This Gartner Magic Quadrant for Desktop Outsourcing Services, North America (see "Definition of Desktop Managed Services Changes") is a useful starting point for identifying and evaluating desktop outsourcing external service providers (ESPs). The ESPs identified in this Magic Quadrant can provide desktop managed services. Each has its own processes, methodologies, toolsets and capabilities. Each organization, therefore, should base its selection on a detailed evaluation of its outsourcing objectives, its business and technical requirements, its cultural nature, and the ESP's capability to fulfill those expectations.

Desktop outsourcing services is a mature market, but it's also a changing market because its services are expanding. For example, in 2008, the following services were more-often included as part of the ESP's desktop outsourcing solution:

• Remote infrastructure problem-solving solutions
• LAN service and support related to file print and application servers

During 2008, the suite of tools used to manage desktop outsourcing services continued to become more integrated. Most ESPs have a full suite of integrated tools that, when used correctly, will assist end-user organizations in optimizing the cost of their desktop managed services. For example, by using remote diagnostic and problem-solving tools, ESPs are able to reduce on-site visits, which reduces support costs.

As we determined in 2008, some consistencies appeared during reference checking. We identified four trends that were consistent with all service providers:

• Although client references indicated that innovative processes improved in 2008 over 2007, clients stated that ESPs aren't doing enough proactive work in this area. So, as before, we recommend that organizations address innovation through contracts with incentives and penalty-based service levels.
• Most service providers don't automatically upgrade their established clients when they implement new or upgraded service solutions.
• Some organizations are developing approaches to retrofit their solutions for all clients; however, not all ESPs have done so. Gartner recommends that organizations ensure (through their contract structures) that they have the option to take advantage of any of their ESPs' solution improvements. This can be a major undertaking, and many ESPs are prudent not to disrupt environments every time they change something in their processes.
• The implementation of tools, such as remote infrastructure management tools and knowledge database tools, led to fewer deskside visits, and, therefore, increased the potential for cost reduction or cost containment.

Desktop outsourcing services capabilities vary among ESPs, but the market as a whole is very mature. Still, some ESPs concentrate on specific vertical markets.

The desktop managed services market continues to expand, and ESP capabilities continue to mature. As part of their solutions, more ESPs are providing a greater range and a more-mature set of network services related to file, print and application services, storage and output management services, and, in 2009, more desktop managed services deals, including security service support.

Finally, another indication of the maturity of this market is that almost all ESPs have deep experience and knowledge, which have led to better methodologies, processes and services. As a result, a heavy concentration of ESPs falls into the Leaders quadrant, with all but one of the remaining ESPs falling into the Challengers quadrant. This is good for organizations that choose a desktop outsourcing services provider, because it gives them more choices with better, cost-effective solutions (see Figure 1).

The desktop outsourcing services market is a mature service offering with a 2008 compound annual growth rate of 4.2% in North America and 5.1% worldwide. In addition, as per 2008, we have measured the growth in the number of users, because the cost per unit of desktop managed services continues to decline year over year by between 6% and 9%, while the growth rate in the number of users is approximately 12%. The Gartner "Magic Quadrant for Desktop Outsourcing Services, North America, 2007" positioned 19 North American ESPs based on the completeness of their desktop managed services vision, and on their ability to execute that vision. Finally, in 2008, the worldwide market for desktop outsourcing was $35.8 billion, and, in North America, it was $9.82 billion, or 27% of the market. This is based on Gartner forecast data, which was completed in September 2008.

Desktop outsourcing services are further defined in "Definition of Desktop Managed Services Changes."

Desktop managed services support typically includes an enterprise's local IT hardware and software resources, which connect to its LAN to support individual and collective use in the business environment.

Desktop computing hardware resources include networked and non-networked (that is, stand-alone or isolated network) machines, PC systems (that is, desktop, workstation, laptop and mobile computing devices, including cell phones, BlackBerry devices and PDAs), servers (such as file, print, application, communication, mail/messaging and license) and peripheral devices (such as printers, scanners, plotters, fax machines, CDs and DVDs, media libraries, other large storage devices, and uninterruptible power supplies).

Desktop computing software includes operating systems, office automation applications, software suites and utilities that provide functionality to the above-mentioned hardware resources. The desktop computing environment encompasses the entire device to include the network interface card or adapter. This service includes all network traffic originating from desktop devices to the file, print, application and database servers; their associated routers and hubs; and all associated peripherals. Infrastructure servers for file, print, application, messaging and connectivity also are included.

