Analyst(s):David Groombridge, Claudio Da Rold, Federica Troni, Nikos Drakos
Increasingly, organizations recognize that next-generation MWS are crucial to increase staff engagement, drive productivity and enable digital benefits. Gartner profiles 15 leading providers to enable sourcing and vendor management leaders to select the right partner in this rapidly changing market.
Gartner defines managed workplace services (MWS) as a subset of the IT outsourcing (ITO) market. MWS include traditional end-user outsourcing (EUO) as well as new digital workplace services to provide a cloud-first, automated and integrated support to end users. EUO services include:
Desktop/laptop outsourcing services
MWS are centered on delivering a digital workplace experience to end users so organizations can leverage their digital dexterity in the development of new digital business services. This will boost employee engagement and agility through a more consumerized work environment (see "Delivering Business Value With a Digital Workplace" ).
EUO services traditionally took an IT-centric approach and provided support to a single corporate device per user, such as a desktop or laptop computer, normally at office locations and limited to corporate applications. However, the nature of work has drastically changed in the past decade. Most jobs today require intensive use of technology. They require most workers to be productive in several locations rather than just the office space and, in many cases, outside of regular business hours.
MWS provide traditional EUO and a wide array of digital workplace capabilities to end users. The main goal of MWS is to provide integrated and ubiquitous workplace services to employees to increase their engagement and to leverage their digital dexterity to support the organization's digital business strategy. MWS might include the following services:
Bring your own device or software (BYOx) — The ability to support personally owned devices and applications through a tiered service model.
Desktop virtualization — This comes in many shapes and forms (such as desktop as a service [DaaS]) and can be implemented strictly through software technologies or through a combination of software and hardware — known as hosted virtual desktop infrastructure (HVDI).
Intelligent automation services — These are implemented through bots and machine learning applications that automate the most common user requests and issues.
Knowledge management through real-time analytics — This is a critical component of the digital workplace strategy, as it can stimulate self-service or allow proactive support interventions. Service providers can implement new knowledge management tools that are based on real-time analytics, instead of a passive database. These tools are normally integrated with the self-service portal and leverage the context element of the knowledge management process.
Multichannel on-demand support — This enables users not just to contact support through multiple channels (such as email and chat), but also to receive effective support through the same channel.
Peer-to-peer support — Service providers can implement tools to enable end users to provide self-support through social media collaboration. Some providers' automation "robots" have the ability to publish a known solution in a social media string of conversation related to a potential problem it solved.
Persona-based support — Each persona type has distinct support needs. For example, a financial analyst persona might need constant access to different datasets and has a strong self-service profile, while a mobile sales executive persona needs ubiquitous access to calendar and customer information.
Self-service — This is delivered through a centralized portal where users can go to access services including, but not limited to, automated scripts, a knowledge management portal, known issues, how-to videos and peer support.
Smart workplaces — This includes use of Internet of Things (IoT) devices to create workplaces that respond to their usage, for example, through automatic control of heating, lighting, air conditioning and other capabilities. In addition, providers increasingly need to support new types of endpoints, such as wearable devices as well as IoT endpoints in the workplace.
Support for cloud-based apps — SaaS is now a major delivery model for many applications, and most service providers have developed capabilities to provide end-user support for mainstream cloud applications. These services assist users with applications, such as collaboration tools like Microsoft Office 365, Google G Suite, enterprise file synchronization and sharing (EFSS), or business applications like Salesforce or Workday.
Unified communications as a service (UCaaS) — This includes teleconferencing, voice over Internet Protocol (VoIP), web and video conferencing.
Virtual personal assistants — A new generation of virtual assistants with machine learning and natural-language processing capabilities can go beyond answering simple questions, and can engage in an active dialogue and make recommendations.
Walk-up kiosks — Following the Apple Genius Bar model, many service providers can implement walk-up locations staffed with agents with both technical and interpersonal skills, so end users can turn in their devices — laptops, tablets or smartphones — to get service. These walk-up locations can usually address how-to questions and offer troubleshooting and break/fix services through scheduled appointments or ad hoc requests.
Many of the providers included in this Magic Quadrant have broad coverage, experience and knowledge, while some concentrate on specific vertical markets. This results in market options that best fit a buyer's methodologies, processes and services.
Due to vendors' varied visions and approaches to the market, including different levels of innovation and variation in Ability to Execute and depth of services, providers are distributed across all four quadrants: the Niche Players, Visionaries, Leaders and Challengers. The diversity of this group of providers is good for organizations that are looking for an MWS provider, because it gives them choices of providers that can offer the best and most cost-effective solution to meet their specific needs.
For the scope of this research, we define Europe as the sum of Eastern and Western Europe.
Gartner defines Western Europe as including the following countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
We define Eastern Europe as including the following countries: Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Czech Republic, Croatia, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey, and Ukraine.
Source: Gartner (January 2018)
Atos is positioned in the Leaders quadrant. It has headquarters in France (Paris) and Germany (Munich) and reported European MWS revenue of €1,100 million in 2016. It supports more than 500 customers, covering 1.6 million service desk users and 1.6 million desktop users. Atos' geographical presence in Europe is strong, with more than 5% ITO market share in eight countries and a large share of managed desktops in 12 countries. Its vertical-sector penetration is higher for manufacturing and natural resources, and government, followed by financial service, and communication, media, and services. Digital workplace services is one of the four pillars that Atos has identified and invests in to deliver sustained growth through 2019, and it now supports what it calls "Atos Digital Transformation Factory."
Atos has a strong vision for MWS, with a focus on improving user experience and productivity, supported by focused acquisitions like zData (big data and analytics) and Engage ESM (ServiceNow competencies and cloud service management). Also, IoT engagements are becoming more visible with some 100 IoT projects currently running. Since it is aiming to achieve more than 60% of its end-user services revenue coming from new digital models by 2019, Atos is industrializing its approach to clients' journeys from the current generation of end-user services to hybrid solutions, and onto digital workplace offerings.
Atos revenue for MWS increased 10% in 2016, with the largest absolute growth in Europe and having increased its share of the MWS market covered by the providers in this Magic Quadrant by 2%. A strong sales pipeline provides expectations of further sustained growth. This is supported by the fact that Atos is willing to commercially commit to improved business metrics through innovation, gain share and shared risk models based on enhanced user experience and productivity. The number of calls that are resolved by automation, self-help and chat has increased by 14%. Users supported on SaaS collaboration platforms increased 35% in 12 months, and the number of users Atos supports with its walk-up kiosks has nearly doubled. Atos continues to make investments in analytics, automation, cognitive capabilities, mobility, unified communications and collaboration (UCC) tools, underpinned by integrated services and a shift-left self-service approach to deal with the changing demographics of the modern workplace.
Atos offers organizational change management, skills development and user experience design services both as part of regular digital workplace engagements as well as on a project basis via its Digital Transformation Consulting and Worldline divisions. Atos has defined a clear path for the evolution of workspaces, which gradually transitions users to a more modern work style and endpoint management paradigm and enables choice of devices and platforms through several endpoint technologies, including desktop virtualization, cloud and mobility.
Some references praise Atos for its service reliability and its performance in deployment. They also appreciate Atos' focus on workplace analytics and performance in alternative support channels, such as walk-up kiosks and social media.
While Atos' strategy focuses on leading clients through their digital workplace transformation journey, less than 5% of its MWS revenue comes from consultancy, indicating a need to create more capability in this area to support its clients' digital ambitions and ongoing technical evolution.
Atos does not focus on deals that are purely seeking cost optimization without workplace transformation, and it will not be the first place for clients looking for the lowest-priced services. While Atos' objective is to decrease the volume of calls by over 50% in three years, the current level of calls resolved through intelligent automation is still below best in class. This has led to a continuing growth in its number of service desk staff, in line with the numbers of users it supports, which challenges its ability to reduce staff-related costs for service desk delivery.
Atos is already active in a number of emerging digital workplace areas including: mixed reality, wearables and IoT (with partners such as Siemens); biometric authentication and predictive maintenance; virtual assistants; and self-service analytics tools. However, Atos delivers these mostly as one-off projects with limited capacity for larger-scale implementations. Services such as DaaS are deployed to less than 1% of the user population, with only 3% of users supported through kiosks. Midsize enterprises (MSEs) represent only 5% of Atos accounts today, and Atos is still shaping a workspace offering specific to this market segment.
Some references report that Atos needs to fine-tune its resource management process and improve proactivity in driving service improvements. They would also like Atos to enhance its focus and capabilities around traditional deskside support and offshored Level 1 service desk.
Capgemini is positioned in the Challengers quadrant. Headquartered in France, Capgemini generated over €350 million of MWS revenue in 2016. It has roughly 300 MWS customers in Europe and supports about 825,000 service desk users and about 660,000 desktop users, for whom it manages 45,000 virtual desktops. Its MWS strategy focuses on the "digital workplace experience," where it couples seamless working via its digital workplace with its intelligent and connected digital office. It supports the digital employee via collaboration tools, virtual agents and analytics, all underpinned by organizational transformation. Capgemini's main geographic focus has long been on France, the U.K. and Benelux, but it is now starting to make its presence more widely known across Europe, and it has a strong vertical presence in energy and utilities.
Capgemini's vision for the digital employee experience couples a strong focus on enabling users to be able to work seamlessly in any location on any device with support offered through a range of persona-based, analytics-driven services delivered through multiple contact channels. Supplemented by smart location technology in its digital office vision, these solutions create an offering focused on the physical office for better resource allocation and maintenance, and design of collaboration and shared spaces. This is much more aligned to market trends for improved workspaces and to Capgemini's strengths in consulting and transformation, than its previous technology-focused approaches.
Capgemini has demonstrated an impressive 22% annual revenue growth in its European MWS operations. Moreover, by leveraging its wider consultancy capabilities, Capgemini is increasing its focus on workplace transformation and consulting, recognizing the need for visionary and holistic changes in clients' working practices. This is resulting in an increase in consulting and transformational revenue, while refocusing its propositions on value-added employee services.
