LICENSED FOR DISTRIBUTION

Magic Quadrant for CRM and Customer Experience Implementation Services, Worldwide

Published: 08 January 2018 ID: G00322092

Analyst(s):

Summary

Customer experience and CRM implementation services remain in high demand, fueled by digital business transformation. We position major CX and CRM service providers to help application leaders supporting CRM and CX initiatives identify providers that fit their needs.

Strategic Planning Assumption

By 2022, the percentage of CX and CRM implementation projects that require digital design skills in order to achieve their business goals will rise from 30% in 2017 to 50%.

Market Definition/Description

This document was revised on 10 January 2018. The document you are viewing is the corrected version. For more information, see the Corrections page on gartner.com.

CRM and customer experience (CX) continue to be at the top of the executive agenda as evidenced in Gartner's CEO, CIO, CMO and other executive surveys. It is of strategic importance to the majority of Gartner clients. The vast majority of Gartner clients use external service providers to help them with their initiative, program or project. So the importance of selecting the correct provider cannot be overestimated.

Gartner defines the CRM and CX implementation service market as project-based services to support enterprises in developing a CX strategy and/or to support the design, building, integration and deployment of process changes and technology that improve interactions between organizations and their customers.

CRM and CX projects address the goals set out by sales, marketing, customer service, field service, digital commerce leaders and chief digital officers. These goals may include improving customer satisfaction, acquiring new customers, retaining existing customers, creating a single view of the customer, cross-selling to customers, improving campaign response rates, increasing digital channel adoption, driving up customer advocacy or referrals, and/or gaining better margins through improved pricing.

There are eight primary differences between CRM and CX projects:

  1. CX goals are a subset of CRM goals.

  2. The roles involved with CRM in an organization are a subset of those involved with CX.

  3. The permanence of CX operational capability differs from the transience of a CRM project team.

  4. A CX initiative coordinates several projects, but a CRM project stands alone.

  5. More time is needed to demonstrate the benefits of a superior CX.

  6. The association with technology is greater in CRM.

  7. The focus for CRM is on actions taken; in CX, it is on the customer's perception of the actions.

  8. A rational approach is more important in CRM; in CX, the customer's emotions matter more.

For more, see "How to Tell the Difference Between Customer Experience and CRM Projects."

CRM projects tend to focus on CRM technology-centric implementations for sales, marketing, customer service, field services and digital commerce. They typically deploy core CRM system-of-record applications initially and then add supporting technologies to enhance the core. Over 80% of these projects involve the deployment of technology, and over 75% of these projects that involve technology utilize CRM packaged software (rather than building custom solutions). The CRM software packages that are the most typical systems of record include Salesforce, Microsoft Dynamics, Oracle CX Cloud, Oracle Siebel, SAP Hybris, Adobe Marketing Cloud and Pegasystems. (See "Market Share: Customer Relationship Management, Worldwide, 2016." ) Salesforce is by far the dominant software (43% of the CRM implementation projects by the service providers' reference customers on this Magic Quadrant) followed by Microsoft Dynamics (13% of projects) with the remaining 43% spread across all other CRM applications. 1 This part of the market includes projects that upgrade or adapt existing CRM applications, particularly when extending this to improve usability and analytics.

CX projects encompass a far wider range of activities that are enterprisewide initiatives reaching beyond sales, marketing and customer experiences and extend into operations, supply chain, billing, logistics and other departments. Many of these projects do not include any software and include only consulting services without implementation of technology. The goals of these projects are aiming to increase customer satisfaction, loyalty and advocacy (see "The Definition of Customer Experience Management" ). The skills needed for these projects tend to be more creative and design-oriented, but the projects also require analytics and process skills, including business process transformation, digital commerce knowledge, information architecture/migration, customer analytics and digital design.

This market includes the work done by digital agencies as part of CRM or CX implementation efforts, but it excludes work done by brand agencies for chief marketing officers in branding, media buying, image projection and strategic marketing initiatives. This market also excludes ongoing application management services that are not project-based.

Magic Quadrant

Figure 1. Magic Quadrant for CRM and Customer Experience Implementation Services, Worldwide
Research image courtesy of Gartner, Inc.

Source: Gartner (January 2018)

Vendor Strengths and Cautions

Accenture

Accenture is positioned in the Leaders quadrant due to its market presence, business transformation capability and digital orientation. Accenture leverages resources across business units, with Accenture Strategy setting vision, Accenture Consulting leading business transformation and Accenture Digital providing design, digital marketing and analytics, while Accenture Technology leads CRM technology implementation. Avanade is a joint venture with Microsoft and provides technology implementation for Microsoft technologies. Accenture is a good fit for large enterprises needing complex business transformational efforts requiring multiple disciplines. Gartner estimates that Accenture is one of the two largest CRM and CX service providers, with revenue estimated to be $3.3 billion (about 8% of Accenture's total revenue and 16% of its consulting and implementation revenue). The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking, consumer goods, life sciences and telecom/media.

Strengths
  • Business and technology consulting in combination Accenture's strength is at the intersection of business and technology, with a focus on digital and CX services. Accenture takes an outcome-driven orientation to CX services, providing end-to-end services to improve clients' business results. Accenture has invested in skills, practitioners and practices that encompass business, technical and domain skills across all major CRM software and CX. Accenture conducts extensive market research, enabling the firm to identify new patterns of demand, set out a vision for CX and then innovate its services to match.

  • Market presence and scale Accenture leads the market in terms of revenue and staff, as well as being referenced most frequently on competitive bids according to references that reported shortlist candidates. Accenture has the ability to support global and multinational accounts due to its extensive scale and global breadth.

  • CRM technology breadth and depth Accenture has the largest practices in terms of both staff and revenue for most of the major CRM software platforms (Salesforce, Adobe, Oracle Siebel, SAP Hybris, Oracle CX Cloud and Pegasystems). Microsoft Dynamics is also addressed through Avanade, which is the largest service provider for Microsoft Dynamics. Accenture works closely with all these software firms to develop industry-specific and process-specific solutions.

Cautions
  • Obtaining shared stakeholder commitment — When highly effective, Accenture works closely with constituents across the client's organization; however, references identified instances in which Accenture engaged with only a subset of the entire organization and did not gain broader participation and commitment. At times, Accenture works with IT organizations on some efforts and has limited involvement of business executives, and it works with business executives and has too little involvement of IT and operational managers on other projects.

  • Flexibility and resource allocation References desired Accenture to be more flexible in the approach to projects and to manage scope change. Clients also noted that, at times, Accenture would utilize junior staff both onshore and offshore when the clients anticipated more senior staff.

  • Price — If pricing is a top criterion for selection, then evaluate Accenture with care. Among companies named as references by other providers, Accenture was the most evaluated and then not selected. The most common reason they gave for not selecting Accenture was that the price was too high.

Atos

Atos is positioned in the Niche Players quadrant due to being focused on digital commerce and marketing for B2C operations, predominantly for European clients. Atos works on the connected CX primarily for consumer-centric industries. Atos approaches CX from an operational efficiency perspective, leveraging an integrated approach to digital marketing, mobility, analytics and CRM technology integration, especially for multichannel commerce using Worldline. Atos is a good fit for B2C enterprises that are looking to increase revenue and customer interaction through technology. Atos is the 11th-largest CX and CRM service provider worldwide, with 2016 implementation revenue of about $700 million, representing 5% of its total service revenue and 20% of its consulting and implementation revenue. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are telecom/media, banking, retail/wholesale, travel/hospitality, healthcare providers, public sector and education.

Strengths
  • Commerce and mobility — Atos has aligned its CX strategy to the "connected customer" with the attitude that everything is digital and mobile. The CX practice enables Atos to bring together commerce, mobility and analytics in end-to-end solutions. Atos assets include Worldline for commerce, Atos Codex for customer analytics and Atos Consulting for commerce consulting. Atos has the highest percentage of revenue from commerce enablement of all providers, and mobility enablement appears in its engagements with a frequency much higher than the average of its competitors.

  • Converting business objectives to CX solutions — Customer references repeatedly stated that Atos was very good at listening to their objectives, understanding their business models and processes, and then being able to adapt CRM and CX technologies to support the customers' processes. Atos utilizes its UX Lab and Business Transformation Innovation Center network to help clients envision these solutions. This enables IT organizations to pragmatically and effectively support business objectives, particularly within its focus industries.