For this study, each active, participating ESP delivered a formal presentation to Gartner and was asked to provide a list of five North American customer references. Those references included interviews with end users in 124 organizations:

• The organizations' sizes ranged from 525 users to more than 175,000 users.
• More than 80% of the organizations used the same provider for desktop and help desk support. Fewer than 20% used only that provider for help desk services. This increased from 2008 due to more Indian providers offering help-desk-only services.
• More than 45% of organizations received other services, besides desktop and help desk, from the same provider.
• The organizations represented every industry segment, including financial services, manufacturing, pharmaceuticals, government (including federal, state and local) and education.
• More than 98% of end users had formal service-level agreements (SLAs).
• The number of service levels included in the SLAs ranged from as few as three to more than 50. In addition, more than 85% of the SLAs measured fewer than 10 factors.
• More than 97% of the SLAs included penalties for underperformance, and almost 70% of the deals included earn-back opportunities — a significant increase over 2007.
• More than 40% of the SLAs had incentives for overperformance.

In addition to reference checking, Gartner provided assessments of each ESP. The weighting of each component is as follows:

• Client reference feedback accounted for 70% of the total score. Gartner contacted references from all vendors to gather information about their experiences with the ESPs.
• Vendor presentations accounted for 20% of the score. In these presentations, the vendors described their capabilities and provided strategic directions for their desktop managed services businesses.
• Gartner analysts' assessments accounted for 10% of the score.

This Magic Quadrant study relied heavily on checking ESPs' customer references. Participating ESPs were required to have at least $45 million in desktop services revenue, and to provide six North-American-based references.

Compared with the 2007 Magic Quadrant, no vendors were added in 2008.

Compared with the 2007 Magic Quadrant, three vendors were dropped in 2008. SAIC and Lockheed Martin were dropped primarily because they are focusing on other opportunities. Getronics' North American desktop managed services business was acquired by CompuCom.

Each ESP's ability to execute was analyzed according to the following criteria:

• Customer Experience
• Sales Execution/Pricing Acceptance
  • Contract/Deal Structure
  • Pricing Acceptance
• Marketing Execution
  • Clarity of Services, Roles and Responsibilities
  • Client Delivery Model/Relationship Management
• Operations
  • SLAs
  • Technical Support/Operational/Tool Expertise
• Product or Service
  • Effective Resourcing
  • Transition Management
• Market Responsiveness and Track Record
  • Client Innovation
  • Continuous Improvement

Overall Viability (Business Unit, Financial, Strategy and Organization)

The Ability to Execute axis positions each ESP based on its success in delivering results today, as well as its preparation to deliver results in the future. On this axis, Gartner verifies an ESP's capability to deliver desktop services based on direct feedback from extensive interviews with its clients and other provided references.

Gartner analysts evaluate ESPs on the quality and efficacy of the processes, systems, methods or procedures that enable their performance to be competitive, efficient and effective, and to positively affect revenue, retention and reputation. Ultimately, ESPs are judged on their capability to capitalize on their success in capitalizing on their vision.

Each criterion is ranked high, standard or low in importance and scored accordingly.

Criteria Ranked as High

Customer Experience: We evaluate the relationships, products and services/programs that enable clients to be successful with the service solutions evaluated. Specifically, this includes how customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups and SLAs.

Sales Execution/Pricing Acceptance: We examine each ESP's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation. The two areas we review in this section are:

• Contract/Deal Structure: We ask each ESP to explain the management of various contracts, and how the relationship is structured to meet the needs of both parties. We also ask, "How do your deals support the service recipient's and the service provider's strategic goals? Is there a shared vision? Do you have a process to ensure that the visions remain aligned during the life of the contract? From a contractual point of view, how can you provide flexibility and agility in the provisioning of desktop services?"
• Pricing Acceptance: We evaluate each ESP's capability to manage prices and reduce costs (through new service offerings, improved productivity, management tools, quality, resource allocation or staff reductions). This information is key to outsourcing deals, in which the prime objective is gaining economies of scale. We also examine each ESP's pricing schemes and clarity. We ask, "How are the various services priced? Are there add-on costs? Do you provide price justification to your customers based on business value?"