Capgemini's Digital Employee Experience is based on delivering the workspace to any device and includes an operating expenditure (opex) model for hardware provisioning (i.e., PC as a service [PCaaS]), coupled with a number of architectures used to deliver the workspace, including desktop virtualization. Capgemini combines this offering with a digital office component focused on physical office space, based on IoT beacons in the office for resource allocation and maintenance of shared spaces. Despite not having a specifically designed offering, Capgemini has a larger-than-average share of MSE accounts (36%) and finds it easier to embark on workplace transformation initiatives with midsize organizations.
Some references praise Capgemini for its partner orientation and flexibility and its focus on efficient communication. They also appreciate Capgemini's focus on services such as workplace security, walk-up support and virtual assistance.
Capgemini's new Digital Employee Experience offering goes in the right direction but — being innovation-led — will require time to develop into industrialized and packaged services. In the meantime, Capgemini remains short of best-in-class European providers on critical MWS metrics such as automation, where it currently resolves only 0.6% of calls automatically.
Despite an increased MWS revenue, Capgemini's MWS user numbers have fallen, suggesting that it is having difficulty delivering unit price benefits though advanced services. Despite its large footprint, Capgemini's MWS offerings still lack coverage in countries like Austria, Denmark, Germany, Italy, Greece, Ireland, Norway and Sweden. In addition, it only has a strong vertical offering for energy and utilities and no distinct service offerings for MSEs.
Capgemini is offering a very limited range of emerging digital workplace capabilities (including workstream collaboration, hardware kiosks and user experience design) as one-off projects. Capgemini serves only 7% of its users through VDI, which is slightly below average, and Capgemini's clients are still not showing significant interest in public cloud DaaS.
Some references report that Capgemini needs to fine-tune its resource planning in support of new initiatives and to increase proactivity in sharing "new knowledge." They would also like Capgemini to enhance its focus and capabilities around mobility services, the contextualization of knowledge and traditional deskside support.
Cognizant is positioned in the Niche Players quadrant. The U.S.-headquartered Cognizant supports about 780,000 service desk users and more than 300,000 desktop users for more than 70 clients in Europe, where its ITO market share is mostly centered on U.K., Ireland, Switzerland and the Netherlands. Vertical penetration is higher in financial services, healthcare, products and resources, communications, media, and technology. Gartner estimates that Cognizant's total 2016 MWS revenue in the region was around €130 million (an increase of more than 14%). Cognizant's current workplace vision aims to achieve the ultimate result of deploying a transformative approach (and related capabilities) to position the user at the center of the digital workplace solution.
Cognizant offers a full set of MWS, built largely around support of the user from the service desk, and inclusive of messaging, collaboration and communication, cloud collaboration, DaaS, cloud printing, backup apps, and endpoint management. It offers omnichannel and multilingual support via "Tech Cafes," self-service and peer-to-peer support. Cognizant continues to increase its penetration in Europe, as shown by a more than 20% growth in user volumes and acquisitions such as Frontica Business Solutions, inherited as part of an outsourcing transaction with a Norwegian oil and gas aggregate, Aker Solutions.
Cognizant's strategic investments are in the areas of persona and personalization services (based on more than 100 factors), an end-to-end digital engagement platform (SymphonyWorks), a digital hub for cloud delivery and artificial intelligence (AI; to replace agents and move them into the higher levels of service support). Cognizant's effective investments in automation have allowed growth of the number of user supported while reducing service desk head count.
Cognizant is taking industry-specific approaches to several emerging workplace capabilities including user experience design (through data-driven user personas and user experience dashboards), virtual/augmented reality and wearable services, business change management services, and digital skills development. It provides VDI-based services to a relatively high percentage of users (21%), while DaaS is just starting to emerge as a workplace delivery option among Cognizant clients.
Some references praise Cognizant for its flexibility in relationship management and customer focus, and for the dedication and customer centricity shown by its people. They also appreciate Cognizant's ability to support cloud-based applications and the quality of offshore Level 1 service desk operations.
Despite good revenue growth, Cognizant captured only 3% of the additional MWS growth covered by this Magic Quadrant — a third to a fifth of that of other fast-growing providers. This shows that Cognizant has limited visibility of the whole European MWS deal pipeline, as its ITO market share is below 1% in key markets such as Germany, France and the Nordics.
Despite recent investments, Cognizant remains considerably behind its major competitors in terms of next-generation offerings, automation achieved, number of customers in Europe and workplace revenue (absolute and per user). Cognizant has yet to leverage its network of partnerships to develop a rounded set of digital offerings that fully meet its customers' needs.
While Cognizant offers a broad spectrum of emerging digital workplace services, many have limited capacity and a short track record, with more focus on a classic set of workplace services, including cloud services, such as Office 365, DaaS, applications as a service, and identity and access management services. Windows 10 migration services are well-developed, but have only shown a limited focus in moving toward a unified endpoint management paradigm.
Some references report that Cognizant needs to fine-tune knowledge management and be more proactive and forthcoming in improving service performance. They would also like Cognizant to enhance its focus on and capabilities around transition management, desktop virtualization services, virtual assistance (for both chatbots and avatars) and walk-up kiosks.
Computacenter is positioned in the Challengers quadrant. In 2016, U.K.-headquartered Computacenter had MWS revenue of over €800 million. Supporting over 1.4 million service desk users and 3.1 million desktop users, Computacenter has more than 330 MWS clients in Europe. Computacenter has strong coverage across its core markets of the U.K., Germany and France, and a focused geographic expansion in markets such as Switzerland and Belgium, with particular specialisms in sectors such as public sector, automotive and financial services. It has an increasing number of European-headquartered global clients, supported out of its growing network of service centers in EMEA and worldwide. Its MWS strategy is to create "closeness" to its customers through its Digital Me workplace and collaboration services, its Digital Power hybrid cloud solutions, and its Digital Trust cybersecurity offerings.
Computacenter's vision for MWS pragmatically focuses on providing stakeholders with what they want: cost optimization and innovation for the CIO; consumer-grade solutions, productivity and speed for users; and business outcomes for senior executives. The vision includes helping design the digital transformation, via "digithon" innovation sessions with executives, underpinned by the use of intelligent automation, advanced analytics and predictive maintenance.
Computacenter has refined its sales strategy to create specialist MWS sales teams, and this has helped it win a growing number of larger customers — some with a truly global footprint — and to significantly increase its sales pipeline. It is expanding its use of automation and its Tech Bar kiosks, and increasing the percentage of incidents resolved without a call to the service desk via its Next Generation Service Desk (NGSD) portal. Windows 10 automated release via the Inventox platform and the acquisition of ServiceNow specialist TeamUltra are promising assets for future developments.
Computacenter has almost doubled the number of cloud-based users for email/collaboration applications in just one year (from 13% to 22%) and has built capacity in walk-up support centers and user experience design, which includes work style analysis. Computacenter has added a device-as-a-service offering (although it is still marginal compared to its well-established VDI-based set of services) and a set of Windows 10 evergreen migration services to its range of workplace delivery and management options. The number of users supported through walk-up kiosks has increased significantly and now represents more than 5% of its users.
Some references praise Computacenter for its flexibility and customer focus and for its professional and efficient service delivery. They also appreciate Computacenter's focus on workplace security services, and its support performance around virtual assistance (chatbots) and walk-up kiosk services.
A relatively low number of customers in Europe and a geographic approach driven by the needs of its clients hinder Computacenter's ability to scale up and deliver on Pan-European deals. Despite a growing market for MWS in Europe, Computacenter's revenue for these services remained flat this year, indicating a difficulty servicing panregional deals at the right price point and posing a challenge to its ability to fund investment in its MWS portfolio.
While Computacenter recognizes the importance that cognitive machines and virtual assistants will have in MWS, it continues to maintain a "wait and see" approach on these services and not invest in them directly. This has resulted in poor penetration in terms of advanced automation, with results at the very bottom of the Magic Quadrant players. Similarly, its leverage of transformation services is only 15% and, while this is improving, Computacenter remains more oriented to run operations than most of its competitors.
Computacenter is executing proofs of concept and one-off projects in several emerging areas such as virtual reality and wearables, physical space design, or change management (including a four-stage collaboration adoption framework) — but these are currently of limited scale and Computacenter's track record in these areas remains limited.
Some references report that Computacenter needs to become faster at innovating and generally more open to taking ownership in support of new initiatives. They would also like Computacenter to enhance its focus and capabilities around intelligent automation, continuous improvement and transition management.
DXC Technology is positioned in the Leaders quadrant. Following its creation from the merger of the Enterprise Services Division of Hewlett Packard Enterprise (HPE) and CSC, DXC is headquartered in the state of Virginia, U.S. The new DXC approach to MWS is MyWorkStyle, a people-centric approach to the digital workplace based on requirements of employees, enterprises and customers. Focus is to deliver a consumerlike experience, collaboration and enterprise security. Gartner estimates that DXC has more than 350 European MWS clients, for whom it supports 3.3 million service desk and desktop users, with an estimated European MWS revenue of around €2,200 million. It has capability across most verticals and most major countries in central Europe.
DXC's strategy is to shift MWS from technology-centric to people-centric solutions and services. MyWorkStyle provides a consumerlike experience within a secure environment, covering mobile-enabled and device-agnostic application offerings, supported by a persona-driven service offering. It integrates a wide range of key components: unified endpoint management, lightweight management paradigms, Windows 10 migration, mobile applications, productivity and unified communication/collaboration capabilities, wearables, and IoT. The support services vision includes a variety of options from proactive/predictive to self-help.
Its greatly increased size has enabled DXC to move beyond its ties to HP Inc. and become increasingly provider-agnostic, building strong partnerships with Microsoft (who named DXC as its productivity partner of the year in 2017) and other best-of-breed suppliers (ServiceNow, SAP, Amazon Web Services, Hitachi Data Systems, Symantec, Red Hat and Oracle). The merger has enabled cost reductions of more than $1.6 billion in the combined company via delivery optimization, facilities rationalizations and supply chain efficiencies that will be implemented in the next three years across the various country-based legal entities in Europe. The merger also enabled the creation of a dedicated MWS sales teams, bringing additional focus to both its sales process and its advisory-led customer transformation for MWS.