  • Collaborative and flexible approach — Atos references consistently mentioned how Atos is highly adaptable and flexible in working together with clients to solve problems. Atos is highly collaborative with clients — from formulation of CX solutions through to implementation. References also referred to Atos as open and transparent in working through issues jointly. Comments from references cited a culture of reliable execution and commitment to the client's success as strengths, with high levels of involvement from senior Atos team members.

Cautions
  • Proactive guidance — Atos references expressed a desire for Atos to be more proactive in bringing best practices and innovative approaches. References desired Atos to do more to challenge the client's own preconceived notions or approaches more regularly rather than relying on joint ideation sessions.

  • Geographical coverage — Non-European buyers may find a lower base of skills in CRM and CX implementation in their regions. Atos generates over 80% of its CRM and CX revenue in Europe. Atos revenue within North America has grown rapidly from a small base through recent acquisitions. Atos is also building more capabilities in Asia/Pacific.

  • Project scope and resource management — Atos demonstrated inconsistencies on project management compared with other providers. References cited instances where the initial scope and scale from the discovery phase exceeded what they were comfortable with, as well as instances in which resource availability was constrained.

BearingPoint

BearingPoint with its global alliance partners is positioned in the Visionaries quadrant because it utilizes an effective consultative and innovative approach to CX operational transformation. BearingPoint, West Monroe Partners, gA and ABeam Consulting are all regional consulting and strategy firms that support clients globally through a strategic partnership. BearingPoint in Europe and West Monroe in North America lead CX initiatives and are a good fit for enterprises seeking business-driven CRM strategy and/or complex CX solutions. Gartner estimates that BearingPoint, combined with its partners, makes up the 16th-largest CX and CRM service provider worldwide, with 2016 revenue of about $440 million. BearingPoint and West Monroe are good candidates for enterprises looking for CX strategy and consulting as part of their solution. ABeam is a good choice for Asia/Pacific clients looking for CRM software implementation skills, and gA is a good choice for CRM software implementation in Latin America. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking, public sector, insurance, telecom/media, automotive and manufacturing.

Strengths
  • Business consulting CX orientation — BearingPoint and West Monroe lead projects with business and industry orientation and a consultative approach. Their consultative approach enables them to understand the objectives and nuances of the client situation, and then bring CX best practices, analytics and business frameworks to address the client objectives. References cited their ability to understand their issues and their collaborative approach as strengths.

  • Collaborative and innovative approach — BearingPoint received strong ratings for collaboration and bringing innovative solutions to address clients' CX issues. References referred to the ability to address business issues and the leveraging of competencies from both business and technical perspectives as strengths.

  • Delivering on business objectives — References rated BearingPoint as having strong ability to address business objectives. References commented on its ability to understand the client's business model and project needs, to develop business and technology solutions, and also to support business change in a rapid yet pragmatic manner. West Monroe was recognized as having strong CX vision and thought leadership to guide clients.

Cautions
  • Limited scale and inconsistency of offering by geography — The partners operate in each region and support each other's clients for global coverage, but there are scalable resources only with BearingPoint in Europe (60% of global alliance revenue) and ABeam in Asia/Pacific (31% of revenue). BearingPoint's efforts in Europe are CX-oriented, with an emphasis on sales and commerce. ABeam's activities in Asia/Pacific (mostly in Japan) include CX strategy and planning, as well as technology-oriented CRM sales and service initiatives. In North America, West Monroe has strong CX consulting and CRM implementation.

  • Mobility and digital design competencies — BearingPoint references gave it relatively low ratings for mobile design, digital design and user interface design. Many competitors have developed partnerships or have invested in these skills more aggressively than BearingPoint and its partners.

  • Price points — BearingPoint was viewed as being high-cost, and some clients rated it relatively low for value for money. BearingPoint is optimized for on-site and nearshore delivery and execution, and the consultative approach leverages senior talent. If cost-efficiency is a key evaluation factor, then evaluate BearingPoint with care.

Capgemini

Capgemini is positioned in the Leaders quadrant due to its above-average market growth and focus on solutions for large or complex projects. Capgemini is a good fit for projects requiring business innovation, as well as CRM technical advisory and implementation skills, particularly related to customer service or commerce. Gartner estimates that Capgemini is one of the four largest CX and CRM implementation providers worldwide, with 2016 CX and CRM revenue estimated to be around $2.6 billion (accounting for about 30% of its global consulting and technology service revenue). The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking/securities, public sector, insurance, retail, automotive and energy/utilities.

Strengths
  • Breadth of competencies Capgemini's Digital Customer Experience practice brings a wide range of competencies that integrate industry expertise, CX consulting, CRM technology and analytics capabilities. These competencies have been expanded, particularly with digital design and commerce expertise through multiple recent acquisitions, including Itelios (commerce), Lyons Consulting Group (commerce), Idean (digital strategy) and Fahrenheit 212 (innovation/design).

  • Partnerships with CRM software providers Capgemini partners closely with major CRM software providers, with scale and competencies in Salesforce, SAP CRM, SAP Hybris, Oracle CX Cloud, Oracle Siebel and Microsoft Dynamics. References gave Capgemini solid ratings on software technology and technical architecture competencies, and they cited deep understanding of CRM technology.

  • Responsive and collaborative partner Capgemini is best in situations that require client-specific adaptation to solutions that need a combination of business and technology competencies. References frequently commented on the style and collaborative nature of Capgemini teams. Several referred to Capgemini as a trusted partner that listens well and is highly responsive to requirements and had the attitude to do what is needed for project success.

Cautions
  • Business change management Capgemini at times approached reference clients' projects from a technology perspective and did not give enough attention to business dynamics or proactively focus on business change needs. Capgemini was rated relatively low in business change management, and references expressed a desire for Capgemini to be more proactive in bringing forward more innovative ideas.

  • Project and resource management Some references cited instances in which senior staff and subject matter experts were not readily available, placing too much reliance on junior staff in executing projects. There were also instances in which communication and proactive project adjustments would have improved the execution. This situation resulted in some project inefficiencies and frustrations with project teams not being adaptable to project requirements.

  • Digital design and mobility Capgemini does not have the creative advertising agency level of digital design that some of its direct competitors possess. References gave relatively low scores to Capgemini related to digital design and UX capabilities. Capgemini is addressing this through acquisitions, as noted above, as well as partnering with digital agencies.

Cognizant

Cognizant is positioned in the Leaders quadrant due to its strong market presence, high growth rate and strong technical implementation skills. Cognizant is a good fit for firms looking for a collaborative partner for complex CRM and CX technology solutions, particularly within specific industries. Cognizant's Digital Customer Experience business unit takes the lead on CRM and CX implementation projects with a combination of industry understanding, deep CRM technology capabilities, design thinking and client-centric execution. Gartner estimates that Cognizant is the sixth-largest CX and CRM service provider worldwide, with total 2016 revenue from CX and CRM implementation services of about $1.2 billion. Cognizant is focused on a few specific industries, and it is effective at leveraging industry expertise within banking/securities, insurance, healthcare, life sciences, retail and travel/hospitality.

Strengths
  • Technical and architectural skills Cognizant has one of the largest CRM practices, with excellent partnerships with Salesforce, Pegasystems, Adobe, Oracle Siebel and Microsoft Dynamics. References gave it high ratings for architectural skills, CRM technology capabilities and system integration skills.

  • Customer satisfaction Cognizant references provided high ratings related to many customer satisfaction criteria, including overall experience and value for money. References also expressed high satisfaction with Cognizant's ability to understand their business due to the company's strong industry orientation and its ability to collaboratively develop technology solutions.

  • Innovation and digital design Cognizant has been rapidly building creative and digital design capabilities, and references gave it a high rating for digital design, mobility and user interface design. Acquisitions in the last two years include digital strategy firms (ReD Associates, Idea Couture and Brilliant Service) and digital marketing agencies (Mirabeau, Quick Left, Netcentric and Zone).

Cautions
  • Business consulting and operation transformation — Cognizant was rated below average in business process transformation and its ability to be more proactive in bringing in innovative ideas related to CX strategy and business transformation. Cognizant CRM and CX buyers are predominantly IT executives, and Cognizant is effective in supporting them through CRM or CX initiatives that focus on technology integration. Cognizant is investing in design thinking and consulting to improve these capabilities.