Marketing Execution: We explore the clarity, quality, creativity and efficacy of programs that are designed to deliver each ESP's message, influence the market, promote the brand and business, increase awareness of the service solutions, and establish a positive identification with the service solution/brand, and the organization, in buyers' minds. This "mind share" can be driven by a combination of publicity, promotional material, thought leadership, word of mouth and sales activities. We evaluate two primary areas:

• Clarity of Services, Roles and Responsibilities: As part of a comprehensive governance effort, ESPs must be willing to establish clear role and responsibility matrices. This will avoid confusion among the parties, reduce duplication of roles, eliminate unclear responsibilities, and optimize decision making and project management processes. We ask, "What statement-of-work (SOW) structure describes the services offered? Do you have a standard format? If so, what's included? Is there a formal communication process to interact with the client?" We also ask each ESP to explain its relationship management role, and how it supports whatever needs to be done for various service recipients.
• Client Delivery Model/Relationship Management: We examine each ESP's delivery capabilities and practices for desktop services, client relationship management and knowledge transfer, as well as quality control and quality assurance. ESPs are evaluated on their overall client delivery model, and on their capability to consistently apply repeatable practices to successfully manage long-term relationships with customers, thus supporting emerging business and IT challenges. We ask ESPs to explain the organizational structures and procedures they use to manage their accounts, and to resolve differences, escalate problems, and generally maintain successful relationships with their customers. We also ask, "What's your organizational style and approach to working within the client's cultural and political environment? How would you describe the roles of relationship management, contract management and service delivery management during an engagement?"

Operations: We examine each ESP's capability to meet its goals and commitments. Factors include the quality of the organizational structure, such as skills, experiences, programs, systems, and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis. Two areas are evaluated:

• SLAs: An effective performance measurement program is essential to determine whether the ESP is providing effective service delivery. We ask ESPs to explain their procedures for SLAs: "How do you arrive at reasonable service levels for your service recipients? Do you have penalties or incentives tied to SLAs? Do you measure customer satisfaction? If so, how are the survey results used?"
• Technical Support/Operational/Tool Expertise: We evaluate the ESP's depth and breadth in desktop service technology areas. Each ESP is evaluated on skills and capabilities in desktop service environments, and on its capability to apply specific management toolsets and the associated personnel expertise to satisfy the needs of each deal. We ask, "What principal standards, solutions and systems can your company manage in desktop service engagements? What desktop services do you provide? Do you have specialized operational processes or tools for desktop service management?"

Criteria Ranked as Standard

Product or Service: We look at each ESP's core services that compete in or serve the defined market. The analysis includes current service capabilities, quality, feature sets and skills, whether these are offered natively or via agreements or partnerships with OEMs, as detailed in the market definition and the subcriteria. Two considerations are:

• Effective Resourcing: We focus on the ESP's capability to effectively provide relevant resources to the customer. We ask, "How do you decide on the resources required to support a customer? Do you have tools and procedures to assist with resource allocation? What are your capabilities in terms of staff availability and facilities?"
• Transition Management: We evaluate the ESP's investments in its people, focusing also on what practices are in place to recruit, train and retain qualified staff. We ask, "What are the key skill sets and competencies of the resources? What changes in the skill set mix do you anticipate during the next two years?" The ESP also is judged on its capability to integrate staffs from client organizations by offering a competitive job opportunity — for example, addressing in different countries the salary and benefits packages, retraining, career progression opportunities and minimized disruption due to the employee's job location transfer. We ask, "Do you have a quality process and project plan for transition? What are your procedures for moving the workload to your facility? How do you handle the hiring of your customers' employees?"

Market Responsiveness and Track Record: We look at each ESP's capability to respond, change direction, be flexible, and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the ESP's history of responsiveness. Two considerations are:

• Client Innovation: We ask, "Assuming your company pays attention to emerging trends and developments in the desktop services marketplace, how is that knowledge shared with your clients? Do you provide advice and recommendations to customers regarding innovations and tools? If so, how are these presented? How do both parties meet their strategic and operational goals, and respond to business and technology changes? What examples of innovation and thought leadership have been brought to bear in client engagements? What examples of future investments will enable customers to stay ahead of the pack?" We also ask ESPs to explain their procedures for continuous improvement: "Do you use results from service levels to feed the continuous improvement process? How do you measure customer satisfaction? During the past 12 to 18 months, what innovations have you brought to market that haven't been previously available?"
• Continuous Improvement: We evaluate the ESP's continuous improvement practices to ensure conformity with common, standardized toolsets, such as the IT Infrastructure Library (ITIL) and Six Sigma, and best practices for continuous improvement processes. We ask, "Does the service provider supply continuous improvement and quality assurance processes? Does it use these processes in the delivery of its services? Do the processes work well and deliver the expected value?"