DXC has a strong capability with walk-up centers, user experience design services that are used across its service portfolio, in-room collaboration solutions provided as a services, and change management services that include a collaboration adoption program. In addition, DXC has also expanded its device-as-a-service offering away from solely offering HP Inc. solutions to include more hardware brands.
Some references praise DXC for its global coverage and for the motivation of its teams in charge of daily operations. They also appreciate DXC's focus and performance around persona-based support and walk-up kiosks.
To support the integration effort and the development of unified solution and service offerings, DXC is implementing a linear build, sell, deliver operating model able to handle 60,000 deals per year while unifying 230 offerings from CSC and 270 from HPE ES. Although sound, this approach will necessarily focus on service industrialization and standardization, and could lack the bimodal, rapid digital innovation, co-creation and workplace transformational aspects that are driving the growth of leading competitors. During the merger and implementation of a new DXC service portfolio, increased outside-in innovation could help improve DXC's potential for growth.
DXC's Global Infrastructure Services division, in the first half of the year, shows an almost 5% revenue decline as a unified organization, compared to pro forma CSC and HPE ES. While Gartner estimates that MWS revenue remained flat, DXC requires rapid implementation of the merger and realization of synergies, including 60% consolidation of lower-line managers, replacement of 15,000 employees and consolidation of more than 50% of combined delivery centers (from 17 to eight). In the short term, clients must be vigilant in protecting key delivery resources, understanding how consolidation and rationalization efforts will affect their delivery, and continuously evaluating service levels and roadmaps of existing and new offerings.
Although DXC provides contextual information delivery and guidance, as well as self-service analytics tools, these are mainly in the context of IT service delivery and support, and not for general business purposes. DXC's support for DaaS offerings is behind the average penetration seen across this Magic Quadrant as a whole.
Some references report that DXC needs to be more proactive in driving innovation and to fine-tune the balance between service/process performance and individuals. They would also like DXC to enhance its focus and capabilities around support through social media, self-service, virtual assistance (chatbots) and intelligent automation services.
Fujitsu is positioned in the Leaders quadrant. With headquarters in Japan, it reported European MWS revenue of more than €1.3 billion in 2016. Its European MWS operations support almost 2,800 clients, covering 4 million service desk users and about 2.3 million desktop users. Fujitsu offers support via multiple channels, including walk-up kiosks, automation and self-help. Fujitsu has a strong footprint throughout key European markets, especially the U.K., Nordics and central Europe, and a positive presence in verticals such as retail, financial services, transport, health, manufacturing and government. Fujitsu's MWS strategy is to enable digital business outcomes through the support of seamless remote working across devices via its Workplace Anywhere offerings. Its Social Command Center provides support through personas, analytics, automation and gamification, and its Intelligent Engineering managed service provides expanding cognitive capabilities.
Fujitsu has an integrated MWS strategy, which extends from supporting traditional office workspaces through to work environments for field workers and warehouses via wearables and IoT. The strategy is for context-aware services, to enable device-agnostic working with built-in analytics, mobility and security to enable users to work seamlessly across cloud, virtual and managed workplace environments. The current strategic focus is on device convergence and interoperability, with a longer-term focus on "evergreening" the offering. It is making significant investments in its own IP to enable co-creation, such as its $50 million joint investment in AI with the French government, and is using its tools to further extend preventive maintenance for user-side support.
Fujitsu is now consolidating and industrializing its delivery at scale, using its significant investments in its Zinrai intelligent automation platform to automatically resolve 15% of contacts to its service desks (almost 1.8 million contacts). In turn, this is enabling Fujitsu to provide market-leading prices, while improving its service performance and preserving its margin as it grows an already large European revenue. It is focusing on transformational and consultative approaches to delivery, resulting in increasing client confidence in Fujitsu's ability to deliver, as shown by a very substantial growth in its European sales pipeline for MWS.
Fujitsu includes business change management services as part of several digital workplace offerings and is expanding its capacity for such services across Europe. Fujitsu puts equal effort into designing and managing workspaces for office productivity employees (through the enablement of choice and collaborations), and for client-facing users, field services, warehouse and other nonoffice users (through the implementation of business-grade wearables and IoT).
Some references praise Fujitsu for its predictable and stable services and its flexible approach to relationship management. They also appreciate Fujitsu's focus on supporting a digital workplace transformation and its performance around traditional deskside support and overall service desk performance.
Fujitsu works with a wide range of strategic partners, but its focus on developing its own MetaArc and Zinrai tools may not lead to the best use of technology for clients, as best-of-breed technology may outpace its own developments. Despite Fujitsu's significant overall capacity in Europe, its presence remains patchy, with less than 5% of the ITO market share in more than half of the countries in Europe.
Organizations seeking a global delivery capability may find that Fujitsu's global ability to deliver remains restricted. Fujitsu's penetration into North America is improving, but is still significantly smaller than its EMEA operations, and does not yet display the depth of its European and Asia/Pacific capability in MWS.
While Fujitsu is actively investing in a number of emerging digital workplace areas including virtual reality and wearables, physical workplaces, self-service analytics tools, and virtual assistants, its capacity and track record to date remain limited in these areas. Fujitsu actively pursues the midsize enterprise markets, which account for 8% of its client base, but is still currently developing a specific service offering for this market segment.
Some references report that Fujitsu needs to be more proactive in driving service innovation and a faster time to market in implementations. They would also like Fujitsu to enhance its focus and capabilities around workplace analytics and the contextualization of knowledge, support of cloud applications and support through social media collaboration.
Getronics is positioned in the Niche Players quadrant. In July 2017, Getronics was bought from its previous owner Aurelius by Bottega InvestCo, with the aim of making it a $1 billion company by 2020. It is one of the founding members of the Global Workspace Alliance (GWA), a consortium of IT services companies that also includes CompuCom as a leading partner. Other strategic partnerships include SPIE ICS, Tecnocom, Centric, Network Solution Company (NSC), Arabic Computer Systems (ACS; in the Middle East), Eire Systems (Japan), S&T, InfoCare and Topnew Info & Tech Co. In total in Europe, GWA can rely on roughly 7,100 field engineers and 1,100 service desk agents that handle more than 2 million calls for installations, moves, adds and changes (IMAC) per year and support more than 570,000 service desk users and 2.9 million desktop users for nearly 4,000 clients. With specific vertical capabilities for manufacturing, retail and healthcare, Getronics total MWS revenue in the region is more than €660 million.
Under the direction of its new CEO and board of management, Getronics is now striving to become a $1 billion business through organic market growth and acquisitions of roughly more than $350 million in revenue by 2020. Leverage of the GWA alliance is still part of the strategy in order to provide field engineers to serve MWS and support future IoT devices in countries with limited direct presence. Getronics's strategy is to focus on customer intimacy, profile-based services, security and proactive support coupled with end-to-end application services, through an increasingly consultative-led approach.
In the past 12 months, Getronics posted a 14.3% growth in European MWS revenue that is in line with its expectation to grow at twice the market growth rate organically up to 2020. It has managed to increase the number of tickets resolved per head by using automation and self-service to deal with 34% of incidents. Its program of investments focuses on developing proactive analytics, incorporating IoT solutions and developing vertical offerings for airports, healthcare, manufacturing and retail through instrumented workplaces, mobility and IoT.
Getronics has a very high percentage of its clients on cloud-based applications for email/collaboration applications (40%) and is building capacity (along with partners) in a broad range of emerging digital workplace capabilities. Beside an end-to-end range of workplace services for large and midsize enterprises, which include application development, break/fix, infrastructure and cloud services, Getronics also shows good uptake of its walk-up kiosk service. Unlike most competitors, Getronics has 2% of its users on VDI-based services, but, conversely, has a very high adoption of its DaaS offering, which accounts for just under 8% of its users.
Some references praise Getronics for its commitment to clients and technical knowledge and its focus on building trust. They also appreciate Getronics deskside support and its focus on leveraging self-service, intelligent automation services and virtual assistance.
Getronics now has a long-term strategic focus on expanding its service delivery to UC, cloud and applications services, and this may dilute its focus on MWS. Its consultancy offerings still mainly focus on application development and project management, with a developing focus on delivering wider workplace transformation for clients. The emerging requirements for cross-integration of digital transformation, business process redesign, agile application development, and integration of CRM into digital business processes reflects a significantly different market than the traditional MWS and field services that are associated with the Getronics brand.
Getronics remains a provider with a very strong capability in field services, which generates almost 90% of its MWS revenue. Only 10% of revenue is from its service desk capabilities, which are still mostly structured via country service desks with limited support for channels such as chat. This may limit its potential to further drive down call volumes and cost. Customers must track the changes associated with the new ownership and ensure that Getronics's new strategic plans will not negatively affect service quality and customer satisfaction.
Getronics's digital workplace portfolio is broad, but it may not be able to stretch itself in all directions simultaneously without jeopardizing its current delivery of MWS. It has a strong narrative around the capabilities of its café-based walk-up support, but the growth it shows in such deployments remains modest.
Some references report that Getronics needs to showcase that it is more focused on driving innovation and fine-tune its ability to mobilize fast in support of change. They would also like Getronics to enhance its focus and capabilities around workplace security services, mobility services and offshore Level 1 service desk.
HCL Technologies is positioned in the Leaders quadrant. With headquarters in India, it had a European MWS revenue of almost €400 million in 2016. It supports 1.3 million service desk users for 72 clients and has a further 80 clients for desktop services, for whom it supports almost 820,000 users, including nearly 25,000 DaaS users. Strategically, HCL aims to enable the adoption of smart devices through its smart machines offering, empower users with a range of "smart user" service options, and provide enhanced user experience through analytics and seamless mobility via its Smart Employee Care model. HCL has a strong presence in the U.K. and the Nordic countries and positive presence in verticals such as retail, financial services and manufacturing, with a focus on large enterprise clients.