  • Geographic coverage — Cognizant is strong when leveraging its large India-based delivery model for English-language customers. Of Cognizant's CRM and CX revenue, 77% is generated from North America, 18% within Europe and 6% in Asia/Pacific. Cognizant has been responding by growing its European business, with its recent acquisitions being in Germany, Norway, Lithuania, Japan, the U.K. and Denmark to add more local presence.

  • Proactive guidance in project Some references expressed a desire that Cognizant would be more direct and proactive in making suggestions throughout the engagement. They wanted more guidance when the solution was being defined and more advice during implementation on how to execute the engagement more efficiently.

Deloitte

Deloitte is positioned in the Leaders quadrant due to market presence, digital consulting expertise and CX transformation competencies. Deloitte Digital is the primary practice for CX and CRM and positions itself as a "creative digital consultancy." Deloitte is a good fit for enterprises that seek complex CX solutions requiring business-consulting-led approaches, particularly when the business is looking for innovative CX solutions for competitive differentiation. Gartner estimates that Deloitte is one of the two largest CX and CRM implementation service providers worldwide, with 2016 CX and CRM revenue estimated to be $3.2 billion (16% of its consulting and implementation revenue). Deloitte also has above-average organic growth. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are manufacturing, high technology, retail/wholesale, utilities/energy and life sciences.

Strengths
  • Business consulting and CX strategy Deloitte approaches CX services as part of digital business transformation, leveraging business and industry consulting, along with digital and CX expertise. Customer references rated Deloitte well above average for vision, CX thought leadership and CX strategy capabilities.

  • Breadth of competencies Deloitte has the broadest set of CX and CRM capabilities, from business strategy consulting to design and digital marketing agency skills through to technology implementation and integration resources. It also can supplement these with its financial audit, risk and finance advisory practices, when needed. Deloitte has large technology practices in CRM software (Salesforce, Pegasystems, Adobe, Oracle CX Cloud and SAP Hybris), as well as technology architecture and integration. References gave Deloitte high ratings for business acumen, business process consulting, industry expertise and business change management, as well as in technology integration and architectural skills.

  • Collaborative dedicated partner References commented on Deloitte's cultural style as a differentiator. This included being collaborative, dedicated to the client's success, flexible and reliable. Deloitte was viewed as a partner with both the business and IT organizations in its references.

Cautions
  • Project scope management Deloitte is often asked to lead the CX transformation and change; however, some references commented that there were instances in which the scope of the efforts was continually changing. Some references also noted multiple change orders and instances in which the project included efforts that were not always seen as critical for project success.

  • Bringing thought innovation Deloitte has deep expertise in a wide range of competencies that, at times, were not well-leveraged to bring proactive innovation to clients. References identified instances in which they would have preferred Deloitte to proactively recommend solutions and best practices, rather than rely on consultative collaborative design.

  • Microsoft Dynamics partnership — Although Deloitte has Microsoft Dynamics capabilities, it has a limited practice due to its auditor-client relationship with Microsoft. Governmental bodies and regulators for independence policies mandate restrictions on the consulting services that the audit/attest industry can provide to the same client. The audit relationship with Microsoft limits Deloitte's participation in certain partner and go-to-market programs.

EY

EY is positioned in the Visionaries quadrant due to a comparatively narrow focus on digital consulting and CX transformation competencies with limited technology implementation scale. EY's brand promise is "building a better working world." It is a good fit for enterprises that seek business-consulting-led CX strategy, design and road-mapping of solutions, particularly for omnichannel commerce or complex customer service transformations. Gartner estimates that EY is the 19th-largest CX and CRM consulting and implementation service provider worldwide, with 2016 CX and CRM revenue estimated to be about $350 million (accounting for 2% of its consulting and implementation revenue). The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are manufacturing, high technology, retail/wholesale, utilities/energy, healthcare and life sciences.

Strengths
  • Business change and process transformation EY helps clients visualize how the business can be transformed through bringing together business strategy, design and technology to develop CX strategies. Customer references rated EY well above average for business process transformation, industry expertise and business change management.

  • Cultural fit — EY takes care to assemble projects teams based on a good fit with client style and culture. These are usually small teams of senior consultants for strategy, vision and design efforts, supplemented by technicians. References pointed to the quality of resources and effective project execution with flexible approaches that are responsive to their unique needs.

  • CX vision — References score EY well above average for CX vision and thought leadership. They cited EY's ability to both turn a vision into a pragmatic design and develop roadmaps to implement and execute those designs. EY utilizes innovation centers (wavespace centers) to facilitate CX vision and strategy with clients.

Cautions
  • Technology-driven CRM initiatives EY's strengths are not suited to pure CRM technology-oriented projects. Some references also expressed a desire for EY to be stronger on customer information and technology architecture for their engagements.

  • Resource scale for large implementations EY has practices in SAP Hybris, Microsoft Dynamics, Pegasystems and Adobe, but these practices are smaller than those of other firms and geographically are not spread evenly. EY will partner with other technology providers to supplement its own staff when additional scale and technical skills are needed for implementation.

  • Salesforce partnership — Although EY has Salesforce capabilities, EY has a limited Salesforce practice due to its auditor-client relationship with Salesforce. Governmental bodies and regulators for independence policies mandate restrictions on the consulting services that the audit/attest industry can provide to the same client. The audit relationship with Salesforce limits EY's participation in certain partner and go-to-market programs.

HCL Technologies

HCL Technologies (HCL) is positioned in the Challengers quadrant due to reliable, scalable and flexible execution of CRM implementation services with high levels of customer satisfaction. HCL takes an industry orientation to CRM implementation projects and brings technology expertise with an industry understanding. HCL is a good fit for clients that are looking for CRM technology implementation and integration services, particularly for commerce and its Microsoft Dynamics practice. Gartner estimates HCL to be the 18th-largest CRM implementation provider, with 2016 revenue estimated to be about $400 million. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking, manufacturing, consumer goods, high technology and retail.

Strengths
  • Customer satisfaction HCL references provided excellent ratings related to many customer satisfaction criteria, including overall experience, service capabilities and value for money. References also expressed high satisfaction with HCL's ability to not only understand their business due to industry orientation, but also collaboratively develop technology solutions.

  • Technology expertise HCL has a large practice in Microsoft Dynamics due to the PowerObjects acquisition. It also has a large practice in SAP (CRM and Hybris), along with practices in most other platforms (Salesforce, Oracle Siebel, Oracle CX Cloud and Adobe). References gave HCL high marks for technical architecture, integration and quality of software implementation, and they cited HCL's deep technical expertise related to CRM.

  • Project management and execution References praised HCL for project management, partnershiplike attitude, commitment to execution and taking ownership of project deliverables. HCL is also flexible in agreeing to work as a partner and sharing risks on projects, relying on the dedicated project teams that consistently execute.

Cautions
  • CX strategy and operations transformation HCL has invested in growing its business and strategy consulting capabilities, but it is not consistent in developing CX strategy and vision for clients. However, HCL consistently translates a client's CX vision and design into a pragmatic solution based on the industry and technology architecture.

  • Resource management References cited instances in which there were challenges in resourcing projects with changing teams and inability to bring in key resources early enough on projects, as well as inadequate coordination with offshore teams.

  • Digital design and mobility HCL does not have the digital design capabilities that some of its direct competitors possess. HCL continues to invest and grow these capabilities, but it will take some time to scale up to match its competitive set. References gave relatively low scores to HCL related to digital design, mobility and UX capabilities.

IBM iX

IBM iX is positioned in the Leaders quadrant due to its vision, scale and integrated approach to providing solutions. IBM iX is the business unit within IBM Global Business Services (GBS) that leads services focused on front-office transformation, digital design and commerce efforts. IBM iX is a good fit for enterprises looking to transform their interactions — especially related to commerce and marketing — with customers, partners and suppliers. IBM iX is one of the top four largest providers of CX and CRM implementation services, with 2016 global revenue for CRM-related implementations estimated to be about $2.6 billion (20% of IBM GBS's overall consulting and implementation revenue). IBM iX has large practices in Salesforce (Bluewolf), Oracle Siebel, SAP CRM, SAP Hybris and Adobe, and it also focuses on services surrounding IBM cognitive, commerce and marketing software, such as Watson, WebSphere and Unica. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking/securities, insurance, public sector, transportation/travel, telecom/media and retail.

