Magic Quadrant for Sap Imple 261880

G00261880

Magic Quadrant for SAP ImplementationService Providers, WorldwidePublished: 31 July 2014

Analyst(s): Susan Tan

SAP has a large ecosystem of implementation service providers, butproviders' investment focus and strengths vary. Buyers of SAPimplementation services can use this Magic Quadrant to identify serviceproviders for a broad range of global SAP implementation services acrossmultiple SAP solutions.

Market Definition/DescriptionThe aim of this Magic Quadrant is to evaluate service providers for a broad range of implementationservices across multiple SAP applications and technologies. Buyers of SAP implementationservices can use this Magic Quadrant to help identify and evaluate the right providers of a broadrange of SAP services for their organization. This Magic Quadrant is not suitable for clients lookingfor best-of-breed service providers for a specific module, application or industry. Gartner documentscovering CRM services, supply chain services, testing services or business intelligence (BI) servicesare better-suited for such purposes. In addition, Gartner publishes a companion document, "MagicQuadrant for SAP Application Management Service Providers, Worldwide," to help clients identifyleading providers of managed services for their SAP productive systems.

There are over 3,200 service partners and over 4,200 channel partners/distributors in the SAPecosystem worldwide. This Magic Quadrant assesses 17 of the leading service providers. Eachprovider has its own strengths and weaknesses, and each is more suitable for some types ofengagements and some clients/industries than others. Many capable providers, not included in thisstudy because of our inclusion criteria and methodology, may be a better fit for specific SAPimplementation projects, depending on module, resourcing objectives, size of project, geographyand other factors. Clients are advised to talk to a Gartner analyst to narrow down a shortlist of best-fit service providers.

In this Magic Quadrant, we evaluate service providers for SAP programs that include:

■ Ability to provide a comprehensive set of consulting, system integration and implementationservices across multiple SAP applications, products and technologies

■ Ability to service multiple industries (see Note 1) in multiple geographies (see Note 2)

For this report, we use the following definitions:

■ Consulting services are advisory services designed to help companies analyze and improvethe effectiveness of business operations and technology strategies. These go beyond technicalblueprinting to include operating-model changes, business process improvement,standardization and harmonization of processes, and so forth when they are part of the SAPprogram. They also include program management, change management and governance.

■ System integration and implementation services include configuration, customization andenhancement of existing SAP functionalities; application, report and interface development; anddata loading, rollout, integration, testing and training services.

Methodology

Gartner evaluates service providers on their Ability to Execute and their Completeness of Vision.Evaluation is informed by a comprehensive set of primary and secondary research activities,including 177 client references supplied by the evaluated service providers; feedback from Gartnerclients and insights from client inquiries throughout the year; a detailed vendor survey; briefings;and publicly available information. This research was peer-reviewed by 14 other Gartner analysts;their views and comments were taken into account. In addition, this document was presented anddefended at a Gartner Application Services Research Community session. For more detailsregarding the methodology, see the Evidence section.

Page 2 of 39 Gartner, Inc. | G00261880

Magic QuadrantFigure 1. Magic Quadrant for SAP Implementation Service Providers, Worldwide

Source: Gartner (July 2014)

Gartner, Inc. | G00261880 Page 3 of 39

Vendor Strengths and Cautions

Accenture

Accenture has the largest SAP service practice globally, with 38,500 professionals, of whom abouta third are in cost-competitive locations within its Global Delivery Network. In the last 12 months, itdelivered SAP services to more than 1,000 clients globally and is again the system integrator (SI)partner driving the highest SAP collaborative revenue globally. Implementation accounted for anestimated 66% of its SAP business globally in 2013, with the rest coming from infrastructureservices, hosting and application management services. In 2013, Accenture derived its SAPimplementation business from 16 out of the 22 industries defined in this Magic Quadrant, with themain ones being oil and gas/chemicals/resources, consumer goods, energy and utilities, publicsector, high tech, retail, and mining and construction, but it has a repository of 20,000 processmodels across 20 SAP industry solutions. Accenture derives the majority of its SAP implementationbusiness from companies with more than 10,000 employees.

