Analyst(s):Jorgen Heizenberg, Twiggy Lo, Neil Chandler
Data and analytics leaders are pivotal in delivering strategic insights for digital business, and service providers are shifting gear to support them through a growing set of services and solutions. We profile 18 of the most significant vendors that offer data and analytics services.
By 2020, more than 50% of data and analytics service engagements will be AI-enabled, up from 10% in 2017.
By 2022, over half of data and analytics services will be performed by machines instead of human beings.
This Magic Quadrant evaluates full-service providers for their consulting, implementation and managed services for a diverse range of decision, analytics and information management capabilities (see Note 1). Clients can use this Magic Quadrant to identify and evaluate providers of these services for their organization.
There are hundreds of worldwide service providers offering data and analytics (D&A) services. This Magic Quadrant assesses 18 prominent providers based on criteria that include capabilities, geography and ability to scale. Each provider has its own strengths and cautions, and is more suitable for certain types of engagements, clients and industries than others. Due to our inclusion criteria and methodology, other capable providers were excluded from this research — some of these may be a better fit for your organization (see the Honorable Mentions section).
If you are selecting best-of-breed service firms for specific implementation areas, vendor platforms or technology solutions, Gartner has better-suited research covering the following:
Oracle services ( "Magic Quadrant for Oracle Application Services, North America" and "Magic Quadrant for Oracle Application Services, EMEA" )
SAP services ( "Magic Quadrant for SAP Application Services, North America," "Magic Quadrant for SAP Application Services, EMEA" and "Magic Quadrant for SAP Application Services, Japan" )
Data science and machine learning services ( "Market Guide for Data Science and Machine Learning Service Providers" )
MDM services ( "Market Guide for MDM External Service Providers" )
D&A services include:
Consulting and implementation services — strategy, design, development and deployment:
For specific processes, functions, applications or initiatives in user organizations. These include program strategy and definition, data preparation, tool and application evaluation and selection, program development (implementation), training, scientific method for discovery and exploration, engineering solutions for access (monitoring), analyzing information (data use), governance of information (data management), and organizational change (people and processes).
To optimize an enterprise's processes and integrate related technology, applications and platforms. These include application-related work in order to enable data and analytics systems through information analysis and information management initiatives.
Managed services for commercial and proprietary platforms, and solution services that provide effective alignment and integration based on a proven framework (such as "Gartner's Business Analytics Framework" ). These include provision of support services, analytics outsourcing and platform as a service.
This Magic Quadrant evaluates providers specifically on the execution of consulting, implementation and managed services, as well as on the total vision provided for D&A solutions. Increasingly, clients are seeking assistance in creating a holistic D&A approach, but may source from multiple service vendors and cloud delivery styles.
D&A service providers have developed a wide spectrum of capabilities and skill sets, enabling them to operate across multiple domains and service competencies. These capabilities incorporate business consulting, technology consulting, enterprise architecture, information architecture, design, on-site services, remote services, testing, infrastructure integration, change management and training. These providers also offer services to support operational, tactical and strategic business decisions across products, customers and suppliers, as well as across business units and geographies.
A defining factor of this Magic Quadrant is that service providers demonstrate the ability to implement D&A solutions to support specific business results. Thus, having a portfolio of product options either as partnerships or as proprietary intellectual property (IP) matters for the service outputs that support the outcomes. Additionally, breadth of capability, domain, process, technical/product expertise and geographic coverage are key differentiators, as are program management, change management and governance.
This Magic Quadrant credits providers for innovation in pricing, such as with outcome-based proposals; industry or functional specialization; and the use of innovative business models, best practices, methodologies and approaches. Gartner is watching for signs that external pressures such as digitalization are forcing providers to create increased value from offerings. Gartner has also identified and continues to track a trend toward asset-based delivery. This trend incorporates diverse use cases and IP, including cloud or on-premises solutions, packaged applications and toolkits, managed services and business process outsourcing, and best-practice processes.
New this year is a focus on artificial intelligence (AI — data science and machine learning) capabilities from vendors, both in their services as well as in their solutions and products.
Source: Gartner (February 2018)
Accenture is positioned in the Leaders quadrant. The company has merged analytics, AI and intelligent technologies into a new single practice: applied intelligence. Gartner estimates that it had approximately $4.5 billion in global D&A service revenue from August 2016 through July 2017, with 40% in managed services, and more than 19,500 analytics professionals (including more than 2,000 data scientists). Of its D&A revenue, 45% came from Europe, 40% from North America and 15% from Asia/Pacific. It came from multiple industry groups for Accenture's major industry segments of banking, communications, consumer products and retail, energy and utilities, financial services and insurance, healthcare and life sciences, high-tech, and public services.
Integrated platform: The Accenture Insights Platform (AIP), an integrated environment for designing, building and running business applications and analytics, is gaining further market traction with multiple deployment options. Besides having data ingestion accelerators and connectors, it features over 120 prebuilt applications for various industries and domains. It comes with a cloud-based design studio for agile development of analytical applications.
Drive for innovation: Besides Accenture Innovation Centers to develop use cases and assets, the company has Liquid studios for solution innovation, Labs for R&D, Ventures for investment, and Open Innovation to bridge clients and the analytics ecosystem. By industrializing operations in its delivery centers, Accenture brings innovation to client engagements. It collaborates with academia (e.g., MIT, the German Research Center for Artificial Intelligence) and has an extensive network of technology alliances with most major and emerging software vendors.
Client relationship and industry focus: Accenture clients generally have long-standing relationships with the company and acknowledge its deep industry understanding. Combined with its technology skills and industrialized asset-based delivery, this results in high levels of client satisfaction with the company.
Inconsistent project resourcing: Some clients indicated in the customer reference survey that the company struggled to find the right project resources or that they experienced varying levels of seniority. Clients continue to value Accenture's IT development and integration skills, but rate its strategic and business consulting skills above its technical skills.
Better suited for larger enterprises and projects: Accenture is potentially more suited to large or midsize enterprises because it targets organizations that value its broad services and solutions, which often leads to sizable engagements. Smaller clients have cited concerns about absorbing this full-spectrum approach.
Increased vendor management: Some reference customers said that it requires additional vendor management efforts from their side to manage all aspects of the engagement, and that initial contract negotiations can be a struggle. Above-market pricing was mentioned as the biggest challenge; however, Accenture's continued cloud-first strategy and industrialized delivery might lead customers toward different capabilities and assets with more-favorable pricing models.
Atos is positioned in the Challengers quadrant. The company states that it had close to $1.7 billion in global D&A service revenue from August 2016 through July 2017, with 40% in managed services, and more than 10,000 dedicated D&A professionals globally. Of its D&A revenue, 10% came from the Americas, 85% from EMEA and 5% from Asia/Pacific. Manufacturing, retail, transportation, financial services, utilities, the public sector and healthcare are Atos' main industry solution areas.
D&A brand and service portfolio: Atos has unified its D&A under the Atos Codex brand to include a broader set of products and skills to design, build and run digital business platforms. The portfolio offers consulting and advisory services, cognitive solutions, industry solutions, security, infrastructure, design labs, accelerators, or a "factory" approach to deploy and operate Atos Codex.