Criterion Ranked as Low

Overall Viability (Business Unit, Financial, Strategy and Organization): Viability includes an assessment of the organization's overall financial health, the financial and practical success of the business unit, and the business unit's likelihood of continuing to invest in the service solution, offer the service solution, and advance the state of the art in the organization's portfolio of services.

Each ESP's completeness of vision was analyzed according to the following criteria:

• Offering (Product) Strategy
  • Practice Area
  • Operational Tool Capabilities
• Business Model
  • Methodology
  • Management Acumen
• Market Understanding
• Innovation
• Geographic Strategy
  • Regional Capabilities
  • Alliances and Partnerships
• Marketing Strategy
• Sales Strategy
• Vertical/Industry Strategy

This axis reflects each ESP's prospects for success by analyzing its view of the market, its service operating model, and its strategic plans for growth and service improvements. Gartner verifies an ESP's vision regarding desktop services based on presentations from the ESP, and on direct feedback from extensive interviews with the ESP's clients.

We ask each ESP many questions, and evaluate each one on its capability to convincingly articulate logical statements about current and future market directions, innovations, customer needs, and competitive forces. Ultimately, we rate ESPs on their understanding of how they can exploit market forces to create opportunities for themselves.

Each criterion is ranked high, standard or low in importance, and is scored accordingly.

Criteria Ranked as High

Offering (Product) Strategy: Two areas are evaluated:

• Practice Area: We evaluate the composition of practice areas that serve clients requiring desktop services, including relative size, revenue, number of seats supported, geographic reach, leadership of the management team and the team's position in the corporate structure.
• Operational Tool Capabilities: We ask, "Do you have specialized, operational processes/tools? Are you using an ITIL or other process to manage your workload? What operational tool expertise do you offer customers?"

Business Model: Two factors are evaluated:

• Methodology: We ask each ESP for a high-level description of its desktop services delivery business model: "Is the model embedded in a larger methodology? How does this methodology link technology implementation to business objectives?" We review each ESP's procedures (that is, operational, transitional, program management, relationship management and change management) that are provided to customers. We focus on the processes and best practices that the ESP implements to smoothly change over systems, people and assets. We ask, "How do you ensure that the sourcing management processes are appropriate and effective for your various clients? How do you ensure that desktop services can deliver high-value services by supporting applications and business processes? Are processes to measure bottom-line business results (or value delivered via an optimized and agile IT infrastructure) embedded in the methodology? If so, what are the key features for measuring results? What practices are used to ensure and control quality?"
• Management Acumen: An ESP's success can be directly associated with its management structure and the experience of its managers. Having good plans and the people to carry them out are essential ingredients. Good deals for both parties happen when managers focus on ensuring that deals meet clients' needs, and satisfying the ESP's profit targets. We ask each ESP to explain the management teams it uses to support and manage customers. We also ask, "What is management's experience and skill levels? How are customer issues addressed? What's the experience and skill level of executive management, and of the assigned, key customer-facing managers? Does the customer have access to the appropriate level of management in the ESP?"

Criteria Ranked as Standard

Market Understanding: We ask the ESP to describe its strategic plan and vision as they relate to desktop services, as well as its organizational commitment to aligning services with future market needs. We also ask, "How would you differentiate your strategic plan and vision from your competitors' strategic plans and visions? What is your company's heritage in this area? How long have desktop services been part of your service portfolio? How have they evolved and grown? How will they continue to evolve and maintain a leading position in a challenging market?" ESPs also are evaluated on their capability to demonstrate a well-defined, articulated vision to assist clients in linking desktop services with enterprise technology and business strategies.

Innovation: We evaluate each ESP's position in the market as a thought leader and an innovator. Each is evaluated on its leadership and supporting investments to achieve its vision in developing innovative strategies in the desktop services market. We ask, "How does your company stay current with new technologies and tools? Do you have alliances with other suppliers? Do you offer innovations to your customers (for example, adaptability and agility of services, quality of services, and the capability to manage long-term relationships)? How do you offer innovations to your customers? What investments is your company making to sustain and enhance its vision for innovative desktop services?"

Criteria Ranked as Low

Geographic Strategy: Two areas are evaluated:

• Regional Capabilities: We evaluate each ESP's strategy to direct resources, skills and offerings to meet the specific needs of regions outside its "home" or native geographic location — directly or through partners, channels, and subsidiaries (as appropriate) for that geographic location and market.
• Alliances and Partnerships: We evaluate the ESP's relationships with product providers or other service providers to add value, provide full-service solutions or bring innovation closer to its clients. The ESP is also evaluated on its capability to demonstrate that it has selected strategic relationships that are well-defined and successfully managed to operate in a client environment.

