

LEARN MORE

Related Research

Worldwide and U.S. IT Consulting Services Forecast, 2017–2021 (IDC #US42499117, May

2017)

Worldwide and U.S. Systems Integration Services Forecast, 2017–2021 (IDC #US42499217,

May 2017)

IDC's Worldwide Services Taxonomy, 2017 (IDC #US42356617, March 2017)

©2017 IDC #US41523517 24

Market Analysis Perspective: Worldwide and U.S. IT Consulting and SI Services, 2016 (IDC

#US40140116, September 2016)

IDC MarketScape: Worldwide Digital Transformation Consulting and Systems Integration Services 2015 Vendor Assessment (IDC #255870, May 2015)

Synopsis

This IDC study represents a vendor assessment of the digital transformation consulting and systems

integration services ecosystem through the IDC MarketScape model. This assessment discusses both

quantitative and qualitative characteristics that explain success in the ecosystem. This IDC

MarketScape covers a variety of vendors participating in the digital transformation services space. The

evaluation is based on a comprehensive and rigorous framework that assesses vendors relative to the

criteria and one another and highlights the factors expected to be the most influential for success in the

market during both the short term and the long term.

"With customers expecting to achieve business outcomes, create innovative solutions that produce

results, and transform business processes upon implementation of a digital transformation solution,

digital implementation services providers must focus on a balanced services portfolio that not only

offers digital technology implementation solutions but also cater to customers' business process

transformation needs," says Ali Zaidi, research director, IT Consulting and Systems Integration

Business Strategies at IDC.

About IDC

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