Strategy execution: Atos continues to strongly execute its strategy. It has grown organically and made acquisitions in technology (zData) and healthcare (Anthelio Healthcare Solutions, Pursuit Healthcare Advisors, Conduent's Healthcare Provider Consulting and Breakaway Group businesses). It has made technology alliances with strategic partners and startups, and is dedicated to business and technology innovation. These developments have improved its ability to extend relationships with senior business stakeholders as well as demonstrate functional and technical leadership.
Focus on innovation: Atos has developed methodologies and tools to accelerate innovation and help clients build accelerators for analytics and big data. It has co-innovated with clients on multiple vertical use cases, including manufacturing, retail, transportation, the public sector and healthcare, finance, telecom, media, and energy and utilities. Clients have rated Atos highly on its ability to demonstrate and deliver new insights and innovation by leveraging new AI and data science tools, complex algorithms and methodologies to deliver positive and strong outcomes.
Shortage of business consulting skills: Atos is gradually developing relationships with clients' senior business stakeholders, but its key strength still lies in the technology space. It will need to speed up developing business consulting skills to stay relevant, with the vendor scoring below the group average on business consulting skills in the consumer reference survey.
Project and change management: Atos has a strong focus on delivering technology solutions, but some reference clients indicated that it could improve on project planning and transition so that results can be delivered more quickly and to budget.
Insufficient global footprint: Although Atos continues to acquire companies to expand its global presence, especially in the U.S., it has a weaker footprint in the Americas, Asia/Pacific and Japan compared with other large global D&A service providers.
Capgemini is positioned in the Leaders quadrant. It states that it had more than $1.7 billion in global D&A service revenue from August 2016 through July 2017, and more than 16,000 dedicated D&A professionals globally, with 11,000 in India. Its D&A revenue spreads as approximately 64% in EMEA, 30% in North America and 6% in the rest of the world. Its most significant verticals by revenue are financial services (34% of revenue), manufacturing, automotive and life sciences (19%), and consumer products, retail, distribution and transportation (13%).
Expansion of capabilities: Capgemini has expanded its managed Business Insights Platform with multiple cloud offerings, deployment options and partners. It has grown its self-service and platform automation capabilities (Leap Data Transformation Framework), and developed sector/domain-specific solutions (Smart series). Through its global network of Applied Innovation Exchange (AIE) centers, it has invested in AI as well as developed IP in a collaborative and shared go-to-market strategy with customers.
Global and sector expansion: Following a smooth IGATE integration, Capgemini has acquired Lyons Consulting Group, digital commerce provider Itelios, a European Salesforce solution provider and digital consultancy Idean. Combined with the core expansion of Capgemini's Insights & Data Global Practice and that practice's collaboration with the vendor's global sector units, these provide greater market coverage and strengthen Capgemini's grip on business domains and digital business.
Full-service capability and partnerships: Capgemini has a full-service capability across D&A. It has used its technology partnerships to continuously update its portfolio, bring in new solutions and gain market visibility, particularly with key technology partners. Recent focus has expanded its capabilities in AI, IoT and digital commerce.
Managed service maturity: Capgemini has made progress with its Business Insights Platform managed service over the last year. However, some clients expressed concerns over maturity and coverage gaps, especially in managed D&A and Insights-as-a-Service.
Inconsistencies in execution: In the customer reference survey, some Capgemini clients indicated that they are less likely to rehire the vendor compared to the clients of some of its rivals, suggesting inconsistent execution capabilities. Capgemini is increasing its senior talent acquisition program, account focus and collaboration with its consulting group.
Engagement and approach: Some reference clients voiced their concern that Capgemini is more difficult to deal with at the contracting and negotiation phase than clients of some of its rivals did.
Cognizant is positioned in the Challengers quadrant. The vendor states that its global D&A services revenue amounted to $3.8 billion from August 2016 through July 2017, with 31% from managed services, and that it has more than 35,000 D&A professionals. Its D&A revenue mostly came from America (80%) and Western Europe (18%). Cognizant delivers business and technology solutions across multiple industries, most notably for banking, financial services and insurance as well as healthcare and life sciences, with a focus on customer experience.
Customer experience: Cognizant aims to bring design thinking to the center of its analytics and AI delivery, leveraging its capabilities in customer experience. To this end it has acquired ReD Associates for human behavior analysis and Mirabeau for digital experience. Its SightPrism platform provides multichannel customer data integration and analytics.
Platform modernization: Cognizant helps customers replace existing systems with more-modern D&A platforms and applications to meet the changing digital business demand. Its BigDecisions Business Solutions Platform is able to ingest and integrate new data sources. It also supports data discovery with an analytics sandbox and features industry-specific analytical applications, most notably on sentiment analysis and device management. Developed with primary partner Microsoft, the platform is based on a best-of-breed technology ecosystem.
Augmenting industry platforms with AI: Recognizing the fact that analytics is the game changer in the digital economy, Cognizant is strengthening its investments in analytics and AI. It combines system and technology delivery expertise with industry-specific platforms as well as analytics and AI solutions, augmented with a human-centric approach.
Global delivery and local resourcing: Cognizant continues to expand its footprint in other geographies, but its core market is still in North America and parts of Western Europe. Most of its implementation resources are in offshore locations in India. Some reference customers reported challenges in staffing or in finding the right local resources for the engagement.
Business consulting capabilities: Cognizant has been improving its business consulting capabilities over the last few years, but is still less appreciated for its strategic or transformation capabilities than for its technology skills. Further integration of its recent acquisitions could be decisive.
Project and change management skills: Although most reference customers were overall satisfied with Cognizant for its system integration and application development skills, they were less pleased with its ability to manage project changes and subsequent communication.
Deloitte is positioned in the Leaders quadrant. The vendor states that it had more than $5.5 billion in global D&A revenue from August 2016 through July 2017, and has more than 23,700 D&A professionals (including 2,600 data scientists). Its D&A revenue came from North America (61%), EMEA (22%), Asia/Pacific (15%) and Latin America (2%). Financial services (including banking), the public sector, healthcare, consumer products and retail are Deloitte's main industries of focus.
Continued growth and innovation leadership: Deloitte continues to show solid innovation leadership through acquisitions (30 since 2016), alliances with academia (e.g., MIT, Singularity University), asset-based solutions with analytical components embedded (it claims more than 400 industry-centric reusable assets) and more than 350 partnerships. It focuses on industry-centric and outcome-driven cognitive solutions as a key strategic direction.
Robust analytics platform and industry offerings: Deloitte's multitier analytics platform ClearLight has more than 650 customers. It consists of sector-specific proprietary and curated third-party datasets powered by cognitive engines (data as a service); a platform that includes machine learning, patented algorithms and industry-specific models (PaaS); and many outcome-focused — industry-specific — analytical applications and insights (IaaS), leveraging its broad industry expertise.
Analytics product/service delivery: Deloitte's reference customers continued to praise its ability to deliver analytics projects and services by combining technology skills with business consulting expertise, as well as its project management and change management capabilities. Further, Deloitte claims to have strengthened its global network with a simplified structure, more local language practitioners and more-balanced global and local expertise.
Regional execution: Deloitte is a network of more than 40 member firms around the world. Although policies and practices are shared, the consistency of execution may differ per country.
Premium market pricing: Deloitte clients continue to cite the vendor's premium market pricing as a challenge. However, the vendor does have global capabilities and assets to help clients manage its pricing, as well as offer a range of pricing models (many of which are value-based) and platform/managed solutions.