HCL is continuing its strategy for industrialized yet highly customized MWS, driven by its HCL Kaleidoscope services, and supported by new investments in strategic workplace and digital capabilities, including building innovation "garages," digital skills academies and a joint IoT incubation center with Microsoft. It has a wide and expanding set of tools including OptiBot for automation, DRYiCE Lucy for cognitive virtual assistance and WorkBlaze for analytics. It has a strong roadmap for these tools, including expanding Lucy to support queries beyond IT and introducing its ScoutBot offering to allow users to provide each other social support, for both IT and non-IT tasks.
HCL has demonstrated a 22% growth in MWS revenue in the past 12 months and has expanded its transformation services to provide 17% of this revenue. Through digital consulting offerings, it provides strategic advice on developing a digital workplace, supporting this with tools such as Titen to allow seamless migration to Windows 10. It contextualizes its service offerings by allowing clients to select from its portfolio of workplace services, and it provides prebuilt verticalization offerings for verticals such as retail. At the same time, a constant focus on innovation and customer intimacy (through customer workshops and proofs of concept [POCs]) is causing early and high traction of Lucy/Watson-based intelligent services.
HCL has a very high percentage of its clients on cloud-based applications for email/collaboration applications (40%) and has delivered emerging digital workplace services to at least 15% of its user base. These include activity-based workspaces, workstream collaboration, self-service analytics, digital skills development, behavior change management to drive adoption, and user experience design supported by a 400-member consulting team. HCL's Kaleidoscope is a mature user segmentation/profiling service, underpinned by the use of workplace analytics aimed at designing workspaces based on real users' requirements and offering the most effective support options.
Some references praise HCL for its collaboration, its drive to deploy a partnership approach and its focus on trust. They also appreciate HCL's focus on and performance of desktop virtualization and workplace security services and IT support through social media collaboration and chatbots.
While HCL is making significant investments in toolsets, its overall approach is to invest widely in a large number of new capabilities. This strategy may result in clients being left on legacy services, which are no longer being invested in. HCL's market share distribution across Europe shows that it has less than 1% of ITO revenue in all European countries, and a number of large markets are underserved from an MWS perspective — including Germany, Austria, France, Italy, the Netherlands, Portugal and Spain.
Despite early traction of Lucy, its intelligent automation service, the percentage of calls handled by automation is still less than 1%, at the bottom end of providers in this Magic Quadrant. HCL's focus has historically been on a few large customers, and it now needs to push its productized service catalog down and sell it to more midsize organizations.
While HCL offers an end-to-end set of workplace services that includes walk-up kiosk support for over 11% of its users, VDI-based services delivered to 8% of its users and a DaaS offering that is starting to get traction, it doesn't actively pursue a unified endpoint management vision as a catalyst for deeper endpoint computing transformation initiatives.
Some references report that HCL needs to be more proactive in offering innovative digital workplace solutions and to fine-tune the lead-time and cost for additional functionalities. They would also like HCL to enhance its focus on and capabilities around workplace analytics, transition management and persona-based support.
IBM, headquartered in the U.S., is positioned in the Leaders quadrant. While it does not disclose revenue per segment, Gartner estimates its MWS revenue in Europe to be €950 million in 2016. IBM supports an estimated 460 customers in Europe with 1.4 million service desk users and roughly 850,000 mobile devices. IBM's geographical coverage is one of the deepest, with its ITO market share larger than 5% in more than 17 European countries; although 80% of IBM's managed workplaces are still located in Denmark, Finland, France, Germany, Italy and the U.K. Vertical sector penetration is highest in financial services, communication, media and services, manufacturing and natural resources, and government. IBM's MWS portfolio is particularly focused on mobility and the integration of analytics, cognitive (Watson) and automation to provide customers with a consumerlike experience with digital workplace services.
IBM's strategy is evolving from system integration into services integration, moving from a reactive one-size-fits-all support of workplace and mobile users toward a persona- and context-based service for dynamic workplaces. In this new model, it leverages three strategic growth imperatives: analytics to know what is happening in the operation, cognitive computing to manage the conversations with users, and automation to enact a more efficient solution to incidents. Sales strategy and business model are evolving toward value generation and exploitation to avoid commoditization and increase margins. The creation of guiding ethical principles for AI implementation are also showing up in this area.
IBM's execution plans are integrated, from marketing through sales to delivery, and focus on identifying and protecting sources of value and transformation for large customers. Strong sales execution, supported by a balance of central strategy and local autonomy, is driving sales growth. IBM reported an overall estimated revenue growth in MWS of 2.5% in 2016. Operational performance is very solid, with 99.6% of more than 11,000 SLAs reported as achieved last year. IBM is willing to enable an as-a-service model for midsize enterprises based on a packaged approach delivered through an e-store integrated platform, to expand its footprint in this important European market segment.
IBM's digital workplace capabilities include a mature mobility component that can be used to manage augmented reality and other wearable devices, as well as devices such as Apple TV in meeting rooms. IBM's capacity in strategic consulting, which includes a "'change readiness assessment" service, and its reputation in cognitive computing with Watson, along with growing competence in IoT, present further opportunities.
Some references praise IBM for its strong governance and management commitment to solving emerging issues. They also appreciate IBM's focus and performance on persona-based support, end-user support and walk-up support services in particular.
Clients interested in transactional MWS as a stand-alone service (not attached to value-added or large deals or transformation) will find this is not a core focus for IBM, and IBM may route or deliver such deals through local partners or subcontractors. IBM's persona-based approach is part of the process of designing and defining workspaces for diverse types of users, but there is still limited evidence of such approaches delivering new categories of value within its MWS.
Clients who are seeking a supplier solely to reduce cost may find that IBM's focus on value-added services and workplace transformation does not deliver the lowest possible pricing for MWS. Watson-based automation is expected to help on this, and IBM has deployed it in more than 800 accounts. IBM has also deployed the analytics component of Watson to all its delivery teams. However, despite key clients indicating strong success, there is still a lack of widespread measurable outcomes in terms of improved price for performance.
IBM features a comprehensive range of endpoint computing services, underpinned by an advanced use of workplace analytics aimed at supporting a variety of devices and platforms with a lightweight management style. However, IBM is still to develop a track record on nonoffice productivity workers served through wearables that interact with IoT-instrumented workplaces. IBM has a large share of MSE accounts for its service desk offering, but MSE clients may want to buy individual service components, whereas IBM's emphasis seems to be on end-to-end deals.
Some references report that IBM needs to limit the negative impact that rigid contract management has on the relationship and be quicker in offering solutions for emerging challenges. They would also like IBM to enhance its focus and capabilities in areas such as automation services, the support of cloud applications, walk-up kiosks and support through social media collaboration.
NTT Data is positioned in the Niche Players quadrant, and Gartner estimates that it had a total MWS revenue of about €60 million in 2016, with most revenue coming from Sweden, France and Netherlands. With headquarters in Japan, it supports about 170,000 service desk users and over 330,000 desktop users for its 49 European clients. NTT Data provides MWS both for multinational organizations seeking a global partner and, increasingly, for midsize enterprises, with a focus on verticals such as healthcare, life sciences, banking and financial services, and manufacturing. Within MWS, NTT Data aims to deliver a personalized service to users, enabling collaboration, cloud use and enterprise mobility, with omnichannel support through the use of analytics and self-help.
NTT Data's multiple acquisitions of service organizations are creating an aggregated capability that is now converging strongly into its Dynamic Workplace Solutions offering for MWS. It has a good understanding of the differing and varied requirements of IT teams, end users and strategic business drivers. NTT Data structures its offerings to drive differentiated delivery in these areas, depending on the starting point of the client, and distinguishing offerings to clients who require "innovation" from those who merely need "improvement."
NTT Data delivers a combination of self-help, persona-based support and walk-up offerings to meet the changing demands of users. Its approach is to understand clients' life cycle, maturity and business objectives, and define a roadmap for implementation of their MWS objectives. For midsize clients, NTT Data is creating a specific offering that uses a modular service approach with highly standardized and preapproved statements of work (SOWs), which sales teams can easily apply in the field.
NTT Data offers a staged approach toward workplace transformation to cater for different appetites, and drives toward digital workplace initiatives ranging from improvement and optimization of existing offerings to innovation services that introduce persona-based services based on mobility and cloud. Over the past year, NTT Data has seen significant growth both in the number of self-support interactions and in the number of users supported through walk-up kiosks.
Some references praise NTT Data for the performance of its account management team. They also appreciate NTT Data's focus on traditional deskside support, desktop virtualization and self-service support solutions.
The merger of NTT Data and the former Dell Services has resulted in an unclear MWS vision and sales strategy. Prior to the merger, the former Dell Services used to address large multinational deals, while NTT Data focused more on midsize deals. Resolving this difference in strategic direction began with the integration of market-facing activities from April 2017. But while it remains unclear, clients will be uncertain on NTT Data's current strategy, positioning and sales execution.
Very small MWS market share and very limited knowledge of NTT Data in European infrastructure management will make it hard for NTT Data to grow. Investments in third-party cognitive solutions, such as Amelia (from IPsoft) and Nina (from Nuance) for chat, voice and virtual assistants, are only in the early stages and the use of automation to resolve tickets is negligible.
While NTT Data has 41% of its clients currently on cloud-based applications for email/collaboration, it has limited capacity and track record in most other emerging digital workplace areas. Its portfolio of offerings is still under development, and NTT Data is looking to define a more modular and standardized offering to meet requirements of the MSE markets more efficiently.
Some references report that NTT Data needs to widen the geographical options of its service desk delivery. They would also like NTT Data to enhance its focus and capabilities in areas such as workplace security services, transition management and services orientation.