Marketing Strategy: We evaluate the ESP's strategy and approach to marketing and promoting desktop services. We ask, "How many dedicated personnel do you have? How does your company measure the effectiveness of the business development model? What training do marketing people receive?" We also evaluate the ESP's go-to-market strategy, including its capability to clearly articulate its value proposition and differentiate its services. We evaluate its penetration of industries as well as its capability to leverage vertical expertise in the sector and in other sectors. The ESP also is evaluated on its capability to demonstrate expertise in vertical markets and business processes, which are underpinned by desktop services. Each ESP is asked to supply a high-level sales organization chart to demonstrate its go-to-market strategy.

Sales Strategy: We evaluate the ESP's sales strategy and capability to sell desktop services. We ask, "How many dedicated personnel do you have? How does your company measure the effectiveness of the sales organization? What training do salespeople receive? What is your sales strategy for desktop services? Do you have standard sales processes, and do you use sales productivity tools? How do you respond to requests for proposal?"

Vertical/Industry Strategy: We evaluate the ESP's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical industries. We also evaluate each ESP's penetration of industries as well as its capability to leverage vertical expertise in the sector and in other sectors. In addition, we evaluate the ESP on its capability to demonstrate expertise in vertical markets and business processes, which are underpinned by desktop services.

The Leaders quadrant includes ESPs that are performing their service solutions skillfully, have a clear vision of the desktop outsourcing services market's direction, and are actively building and improving their competencies to sustain their leadership positions. One ESP that was in the Challengers quadrant in 2007 moved to the Leaders quadrant in 2008. The high number of ESPs in the Leaders quadrant indicates a maturing of the desktop outsourcing services market. From our analysis, 12 ESPs (in alphabetical order) are leaders:

• ACS
• CompuCom
• CSC
• Dell
• EDS, an HP Company
• IBM
• Northrop Grumman
• Perot Systems
• Pomeroy IT Solutions
• TechTeam Global
• Siemens IT Solutions and Services
• Unisys

An ESP in the Leaders quadrant has demonstrated its substantial desktop managed services experience, and it comprehends the requirements to successfully deliver these services. These ESPs have been providing services for many years, and their ability to execute their strategic visions has been clearly illustrated. This was particularly evident during the reference-checking portion of the analysis.

ESPs in the Challengers quadrant execute well, but they have less-defined views of the market's direction. Some, as indicated by their relative closeness to the Leaders quadrant, are poised to join the leaders, while others may not (yet) be preparing aggressively enough for the future. Four ESPs (in alphabetical order) emerged as challengers:

• CGI
• Ciber
• Tata Consultancy Services
• Wipro Technologies

These ESPs demonstrated that they have solid bases of desktop outsourcing clients, which are satisfied with the ESPs' services. The closeness of many ESPs to the Leaders quadrant indicates their maturing and improving capabilities. They have the potential to move to the Leaders quadrant if they can moderately advance their strategic visions, and solidify and expand their service offerings.

ESPs in the Visionaries quadrant have a clear vision of the market's direction and are focused on preparing for that, but they can improve their service delivery.

After reviewing each ESP's completeness of vision, for the third consecutive year, no service provider was placed in the Visionaries quadrant. This is a further indication of the market's maturity.

The ESP in the Niche Players quadrant focuses on a particular segment of the client base, as defined by characteristics such as size, vertical focus or selective desktop services offerings. Its capability to outperform or innovate may be affected by this narrow focus. The following niche player provides desktop services, and concentrates on specific market segments or service offerings:

• GlobalServe

GlobalServe continues as a niche player in the 2009 Magic Quadrant, but is expanding its focus to include more desktop-managed services.

Being identified as a niche player doesn't imply that ESPs don't provide good services. They may have limited experience in the general or commercial North American markets, or they may only provide specific service offerings.

• ACS continues to maintain a strong financial position, with fiscal year 2008 revenue of $6.16 billion.
• Worldwide, ACS supported more than 350,000 PC users in 2008 — an increase of 42% year over year.
• ACS continues to use its strong position in the business process outsourcing market to finalize desktop outsourcing deals.
• ACS continues to refine its desktop managed services offering through the implementation of new tools and technologies.