Audit relationship restrictions: Because Deloitte is a full-service provider, its existing audit clients may encounter barriers due to restrictions on consulting services in combination with audit services.
DXC Technology is positioned in the Challengers quadrant. It is the result of a merger of Hewlett Packard Enterprise's Enterprise Services (HPE ES) business and CSC. DXC states that its global D&A revenue amounted to $1.1 billion from August 2016 through July 2017, divided mainly across North America (40%), Western Europe (40%) and Asia/Pacific (10%). Managed services made up 31% of the D&A revenue, and the vendor employs more than 8,000 D&A service professionals. DXC's main industry focus is the public sector, healthcare, banking and insurance, travel and transportation, and automotive.
Industrialized and scaled delivery: DXC's technology capabilities are evident in its analytics platform, which has over 125 clients and is reinforced with DXC security practices. The platform has multiple deployment options, including private and public cloud. A fully managed environment, it comes with design patterns and solution accelerators for customer analytics, predictive maintenance, social analytics, location intelligence, and real-time analytics and AI on structured, unstructured and streaming data. DXC's industry and domain expertise is evident in the industry applications that run on top of the platform, with analytics and AI embedded.
Diversified partner landscape: DXC has solution partners for vertical expertise and IP (e.g., Ramco Systems, Norcom). It also has innovation partners including startups (e.g., Tamr, Teleran, RapidMiner), strategic technology partners (e.g., Microsoft, AWS, IBM, Hitachi, SAS, SAP, Informatica, Hortonworks, Cloudera) and future growth partners (e.g., Micro Focus, BAE Systems). DXC has a partnership with PwC and a shared offering on the General Data Protection Regulation (GDPR).
Positive combination of merged capabilities: HPE ES brings technology skills into this combination, while CSC brings business consulting experience as well as industry and domain expertise. The combined company already has a strong market presence — for example, 24% of the Financial Times Global 500 are DXC analytics clients.
Postmerger integrations: The merger of HPE ES and CSC finalized in April 2017. There is always risk associated with a merger and new companies that may affect clients' daily operations, although DXC is currently executing on its client commitments and revenue targets.
Need for more-proactive guidance: Although CSC brings in additional business consulting and transformation expertise, some customers — mostly former HPE ES customers — mention a need for more-proactive guidance from DXC for both ongoing engagement as well as the future roadmap.
Challenging contracting practices: In the customer reference survey DXC scored lower than its peers in this Magic Quadrant group for contracting practices and commercial terms. Some of its clients indicated that they encounter challenges during contract negotiations and subsequent legal work.
EY is positioned in the Leaders quadrant. It is a global organization of member firms providing assurance, tax and technology services. EY states that it generated approximately $2.9 billion in global D&A service revenue from August 2016 through July 2017, with 21% in managed services, and had over 20,000 D&A professionals across its advisory, assurance, transaction and tax service lines. The regional revenue split is reported to have been 41% for North America and Latin America, 39% in EMEA and 20% in Asia/Pacific. Its major industries of focus are financial services, consumer products and retail, government and public services, healthcare and life sciences, and telecom, media and entertainment.
Rekindled strategic direction: EY has globally integrated its analytics capabilities and brought them under single leadership, with a strong talent management program aiming to modernize operations. A twofold strategy of infusion and innovation brings analytics to EY service lines and fosters investments in new tools, technologies and partners, like startups — especially in AI. EY's analytics portfolio brings together strong capabilities in data strategy and business consulting with technology consulting.
Industry analytical assets and platform solutions: EY's catalog of analytical solutions includes functional analytics, such as finance, fraud, audit, risk, tax and the supply chain. The company delivers standardized industry sector insights. It has developed IP for pharma (EY Commercial Analytics Suite [CASE]), health (EY Envision), retail (EY Hex, EY Commercial Analytics Services Hub [CASH]), cost management (3D Spend Analytics/EY PLATO), supply chain (EY Value Chain Synchronization), audit (EY Helix) and forensics (EY FDA). These can be delivered from its analytics-as-a-service platform, Synapse. EY's best-of-breed technology architecture also allows for customized solutions.
Extensive ecosystem collaboration: EY Wavespace, a connected workspace, serves as a collaboration and innovation hub for clients and partners. Partners include Ebix (insurance, finance, health), LinkedIn (social analytics), Johns Hopkins University (patient safety, operation efficiency, clinical outcomes) and GE (IoT). EY closely collaborates with existing software vendors and strategic alliance partners such as Microsoft, SAP, IBM, Adobe, Hortonworks and SAS, but is also investing in emerging players and technologies.
Technology skills: Although EY's technology skills are valued by its reference customers, its strategic services are rated higher than its technology services. EY fills this gap with continued local acquisitions of boutique technology firms, and collaboration with technology startups and SIs — for example, its formal relationships with Cognizant and TCS.
Selective in relationships: While EY has a strong portfolio of services and programs related to the middle market, its primary focus is on larger enterprises that value its functional and sector-specific services and solutions.
Audit relationship restrictions: Because EY is a full-service provider, its existing audit clients may encounter barriers due to restrictions on consulting services in combination with audit services.
Genpact is positioned in the Visionaries quadrant. Part of Genpact Digital, Genpact Analytics has repositioned itself as a global professional services firm, with a mission to embed advanced analytics into the core business processes of organizations. Gartner estimates that its global D&A service revenue was $620 million from August 2016 through July 2017, with more than 50% in managed services, and that it had 8,000 D&A professionals (including 4,500 domain specialists). Its D&A revenue was split 70% in the Americas, 25% in the U.K. and Western Europe, and 5% in Asia/Pacific. Genpact analytics focuses on seven business areas: risk management, supply chain, customer analytics, IoT, finance and procurement analytics, insurance analytics, and data engineering and management.
Consulting-led, business-outcome-focused approach: Genpact engagements are often led by their business consulting experts, who deliver through its service lines and combine domain expertise with an analytics focus. Its strategy is based on delivering value rather than effort. Value is measured by business impacts such as revenue growth, cost reduction, margin enhancement, customer experience and regulatory compliance.
Integrated Lean Digital approach: Genpact's Lean Digital approach combines domain expertise and design thinking with lean management practices, AI and advanced analytics, as well as other digital technologies. It accomplishes these through the acquisitions of PNMsoft, Rage Frameworks, TandemSeven and Endeavour. Reference customers praised its system integration and analytics development capabilities.
Industrialized platform-based analytics: Genpact's Cora platform serves as the foundation for its products and consulting services, and embeds automation, analytics and AI engines. The vendor has developed solutions for specific verticals and domains, and up to 80% of its offerings are already productized, improving the time to market for customers.
Limited local resources: Genpact's preferred delivery model is managed services, and it relies strongly on an offshore model (85% of its workforce are based in India). Although slowly expanding local presence in other geographies, its onshore workforce is predominantly located in North America.
Onboarding of resources: Some Genpact reference customers mentioned issues with resource replacements, the onboarding of resources in North America and limited bench strength.
D&A brand awareness: Originating from GE and an independent company from 2005, Genpact is best-known for its business process outsourcing services. It needs to establish market recognition as a D&A brand in order to be considered more often for such services.