Strengths
  • Customer trust and partnership IBM iX has evolved to support clients in a highly participative and engaging style. References described a trustworthy partner that brings innovative approaches to the table, listens, and provides guidance and recommendations. References also scored IBM iX well above average in overall satisfaction, meeting all expectations and overall value for money.

  • Digital design and UX IBM iX is the second-largest digital agency globally, and it has extended mobility and UX design to creative digital agencies. Several acquisitions have added to these capabilities, including Resource/Ammirati, Aperto, ecx.io and Vivant. IBM iX has also opened over 30 global design studios that utilize design thinking, along with digital design and consulting, to envision and prototype solutions with clients.

  • Breadth and scale of capabilities IBM iX, along with other parts of IBM GBS such as consulting, industry competencies and cognitive, can provide a full range of capabilities, including business consulting to CX strategy, CRM technology, technical architecture, analytics and commerce. When called upon, IBM iX is effective in accessing these competencies from across IBM GBS to address client needs.

Cautions
  • Small-project execution — IBM iX is more effective with large complex initiatives than with smaller projects. Bluewolf (2016 acquisition) is the IBM iX Salesforce practice and is more nimble with cost-effective solutions for smaller projects due to its agile approach and smaller teams.

  • Analytics Despite IBM's focus on cognitive centered on Watson, machine learning and analytics, IBM iX has not consistently utilized these capabilities in CX and CRM initiatives. Some references gave IBM iX below-average ratings in customer data and analytics.

  • Coordination of IBM resources and transparency — Clients expect IBM iX to bring a complete set of resources and competencies to projects. However, there are some instances in which IBM iX did not consistently assemble and orchestrate all the resources needed on projects. References identified instances in which resources were not proactively provided, as well as a lack of visibility into the internal IBM iX project execution.

Infosys

Infosys is positioned in the Niche Players quadrant due to a focus on CRM technology integration and implementation. Infosys is a good fit for enterprises needing technology-led CRM implementations — particularly for sales, customer service and marketing. Gartner estimates that Infosys is the 10th-largest CRM service provider worldwide, with estimated total CX and CRM implementation revenue in 2016 of about $830 million, which represents 14% of its consulting and implementation revenue. Infosys goes to market by vertical industry. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services include banking/securities, automotive, manufacturing, telecom/media, retail and natural resources.

Strengths
  • CRM technology and integration competencies Client references viewed Infosys as being strong in CRM technology skills. References gave Infosys high ratings for information architecture, technical skills, customer analytics and system integration. It is also seen as having depth in skills related to the major CRM applications, with large practices in Salesforce, Microsoft Dynamics, Oracle Siebel, SAP CRM, SAP Hybris, Adobe, SugarCRM and Oracle CX Cloud. These practices were particularly strong with the implementation of sales and customer service CRM projects.

  • Committed and flexible project teams Infosys was recognized by references as being a committed and supportive partner with an attitude for going the extra mile and dedication to successful completion. Infosys trained its consultants not only in design thinking, which extends this client-centric attitude, but also in becoming more proactive.

  • Cost-effective execution Infosys projects were reliably on time and on budget with high levels of use of off-shore staff relative to other firms. Infosys continues to invest in automation and accelerators to improve efficiencies, and references commented on Infosys being a cost-effective and reliable partner.

Cautions
  • Resource management Infosys' execution is highly dependent on a small team of on-site senior staff working closely with the client in coordination with a higher proportion of remote staff. References noted that there were problems in bringing senior skills to bear due to visa issues, and at times, the skills of the on-site team were not adequate at the beginning of the projects. There were also instances of high project team turnover.

  • Business consulting skills Infosys was rated below average by references in business change management, business process transformation, business functional skills and achieving desired business outcomes. The recent acquisition of Brilliant Basics will potentially improve these areas.

  • CX vision and thought leadership — Infosys relies on a small on-site team working with clients, but the team leaders are generally strong on CRM architecture and technology consulting rather than business consulting skills. References gave Infosys a relatively low rating for thought leadership, CX vision and business acumen.

North Highland

North Highland is an employee-owned business consulting firm. It has a business model with many offices serving clients locally (mostly in North America), rather than a traditional global delivery model. North Highland is positioned in the Niche Players quadrant due to its focus on digital consulting and CX operations transformation competencies. It has limited implementation scalability. North Highland is a good fit for enterprises that seek to start with business-consulting-led CX strategy, design and roadmap work. Gartner estimates that North Highland is the 21st-largest CX and CRM consulting and implementation service provider worldwide, with 2016 CX and CRM revenue of about $250 million (25% of its total consulting and implementation revenue). The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking/securities, healthcare, public sector, telecom/media and retail.

Strengths
  • CX vision and strategy consulting North Highland helps clients visualize how the business can be transformed through bringing together business strategy, journey mapping and business consulting to develop CX strategies. North Highland has strong technology consulting and architecture capabilities to convert the CX strategy into a design and implementation roadmap. References score North Highland high on CX vision, business process transformation, business acumen and business change management. References also expressed high satisfaction with the company's ability to both understand their business due to industry orientation and collaboratively develop technology solutions.

  • Customer information and analytics North Highland has a strong information and analytics capability that is used for data-driven analysis as the basis for the design of information-based customer experiences. This is particularly effective for marketing and multichannel commerce initiatives. References gave North Highland high scores for customer analytics and CRM information architecture.

  • Customer satisfaction North Highland references provided excellent ratings related to many customer satisfaction criteria, including overall experience, value for money, overall execution and delivery of expected outcomes.

Cautions
  • CRM software and implementation scale North Highland has limited technology implementation and integration capabilities. Most engagements start with CX strategy and design, which the clients then implement themselves or use partners to implement. North Highland operates out of local offices to staff projects as locally as possible to increase client intimacy; however, this limits the ability to scale key implementation resources across offices.

  • Geographic coverage North Highland generates 80% of its revenue in North America and the remaining 20% from Western Europe. Although it has offices across the globe, the CX practice is most able to provide coverage and local resources in North America.

  • Agile and transparent project execution Some references desired more transparency and earlier escalation of scope changes to better manage the budget. Some references observed that North Highland followed traditional consulting processes and expressed a desire for more use of agile approaches to execute short quick projects.

NTT Data

NTT Data is positioned in the Leaders quadrant due to strong capabilities in CX consulting and CRM technology implementation. NTT Data is a good fit for enterprises that require CRM and CX solutions that have complex business and technical requirements, particularly related to customer service. NTT Data has grown rapidly in North America and Europe from multiple acquisitions, including Dell Services and Nefos. Growth in Asia/Pacific was minimal due to low growth in the Japanese market. Gartner estimates that NTT Data is the fifth-largest CX and CRM implementation service provider worldwide. Gartner estimates 2016 revenue to be around $1.3 billion, comprising 16% of its total consulting and implementation revenue. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services differ by region, but globally, they are telecom/media, automotive, banking/securities, healthcare, public sector and retail.

Strengths
  • Customer satisfaction — References gave NTT Data good scores related to overall satisfaction with the projects, the innovation brought to the engagements, delivery/execution and overall experience. References commented on the partnership, cultural affinity and NTT Data's ability to convert CX strategy into reality.

  • CRM operational and technical skills NTT Data approaches projects from a pragmatic perspective, working with clients to understand their business objectives and strategy, and then using its understanding of sales, customer service and marketing to define a solution. NTT Data leverages strong CRM software skills and technology integration to implement the solution. References commented positively on the project execution and collaboration skills that pulled these capabilities together.

  • Customer information and analytics References rated NTT Data highly for customer information architecture, data migration and customer analytics. NTT Data has industry-specific information and analytics experience that it leverages well to impact business outcomes.

Cautions
  • Business and CX strategy consulting NTT Data does not have a strong business strategy and transformation capability; rather, it focuses more on operational consulting and technology consulting. References gave NTT Data relatively low ratings for CX vision, business acumen and business change management.

  • Inconsistent strategy and focus across regions NTT Data operates on a regional model, with each region having different strategies and operations aligned with the local markets. The different focus and operations translate into different market focus and limited ability to share resources and best practices of assets across regions. Asia/Pacific, with 54% of revenue, is concentrated heavily on customer service, with a focus on the telecommunications, banking and government sectors. EMEA, with 28% of revenue, has strength in commerce, sales and marketing transformation and focuses on the automotive, retail, consumer goods and financial services industries. North America generates 18% of NTT Data's revenue and focuses on sales and customer service in the banking, insurance, automotive and healthcare industries. Latin America generates 1% of revenue and is business-consulting-focused as a result of the everis acquisition.