• Although ACS references improved year over year, we received a few comments indicating that ACS isn't proactive enough in offering innovation/continuous improvement. If an organization is looking for innovation, then it should detail a specific plan with financial behavior drivers in the contract.
• In addition, some clients commented that ACS's transition planning and execution could use minor improvements. Gartner recommends that users ensure that they address transition planning and execution in the contract.

• CGI is a global IT outsourcing provider with a North American focus, and it remains a leading provider in Canada.
• CGI supports more than 180,000 desktops across North America — an increase of 20% year over year.
• Standardized processes, such as ITIL, were indicated as a CGI strength by client references.

• CGI remains very strong in Canada, but is a smaller player in the U.S. market. U.S. clients must continue to evaluate CGI's delivery capabilities for support in the U.S.
• Innovation remains an issue, with references seeking a more-proactive approach from CGI. Organizations that sign deals with CGI must address innovation as a behavior-driven requirement in the contract.
• A higher-than-expected resource turnover in the desktop space was mentioned as an issue by some reference clients. Organizations should understand CGI's resource planning activities and include the plan in the contract.

• References strongly endorsed Ciber's customer-focused and proactive responsiveness.
• Ciber's IT outsourcing practice continues to leverage vertical expertise in financial services, manufacturing, distribution and government to provide higher-level functional support, which carries over to distributed services and help desk services.

• As stated previously, Ciber's primary focus continues to be on application-oriented and business-oriented practices; PC and help desk services are a primary service offering for its ITO Division.
• Ciber's technical skills and capabilities remain a strength. However, client references indicate that Ciber's resources appear to be strained from time to time, particularly when meeting fluctuating requirements. Clients should ensure that they establish their resource requirements based on their business needs.
• Ciber has done a good job of implementing ITIL practices, but some references stated that Ciber can still improve the way the ITIL processes interact with each other, and improve the overall deployment of ITIL.

• CompuCom has expanded its customer base with the Getronics acquisition, and, again, emerged as a Leader in the desktop managed services and help desk outsourcing Magic Quadrants.
• In 2008, CompuCom handled 5.4 million service desk incidents, and supported more than 3.2 million outsourced desktop seats in North America.
• Clients continue to rave about CompuCom's flexibility, its strong relationship management methodologies (including its recent ISO/IEC 20000 certification) and its excellent personnel resources.

• CompuCom continues to expand its global delivery capabilities; organizations seeking global delivery must verify that CompuCom offers offshore service capabilities that can satisfy their requirements.
• CompuCom continued its expansion in Europe and Asia/Pacific, and its recent acquisition of Getronics' North American business has challenged CompuCom's capability to provide resources in a timely fashion. Clients need to review CompuCom's resource capabilities to ensure that CompuCom can meet these requirements.

• CSC continues to be a leader in help desk and desktop managed services. Its desktop managed services vision has been and continues to be a superior strength.
• During 2008, CSC supported approximately 415,000 PC users, and handled approximately 6.5 million help desk contacts, in North America.
• Repeated from 2008, CSC's investment in developing desktop managed services solutions is apparent, as indicated by client references.

• CSC is planning a paradigm shift from labor arbitrage and process efficiency to service arbitrage and business process effectiveness. Although, in the long term, CSC will benefit from this strategy, Gartner believes that implementing this shift during a recession can be very tough, when the focus is on cost cutting. Based on this model, clients will need to ensure that CSC implements the appropriate service levels to meet their requirements.
• Some references indicate that they would like to see more innovation in CSC's delivery models. If a client wants innovation, then Gartner recommends that the client should make innovation an actual deliverable of the deal by setting clear areas of application (for example, technical vs. business), and by defining and acting on a precise innovation process.
• Reference clients indicated a leanness in day-to-day operational resources from time to time. Organizations using CSC for their desktop managed services must ensure, through their outsourcing contracts, that CSC delivers the required resources in a timely manner.

• Based on client feedback, Dell's strategy to improve customer satisfaction and lower client costs was successful in 2008.
• In 2008, Dell provided desktop outsourcing services to more than 2.5 million seats, and it handled more than 250,000 help desk calls per month.
• Client references indicated Dell's continuous strength in standardized processes, such as ITIL, its day-to-day management of services and resources, and the value that they received for the money they paid to Dell.

• A few references indicated some SOW issues regarding the areas of responsibility. Clients need to ensure that they have clear roles of responsibility included in their SOWs.
• Dell continues to grow rapidly, and clients need to ensure that Dell has the resources and skill levels they need for support.
• Dell's strategy of driving down support costs must not come at the expense of required performance. Clients must ensure that service requirements and the associated service levels are met at the lower price points.