HCL Technologies is positioned in the Niche Players quadrant. It states that its global D&A service revenue was $550 million from August 2016 through July 2017, with more than 58% in managed services, and that it had 5,900 D&A professionals. D&A revenue was split 60% in the Americas, 25% in EMEA and 15% in Asia/Pacific. HCL has key industry focus on banking, financial services and insurance, manufacturing and high-tech, life sciences and healthcare, and consumer services.
Effective technical expertise and managed services: HCL has a broad range of D&A expertise across major commercial and open-source software and platforms. Reference clients scored it above the average of this Magic Quadrant group for its expertise in applications and infrastructure, managed D&A/D&A as a service, and technical architecture.
Flexible commercial contracting/resourcing: HCL has consistently delivered its "relationship beyond contract" promise to clients, with a close partnership approach based on a flexible engagement, pricing and resourcing model. It offers different pricing models to provide contract flexibility (e.g., fixed, business-revenue-linked). HCL scored substantially above the group average for its performance on contracting practices and outcome-based commercial terms, total cost of contracted services, and transparency of commercial terms.
Value for money: Reference clients rated HCL above the group average in value for money and overall experience. Clients have also told Gartner that HCL is very committed to delivering outcomes, and has gone beyond expectations during different phases of the project to provide flexible services.
Proactivity in strategy and advisory expertise: HCL has been investing in innovative technology-oriented solutions and services, but its ability to proactively apply them may sometimes be lacking. Reference clients scored it below the group average for strategic service expertise, business process consulting skills and innovation. Some clients have mentioned that HCL does have the innovative solutions around AI-based analytics, but that these need to be requested.
Overreliance on technology implementation: HCL has been trying to blend digital consulting into its D&A services to provide a more complete customer experience and drive stronger business outcomes. It offers to help define D&A roadmaps through an Analytics Pathways consultative framework, and can get some access to its clients' key business stakeholders. However, most HCL engagements are technology implementations.
Inconsistent quality of resources: Overall, HCL has received very positive comments about the professionalism, competency and flexibility of its consultants. However, some clients have reported that, at times, some resources are less experienced and can be reactive in offering recommendations and sharing best practices.
IBM Global Business Services (GBS) is positioned in the Leaders quadrant. Its industry and domain consultants work with four other practices to support cognitive process transformation globally — IBM Advanced Analytics, IBM Watson AI and Data Platform, IBM Watson IoT and SCM, and IBM Watson Health. According to an adjusted Gartner estimate, IBM's global D&A service revenue was $4.5 billion from August 2016 through July 2017, with 40% from managed services and 15% from platform license or "as-a-service" products. This revenue is globally distributed across the Americas (43%), EMEA (27%), and Asia/Pacific and Japan (30%). IBM has more than 20,000 D&A service employees in 213 global locations.
Cognitive consulting and service approach: Cognitive process transformation is one of the three growth pillars of IBM GBS. It works closely with the other two — digital strategy and iX, and cloud application innovation — to enable digital transformation and optimize core functions for clients. This integrated approach offers cognitive business decision support tools, assets and solutions; cognitive process re-engineering and automation; and digital strategy and design, interactive experience, next-generation technology, and cloud infrastructure.
Service delivery and resources: IBM GBS is able to leverage a large number of resources with wide breadth and depth of expertise. It continues to align its skills portfolio, source and develop talent, and augment its workforce through IP, assets and community engagement. Reference clients commented that IBM GBS is innovative, provides professional resources with good expertise and outstanding services, and partners well with clients in a flexible manner. Reference customers also scored it above the Magic Quadrant group average for overall service capabilities, use of best practices, processes, tools and solutions, as well as new technologies including AI and automation.
Substantial investments and offerings: IBM GBS continues to invest in acquisitions, talent, IP, assets and its partnership ecosystem to expand its portfolio. Some of these investments include Watson solutions in health, IoT, retail and telecommunications; a $100 million fund for AI startups; a $6 billion R&D budget to develop IP; and a 10-year, $240 million investment in a new lab with MIT to advance AI.
Inclination toward IBM products: While IBM continues to expand and improve the quality of its cognitive solutions, some reference clients indicated that IBM GBS should take a more technology-agnostic approach, avoiding prioritizing its software and assets.
Need for more-transparent commercial terms: Some reference clients commented that the services cost of IBM GBS can be higher than those of other, similar providers. They suggested that IBM GBS could improve the transparency of commercial terms, as well as the evaluation and contract negotiation process.
Inconsistencies and availability of resources: Although generally highly satisfied with IBM GBS resources, some reference clients suggested that there could be improvements to skills consistency around project management and change management. Availability of core D&A skills at the regional or local level were also mentioned.
Infosys is positioned in the Challengers quadrant. Its D&A practice is a global offering spanning all industries, geographies and domains. Infosys states that its global D&A service revenue was approximately $1.2 billion during 2017, with 25% in managed services, and that it had more than 15,000 D&A professionals (including over 10,000 based in India). D&A revenue was split between the Americas (70%), EMEA (18%) and Asia/Pacific (12%). The industries the vendor focuses on are banking and financial services, high-tech, and retail and consumer packaged goods. Infosys also has presence in energy and utilities, life sciences, manufacturing, and services.
Support for data modernization/monetization: Infosys' strategy focuses on helping clients gain insights from, and monetize, all types of data sources. It does so through innovation hubs, alignment to the emergent CDO role and its focus on data strategies, for example. It delivers a range of toolkits, workbenches and frameworks to modernize legacy data landscapes and build insight-driven enterprises.
Knowledge-based AI platform: Infosys has launched Nia as a successor to Mana. An integrated platform for knowledge management, automation and analytics, Nia uses machine learning and AI and has an open architecture that includes its own IP. It includes the Infosys Information Platform (IIP), which offers analytical solutions for the vendor's major verticals.
Continuing investments and acquisitions: Infosys is investing in software vendors for inclusion in IIP as well as other platforms and offerings (acquisitions include Trifacta for self-service data preparation, and Waterline Data). It is combining its expanding number of acquisitions (e.g., Skava, Panaya, Brilliant Basics, Skytree and Lodestone Holding) and alliances with assets such as Infosys Analytics Workbench, Information Grid, the Infosys framework for GDPR and the Value Realization Method.
Limited geographic coverage and local footprint: Most Infosys activities are in the U.S. and Western Europe, limiting its local footprint in other geographies. This is compensated by a global delivery model, although reference clients still cited concerns over its geographic capabilities, especially for business consulting and domain expertise. Infosys is building up additional regional presence with delivery centers in Poland and China.
Skills gaps and inconsistencies: Some reference clients indicated lower satisfaction levels with Infosys. The vendor scored below the Magic Quadrant group average for industry expertise and change management, as well as managed services, asset-plus consulting and business consulting.
Cultural fit: Some Infosys reference clients indicated that cultural fit can sometimes be a challenge for those that have limited experience working with an Indian pure-play vendor. Infosys has increased its effort to hire local resources.
KPMG is positioned in the Leaders quadrant. The vendor states that it had just under $3 billion in global D&A revenue in 2017 and more than 12,500 dedicated D&A professionals globally, mostly based nearshore to clients. KPMG's D&A revenue came from North America (63%), EMEA (29%) and the rest of the world (8%). Its most significant verticals by revenue were financial (30%), consumer (15%), industrial (10%) and energy (10%).