  • Proactive innovation Some references expressed a desire to have NTT Data be more assertive and proactive in bringing suggestions and recommendations to the project, especially in recommending operational best practices for sales and customer service.

PwC

PwC is positioned in the Leaders quadrant due to market traction, a strong consultative approach and strong client satisfaction. PwC has a focus on CX and CRM strategy, along with technology design and execution needed for business transformations. PwC is a good fit for enterprises seeking business-consulting-led complex CX solutions in specific industries and geographies. Gartner estimates that PwC is the seventh-largest CX and CRM service provider worldwide, with revenue estimated to be about $1.2 billion (7% of its consulting and implementation revenue). The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services differ by region, but globally, they are life sciences, consumer goods, manufacturing, utilities/energy and telecom/media.

Strengths
  • CX design, vision and innovation PwC strengths are in supporting clients through the strategy and solution design phases of CX and CRM that often use design thinking and innovation centers. References rated PwC high in CX vision, as well as in PwC's ability to bring innovation and creative design to CX and CRM solutions.

  • Business consulting and change management PwC was rated highly by client references in business consulting, business acumen, industry expertise and business change management. PwC is also strong in information architecture, technical architecture and system integration skills, particularly when applied to sales and marketing initiatives. This combination enables both development of vision and execution through technology-enabled business change.

  • Cultural alignment References cited PwC as a collaborative and flexible partner. Multiple references commented on PwC's culture, style and approach as flexible and accommodating, and they said PwC was passionate, humble and innovative in helping the business through the change process.

Cautions
  • Geographical presence PwC's CX and CRM coverage is strong within the U.S., from which it derives 76% of its CRM and CX implementation revenue. Only 11% of the revenue is generated in Europe, mostly from the U.K. and Germany. Its coverage in Asia/Pacific (12%) is focused on Japan, China and Australia. PwC's CX and CRM coverage is limited in other countries, such as France, Spain, Italy and the Nordics, and in regions such as Latin America and the Middle East.

  • Cost of service PwC often utilizes a team of senior consultants. References commented on the high fees. PwC is not a good choice when cost-efficiencies are a driving factor.

  • Scope management At times, PwC initiatives allow project scope to change and evolve too much during the project. References commented on scope management and budgetary changes being issues at times.

Reply

Reply is positioned in the Challengers quadrant due to its emphasis on creativity and innovation, as well as its ability to deliver commerce solutions through technology and pragmatic consulting. Reply is a good fit for European clients looking for revenue growth from multichannel sales and commerce leveraging cloud-based applications. Gartner estimates that Reply is the 12th-largest CX and CRM service provider worldwide, with revenue estimated to be about $460 million in 2016. CX and CRM services are the major focus of the company, with 70% of all its revenue coming from CX and CRM services. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking, telecom/media, automotive, retail, travel/transportation and utilities/energy.

Strengths
  • Commerce and operational effectiveness — Reply focuses on sales and revenue growth, with an emphasis on mobile, commerce and multichannel digital sales. The approach is pragmatic operational-level change within the sales and commerce operations. References commented on Reply's ability to combine business and technology competencies to design and deploy new and complex sales and commerce solutions.

  • CRM technology and architecture skills Reply focuses on cloud-based technologies. It has large practices in cloud-based CRM technologies, including Salesforce, Oracle CX Cloud, SAP Hybris, Microsoft Dynamics CRM Online and Microsoft Dynamics 365. References gave Reply high ratings for architecture, CRM technical skills and system integration.

  • Culture of creativity and innovation Reply works closely with clients on-site to bring creative solutions using design thinking and business process consulting competencies. References commented on the creativity, flexibility and innovation provided, as well as the effective use of agile development.

Cautions
  • CX strategy and operational change Reply's strength is focused on the sales and marketing operations. It is not as strong in broad-based CX strategy formulation or CX-driven business model transformation initiatives. References gave relatively low ratings to Reply on CX thought leadership and business change management.

  • Geographic coverage Reply generates 94% of its revenue within Europe, mostly from Italy, Germany and the U.K. There is limited presence in North America (3% of revenue), Latin America (2% of revenue) and Asia (1% of revenue). While Reply effectively supports global clients based in Europe, clients based in other regions may need support from European resources.

  • Proactive project planning References described instances in which Reply did not work with them early enough in the engagement to fully define and scope the project, resulting in project inefficiencies. Some references wanted Reply to be more proactive in the early project phases to define the project and plan the approach.

Salesforce Success Cloud

Salesforce Success Cloud is the consulting and service business unit within Salesforce. It is positioned in the Niche Players quadrant due to an exclusive focus around Salesforce technologies. Success Cloud is a good fit for enterprises deploying complex Salesforce solutions or when newer Salesforce technologies are being utilized. Success Cloud continues to increase its scale and geographic reach, primarily through rapid organic growth in all regions. Gartner estimates that Salesforce Success Cloud is the 12th-largest CX and CRM service provider worldwide, with revenue estimated to be $570 million in 2016. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services differ by region, but globally, they are financial services, retail, travel/transportation, consumer goods and nonprofit.

Strengths
  • Salesforce solution and design Success Cloud focuses on consulting and architectural support to clients that are deploying Salesforce technologies. Success Cloud has a consistent methodology (Compass), along with accelerators/tools to enable clients to be more effective in designing and deploying Salesforce solutions. References noted the company's strengths in architecture, design, technology integration and deep Salesforce technology knowledge. They also praised Success Cloud's ability to translate business needs into Salesforce solutions and roadmaps.

  • Small agile teams Success Cloud delivers through small senior teams focused on Salesforce technology-based solutions. These teams utilize agile development approaches and may also execute early ideation projects (Ignite) to develop innovative CX solutions. Projects are focused typically on developing architectures for core CRM implementations.

  • CRM architecture Success Cloud is strongest in developing complex information architectures for CX solutions, and when newer Salesforce technologies are being deployed. The use of architects to support and supplement internal teams and/or other service providers typically has excellent results. References commented on the value and effectiveness of the company's architects for their projects' success.

Cautions
  • Business consulting and change management Success Cloud is not strong as a partner to manage a client through the organizational and operational changes often needed as part of a large CX or CRM implementation. Enterprises may consider working with other partners along with Success Cloud for business change requirements. References gave it low ratings in business change management and business process transformation capabilities.

  • Linkage to Salesforce products Success Cloud is focused on the Salesforce technology set and, at times, is perceived to be too tied to the account teams as part of the software sales process. References commented on Success Cloud "pushing" Salesforce technical solutions and being aggressive in upselling solutions with account managers, rather than focusing on project success.

  • Contracting and costs Success Cloud's rate structure and fees are among the highest because of the senior staff that is utilized, the limited leverage of offshore resources and the deep Salesforce technology expertise. References commented on the complexity and limited flexibility in contracting for Salesforce Success Cloud services, including contracting language and limited access to architects for short-term support. Success Cloud is revisiting short-term staffing approaches.

SapientRazorfish

SapientRazorfish is positioned in the Visionaries quadrant because it is primarily a digital marketing agency within Publicis that has deep marketing, creative and technical integration skills, particularly for marketing and customer service departments. Gartner estimates that SapientRazorfish is the ninth-largest CX and CRM consulting and implementation service provider worldwide, with 2016 CX and CRM revenue of about $1.2 billion. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking, retail, consumer goods, automotive and technology.

Strengths
  • CX strategy and solution design References gave SapientRazorfish high ratings for CX vision and business acumen. They highlighted the company's ability to develop CX designs and then transition these into effective solutions to drive positive customer experiences. SapientRazorfish references commented on the strength of both the CX strategy skills and the associated supporting technology capabilities. These solutions often center on customer information and analytics because they are utilized across multiple points of customer journeys.

  • Collaborative partners References expressed high levels of overall satisfaction with SapientRazorfish, and they pointed at the company's culture and relationship style. References described SapientRazorfish as a highly engaged, innovative, collaborative and diligent partner that worked well throughout the projects.