• The post-HP acquisition still finds EDS as a leader in the desktop managed services market.
• Client references rate EDS's capability to deliver services as exceptional.
• In 2008, EDS supported 5.4 million PC users, and handled more than 43 million help desk calls.
• During the reference-checking process, EDS scored highly in its capability to deliver high-quality services — an indication of its attention to detail.

• The ongoing merger of EDS and HP requires clients to ensure that their business needs are detailed and clearly documented to avoid any service delivery issues.
• Client references indicated that EDS provides some level of continuous improvement, but not at the level they would like. In addition, client references don't see enough innovative ideas coming from EDS.

• The primary focus of GlobalServe is on supporting global companies, primarily from one of the eight defined functions in desktop managed services — that is, product procurement, in which GlobalServe is very strong.
• GlobalServe provides an alternative approach to service with its distributed international businesses. Because its focus continues to be primarily international, using a base of subcontractors, GlobalServe falls into the Niche Players quadrant.

• GlobalServe references indicated that they're using the vendor primarily for product procurement; although GlobalServe does an excellent job in the area of desktop managed services, it doesn't demonstrate capabilities in the other seven desktop managed services disciplines (that is, help desk, deskside support, desktop application support, asset management, network management and administration, relationship management, and security).
• GlobalServe continues to use a network of subcontractors, but this approach is reducing the control of the delivery mechanism. Organizations must ensure that they have penalty-supported SLAs in place to ensure consistent service delivery quality.
• GlobalServe clients have noted concerns about the scope of the services that were available, and also about GlobalServe's relationship management skills. When negotiating a contract with GlobalServe, organizations must ensure that the scope of work is clearly defined, and that the approval of the relationship management team is part of the contract's terms and conditions.

• IBM continues to be positioned as a leader in this Magic Quadrant.
• Worldwide, IBM managed more than 4.3 million PC users, which tops the 2009 Magic Quadrant. In North America, the number is 2.3 million.
• IBM continues to be excellent at leveraging processes, skills and leadership for its clients.
• References generally have a positive view of IBM's capability to provide desktop services in an integrated fashion.

• IBM is considered to be a leader in the IT industry, but references felt that IBM wasn't very proactive in providing new approaches and ideas. Clients must ensure that a formal, continuous innovation process is addressed in the contract.
• Some references indicated that IBM's contracts are difficult to understand, leading to miscommunications and less-than-satisfied customers.
• As mentioned in 2008, IBM's desktop managed services are very mature; however, a few references indicated that IBM continued to fall behind in the latest tools and aids to support clients' requirements. Organizations should ensure, through contract language, that they get the latest desktop managed services solutions from IBM on an ongoing basis.

• Northrop Grumman retains its position in the Leaders quadrant through its leadership position in the government sector, while growing its commercial business.
• Northrop Grumman continues to manage one million desktop seats, and handled more than 2.5 million help desk calls in 2008.
• As per 2008, client references stated that Northrop Grumman maintained a flexible approach to deal development and contracting.

• Client references indicated that Northrop Grumman's innovation was weak and needed improvement. Gartner recommends that clients develop and include in their contracts the processes for identifying technology and process-innovative ideas.
• In addition, references reported some issues with Northrop Grumman changing resources. Clients must ensure that they'll be notified when personnel changes occur.
• Although Northrop Grumman generally meets clients' transition requirements, some references complained about missed deadlines. Clients need to ensure that they have a detailed transition plan, and that Northrop Grumman is directed to deliver results.

• Perot Systems supports more than 250,000 PC users, and continues as a leader in the Gartner 2009 desktop managed services and help desk support Magic Quadrants.
• Perot expanded its operations capabilities and provides support from a global footprint.
• Client references remain very satisfied with Perot's core competencies in desktop managed services, including its processes, procedures, personnel resources and Perot's flexibility in dealing with its clients.

• References stated that operational innovation and process improvement were good, but that they'd like Perot to be more proactive with new solutions. Clients need to ensure that if they're expecting innovation, then it's discussed and included in the contract.
• Although satisfaction remains high, some references indicated that, during these tough economic times, they'd like Perot to be more flexible with regard to adjusting the scope of the deal to match clients' changing business requirements. Gartner recommends that organizations and their service providers seek a mutually beneficial solution.
• Perot continues to focus on certain industry sectors, such as healthcare, government, engineering and manufacturing, financial services, insurance, and consumer products and services. Organizations that aren't in these sectors must ensure, through reference checks, that Perot demonstrates expertise in their sectors.