Strong global delivery, framework and vision: KPMG continues to execute on its strong vision for D&A, which is embedded into its core practices. It has D&A Centers of Excellence (Lighthouses — based in Frankfurt, Hong Kong, New York, Paris, London and Melbourne) and a centrally managed, globally funded innovation group. Its Value Delivery Framework is a robust, detailed and global framework for business transformation, utilizing a message based on trust and combining KPMG's credentials in tax, advisory and audit with its digital investments.
Industry approach leveraging innovation: KPMG is incorporating D&A into all the service offerings for its priority domains, such as healthcare and life sciences. It has demonstrated innovation through delivery frameworks (Trusted Analytics), strategic relationships (e.g., with Google) and investment in products and services (e.g., its intelligent signaling engine Ignite, an API library and its audit platform Clara). It has also heavily invested in blockchain, AI and IoT capabilities to drive its strategy for intelligent automation. Despite these investments, reference clients praised KPMG most highly for its capabilities in infrastructure services.
Focus on client needs: Reference clients cited appreciation for KPMG's commitment, flexibility and responsiveness to their needs. They praised the vendor in most areas, especially in helping them achieve business outcomes.
Potential local inconsistencies: Although KPMG continues to grow through aggressive hiring and acquisitions, it is still rolling out its global approach to D&A. This could lead to variability in execution. Prospects and clients should ensure that local execution focus resonates with this new global approach.
Audit relationship restrictions: Because KPMG is a full-service provider, existing audit clients may encounter barriers due to restrictions on consulting services in combination with audit services.
Selective in their engagements: KPMG has fewer technical resources than some of its direct competitors. It is therefore potentially better-suited to larger enterprises and clients within its chosen market segments — particularly those located in North America or EMEA. Clients have cited concerns over KPMG's geographic capability.
NEC is positioned in the Niche Players quadrant. It positions managed services and business co-creation as the main strategies driving its D&A service practice, as well as enabling continuous client growth. NEC states that its global D&A service revenue was approximately $960 million from August 2016 through July 2017, with 25% in managed services, and that it had more than 2,300 D&A professionals (including 650 data scientists). NEC has a dominant presence in Japan, where it generates 66% of its D&A revenue; the rest was divided among the Americas (14%), Asia/Pacific (18%) and EMEA (2%). NEC is primarily focused on the public sector, retail, telecommunications, financial services, transportation and manufacturing.
Technical and infrastructure expertise: NEC has strong expertise in technology- and infrastructure-based services, including managed services, networks, ICT, high-performance computing, security and the cloud. It is able to leverage this expertise to support its managed analytics services as well as expand its coverage in smart city initiatives and emerging technologies, such as AR/VR and IoT.
Making investments in data and analytics assets and AI: NEC continues to invest in D&A assets, and NEC the WISE was launched in 2016 to align its various D&A solutions and AI technologies in a unified portfolio. Assets include MasterScope Invariant Analyzer for large-scale plants and construction companies, Heterogeneous Mixture Learning for prediction, Recognizing Textual Entailment, RAPID machine learning technology with high-speed deep-learning capabilities, NeoFace for facial recognition, and Predictive Analysis Automation for large-scale datasets from relational databases.
Applying best practices, solutions and new technologies: Reference clients scored NEC above the Magic Quadrant group average in its ability to leverage best practices, processes, tools and solutions, as well as use newer technologies such as AI and automation in their engagements.
Organizational alignment falls short: While NEC is gradually expanding its coverage in the global market, global alignment between the NEC companies in different regions or countries may be limited by different strengths and priorities. At times, its expertise, solutions, innovation and resources may be difficult to leverage across the regions, and may prohibit NEC from bidding for large-scale multicountry engagements.
Need to demonstrate business consulting capabilities: Although NEC has a good mix of business strategy, process design and technology implementation in its D&A projects, it is not well-known in the market for expertise in business consulting and advisory services. NEC needs to market and demonstrate stronger capabilities in business consulting and advisory services to complement its strengths in technology enablement.
Lack of proactive recommendations: Reference clients commented that NEC is effective in project execution and that its technical resources are professional and committed. However, some clients reported that NEC consultants tend to be more reactive than proactive, especially in providing new ideas or recommendations. They can also improve on project planning and the RFP process.
NTT DATA is positioned in the Niche Players quadrant. Gartner estimates that the vendor had approximately $970 million in global D&A service revenue from August 2016 through July 2017, with 20% in managed services, and that it had more than 5,700 D&A professionals. NTT DATA has improved its geographic coverage from a focus on Japan to having an expanded market presence in other major regions. Its D&A revenue came from Japan (38%), EMEA (23%), the Americas (36%) and Asia/Pacific excluding Japan (3%). Its major industry segments include automotive, financial services and insurance, healthcare, telecommunications, and utilities.
Expanded service coverage and solution portfolio: NTT DATA is using a more aligned approach to expand services and solutions including cognitive and AI in four major areas: data-driven business strategy, data management, analytic solutions and services, and data technology. It has increased investments to develop a broader solution portfolio, increase capabilities and assets, and form closer alliances and partnerships in targeted global industries such as health, telecommunications, banking and automotive.
Global scale and geographic reach: After years of strategic mergers and acquisitions (Dell Services, everis), NTT DATA has achieved a solid worldwide client base in targeted industries and an even revenue spread across the Americas, EMEA, Japan and Asia/Pacific. The company is now focused on aligning and integrating its entities, executing its global strategy, and expanding capabilities and services that can be leveraged across the regions.
Collaborative and client-focused: NTT DATA engages with clients in a partnering approach to execute projects in a flexible and collaborative manner. Reference clients commented that its consultants have strong technical expertise and are committed to service delivery excellence, often meeting or exceeding contracted SLAs.
Integration still in progress: NTT DATA has grown rapidly due to a number of large acquisitions in the past 10 years. The Global One strategy has made progress with aligning entities across regions. However, it continues to be a work in progress to integrate and synthesize the separate practices, tools, methodologies and accelerators.
Inconsistent resource quality: Some reference clients expressed concerns with the quality consistency of NTT DATA's on-site and offshore resources. Attrition, bench strength and ability to scale teams and leverage competencies across regions were below the Magic Quadrant group survey average.
Proactive recommendations fall short: Some reference clients indicated that NTT DATA consultants lack the initiative to offer new D&A ideas or recommendations, especially around business or operational process innovation. The vendor has not consistently been proactive in applying strategic and tactical D&A innovations to business issues.
PwC is positioned in the Leaders quadrant. Its D&A program runs across its global network of member firms, and its go-to-market approach is through service lines assurance, tax and advisory services. Gartner estimates that PwC's global D&A service revenue reached $3.2 billion from August 2016 through July 2017, with 10% in managed services, and that it employs about 16,500 D&A professionals. D&A revenue was split among North America (42%), EMEA (40%) and Asia/Pacific (18%). Its primary industry focus lies in banking, financial services and insurance, retail and consumer products, high-tech, and healthcare and life sciences.
Diverse D&A services portfolio: PwC has a strong and diverse D&A service portfolio that includes SI expertise, industry-specific and cross-industry analytics solutions, and management consulting skills. All these are leveraged across the entire organization. Its online D&A marketplace for analytical applications allows clients access to over 100 solutions and over 1,000 datasets within selected territories.