Stefanini is positioned in the Niche Players quadrant. Founded in 1987, Stefanini is a $1.25 billion privately held service provider with headquarters in Brazil. Its offerings span almost all areas of IT services (including ITO and business process outsourcing [BPO]), but help desk services continue to be the most important part of its service capabilities in Europe. Its global delivery centers, in support of European operations, are located in Romania, Poland, Moldova and Portugal, and it offers particular vertical capabilities in life sciences, retail, and travel and transportation. In 2016, the company claims MWS revenue of about €100 million in Europe, where it supports about 1.5 million service desk users and 75,000 desktop users for 50 clients. Stefanini equally targets large and midsize organizations.
Stefanini is a midsize business competing to serve midsize to large customers across the world, with a strong focus on service desk and positioning "in the middle" between large and local providers. It underpins its service with the extensive depth of its service desk offering, which provides support in over 35 languages from nearshore locations to provide cultural alignment to the client. Stefanini's strategy tries to address most main trends with MWS by considering IT service management (ITSM) tooling and automation, service consolidation, digital employee experience, and persona-based support models.
Stefanini focuses on building long-term relationships with clients, based on quality of service and its ability to evolve and innovate. Most of its investments are in implementing new nearshore centers in Eastern Europe (in Romania, Moldova, Morocco and Poland), but it is also implementing ITSM for hybrid infrastructure management across client-owned, provider-owned, and public cloud environments. Its sweet-spot client is between 5,000 and 10,000 users (where its 9.2% growth in revenue is largely coming from), as it has the ability to deliver a tailored set of services to international organizations within this segment.
Stefanini's endpoint services are moving beyond desktop virtualization to cloud application delivery solutions. It offers a solid and innovative set of persona-based support models and has built a set of transformational service capabilities using ServiceNow and Microsoft Office 365.
Some references praise Stefanini for its flexibility in addressing new requirements and the quality of its service desk personnel. They also appreciate Stefanini's focus on and performance around traditional deskside services, support through social media and transition management.
Stefanini's ability to address the whole range of digital transformation impacts on different client verticals, sizes and regions is limited by its ability to invest, due to their size. This will call for an increasingly focused marketing, sales and co-innovation strategy — so far only partially developed for industry-specific workplace solutions in life science, retail, and travel and transportation. It still offers a very traditional ITSM-focused vision based around the service desk, and sales are mainly regional deals that expand over time for smaller global players, rather than truly Pan-European and global clients. Awareness of Stefanini in the wide European market still has significant room for improvement.
Stefanini is handling only 3% of consulting and transformation revenue across its deals, positioning it at the bottom when compared to other providers and showing it to be less able to benefit from digital transformation. This may limit its ability to deliver more value and get more profit out of this service area. Investments in, and results from, advanced automation (its Sophie virtual agent) are at the bottom of the players of this Magic Quadrant. The combination of these factors may limit Stefanini's medium-term growth, profitability, and ability to invest and innovate.
Stefanini is not attracting clients ready to move to cloud-based services (only 5% of its clients are on cloud-based applications for email/collaboration), and it has limited capacity and track record in most emerging digital workplace areas. Stefanini's persona-based support model should expand further into a persona-based workspace design in an effort to further broaden the breadth of tools and technology used to design a complete MWS offering.
Some references report that Stefanini needs to increase focus on addressing the impacts caused by staff attrition and to fine-tune consistency of delivery across locations. They would also like Stefanini to enhance its focus on and capabilities around intelligent automation, resource management, persona-based support and workplace analytics.
Tata Consultancy Services (TCS) is positioned in the Visionaries quadrant. Headquartered in India, TCS had MWS revenue of roughly €270 million in 2016. Working with 133 European MWS clients, TCS supports almost 720,000 service desk users and over 920,000 desktop users, operating 178 "tech bars" and supporting 40,000 DaaS desktops. With a focus on verticals such as banking and financial services, retail, and life sciences, TCS has strong coverage across central Europe and the Nordics, and supports both large and midsize enterprises through targeted strategies. TCS' strategic aim is to help customers achieve their business objectives by reimagining business operations through cognitive computing, automation, IoT and cloud technologies delivered in an agile manner.
TCS vision for MWS is to deliver "omnipresent IT" with a seamless user experience across all channels and a "machine-first delivery model," where service support is automated and delivered via self-service on demand. It leads its sales through a consulting approach focused on delivering business outcomes and is prepared to enter a wide range of commercial models depending on client needs, including true pay-per-use elastic charging models. As part of a multiyear relationship, TCS will invest in an innovation fund specifically targeted at directly reducing a client's ongoing expenditure. TCS aims to deliver personalized services by the development of "nano-personas," and by moving from traditional SLAs into measuring user experience and business value through experience-level agreements (XLAs).
TCS' revenue from MWS rose by 15%, with an increase in the percentage of calls resolved by self-service and automation. It has made focused investment in bimodal approaches through its Co-Innovation Network (COIN), as well as developing catalog-based self-service. It has also invested in automation through ignio and mobility through Mobitio, and via collaborations with IBM Watson and IPsoft. Although TCS mainly focusses on large clients, 17% of its MWS clients have revenue below $1 billion, where TCS addresses the midmarket through a set of pay-as-you-go, as-a-service models that span multiple workspace areas, some of which are exclusive to the midmarket.
TCS has a very high percentage of its clients on cloud-based applications for email/collaboration applications (56%) and also is building its DaaS capability, which is used to serve 4% of all its users. TCS has delivered emerging digital workplace services to at least 30% of its user base — including workstream collaboration, self-service analytics, and change management for user adoption supported by self-service and crowdsourcing.
Some references praise TCS for its flexible and collaborative approach and the commitment and technical expertise of its resources. They also appreciate TCS' support performance in walk-up kiosks, transition management and service reliability.
TCS offers a set of services that support a unified workspaces vision and underpins this with its "nano-persona" concept to deliver highly specific support services. While this is an interesting approach, it may contrast with the standardization and industrialization efforts that TCS requires to sustain competitiveness. With a third of TCS' MWS revenue coming from transformation, it will need to expand its co-innovation approach to include regional innovators in order to be able to support growth in this area.
While TCS has experienced an increase in business and is seeing more calls resolved through automation, it has increased its service desk staff in line with overall call volumes, indicating the need for further service desk staff optimization. The geographical distribution of TCS in Europe is still limited, with most users managed in the U.K., Denmark and Germany, and an expanding presence in other Nordic countries and Benelux. Customers are often unclear about the value that TCS can bring in countries where presence is very limited, restricting its ability to penetrate new markets.
TCS is active across a wide spectrum of emerging digital workplace services, but it needs to build more delivery capacity and produce demonstrable success stories for clients in areas of new investment.
Some references report that TCS needs to be more proactive in driving workplace transformation and leverage of automation. They would also like TCS to enhance its focus on and capabilities around mobility services, and support means such as self-service and social media.
T-Systems is positioned in the Challenger quadrant. German-headquartered T-Systems is fully owned by Deutsche Telekom and is present in 50 countries worldwide, with strong MWS presence in Germany and central Europe. Its MWS strategy is increasingly focused on integrating end-to-end offerings across IT and telecommunications, for example, in mobility management for sectors such as automotive, utilities, manufacturing, and travel and transportation. Gartner estimates its MWS revenue at €820 million, and it serves about 1.4 million service desk users, 1.6 million mobile or desktop users and more than 250,000 virtual desktops for over 1,600 clients. Its MWS strategy revolves around its long-standing Dynamic Workplace portfolio, including transition and migration components with an increasingly virtualized and mobile approach that employs hybrid cloud (public/private), Microsoft Office 365 and unified communications.
T-Systems' strategy is to serve the convergence of workplace, mobile services and cloud application services management toward "any device, anywhere" work, now focusing more on application virtualization than desktop virtualization. The emerging strategy is focused on business transformation and change toward cloud-based delivery, hybrid solutions and German data security standards, while anticipating that IoT and wearables will increasingly be part of future MWS. T-Systems is evolving into a service integrator (consult and transform, service wrapper, multisourcing service integrator [MSI]/service integration and management [SIAM]) of services provided by Deutsche Telekom (machine-to-machine [M2M] and mobile services), other providers (Microsoft, for example) and T-Systems itself (virtual private cloud, virtual desktop).
T-Systems has a well-developed vertical strategy serving the manufacturing, travel and transportation, services, insurance, and automotive sectors, and a developing capability in public and healthcare verticals for large businesses. T-Systems reported that revenue for service desk rose significantly, partly through changes in reporting structures within Deutsche Telekom. T-Systems is enhancing its consultancy approach to deliver a staged method to transformation to a digital workplace, with a focus on delivering business outcomes through effective change management.
T-Systems has significant capacity for and a track record of project-based virtual/augmented reality and IoT services in the context of maintenance, logistics, marketing and product planning applications. It also provides consulting services on complete office design through a digital co-innovation approach, as well as virtual assistants, agile project coordination and contextual information delivery. T-Systems has a good understanding of the mobile and endpoint management dynamics and offers a good set of services and capabilities for implementing new endpoint management processes through enterprise mobility management (EMM), desktop virtualization and other technologies.
Some references praise T-Systems for the depth of its technical knowledge and its service performance. They also appreciate T-Systems' focus on contextualizing knowledge, workplace security services and support through social media.
Gartner estimates that T-Systems' revenue in MWS decreased by more than 3% overall due to a reduction in hardware reselling, despite a big increase in service desk activity. Due to its low margins in delivering service desk activities, T-Systems is in the process of carving out and outsourcing its service desk to another external provider, as it did for its Individual Desktop Solutions (deskside support) in 2015. Therefore, T-Systems is fast moving toward integrating third-party services in this area, with less involvement in the run (its traditional strength), while its consulting and transformational service line is still only 15% of revenue in this area. Clients need to ensure that this evolution will not result in a fragmented product and service offering or decreasing service levels and reactivity when contracting with T-Systems for service desk and deskside services.
Increasingly, T-Systems' MWS focus is on delivery of endpoints, devices and mobile services, with little innovation or focus on the service desk. Clients must evaluate, test and pilot T-Systems' capability to integrate, deliver and support its new-generation solutions that will increasingly rely on hybrid service integration, rather than on direct delivery.