• Pomeroy IT Solutions' work with ITIL and other quality-based standardized processes continues to improved its ability to execute desktop managed services solutions. In addition, Pomeroy is continuing to progress toward a more-comprehensive vision.
• In 2008, Pomeroy supported more than 3.37 million help desk calls and 1.2 million desktop managed services events.
• References are very satisfied with Pomeroy's flexibility and willingness to provide additional support beyond the scope of the existing blanket contract.

• Pomeroy's references reported some issues with relationship management and staff changes. Clients should be notified of changes, and should have a say in the placement of key management staff on their accounts.
• Pomeroy references indicated that, although innovation was good, they'd like to see a more-proactive approach to innovation and continuous improvement from Pomeroy.
• Pomeroy concentrates on North America. Organizations that require global service delivery should ensure, through reference checking and due diligence, that Pomeroy has the delivery capabilities to meet their location demands.

• With revenue of more than $700 million in services in North America, Siemens IT Solutions and Services remains in the Leaders quadrant in desktop managed services.
• Siemens handles, on a worldwide basis, 32 million incidents, eight million of which originate in North America. In 2008, Siemens supported more than two million desktop users in North America.
• Client references stated that they're impressed with Siemens' flexibility, as well as its day-to-day operational excellence.

• References indicated that innovation could be improved, and that they'd like to see Siemens be more proactive. Organizations should address innovation in their contracts.
• References reported some minor issues with the use of standard practices, and specifically with ITIL. Organizations requiring ITIL as part of their solutions must specify the ITIL requirements and have them included in their contracts.

• Tata Consultancy Services (TCS) has a very strong strategic plan for infrastructure support, and for how it will service and grow the North American market.
• TCS supports more than 500,000 desktop users, and handles more than five million help desk calls per year worldwide.
• TCS references were very complementary regarding the vendor's streamlined processes and sound methodologies.

• References mentioned that innovation continues to be an area in which TCS could do more. If you want TCS to provide innovation, then these expectations need to be clearly stated and included in the SOW.
• Some references also had issues with the transition process. Clients can avoid these problems by ensuring that they have good transition plans, and that TCS is committed to the deliverables.

• TechTeam Global supports more than 420,000 desktop users, and takes more than three million help desk calls annually in North America.
• Client references cited TechTeam's strong customer focus.
• In addition, client references were significantly satisfied with TechTeam's flexibility in working through clients' issues and problems/challenges.
• TechTeam has programs to deliver quality services in the form of ISO 9001:2004 certification, ITIL-based frameworks and Lean Six Sigma.

• Although client references indicated that the turnover rate has improved, it remains an issue that TechTeam must address. Gartner recommends that organizations ensure that the turnover rate is measured as a behavioral driver in the contract through penalties and incentives for meeting/missing performance goals.
• TechTeam supports 32 languages; however, we still received a few comments from references asking for more global coverage. If a client needs worldwide coverage, then it must verify TechTeam's capability to support specific requirements.

• In 2008, Unisys handled 11.5 million help desk and desktop calls worldwide; 47% were North American. This includes calls originating in North America, which were handled from the Unisys center in Bangalore, India.
• References continued to provide positive feedback on Unisys' flexibility and capability to make changes in a short period of time. In addition, references provided positive feedback related to innovation, ITIL and other standardized service management processes.

• Some references noted issues with incident and asset management. Clients should ensure that the appropriate processes and tools are implemented to meet their business requirements.
• Although Unisys has hired a new chairperson to aggressively improve its financial status, and to refocus and strengthen Unisys' competitiveness and profitability, the vendor's financial stability remains questionable. Organizations should ensure that Unisys addresses its financial commitment to the desktop managed services solution. In addition, clients should ensure that they have the contractual option to terminate deals based on lack of service delivery or a change of business.

• Wipro Technologies handles more than 8.5 million help desk contacts annually, and supports more than 1.5 million desktop devices.
• References said that Wipro's capability to create business cases with a new mix of resources demonstrated economic advantages.
• References were also impressed with the strong management commitment, as well as the detailed processes and methodologies, that Wipro supplied.

• References reported some minor issues with transition and management turnover. Clients should ensure that they have a good transition plan, and have processes in place to review the management changes.
• References had some comments regarding innovation: Clients want Wipro to look at the "big picture" and make suggestions. If clients want innovation, then they should address this early with Wipro and set expectations.