Collaboration and new ventures: PwC has an extensive global ecosystem of software alliances (e.g., SAP, Cloudera) and academia (e.g., MIT, VU Amsterdam). It works closely with startups such as Narrative Science, DataRobot and Dataiku — especially in the area of AI — in combined pilots with clients. It has developed a publicly available MOOC on data-driven decision making for Coursera.
Investments in AI: PwC is continuing its investment in AI and machine learning capabilities for its domain-specific solutions. It works on geospatial data and images coming from drones and satellites. Natural-language processing and generation are applied in semantic search, focusing on contract reviews and mortgage audits — with LawGeex, for example.
D&A brand awareness: PwC tends to execute within its client base, through member firms and service lines. Its capabilities in D&A services are not well-known to clients without a past working relationship with the firm. To address this, PwC sponsors AI summits, conducts global surveys and has launched a new global D&A site.
Local resource pools: PwC needs to build additional bench strength, including more local resources, especially outside North America and Western Europe. Those two regions now account for three-quarters of its workforce.
Limited managed service: PwC has a strong focus on project-based D&A service engagement, whereas its D&A managed service business (including analytics-related "as-a-service" offerings) is relatively small compared with those of most providers in this Magic Quadrant.
Tata Consultancy Services (TCS) is positioned in the Challengers quadrant. It states that its global D&A service revenue was over $3 billion during 2017, with 30% in managed services, and that it had 30,000 D&A professionals. D&A revenue came from the Americas (56%), EMEA (28%) and Asia/Pacific (16%). Its most significant verticals by revenue were banking, financial services and insurance (40%), retail and CPG (13%), communications and media (11%), and manufacturing (11%).
Hybrid delivery model provides flexibility and affordability: TCS combines on-site, nearshore and offshore delivery methods, with a large proportion of its staff based in India. This combination provides flexibility and affordability. Reference clients commented that TCS has strong technical expertise and provides excellent value for money.
Technical and infrastructure expertise: TCS has strong expertise in technology- and infrastructure-based services, including strategic services (information architecture, data warehouse, analytics strategy), application services (custom application development, packaged application deployment) and infrastructure services (ETL, big data, data quality, master data management).
Investment in innovation: TCS has a strategy for innovation through alliances with GE, Intel and Cloudera, PTC, Microsoft, IBM, and others. It has a portfolio of platforms (e.g., ignio — Neural Automation, Optumera for retail merchandising and pricing optimization, iONAnalytics Platform for vertical PaaS solutions and for SMBs) and related solutions for its managed analytics services. Other innovations include Digital Reimagination, the Co-Innovation Network (COIN), Customer Intelligence and Insights (CII) products, its DIME framework for enterprise data stores, and Decision Fabric, an AI-powered decision engine.
Business and domain consulting skills: TCS is recognized more as an SI and aligned with IT than some of its direct competitors are. It will need to speed up developing business consulting skills to stay relevant in the market, or deepen existing relationships with key management-centric consulting partners. TCS reference clients scored it below the Magic Quadrant group averages on business consulting and AI/data science skills. Some customers expressed concerns over its ability to provide managed D&A/D&A-as-a-service expertise skills.
Market focus and perception: TCS needs to bring more focus to increase its brand and image recognition in D&A. Although it has made strides to add innovation, many clients are unaware of these strategic changes. Greater communication and awareness would broaden its appeal to buyers, allowing it to participate in more-strategic analytics engagements.
Quality of resources: Overall, TCS received adequate customer reference responses, albeit mostly below the group averages. Some clients were concerned over its industry/domain expertise, saying that some resources are less-experienced and can be reactive in offering recommendations and best practices. TCS is upping its investments in learning programs and upskilling of its associates.
Teradata is positioned in the Niche Players quadrant. It has practice areas for business technology consulting (Think Big Analytics) as well as technology and managed services to scale. Teradata indicated that it generated $616 million in D&A service revenue from August 2016 through July 2017, and that it had about 5,400 D&A professionals globally. Financial services, retail, communications, manufacturing and healthcare are its main industry solution areas.
Business technology expertise: Teradata delivers analytics technology expertise, professional services, architecture advice and managed services within an industry-focused context. Examples include its industry logical data models or "analytics ops," combining data science, data engineering and business process engineering.
New global practices and portfolio: Teradata has organized itself into 11 new global practices addressing the full analytics development cycle, from analytics strategy to managed services, driving further specialization and improved client delivery. The company has developed a new service portfolio (Velocity), focusing on Advise & Architect, Design & Implement, and Optimize & Manage, to serve complex analytics demand. It has also developed a talent acquisition program to attract and retain employees.
Focus on asset development: Teradata has developed an internal incentive program to move assets into an enterprisewide data dictionary as well as knowledge management systems. The company has analytics models and IP for various verticals and horizontals, as well as tools and methods for AI (including data science and machine learning) and agile delivery.
Focus on Teradata products: Teradata is moving its services from traditional database systems to newer D&A capabilities. Although it now offers services beyond its own products — for example, for open-source Hadoop, Python and AI tools as well as third-party software such as Informatica or SAS — clients sometimes have concerns about its product independency.
Business relationship development: With its Think Big Analytics business consultancy, Teradata has expanded its focus on data science for the business, leading to more business-oriented conversations. However, the company is still mostly engaged in IT relationships for its technology and managed services.
Complicated contracting: Teradata delivers complex projects often spanning multiple technologies and ranging from strategy to managed service engagement. Some reference clients highlighted contracting issues as well as a total cost of ownership that exceeded their initial expectations.
Wipro is positioned in the Challengers quadrant. Its analytics service practice uses an asset-based approach to help clients drive insights-led business outcomes and to enable their digital transformation initiatives. It states that its global D&A service revenue was over $1.5 billion from August 2016 through July 2017, with nearly 35% in managed services, and that it had 18,500 D&A professionals. D&A revenue was split 59% from the Americas, 22% from EMEA and 19% from Asia/Pacific. Its most significant verticals by revenue were banking, financial services and insurance (24%), manufacturing and technology (22%), healthcare and life sciences (17%), and consumer (15%).
Accelerated investments in analytics: Wipro has accelerated its strategy to be a key player in the analytics space, through global technology innovation centers in Bangalore and Silicon Valley, and acquisitions of Topcoder, Designit, Appirio and Promax. Its analytics assets include more than 110 apps/solutions across verticals, its Data Discovery Platform, customer-centric master data management solutions, a BI transformation framework, connected intelligence and the IoT, robotics, deep learning, and Holmes, its open-source AI and cognitive computing platform for automation.
Improvements in delivery: Wipro has improved its customer focus, global delivery processes and solution frameworks. It has seen strong demand for programs based upon managing and mining massive-scale datasets as well as for cloud solutions and accelerating business insights, through AI and machine learning platforms such as Holmes.
Technology consulting expertise: Wipro has strong expertise in technology- and infrastructure-based services. Reference clients scored it above the Magic Quadrant group averages for its technical architecture, system integration, software package understanding, AI and data science skills, design-led approach, and business process transformation.
Developing business consulting expertise: While Wipro has an analytics consulting practice and clients praise its technical abilities, they also suggest that it could improve its consultants beyond technical excellence. By further developing its business consulting skills and with a better strategic advisory relationship for strategic decisions, Wipro could gain on its market rivals .