  • Digital design, mobility and UX design References gave SapientRazorfish high ratings related to characteristics that are typical of digital agencies, including digital design, mobile design and UX design skills. SapientRazorfish also has strong CRM technology practices in Adobe, SAP Hybris, Oracle Cloud and Salesforce (via the Vertiba acquisition).

Cautions
  • Business operation transformation and change management SapientRazorfish approaches engagements from a CX perspective rather than a strategic business consultancy perspective. References gave it relatively low ratings for skills needed to change business models or operating models, including business process transformation, business change management and business process consulting.

  • Leveraging best practices SapientRazorfish teams are creative and dedicated to working with their clients. However, several references commented that they expected that SapientRazorfish would have brought best practices, experiences from similar efforts and predefined solutions, rather than creating solutions from scratch each time. References perceived that each engagement was executed as a unique instance and did not leverage past experiences.

  • Project scope management Some references described instances in which the project was not well-defined early in the engagement, resulting in ambiguous scope and inefficiencies. Some references would have preferred SapientRazorfish to be more assertive when developing the vision and solution design, as well as to communicate the project plan more clearly.

Slalom

Slalom is positioned in the Niche Players quadrant due to being a CRM and CX consulting specialist that aims to change customer interactions in a pragmatic manner out of local offices within a limited market scope. Slalom is a good fit for North American enterprises that require CRM and CX solutions that have both business and technical requirements. Slalom has large practices in Salesforce and Microsoft Dynamics, with a smaller focus on SAP Hybris and Adobe. Gartner estimates that Slalom is the 20th-largest CX and CRM implementation service provider worldwide, with 2016 CX and CRM implementation revenue of about $260 million, which represented 40% of its total consulting and implementation revenue. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are healthcare, insurance, retail, business services, telecom/media, education, manufacturing and nonprofit.

Strengths
  • CX thought leadership Slalom is a CX consulting specialist that strives to improve clients' customer effectiveness. Slalom consistently utilizes journey mapping, persona definition, design thinking and analytics to enable formulation of CX strategy and design. References gave Slalom high ratings for CX thought leadership, customer information architecture and CRM analytics.

  • Customer satisfaction Slalom has higher-than-average levels of satisfaction from customers that view it as a pragmatic alternative to larger consultancies. References gave high ratings for overall customer satisfaction, overall experience, value for money and meeting client expectations.

  • Client-centric approach Slalom operates in a client-centric manner. This starts with staffing from local offices to the highest extent possible, forming close partnerships with clients and leveraging local senior-level consultants. References viewed Slalom as being flexible and excellent listeners. References cited Slalom's strong ability to understand their issues and ambitions, and then guide them proactively to pragmatic solutions.

Cautions
  • Geographic footprint and scale — Slalom generates 99% of its revenue within North America and 1% from the U.K. office. The large number of North American local offices at times reduces the sharing of critical resources across offices. However, a regional delivery model across offices helps to scale the offices. Due to North America centricity, Slalom is limited in its ability to support global clients.

  • Broad business strategy and operational change — Slalom is not a broad-based business strategy consultancy. Rather, it is focused on processes and best practices that support sales and customer service with improved operational effectiveness. References gave relatively low ratings to Slalom on industry expertise, and they commented on the company's limited ability to bring proactive business vision and best practices.

  • Digital design and marketing Slalom is not a digital agency, and it has limited staff focused on creative digital design, mobility and user interfaces. References gave Slalom below-average ratings on digital design, mobility and user interface competencies.

Tata Consultancy Services

Tata Consultancy Services (TCS) is positioned in the Challengers quadrant due to good market traction and consistent execution. TCS is a good fit for enterprises seeking complex technology-heavy CRM implementation, particularly in the areas of customer service and sales. Gartner estimates that TCS is the 11th-largest CRM service provider worldwide, with CX and CRM implementation revenue of about $460 million in 2016, representing 8% of total TCS consulting and implementation revenue. TCS goes to market by industry sector; the industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking, securities, insurance, retail, consumer goods and telecom/media.

Note: TCS did not provide supplemental information for this Magic Quadrant. Gartner's analysis is therefore based on other credible sources, including publicly available information and insight gained from client inquiries.

Strengths
  • Core CRM technology skills — TCS has large practices focused on all the major CRM technologies (especially Salesforce, Oracle CX Cloud and Pegasystems), and it has excellent technology architecture and integration skills.

  • Collaborative and reliable execution — TCS was recognized by reference clients as being collaborative, responsive and flexible, with the ability to work with both IT and business teams in CRM and CX implementations. TCS is also perceived as being highly reliable, with excellent project management to control scope, schedule and budget.

  • Customer satisfaction and value — TCS references commented on their satisfaction, along with the ability of TCS to meet project expectations with consistent delivery. TCS has a high rate of customer retention and a higher-than-average level of revenue generation from existing accounts that is driven by clients satisfied with past project execution.

Cautions
  • Proactive innovation Although TCS is using co-innovation approaches more regularly, TCS references perceive that TCS does not proactively bring new ideas and innovation as frequently as references desired.

  • Resource management — TCS utilizes onshore and offshore resources for the majority of its projects, and it often faces difficulties in the initial staffing to bring key resources and skills together. TCS clients may experience project team turnover as an issue and slow replacement of both key technical and business resources.

  • Digital design and marketing TCS provides mobile and web design services, but it is not a digital agency. It has limited staff focused on creative digital design and user interfaces. TCS has "re-imagination studios," but these are centered on IT applications with a focus on core enterprise application mobility, rather than marketing and branding initiatives that would be the focus of a digital agency.

Tech Mahindra

Tech Mahindra is positioned in the Niche Players quadrant due to its strong technical capabilities but limits in business consulting and change management. Tech Mahindra is a good fit for enterprises within specific industries that are seeking core CRM sales and customer service technical implementation services. Gartner estimates that Tech Mahindra is the 15th-largest CRM service provider worldwide, with 2016 revenue of about $450 million from CX and CRM implementation services. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are telecom/media, banking, manufacturing, automotive and insurance.

Strengths
  • Industry understanding Tech Mahindra goes to market by industry, and consultants have significant experience related to CRM solutions within the specific industries listed above, as well as within energy/utilities and healthcare. Tech Mahindra has invested in solutions within these industries, and it has the ability to bring industry, technology and telecommunications capabilities together. References cited Tech Mahindra's understanding of their business and industries as a key part of this value.

  • Core CRM technology expertise Tech Mahindra has deep technology, architecture and system integration capabilities. This is particularly true with core CRM technology, including Adobe, SAP Hybris, Magento, Salesforce, Pegasystems, Microsoft Dynamics and Oracle Siebel. Customer services are a domain of particular strength of Tech Mahindra. Its software is integrated into network, security and operational systems. References gave Tech Mahindra high ratings for technology architecture and system integration expertise.

  • Cost-effective execution Tech Mahindra leverages onshore and offshore resources in an effective and efficient manner, and it strives to provide services at a competitive price. Tech Mahindra is viewed by references as highly cost-competitive and a good value.

Cautions
  • Business consulting and operational change Tech Mahindra is not strong as a partner to manage a client through the organizational and operational changes often needed as part of a large CX or CRM implementation. References gave Tech Mahindra low ratings in business change management, business acumen and business process transformation capabilities. Tech Mahindra has developed frameworks and tools for managing change, but these have not consistently been applied.

  • Project and resource management Some Tech Mahindra references identified issues associated with clear and efficient project execution. These included resource availability and allocation, project coordination, and consistency in deliverables.

  • Digital design and mobility Tech Mahindra does not have the digital design capabilities that some of its direct competitors possess. References gave low ratings to Tech Mahindra for creative innovation, digital design, mobility and UX capabilities. Tech Mahindra is investing in these areas with acquisitions (The Bio Agency and Pininfarina) but these have not been consistently utilized for CX and CRM engagements due to limited scale.

Virtusa

Virtusa is positioned in the Niche Players quadrant due to a combination of pragmatic CX consulting and CRM technology capabilities. Virtusa has always had strong technical capabilities and has increased business and technology consulting (via its acquisition of Polaris Consulting & Services) to deliver CRM implementation projects with industry understanding. Virtusa is a good fit for clients that are looking for CRM technology implementation and integration services, particularly when CRM analytics are used for customer service and marketing. Gartner estimates Virtusa to be the 19th-largest CRM implementation provider, with 2016 revenue estimated to be about $320 million. The industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking, healthcare, insurance, securities and telecom/media.