T-Systems sees limited uptake of self-service and walk-up kiosks. The development of virtual service desk agents and self-healing technologies is part of the future years' roadmap, and T-Systems shows a negligible level of calls resolved via automation or self-service.
Some references report that T-Systems needs to fine-tune its performance in the deployment/provisioning process in support of adding new features or adding new services. They would also like T-Systems to enhance its focus on and capabilities around traditional deskside support, walk-up support services and virtual assistance.
Unisys is positioned in the Niche Players quadrant. In 2016, U.S.-headquartered Unisys had MWS revenue of almost €300 million. Its European MWS operations support almost 130 clients, with nearly half a million service desk users and about 1 million desktop users, and deliver support for over 900,000 desktops and almost 130,000 mobile devices. With specific offerings for verticals such as government, travel and transportation, life sciences, healthcare, manufacturing, retail, and financial services, Unisys can serve both large and midsize enterprises in central Europe and the United Kingdom. Through its user-centered MWS strategy, Unisys aims to solve clients' higher-order needs and places a strong focus on delivering client value.
Unisys has restructured its MWS services so that consultancy, sales and services are in a single division, giving it a focused go-to-market approach. It uses a consultancy-led sales approach, having recruited more than 50 industry domain experts to improve its knowledge of key verticals and its focus on delivering digital business outcomes for its clients. It sees the integrated nature of its security offerings within all of its MWS solutions as a key differentiator in mobile-led services.
The sweet spot for Unisys' MWS engagements is a four-year contract term with over $10 million total contract value (TCV), and it also offers specialized support for MSEs. It is prepared to offer a variety of pricing options: flexible, fixed, cost plus, consumption or even gain-sharing options. Unisys is investing with customers on robotic process automation (RPA) and AI with a few dozen large customers that have AI in their near-term innovation pipeline. It delivers on its promise of "empowering the digital worker" through personalized service through portals and its next-generation service desk offering, Digital Service Support Center.
Workspace Productivity as a Service (WPaaS) — including productivity and collaboration, user portals and service stores, and identity and access management (IAM) underpinned by infrastructure as a service (IaaS) or public cloud services — is a complete offering. Unisys has developed a stronger focus on enterprise mobility and true or virtualized unified endpoint management.
Some references praise Unisys for its focus on relationship management and the quality of its account delivery team. They also appreciate Unisys' support delivery through social media and walk-up services, and its focus on mobility services.
Despite focus on and development around fully cloud-based WPaaS, based on integration of Microsoft Office 365, ServiceNow, Azure and Stealth, Unisys is not yet seeing significant client traction with its cloud-based DaaS. Unisys' vision focuses on delivering a user-centric approach to service, but its personalization approach and mobile technology offerings still lag its major competitors.
With a scale that is smaller than its competitors and a decreasing European MWS revenue, Unisys needs to consider strategic options for growth, including mergers and acquisitions (M&As) or radical uptake of strategic partnerships or ecosystems. Its MWS operations still show a traditional profile of service usage with low mobile penetration, and, despite a focus on automation and self-service, it still has low percentages of incidents resolved through these support channels.
Unisys has not yet achieved enough penetration and scale on managing cloud-based services (only 2% of its clients are on cloud-based applications for email/collaboration) and it has a limited track record in most emerging digital workplace areas.
Some references report that Unisys needs to increase its focus on driving innovation and reduce its response time for new requests. They would also like Unisys to enhance its focus on and capabilities around self-service, desktop virtualization and persona-based support.
Wipro is positioned in the Visionaries quadrant. It is an India-headquartered IT services provider and its Global Infrastructure Service organization owns 33% of overall company revenue, of which 31% is in this space. In Europe, MWS are roughly €215 million of revenue and Wipro manages 600,000 service desk users and 1.4 million deskside users, across more than 35 clients. It works in verticals such as manufacturing, travel and transportation, and public sector and has strong presence in the United Kingdom and Ireland, the Nordics and central Europe. LiVE Workspace is the strategic workplace framework that Wipro is leveraging to enable its clients' evolution toward the digital workplace by providing enterprise end users with an anywhere, anytime, any device experience.
Wipro is evolving LiVE Workplace toward focusing more on customer than technology, with most users being served based on their profile and with transformational outsourcing relationships supported by a recently launched consulting service. Wipro sees Windows 10 migration as an opportunity to accelerate the shift to digital workplace and has developed a desktop virtualization offering called VirtuaDesk.
Wipro has increased its MWS revenue by 31% in the past 12 months, and, with 25% of all contacts now resolved by automation, has managed to slow its growth of staff considerably (to only 17%) at the same time. With its "start green, stay green" methodology to drive successful transition and transformation, it has delivered a new focus on customer satisfaction and it claims rising Net Promoter Score (NPS) scores across its installed base.
Wipro's has a very high percentage of its clients on cloud-based applications for email/collaboration applications (70%) and has delivered emerging digital workplace services to at least 30% of its user base — including workstream collaboration, contextual information delivery and change management services. Wipro's portfolio of workplace services has been complemented with a PC-as-a-service offering realized in partnership with HP Inc., which has been already deployed to several large European organizations. The VDI-based services, which are delivered to 4% of its users have been paired with growing DaaS and PCaaS offerings. Wipro is also developing capabilities and services around IoT, application mobilization and modernization.
Some references praise Wipro for its ability to address requests for additional capacity, its technical skills and its overall commitment. They also appreciate Wipro's creative and innovative approach to building the solution (including digital workplace components) and its focus on workplace analytics, persona-based support and virtual assistance (in the form of chatbots).
Despite significant presence in key countries, such as Ireland, Switzerland, Sweden and Finland, the geographical coverage of Europe is still scattered and Wipro has less than 2% ITO market share in almost all European countries. The ability to scale up in terms of offering, countries and transformative deals is a significant strategic challenge.
The ratio of transformative versus ongoing services demand that Wipro is experiencing is 20-to-80. This requires a much deeper local presence in different countries, languages and cultures in Europe (since most of the 20 will be front-end consulting and change management activity). Scaling up the whole assess/transform and deliver business model will stress Wipro's capability to deliver true localized services for European businesses.
As yet, Wipro has a limited track record with respect to some emerging digital workplace capabilities including user experience design. Wipro's endpoint technology portfolio is very much focused on workspace delivery models, such as desktop virtualization and DaaS, and could shift to include a broader view of endpoint including wearables, as well as unified endpoint management.
Some references report that Wipro needs to increase its proactivity to drive continuous improvement and to fine-tune communication between service towers. They would also like Wipro to enhance its focus on and capabilities around walk-up kiosks, support through social media and transition management.
We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant may change over time. A vendor's appearance in a Magic Quadrant one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria, or of a change of focus by that vendor.
Tata Consultancy Services was added to the Magic Quadrant this year.
DXC Technology, the result of a merger between HPE (Enterprise Services) and CSC, has been included in this year's Magic Quadrant.
NTT Data was added to the Magic Quadrant this year.
No vendors were dropped from the Magic Quadrant this year. However, two vendors underwent name changes as a result of mergers:
HPE (Enterprise Services) and CSC completed their merger on 1 April 2017. The merged company, DXC Technology, replaces both of these providers in this year's Magic Quadrant.
Dell Services was acquired on 2 November 2016 by NTT Data Services. The resultant company, NTT Data, replaces Dell Services in this year's Magic Quadrant.
To be included in this Magic Quadrant research, each service provider has to meet the following criteria:
It must deliver managed workplace services (MWS) as part of IT outsourcing engagements related to infrastructure to include:
Desktop and laptop
Applications delivered to end users
Mobile device support and management
Support for bring your own device (BYOD)
It must deliver digital workplace capabilities and services, such as:
Intelligent automation services
Alternative support models
Support for cloud collaboration tools (Google apps, Office 365)
Support for cloud business applications (Salesforce, Workday, SAP)
Mobile workplace integration services (VoIP, mobile apps, teleconferencing)
Desktop and application virtualization services
It must deliver professional services to scope, design, implement and manage an integrated digital workplace solution.
It must have at least $60 million in annual MWS revenue in Europe:
Revenue related to professional services and products (hardware and software) can only be included if it is billed and included/delivered as part of a wider MWS outsourcing deal.
Providers with less than $60 million MWS revenue cannot include more than 10% of professional services revenue in order to hit the $60 million qualification mark. (For example, a provider with revenue of $54 million MWS and $6 million of related professional services revenue would qualify; a provider with $45 million MWS revenue and $15 million of related professional services would not qualify.)
Providers whose revenue is more than $60 million, but that have professional services revenue that exceeds the MWS revenue, will be excluded. For example, a provider declaring $100 million of MWS revenue and $101 million of professional services revenue related to it, will be excluded.
It must be able to demonstrate that it provides MWS as a core business offering with no more than 50% labor subcontracting. In other words, each provider needs to use internal resources (not subcontracted resources) to deliver at least 50% of its overall scope.
Each provider will be asked to submit a minimum of five, ideally more than 10, MWS references.
This Magic Quadrant is aimed at evaluating MWS capabilities in Europe. For Europe, each service provider must:
Not have more than 70% of its total European MWS revenue from clients based in a single country.
Have a minimum of 10% of its total European MWS revenue in at least three European countries (each in a different region). For example, a provider generating 65% of its revenue in Germany, 18% in the U.K. and 12% in Spain would qualify for this Magic Quadrant.
Gartner evaluates the providers based on the quality and efficacy of the processes, systems, methods and procedures that enable each provider's performance to be competitive and effective, while positively affecting revenue, retention and reputation. We judge providers on their ability to capitalize on their vision, their success in doing so, and their European footholds in terms of resources, coverage, seamless delivery within different countries and ability to meet clients' requirements.
Ability to Execute is judged by seven main criteria. Each criterion is described below, and their respective weightings are shown in Table 1.