Limited D&A brand awareness: Wipro suffers from relatively poor D&A brand awareness and recognition of its solution breadth from its clients and prospects. It has made improvements in visibility but still remains behind some competitors. Wipro must continue to communicate the value of its investments, pushing to gain wider client adoption and market recognition.
Inconsistencies in resource quality: Although most reference clients were satisfied with the quality of Wipro's consultants, some raised issues over the quality consistency of its on-site and offshore resources, bench strength and ability to provide consistency throughout project life cycles.
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.
DXC Technology (see Note 2)
Hewlett Packard Enterprise (the company has merged its Enterprise Services businesses with CSC into a new global service organization, DXC Technology)
Tech Mahindra (did not make revenue inclusion criteria)
CGI (declined participation and Gartner could not verify claims about inclusion criteria)
SAP (did not make the single software vendor revenue inclusion criteria)
To be included in this Magic Quadrant, companies have to meet several criteria. This Magic Quadrant evaluates the suppliers for their project-based consulting and system integration offerings. The IT service providers are chosen to be evaluated based on their current and potential market impact, how often they appear on shortlists, the degree to which they are evaluated by respondents to Gartner's primary research surveys, and how often Gartner analyst interactions with clients result in interest in specific providers.
Companies were selected based on services offered and delivered globally, regardless of the location of their global headquarters and the location of service delivery, as dictated by their own operational models.
The providers included in this Magic Quadrant were selected using the following inclusion criteria:
Presence — The providers of D&A services have market presence, and their solutions and services have been considered or evaluated by Gartner clients for analytics, as expressed during interactions with Gartner.
Enterprise — The providers have demonstrated that their analytics solutions are in production with clients at enterprise-scale deployments.
Projects — The providers have analytics capabilities for staffing as well as managing D&A programs across the Gartner Business Analytics Framework.
Framework — The providers deliver projects that include four of the capabilities (people, processes, platforms, performance) from the Business Analytics Framework domains (either singly or in combination). For more information on this subject, see "Gartner's Business Analytics Framework."
Customer references — The providers need to submit a minimum of 10 unique customer references, coming from at least four of the major industry segments and from each of the major geographic regions.
Revenue — Pure-play D&A providers and full-service D&A providers are evaluated if they meet the above inclusion criteria and the following revenue requirements:
Pure-play providers are companies that derive more than 90% of their revenue exclusively from D&A consulting and integration services. They are expected to have at least $300 million in annual D&A revenue.
Full-service providers are companies with at least $500 million in annual D&A professional service revenue, as part of a larger portfolio for all professional services in application-related work (e.g., CRM, ERP or supply chain management, singly or in combination).
Geography — The providers offer implementation services for D&A solutions with:
The majority of revenue derived from clients in at least two of the three primary geographies (North America, Western Europe and Japan), as well as
Additional revenue derived from clients in at least two of the four secondary geographies (Asia/Pacific, Latin America, the Middle East and Africa, and Eastern Europe).
Software — The providers are not to derive more than 50% of their revenue from activities related to a single product or software vendor.
Information during the evaluation process is gathered by briefings provided by the service providers, annual reports and other publicly available information, as well as data from the providers including preinclusion survey and customer reference checks conducted as part of the research. Gartner gathers information as it continuously speaks to providers and their clients throughout the year.
These service providers were not included as they did not meet the inclusion criteria, but have significant market presences nonetheless. Depending on product, resourcing objectives, size of project, geography or other factors, one of these may make a better match. Some focus only on a single D&A service, business or delivery model, or geography; some are smaller in size. Below is a nonexhaustive list:
The Ability to Execute dimension in our analysis evaluates the service provider's capacity to implement the services described in its strategic plan and in clients' proposals and contracts, as well as its track record in doing so. It considers the depth and breadth of services offered at each level of the Gartner Business Analytics Framework. Ability to Execute includes the service provider's demonstrated ability to satisfy clients' needs through a combination of tools, techniques, methodologies, alliance partners, and vertical and process expertise.
Product or Service
Source: Gartner (February 2018)
The Completeness of Vision dimension evaluates the service provider's strategic vision to deliver what's necessary for clients to execute on the Gartner Business Analytics Framework. Completeness of Vision includes the service provider's depth of knowledge of the markets, of the direction of key market trends, and of the customers it serves. The service provider's scope of vision and the mind share it has achieved with potential buyers are important. Factors analyzed include the service provider's commitment to its D&A practices, funding and allocation of resources and skills building, and how it positions itself to address future industry scenarios through investments in R&D, methodologies, alliances and partnerships.
Vendors are rated on their strategies for how market forces can be exploited to create opportunities for themselves and their clients. Ultimately, vendors are judged on their ability to capitalize on their vision.
Offering (Product) Strategy
Source: Gartner (February 2018)
Leaders provide offerings that meet demand in analytical services, as well as demonstrate the vision necessary to sustain their position as requirements for asset-based consulting evolve in the market. Leaders innovate products, services and pricing, take chances and typically respond to a wide market audience by supporting broad market requirements, in an attempt to help shape the market. This includes delivering business-outcome-focused D&A solutions across all levels of the Business Analytics Framework. However, Leaders may fail to meet the specific needs of more-specialized segments (for example, technology, application, geographic and process segments).
Challengers have a strong ability to execute and match their own offerings to what they see their own clients requesting, which may be behind global demand and the dynamic market direction (as defined by the Business Analytics Framework). Although Challengers typically have sufficient scale and financial resources, they may lack the breadth of vision, innovation or overall ability to impact market development. Challengers become Leaders when their vision develops in concert with their ability to maintain a high level of execution. This market is dynamic, and many providers are investing to cover global breadth and changes in capabilities needed.
Visionaries align with Gartner's view of how the market is evolving, but they are still building proof points of their ability to deliver against that vision. This may reflect a competitive strategy, such as selling an innovation ahead of mainstream demand, aligning execution capabilities with that innovation, or it may reflect early attempts at differentiating in the market.
Niche Players do well in a segment of the market, or they have limited ability to innovate or outperform other service providers due to the high investment demands required to compete across all aspects of the Business Analytics Framework. This may be because they focus on a domain, vertical market, service offering or geographic region, or because they do not offer a broad range of services for competing platforms. Their ability to execute can be affected by the focus areas of expertise, as well as customer perception of services. Niche Players are often in the process of reinvesting in their offerings and developing the scale to execute for a broader set of clients.
"Data and analytics" is a broad term that includes the applications, infrastructures, tools and best practices that enable access to, and analysis of, information to improve and optimize decisions and performance. To this end, there are hundreds of service providers that specialize specifically in the components of data management, data governance, BI platforms, advanced analytics for a function or process, AI and machine learning, IoT analytics, or analytical applications. Additionally, the product vendors have professional services that specialize in their own product portfolios.
The 18 providers in this evaluation create solutions that combine software and professional services. The Magic Quadrant establishes the competencies of decision management capabilities, analytics capabilities and information management capabilities within the broader expectations of what a full-service provider offers. Such offerings include strategy consulting; a blend of process, industry, application and technology; program and project management skills; and organizational change management.
Service providers help customers combine these different elements into a unified portfolio. Increasingly, components of solutions are software assets that service providers have built or acquired, and now maintain. In fact, there is a deliberate strategy by service providers to offer data management platforms and analytics products as on-premises or as-a-service offers.