Strengths
  • Technology and business competency balance Virtusa approaches CX and CRM projects from a pragmatic perspective, working with clients to understand their objectives and strategy. Virtusa then extends the clients' existing technology architecture and software to develop solutions. It is particularly strong with marketing and customer service initiatives. Virtusa leverages strong CRM software skills, particularly for Adobe and Pegasystems, along with technology integration to implement the solutions. References commented on Virtusa's ability to understand their objectives and to translate these into CRM solutions.

  • Customer satisfaction References gave Virtusa good scores related to their satisfaction with the projects, including the overall experience, the level of innovation brought to the engagements, delivery/execution and value for money. References commented positively on the overall project effectiveness and Virtusa's ability to develop and deploy effective CRM solutions.

  • Client-centric agile execution Reference clients pointed out Virtusa's collaborative, committed and client-centric style as a key reason for effective execution. Virtusa is good at listening. Virtusa leverages an above-average level of business acumen competencies to understand the client's objectives, and it also uses agile innovation workshops to explore possible solutions.

Cautions
  • Project and scope management Some references for Virtusa cited instances in which the project costs were underestimated or changed significantly through the early stages of the engagement. References also identified instances in which resources were not quickly available, particularly due to not initially identifying the resources needed to meet the scope and also due to limited availability of onshore staff.

  • Global delivery Virtusa is most efficient utilizing offshore delivery to achieve scale and efficiency. There are onshore delivery centers and on-site delivery capabilities in North America, but for projects with complex requirements and changing scope, delivery using local resources may be restricted. Some references commented on issues in the coordination, communication and efficiency of delivery from offshore locations.

  • Geographical presence Virtusa's presence is strongest in English-language countries and is limited in other countries. Virtusa derives 75% of its CRM and CX implementation revenue within the U.S. Only 17% of the revenue is generated in Europe, mostly from the U.K., and only 8% of revenue is generated in Asia/Pacific.

Wipro

Wipro is positioned in the Leaders quadrant due to its strong growth and its ability to bring both functional and technical skills to CRM solutions. Wipro's acquisition and integration of Appirio not only have brought additional scale, but also have already started changing the approach and culture within Wipro. Wipro is a good fit for enterprises seeking strong CRM technology implementation skills for the major CRM platforms. Gartner estimates that Wipro is the eighth-largest CRM service provider worldwide. Wipro is estimated to have about $1.1 billion in CX and CRM consulting and implementation service revenue in 2016 (30% of its global consulting and implementation revenue) and is growing well above market rates. Wipro goes to market by industry; the industries that generate more than 10% of its CRM and CX service revenue or are a strong focus of its CRM and CX services are banking, insurance, healthcare, manufacturing, nonprofit and retail.

Strengths
  • Responsive and flexible culture Wipro's adoption of Appirio's culture has had a notable positive impact on clients. References said that Wipro was adaptable and responsive, understood their needs, and was able to guide them to solutions.

  • Technology and CX solution competencies Wipro brings both CX vision and CRM technology competencies. Wipro works closely with clients for CX and CRM operational change requiring an understanding of the client objectives and strategy, and then utilizes architecture skills and CRM technical depth to develop solutions. Wipro is particularly strong with complex marketing and customer service initiatives. Wipro has strong CRM software skills, particularly for Salesforce, Adobe, Oracle Siebel and Microsoft Dynamics. References commented on the breadth of business and technical capabilities, as well as the agile approach for rapid implementation.

  • Customer satisfaction References gave Wipro good scores related to their satisfaction with the projects. This included the overall experience, meeting or exceeding of expectations and satisfaction with the level of innovation brought to the engagements. References commented on the overall project effectiveness and Wipro's ability to develop and deploy effective CRM solutions.

Cautions
  • Business strategy and business model change Wipro does not have a significant business consultancy practice, but it does focus on operational improvement and change related to sales, marketing and customer services. The limited scale and focus of Wipro's consulting team often limit its approach to being departmental (sales, marketing or customer service), rather than enabling broader business-strategy-driven initiatives.

  • Price — Wipro is less oriented on leveraging offshore labor than many other India-headquartered firms that compete against larger global providers on pricing. Wipro was perceived as expensive by clients that commented on higher-than-expected rates.

  • Resource utilization and management — Some references identified issues that related to managing resources on projects, including difficulty in ramping up team members, staff with fewer-than-expected skills, and resources being stretched across too many projects. Several references cited projects that were not tightly enough managed, with some references having difficulty in achieving time and budget expectations.

Vendors Added and Dropped

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.

Added

Three new providers qualified for Magic Quadrant assessment this year, including:

  • North Highland

  • SapientRazorfish

  • Virtusa

Dropped

Two providers were dropped this year due to acquisitions and mergers:

  • Business & Decision did not meet the increased revenue threshold for qualification and was acquired by Orange Business Services.

  • Hewlett Packard Enterprise separated its Enterprise Services business and sold it to CSC, forming DXC Technology, during 2017. The Enterprise Services division's integration with CSC has resulted in substantial changes and has not yet been executed fully. We will reassess it in 2018.

Inclusion and Exclusion Criteria

The inclusion criteria represent the specific attributes that analysts believe are necessary for inclusion in this research. To qualify for inclusion, providers need to:

  1. Generate a minimum of $250 million (in U.S. dollars) of CRM and CX implementation service revenue (excluding software revenue and fees for application management, outsourcing, and software maintenance and support) in 2016

  2. Provide both CRM and CX business strategy, consulting and technology design along with implementation services to large enterprises

  3. Operate in more than one major geographical region of the world

Note: This is only for project-based services and excludes application management services, as well as CRM software license fees, software support fees and SaaS fees.

Evaluation Criteria

This Magic Quadrant focuses on CRM and CX project-based services that include consulting and solution implementation services worldwide. CX and CRM solutions increasingly require a broad set of business, consulting, technical and management disciplines that must be brought together seamlessly.

We evaluate the set of offerings for CX and CRM programs that include the ability to provide:

  • Advisory and consulting services to define and design CX and CRM solutions

  • Insight across industries for CRM technology solution decisions

  • Consulting services for customer architecture and design (technology) environments

  • A comprehensive set of system integration and implementation services across the CRM products and technologies (both on-premises and SaaS-based)

  • Multiple business and technical domains into CX and CRM solutions, including but not limited to business consulting, social CRM, mobility and digital, customer information and analytics, master data management, and workflow and business process management

Based on these requirements, this analysis heavily weighted the ability of a service provider to bring a multidisciplinary approach to CRM business issues and consistently craft and deploy holistic solutions.

Technology skills still play an important role; however, many core CRM implementation skills are getting close to commoditization. Therefore, we placed more weight on mobile, social, IoT and analytical technical capabilities.

Provider evaluation was based on:

  • Gartner analysts' interactions over the last 12 months with Gartner clients, which reveal interest and insight on specific CRM service providers

  • Vendors' presentations to Gartner of their depth and breadth of CRM service capabilities

  • Frequency of the service provider's appearance on shortlists as a measure of current and potential market impact

  • The vendors' financial performance over the previous 12 months

  • The vendors' ability to provide evidence of resources for consulting and solution implementation services

  • References from vendors' customers who completed surveys related to the providers' vision, competencies and outcomes on recent CX and CRM engagements

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

Ability to Execute

Product or Service: This criterion considers the core services offered by the service provider. It includes the service offerings as defined in the market definition section of this document. We assess:

  • CX and CRM business strategy consulting services

  • CX and CRM design services

  • CX and CRM business process skills for sales, marketing, commerce, customer service and support, field service, and other departments impacted by the CX or CRM project or program

  • CX and CRM technical services to implement and integrate core CRM and other customer-facing systems and technologies

  • A provider's ability to develop new services to meet emerging market needs

Sales Execution/Pricing: This criterion evaluates the technology provider's capabilities in all presales and sales activities and the structure that supports them. This includes solution visualization, deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel.

Market Responsiveness/Record: This criterion considers the provider's ability to respond and adapt to changing competitive forces as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the provider's history of responsiveness, its revenue size, its revenue growth and its ability to quickly address changing requirements.