Product or Service
Source: Gartner (January 2018)
We evaluated the external service providers' (ESPs') service delivery capability and service offered. Special consideration was given to service definition and capabilities, effective resourcing, and service management. Within this criterion, we considered the following elements:
Overall EUO service revenue, client numbers and employees allocated
Help desk characteristics, such as location, ownership (provider or client), size, staff employed, staff retention, languages supported, technologies supported and tools deployed
Desktop outsourcing delivery capabilities, sites, countries, languages and technologies
HVD solution penetrations
Amount of service desk contacts handled (split between telephone contact and others — mail, chat, virtual personal agents), end users supported, devices (with insight into services provided to support mobile devices and apps — corporate and BYOx), applications or users supported
Management team, with related position in the corporate structure
Core service definitions and SLAs:
Focus on what core and secondary MWS services are provided
Standard MWS services provided — a package that is offered and sold to many clients in the same way with standard service levels
Typical SLAs offered to market
Procedures for managing SLAs (and any penalties or incentives tied to SLAs)
Resourcing and transition management:
An ESP's ability to effectively provide the relevant resources to customers, and the practices it has in place to recruit, train and retain qualified staff. Example topics include:
Evaluation of tools and procedures to assist with resource allocation
Evaluation of key skill sets and competencies of the resources in charge of transition, including the expected skill set changes over the next two years (geographical and in terms of capabilities)
View on how global delivery will impact the distribution of service staff across Europe
Ability to integrate staff coming from the client organization by offering a competitive job opportunity. In different countries, this addresses (for example) salary and benefit packages, retraining, career progression opportunities, and minimized disruption due to the employee's transfer of job location. Example topics include:
Focus on typical process and plan for transition and the related approaches and procedures for transitioning the relevant MWS knowledge
Clients' feedback on their experience of transition projects and day-to-day service
Viability includes an assessment of the overall ESP's financial health, the financial success of the MWS operations and the likelihood of the individual provider to continue to invest to support a state-of-the-art delivery within the organization's portfolio of products.
Special consideration is given to:
Past three years' growth in the MWS segment (with relevant split for service desk, laptop/desktop and digital workplace), for both volume/units and revenue
The future outlook for these segments of the business (expectation for both revenue and margin: growth, stable or declining)
We considered ESPs' capabilities in all presales activities and the structure that supports them. Specific consideration went to the team in charge of deal assembly, management, pricing and clarity of scope. The two areas we will review under this section are contract/deal structure and pricing.
Contract/deal structure — We asked participants to explain the management of various contracts, and how the relationship is structured to meet the needs of both parties. Sample questions we asked included:
From a contractual point of view, how can you provide flexibility and agility in the provision of MWS?
How long is the average contract term?
What different types of contracts do you offer?
What is the standard structure of an MWS contract?
Pricing acceptance — We considered the ESP's ability to manage price and reduce costs (through new smart-machine-enabled service components and offerings, improved productivity, management tools, quality, resource allocation, or staff reductions) as key in outsourcing deals where gaining economies of scale is a prime objective. Discussion also focused on ESPs' pricing schemes and their clarity. Sample questions we asked included:
How are the various services priced?
What percentage of yearly cost is included into the baseline?
Are you implementing a different price model for smart-machine-enabled services?
Are you committing to flexible price models that share efficiencies with the client over the term of the contract?
Clients' feedback on their experience with the ESP from a negotiation and pricing perspective was also considered.
This includes the ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, clients' needs evolve and market dynamics change. Specific consideration went to:
How do you detect and react to global or local market changes?
How much of the negotiation power is local, and how much of it is centralized in Europe and North America or abroad?
How does your company measure the effectiveness of the sales and business development teams?
How many MWS RFPs or deal requests did you get in the past 12 months in Europe?
What have been the no-bid and win rates?
What has been the client abandon rate?
In addition, we closely looked at ESPs' focus on innovation. Examples of questions we asked included:
Assuming your company keeps a "pulse" on emerging trends and developments (such as analytics, smart-machine-enabled services, knowledge management, BYOx, virtualization and DaaS) in the marketplace, how is that knowledge shared with your clients?
What examples of innovation have been brought to client engagements or to the market, addressing requirements around, for example, mobility?
We also considered clients' feedback on ESPs' flexibility and ability to effectively bring innovation into the deal.
We considered the clarity, quality, creativity and efficacy of programs designed to deliver the organization's message in order to influence the market, promote the brand and business, increase awareness of the services, and establish a positive association between the service/brand and the ESP in the minds of buyers. Specific consideration was given to how mind share of MWS in Europe and North America is conquered and measured. To achieve this, we evaluated how ESPs support the focus on driving this mind share (through publicity, promotional, thought leadership and sales activities).
Specific consideration was given to the topics included in the following questions:
What are the most important elements that create a successful customer experience?
How are these aspects managed and measured within each account?
Are SLAs and client/end-user satisfaction reports part of the evaluation criteria and incentive plans for the account teams?
Please provide samples of the past 12 months' global reports on SLAs, customer satisfaction and other relevant measures.
Do you have continuous improvement processes, both centrally and into the account management team? How do they work? Provide samples of results achieved in the past 12 months.
Gartner expected ESPs to provide between five and 10 European and North American references for MWS. These references had to follow roughly the same service scope and geographic distribution required to participate in this Magic Quadrant. Their overall satisfaction with the service and the relationship was factored here.
We focused on the ESP's ability to meet its financial and operational goals and commitments while satisfying contractual obligations for service delivery to clients. Factors analyzed included the quality of the organizational structure, skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis. Specific consideration was given to aspects such as the formal communication process established to interact with the client at different levels (management, IT staff and end users). We also closely considered quality control and quality assurance processes (for both services delivered and processes executed). As such, we asked providers to describe how they continuously measure customer satisfaction, service-level results, problems or incidents and link them to continuous improvement measures. Finally, we evaluated ESPs' performance around areas such as ITIL, global delivery, HVD, user-owned devices and mobility.
Gartner analysts evaluated service providers on their ability to articulate logical statements about current and future market direction, innovation, customer needs, and competitive forces, and on how well these map to Gartner's analysis of the overall direction of the MWS market. Ultimately, service providers are rated on their understanding of how they can exploit market forces to create opportunities for their organizations.
The criteria we considered in evaluating providers' Completeness of Vision are described below, and their respective weightings are shown in Table 2.
Offering (Product) Strategy
Source: Gartner (January 2018)
We asked providers to describe their strategic plan and vision as it relates to MWS, including service desk, and their commitment to align services with the future evolution toward the digital workplace. The questions we asked included:
How would you differentiate your strategic plan and vision from that of your competitors?
How will they evolve in the future to maintain a leading position in a challenging market?
How are you leveraging key forces, such as cloud computing, BYOD, social, mobility, automation and analytics to define new MWS offerings, value propositions and alignment of your offering to the digital workplace evolution?
ESPs were also evaluated on their ability to demonstrate a well-defined and articulated vision for assisting clients in linking workplace services with the overall enterprise technology and business strategy in the creation of vertically oriented MWS.
We evaluated ESPs' strategy and approach to market and promote MWS. For this criterion, our focus was on providers' main marketing messages related to MWS in Europe and/or North America. Special consideration was given to:
Value proposition, current and future
How important MWS is within the broader IT services portfolio
Consideration around how marketing is shaping branding and market positioning
ESPs' go-to-market strategy that we evaluated included their ability to clearly articulate their value proposition and differentiate their services.
We evaluated the ESPs' sales strategy and their ability to sell MWS, including solutions tied to mobility, cloud, automation, analytics, consumerization and persona-based services. We asked providers to describe items such as how they measure the effectiveness of their sales programs/capabilities and their sales strategy for MWS, and how they qualify and respond to RFPs.
We also asked providers to supply a chart of their sales organization in charge of executing their go-to-market strategy.
We evaluated two areas within this criterion — practice area and operational/tool expertise:
Practice area — We evaluated the composition (size and skills) of the practice area serving clients requiring MWS services. We asked providers to offer a description of the management team's leadership and the team's position in the corporate structure (an organization chart was deemed helpful). We also asked them to detail the penetration of specific individual offerings, such as persona-based offerings or solutions with at least initial traits of a digital workplace environment.
Operational/tool expertise — We asked providers to confirm if they were using ITIL or other processes to manage workloads. We also asked them for the characteristics of the preferred operational/tool expertise they offered to customers.
We evaluated the providers' business models based on two factors: methodologies and management acumen.
Methodologies — Beyond asking the providers to offer a high-level description of their MWS delivery model, these are the main questions we focused on in our evaluation:
Is the model embedded in a larger methodology?
How does this methodology link technology to business objectives? Methodology will also focus on the processes and best practices implemented by the ESP in order to smoothly transition systems, people and assets across into the provider's business.
How do you ensure that the sourcing management processes are appropriate and effective for your various clients?
How can you ensure that MWS can deliver high value by supporting applications and business processes?
What are the key features for measuring results?
What practices are used to assure and control quality?
Management acumen — The success of an ESP can be directly associated with the management structure and the experience of the management personnel. Having good plans and the people to carry out these plans are essential ingredients. We therefore evaluated the providers' focus on making sure that the deals meet the needs of the client as well as satisfy the ESP profit targets, leading to a successful deal for both parties. The questions we asked included the following:
What are the experience and skills levels of the executive management, as well as the assigned key customer-facing managers?
How are customer issues addressed?
Does the customer have access to the appropriate level of management within the ESP?
Here we evaluated the ESP's strategy to direct resources, skills and offerings to meet the specific needs of individual market vertical segments. Specific consideration was given to:
Penetration of different industries
Ability to leverage vertical expertise within the sector and into similar sectors
Ability to craft MWS in accordance to specific end-user constituencies within individual vertical markets
We evaluated the ESP's market position as a thought leader and an innovator. ESPs were evaluated on their leadership and investment focus on achieving their vision and developing innovative strategies in the MWS market.
Specific consideration was given to:
What investments each provider was committing to in order to sustain and enhance its vision for innovative service desk services (service integration; automation; analytics-based knowledge management; proactive and predictive support technologies; and services aimed at reducing the number of incidents hitting the Level 1 service desk).