When considering advisory and implementation partners for a request for information or request for proposal, Gartner advises organizations against simply selecting vendors that appear in the Leaders quadrant. All selections should be buyer-specific, and vendors from the Challengers, Niche Players or Visionaries quadrants may be better matches for business goals and solution requirements. Additionally, clients should consider all potential options based on a project's specific criteria and requirements, which are likely different from the inclusion criteria for this Magic Quadrant. Other service providers not evaluated in this Magic Quadrant may present better alternatives for your business requirements.
This Magic Quadrant represents a snapshot of the D&A service market at a particular point in time. Gartner advises readers not to compare the placement of vendors from prior years in other research. The market is changing — vendor acquisitions, partnerships, solution development and alternative delivery are evidence — and the criteria for selecting and ranking vendors continue to evolve. Our assessments take into account the vendors' current offerings and overall strategies, as well as their future initiatives. We also factor in how well vendors are driving market changes or adapting to changing market requirements.
This Magic Quadrant will help CIOs as well as business and IT leaders who are looking for service provider partners for their D&A programs.
Digital business is disrupting every industry and has ignited a sense of urgency among IT leaders. In fact, 95% of CIOs surveyed by Gartner expect digitalization to change their jobs as they build the supporting digital business technology platform (see "Research Presentation for 'The 2018 CIO Agenda: Mastering the New Job of the CIO'" ). Data and analytics (D&A) leaders play an especially decisive role in the digital transformation of their organization, as they support with essential insights about their customers, partners, employees and things.
This D&A platform delivers much-needed data management and governance, customer analytics, ecosystem analytics, business and operational analytics, and IoT analytics. There is a strong motivation to drive toward a data-driven organization with an analytics mindset of unlimited possibilities. However, many organizations still attempt to move from a basic or opportunistic level of data and analytics maturity toward a more systematic, differentiating or even transformational stage (see "ITScore for Data and Analytics" ). Therefore, not surprisingly, the No. 1 area of technology investment among CIOs is still analytics and BI, with AI moving up to No. 10 (see "Research Presentation for 'The 2018 CIO Agenda: Mastering the New Job of the CIO'" ).
This increasing significance of D&A has been fueled even further by the abundance of data, the decreasing cost of infrastructure and a further acceptance of open-source technology. This has led to the need for specialized D&A skills such as data science (R, Python, etc.) or data engineering (Kafka, Spark, etc.) and solutionlike data lakes. There is increased complexity of data sources and analytical methods to service the increasing business demand and various analytics initiatives across the enterprise. There is even faster acceleration of market interest in AI. According to Gartner research, the number of AI implementations has gone up 150% in the last two years (see "Research Presentation for 'The 2018 CIO Agenda: Mastering the New Job of the CIO'" ).
As a result, Gartner clients realize the need for D&A support from an external service provider. Executives who are responsible for D&A at an enterprise level, such as chief data officers, especially express the need for additional assistance. Recent research indicates that 41% of top-performing organizations have a CDO, versus 21% of typical organizations (see "Research Presentation for 'The 2018 CIO Agenda: Mastering the New Job of the CIO'" ).
External service providers interact more and more with technology-savvy clients that want to bring D&A closer to the business process and business decisions. New topics such as monetization arise, with organizations wanting to leverage D&A for economic benefits, whether indirectly (optimizing the business) or directly (converting data or analytics into cash).
One way that service providers deal with this new demand is to give their customers access to a curated, often cloud-based technology platform. These platforms allow end users to develop their own analytics applications using prebuilt building blocks or frameworks. Alternatively, they can be used to deploy off-the-shelf horizontal and/or vertical analytical solutions, which can be customized to fit the specific context, business application or workflow. Most of these platforms support either open-source or proprietary tools and technologies, and can connect to disparate data sources (IoT) and ecosystems (API). By augmenting these platforms with data science and machine learning services, the demand for scarce skills and capabilities can be met. Finally, these platforms can help scale the delivery of analytics across the enterprise.
Gartner estimates that the 18 vendors in this Magic Quadrant cover one-third of the D&A service market, while hundreds of other vendors cover the remaining two-thirds. These numbers support our observation that the market is currently at a disruption point, with the emergence of:
New business models. The market is moving from only implementing standard software through services toward buying customizable software and services. This means being a software developer, service provider, technology innovator and ecosystem enabler in one.
New pricing models. The typical pricing models are moving from time-and-material-based or fixed prices toward different models, such as pay-per-use, outcome- or value-based models or even shared reward.
New delivery models. Delivery of analytics is moving from system integration to insights-as-a-service, and there is also a shift from labor arbitrage (supported with analytical assets) to intelligent automation of services (from people to systems).
New products. In order to address specific business processes or market verticals, service providers are adding software to their services while software vendors are adding services to their products. The result is a converged software and service offering, or "servware," often taking the form of a D&A platform and/or application.
New collaboration models. Increasing complexity and possibilities lead to new forms of collaboration between service providers and their clients or partners, or even a combination of them all: services-to-services, services-to-software, services-to-ecosystem, services-to-customers.
New D&A providers. The existing players — mainly large SIs and consultancies or boutiques — find themselves in competition with business software vendors (such as Salesforce Einstein), analytics software vendors that offer services, and competition or crowdsourcing platforms. We expect to see an increasing amount of mergers and acquisitions in this space.
|D&A||data and analytics|
|IoT||Internet of Things|
Extensive data on functional capabilities, customer base demographics, financial status, pricing and other quantitative attributes gained via a request-for-information process engaging providers in this market.
A telephone and web-based survey of reference customers identified by each vendor (minimum of 10 references that generally represented the inclusion criteria per vendor). This captured data on usage patterns (e.g., technology skills or business expertise), levels of satisfaction with major product functionality categories, various provider attributes (e.g., pricing, service delivery) and more. In total, 201 organizations across all major regions provided input on their experiences with their provider's frameworks and services.
Feedback about services and providers captured during conversations with users of Gartner's client inquiry service. Inquiry analysis and inquiry share estimates were developed by Gartner, based on the volume of inquiries received about this market (these estimates are not representative of the entire market). Between August 2016 and August 2017, analysts across Gartner collectively took more than 8,200 end-user inquiries on D&A services.
Market share and revenue growth estimates developed by Gartner using primary research, including direct conversations with vendors and customers, and secondary research, such as financial reports and marketing material.
Data and analytics services are consulting, implementation and managed services for decision, analytics and information capabilities, executed on a technology platform that supports an organization's fact-based decision making. Solutions contain information analysis and information management (IM) competencies, with commercial off-the-shelf and proprietary assets. Information analysis solutions focus on use cases and outcomes; IM solutions focus on information infrastructure and governance.
On 24 May 2016, CSC announced that its Board of Directors had unanimously approved a plan to merge the company with the Enterprise Services segment of Hewlett Packard Enterprise (HPE). The new company, DXC Technology, was established on 3 April 2017.
Product/Service: Core goods and services offered by the vendor for the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria.
Overall Viability: Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization's portfolio of products.
Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel.
Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor's history of responsiveness.
Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leadership, word of mouth and sales activities.
Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on.
Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.
Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen to and understand buyers' wants and needs, and can shape or enhance those with their added vision.
Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements.
Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.
Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements.
Business Model: The soundness and logic of the vendor's underlying business proposition.
Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets.
Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes.
Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.