Customer Experience: This criterion considers the customers' satisfaction, repeat purchasing and willingness to be a reference customer of the service providers. We look at:

  • Specific client feedback on the experience of working with the service provider on a project (both from references within this assessment and via other Gartner interactions)

  • Reference feedback and ratings on multiple customer-satisfaction-related criteria, including overall experience, overall satisfaction, value for money, delivery and execution, and delivery of expected business outcomes promised

Operations: This criterion evaluates the ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, such as skills, experiences, programs, systems, global delivery model, automation of service delivery, and other vehicles, which enable the organization to operate effectively and efficiently on an ongoing basis. Subcategories include:

  • Organizational and business model

  • Applied use of methodologies

  • Global delivery model capabilities

Table 1.   Ability to Execute Evaluation Criteria

Evaluation Criteria

Weighting

Product or Service

High

Overall Viability

Not Rated

Sales Execution/Pricing

Low

Market Responsiveness/Record

High

Marketing Execution

Not Rated

Customer Experience

High

Operations

Medium

Source: Gartner (January 2018)

Completeness of Vision

Gartner evaluates service providers on their ability to convincingly articulate logical statements about the current market for CX and CRM services and the future market direction. We look at innovation, customer needs and competitive forces and how well they map to Gartner's view of the future. Ultimately, service providers are rated on their understanding of how market forces can be exploited to create opportunity for the provider.

Market Understanding: This criterion evaluates the ability of the provider to understand buyers' needs and translate these needs into products and services. This includes both business and technology buyers across all CX and CRM domains. Vendors that show the highest degree of vision both listen to and understand buyers' wants and needs while also shaping those wants and needs with a clear and differentiated vision of their own. We assess:

  • The service provider's knowledge and articulation of key market direction and trends

  • The service provider's executive leadership's ability to articulate a vision and to maintain continuity of the vision over time

  • The service provider's ability to demonstrate thought leadership

  • The service provider's ability to create a vision that is a competitive differentiator within its industry

Marketing Strategy: This criterion assesses how the provider's marketing strategy offers a differentiated set of messages consistently communicated across all clients and geographies to a clearly specified set of targeted markets.

Offering (Product) Strategy: This criterion assesses a technology provider's approach to solution development. We assess:

  • The service provider's strategies for future partnerships and alliances

  • The service provider's vision for creating new and/or additional solutions

  • The service provider's willingness to take a risk by investing in new and emerging technologies and processes

Vertical/Industry Strategy: This criterion evaluates the technology provider's strategy to direct resources, skills and offerings to meet the specific needs of individual vertical-market segments.

Innovation: This criterion assesses the provider's direct, related, complementary and synergistic investment in innovation. We assess:

  • The service provider's approach to CX design and development

  • The service provider's investment in tools, methods and/or innovation centers and centers of excellence locations for CX and CRM solution development

  • The service provider's approach to vertical or process-specific instances and the integration of multiple competencies and disciplines

Geographic Strategy: This criterion evaluates the technology provider's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside its "home" or native geography, either directly or through partners, channels and subsidiaries, as appropriate for each geography and market.

Table 2.   Completeness of Vision Evaluation Criteria

Evaluation Criteria

Weighting

Market Understanding

High

Marketing Strategy

Medium

Sales Strategy

Not Rated

Offering (Product) Strategy

High

Business Model

Low

Vertical/Industry Strategy

Medium

Innovation

High

Geographic Strategy

Low

Source: Gartner (January 2018)

Quadrant Descriptions

Leaders

Leaders in this Magic Quadrant bring a wide range of business, analytic and technical capabilities, including CX and CRM strategy, business transformation consulting, customer analytics, enterprise architecture and design, CRM and other customer-facing technology expertise, industry-specific domain expertise, and business change management. They demonstrate strong comparative revenue and growth. They can demonstrate the ability to scale across multiple geographic regions. They are delivering with high client satisfaction.

Challengers

Challengers do not have the full breadth of business and CX transformational capabilities, but will have scale and breadth of the technical, architectural and CRM technology skills. The market presence must be high, with high market growth and high customer satisfaction across multiple regions.

Visionaries

Visionaries in this Magic Quadrant bring a wide range of business and technical capabilities, including CX strategy, business transformation consulting, customer analytics, enterprise architecture and design, CRM technology expertise, industry-specific domain expertise, and business change management. They can demonstrate innovative new projects that have not yet been replicated by competitors. However, relative to Leaders, they do not have the scale or consistency in terms of market presence, breadth of technology, and/or geographic reach. They may also have lower satisfaction ratings on execution or outcomes.

Niche Players

Niche Players have deep capabilities that are limited to some areas. They may be strong in a few of the various domains (for example, business consulting, CRM technical skills, sales, commerce or digital marketing), CRM software (for example, Salesforce) and/or have limited market focus (industry and/or geographic reach). These providers are highly competitive as specialists in selected markets based upon their chosen focus and service portfolios.

Context

This year's Magic Quadrant analyzes the market for CX and CRM consulting and implementation services. The relative positioning of vendors in this Magic Quadrant is based on inclusion criteria and key criteria for evaluating the Ability to Execute and Completeness of Vision. Consulting and solution implementation projects require a blend of business, industry, technology, and project and program management skills that must align with your objectives, institutional and business culture, and employees. Do not simply select service providers in the Leaders quadrant. All selection processes are enterprise-specific; consequently, vendors in the Challengers, Visionaries or Niche Players quadrants may prove to be more appropriate for your requirements. Many smaller service providers not covered in this Magic Quadrant may be appropriate for your needs on smaller or region-specific projects.

Market Overview

The CX and CRM implementation service market continues to grow in line with the growth in spending on CRM and customer-facing technology. By 2020, the CRM application software market will overtake the data management market, thus becoming the largest of all software markets. For many service providers, this means that the CX and CRM portion of their digital practices is already the largest practice and will continue to outpace others. Those providers that traditionally targeted and served IT leaders have had to evolve toward selling directly to and supporting the sales, marketing and customer service leaders. Service providers have changed radically in the last decade as they have added digital design skills to the mix, and they will continue to make many acquisitions over the next decade in this area.

Satisfaction levels by reference customers remain high, but there are still areas where there is room for improvement. An analysis of areas where project execution could have been better indicates that the largest areas in need of improvement are the need for:

  • More focus on business and operational change due to the impact of CX and CRM on the business processes and more integration with core operational systems

  • Better architectural designs that integrate CRM and customer-facing technologies into more-complete solutions

  • Greater involvement of all constituencies in the solution visualization and design

  • More-active participation of users in collaborative ideation and agile development processes 2

It has always been the case that CX and CRM initiatives are primarily business change initiatives and not technology projects, but many organizations treated them as a technology deployment. This lack of joint coordination between IT and the sales, marketing or customer service department is becoming rarer. As a result, projects are gradually becoming larger and more complex. The average staff full-time equivalents on CX and CRM projects increased 14% from 2016 to 2017, and the average fees per project have increased by 9% over the past year. 3 Yet, at the same time, the desire to have rapid deliverables is driving projects to be deployed in phases that still form an integrated solution based upon a well-designed architecture. Thus, CX and CRM consulting and implementation service providers now need to be even better at combining business consulting, design, process, change management, architecture and technology implementation and integration competencies.

Selecting the right CX and CRM implementation service provider requires a focused and deliberate evaluation. Spending on a service provider is, on average, three times more than the spending on the software in the first three years of a project and, therefore, a more substantial investment in the short term. The market for CRM implementation services is maturing, but the ability for a service provider to support changing business operations and achieve complex technology implementation and integration at the same time will continue to be differentiator for several years.

While positions are helpful to understand the relative strengths and weaknesses, this research reflects providers whose focus is on CX and CRM implementation services that utilize a wide range of business and technology skills. Use this Magic Quadrant to help inform your thinking, recognizing, however, that Leaders — despite their position on the Magic Quadrant — may not be the right fit for your business. Gartner offers an array of IT sourcing life cycle research, insight, tools and templates to assist your decision making for simple or complex project needs.

Evidence

1 Analysis of 150 CRM projects and the software that was deployed on these projects. This assessment also is aligned with staffing profiles of providers where the Salesforce staff and certifications also represent over 40% of the technology staff.

2 Assessment of 185 references that were asked "If you could start over, what would your organization do differently?" Answers were categorized based upon their responses.

3 Analysis of provider estimates of project profiles, staffing and revenue and comparisons between 2015 and 2016.

Evaluation Criteria Definitions

Ability to Execute

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.

Completeness of Vision

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.