The crafting of the digital workplace (including areas such as cloud, social, BYOx, analytics, automation, autonomics, application mobilization and gamification).
How innovation (for example, related to smart-machine-enabled services) is brought to existing and new customers.
Innovative solutions that had been provided to customers in the past 12 months in this area.
Details around global alliances with other leading suppliers or product companies (with proven investments).
We also considered clients' judgment on the ESP's ability to innovate (technical aspects, ability to lower cost and improve the service, proactivity and adaptability, service flexibility, and service innovation).
In this section, we focused on providers' regional capabilities, global consolidation processes, and local alliances and partnerships. The list of topics at the center of this criterion includes:
ESPs' strategies to expand or consolidate their footprint in Europe with relevant resources, skills and offerings to meet specific clients' needs.
How the infrastructure consolidation processes are affecting the practice area landscape.
Ability to integrate clients' assets, including service desks and personnel in each of the two regions (Europe and North America).
The regional ESP's relationships with product providers and/or other service providers in order to add value, provide full-service solutions or bring innovation closer to its clients.
How the ESP takes responsibility for managing the whole service delivered, even when using subcontractors or partners.
We also considered clients' feedback on aspects such as local capabilities and current or potential effects of consolidation/global delivery processes.
Leaders deliver their service solutions skillfully, have a clear vision of the direction of the service market, and are actively building and improving their competencies to sustain their leadership positions. The Leaders quadrant indicates the direction of the MWS market. However, most digital workplace offerings still have low adoption rates. Five MWS providers — Atos, DXC Technology, Fujitsu, HCL Technologies and IBM — have emerged as Leaders in this Magic Quadrant.
Leaders have demonstrated their experience in delivering MWS and understand the requirements to successfully deliver these services. They have proved their Ability to Execute and their strategic visions.
Challengers execute well, but have less-well-defined views of the market's direction. Some are poised to join the Leaders, while others may not (yet) be preparing aggressively enough for the future. Three MWS providers — Capgemini, Computacenter and T-Systems — emerged as Challengers in this Magic Quadrant.
Challengers have demonstrated that they have solid bases of clients that are satisfied with the services they provide. The Challengers' proximity to the Leaders quadrant indicates that their vision of the MWS market is still maturing. They have the potential to move into the Leaders quadrant if they can advance their strategic visions, and solidify and expand their service offerings.
Visionaries have a clear vision of the market's direction and are focused on preparing for it, but could improve their service delivery capabilities. Providers in the Visionaries quadrant have an effective vision of the MWS market but have not invested in or delivered on that vision enough in the market to emerge as Leaders at this time. Two MWS providers — Tata Consultancy Services and Wipro — have emerged as Visionaries in this Magic Quadrant.
Niche Players focus on a particular segment of the client base, as defined by characteristics such as size, vertical focus and selective MWS offerings. Providers in the Niche Players quadrant can be a perfect fit for some organizations, because they focus on a specific area of the market. However, this narrow focus may affect a niche provider's ability to deliver the full spectrum of MWS. Five MWS providers — Cognizant, Getronics, NTT Data, Stefanini and Unisys — emerged as Niche Players in this Magic Quadrant.
Effective workplace services can increase an organization's efficiency and staff productivity. Most managed workplaces services offered by European service providers in 2017 are aimed at office productivity workers, and therefore are designed around offering a unified workspace experience, choice of devices and tools, flexible and agile application delivery mechanisms, enhanced communication and collaboration, and self-support and peer support mechanisms. However, the number of workspaces is increasing and they are changing in nature. The intersection of IoT, wearables and mobility opens up a range of opportunities to optimize and often transform the workflow of many other employees. This includes field services, client-facing staff, warehouse workers and other employees who were not equipped with any endpoint device in the past, and dramatically increasing their productivity and effectiveness. While this represents a wide area of opportunity, it is still yet to be fully exploited and only a minority of service providers are actively pursuing and developing this opportunity today, framing it in the context of managed workplace services.
Gartner's Magic Quadrant offers must-have analysis for informed decisions on how to spend the significant portion of the IT budget represented by MWS. This Magic Quadrant assesses the Ability to Execute and Completeness of Vision of 15 MWS providers. This information and analysis can help CIOs, sourcing and vendor management leaders, and infrastructure and operations managers to select a provider for midrange to long-term managed workplace contracts that support critical functions and business objectives with a Pan-European set of capabilities.
Sourcing executives and CIOs looking for a sourcing initiative with a wider geographic footprint can leverage another Gartner managed workplace Magic Quadrant, which focuses on North America: "Magic Quadrant for Managed Workplace Services, North America." The two documents are produced with a single methodology by collaborative research teams.
Gartner's positioning of the vendors does not imply that clients should simply select service providers in the Leaders quadrant. Selection requirements are enterprise-specific, and vendors in the Challengers, Visionaries or Niche Players quadrants may prove more appropriate for a particular engagement. Each provider will have a different sweet spot that reflects the types of deals in which it excels, its culture and industry coverage, and the maturity of its service provision (see "How to Select Global Infrastructure Service Providers in 90 Minutes Instead of 90 Days Using Fit, References and Performance Metrics" ). In addition, the online features of this Magic Quadrant enable users to tailor evaluation weights for further analysis based on the aspects that are most important to their organization. This allows sourcing and vendor managers to align the weighting of each criterion — for either the vision or execution axis — to the objectives of their specific sourcing initiative.
Clients should not disqualify a provider simply because it is not in this Magic Quadrant. Gartner's inclusion criteria result in our analyzing the most established providers in the infrastructure services market, but other IT service providers may present better alternatives for your business requirements. A Gartner analyst can help shortlist the most suitable candidates for specific client requirements and assist with a sweet-spot analysis of candidates.
The market for MWS is in a period of rapid change. New generations of workers are joining the workforce with new expectations both for the way they want to work and the ways they are supported in that work. At the same time, organizations are demanding that providers utilize new technical approaches to make staff more productive and to support the enterprise's digital strategy, while simultaneously driving down prices for MWS. This creates four strategic trends within MWS:
User Demand for New Technology — End users now make widespread use of all forms of technology in their personal lives — smartphones, tablets, social media and high-end laptops. As a result, they are increasingly challenging the legacy IT solutions and approaches within their workplaces and demanding a more consumerlike set of technologies. With many users now having better personal technology than that provided by work, MWS providers have developed strong BYOD and BYOx services to allow devices to be used in work. MWS also now require strong mobile management capabilities and even the ability for users to start and complete transactions on different devices. At the same time, effective collaboration tools have become an essential part of the workplace for these more mobile and more geographically dispersed users.
Consumerization of Support — Not only are users now demanding new workplace technologies, but they are also seeking support models that closely match what they experience in their personal lives. They are looking for support services that are tailored and responsive to their needs, as well as allowing them to provide their own support or source it from peers or experts directly. Within MWS, this is driving providers to create models that increase users' capability to self-help and self-service. For more complex issues, providers enable users to reach out for peer-to-peer support or approach a technical expert directly in a walk-in kiosk service. To create personalization, all of this has to be wrapped in tailored delivery, based around the "personas" of key user groups, with a focused set of services for each persona.
Business Demand for Digital Workplaces — Businesses, too, are making new demands on workplaces. Many organizations see the importance of using new MWS technologies to drive more engagement with their users and increase productivity, while creating a digital mentality in the organizations. Cloud is seen as a key enabler for this, and businesses are seeking MWS that can utilize cloud technologies to leapfrog existing technology limitations. Providers are responding by structuring MWS to deliver and support SaaS solutions for both collaboration and for core line-of-business applications, as well delivering DaaS for rapid, cost-efficient deployment of simplified endpoints. The migration to Windows 10 is another digital enabler for legacy environments, and providers are building their skills in handling the migration and management of this operating system. At the other end of the scale, the use of IoT to provide smart management of the workplace environment is requiring providers to extend their MWS offerings into a new form of endpoint management.
Cost Pressures Driving Innovation — While businesses are seeking digital innovation, they are also still focused on the bottom line, and looking to their providers for cost savings in their MWS. Under this pressure, providers are using advanced analytics to predict and prevent failures before they occur and employing automation of routine tasks to reduce costs related to staffing. For device services, there is a rise in new models such as PCaaS, a procurement model in which customers pay a monthly fee per user to get a configured, managed PC, enabling opex spend to be used in place of traditional capital expenditure (capex) purchases.
Providers face a challenging time responding to the multiple demands across all areas of MWS. They must continue to manage their existing installed base of accounts, which are often made up of traditional service offerings, while funding investment in the digital services and support models required of them. Some providers have responded by focusing their efforts on one particular aspect of MWS — the service desk, managed mobility or end-user services — while others have driven a focus on cost reduction via automation and analytics. The leading providers, though, differentiate themselves by investing broadly, developing transformational consultancy skills and being prepared to enter innovative new contracts, which reward them for delivery of increased end-user productivity.
|BPO||business process outsourcing|
|BYOD||bring your own device|
|DaaS||desktop as a service|
|EFSS||enterprise file synchronization and sharing|
|ESP||external service provider|
|HVD||hosted virtual desktop|
|HVDI||hosted virtual desktop infrastructure|
|IoT||Internet of Things|
|M2M||machine to machine|
|MWS||managed workplace services|
|PCaaS||PC as a service|
|RFP||request for proposal|
|TCV||total contract value|
|UCaaS||unified communications as a service|
|VDI||virtual desktop infrastructure|
Product/Service: Core goods and services offered by the vendor for the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria.
Overall Viability: Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization's portfolio of products.
Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel.
Market Responsiveness/Record: Ability 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 vendor's history of responsiveness.
Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leadership, word of mouth and sales activities.
Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on.
Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.
Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen to and understand buyers' wants and needs, and can shape or enhance those with their added vision.
Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements.
Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.
Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements.
Business Model: The soundness and logic of the vendor's underlying business proposition.
Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets.
Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes.
Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.