Accenture invests in 20 SAP industries but prioritizes the following growth industries: financialservices, retail and telecommunications.

Strengths

■ Scale and global reach — Accenture has deep and broad capabilities spanning the SAPportfolio of products and technologies, across industries, geographies and service lines. It has agood spread of consultants across different regions, and it is a particularly good fit for largeglobal programs that require global reach and onshore, nearshore and offshore resources.

■ Strengths and investments in new SAP technologies — Accenture continues to invest insolutions and capabilities in newer SAP technologies, including Hana, mobility and cloud. It isalso the largest and most experienced partner for Ariba, SuccessFactors and hybris because ofits partnership with these software vendors before their acquisition by SAP. Accenture and SAPBusiness Solutions Group, the recent co-innovation with SAP, currently have two solutions inthe market: a Marketing Performance Solution by Accenture and SAP for chief marketingofficers and Upstream Production Operations by Accenture and SAP for the oil and gasindustry. Both solutions are built on Hana. In addition, Accenture delivers its own HR Audit andCompliance software as a service on the SAP Hana Cloud Platform.

■ Delivery predictability and leadership — Accenture brings its proven methodologies; a strictdiscipline and governance; a broad range of tools, frameworks, industry process maps andaccelerators; and an industrialized process to its engagements, ensuring a high level ofpredictability for the most complex programs. Clients value Accenture's ability to provideleadership, discipline, an independent point of view, best practices and stakeholder alignment.

Cautions

■ Less suited to smaller clients — Accenture's SAP practice mostly serves the largestenterprises in each country. Small and midsize clients may not get the resource availability andattention they need from Accenture.


■ Resourcing gaps and inconsistency — Even with Accenture's scale, some clients in smallermarkets have reported challenges in staffing and finding the right resources for theengagement. Similarly, resource quality and experience for the same roles can vary widely bycountry.

■ Premium price — Clients continue to perceive Accenture's pricing, especially in subsequentrollout phases, to be high.

Atos

Atos has nearly 10,700 SAP-skilled professionals. An estimated 42% of its global SAP revenue isderived from implementation services; the remainder (58%) is derived from application managementand infrastructure services. About a third of its SAP professionals are located in global deliverycenters managed globally as part of Atos global profit and loss. In 2013, Atos derived its SAPimplementation business from 16 out of the 22 industries defined in this Magic Quadrant, with themain ones being industrial, public sector, energy and utilities, retail, and oil and gas. Atos derivesthe majority of its SAP implementation business from large companies with more than 10,000employees.

Atos focuses its investments in the following key industries: healthcare, process industry, chemical,retail and banking.

Strengths

■ Strong presence in Europe — One of the leading SIs in Europe, Atos is particularly strong inFrance, Germany, Benelux, the U.K., and Central and Eastern Europe, and it is expanding intothe Middle East and North Africa, South Africa, the Commonwealth of Independent States,Brazil, Mexico and China. Atos derives nearly 80% of its SAP service revenue from EMEA. ItsEuropean-centric heritage and presence continue to define it to this day.

■ Industry focus — Atos focuses on a set of industries that include: manufacturing, retail,utilities, public sector, automotive, chemicals, healthcare and financial services. Atos activelypartners with SAP to develop new solutions based on their day-to-day interactions with theirclients, including Atos' largest account, Siemens.

■ Expertise in selected offerings — Atos has invested in and has more than 10 years ofexperience with large and complex consolidation and harmonization programs, mostly forEurope-headquartered clients with global reach. It is a leading provider in applying SAPsustainability solutions for energy and sustainable operations. It is a key implementation partnerfor enterprise mobile products, as well as developing mobile apps to extend SAP products. Inaddition, Atos has a cloud focus through Canopy — its dedicated cloud company — that offersinfrastructure as a service, as well as bundled license/service/hosting cloud solutions (forexample, an HR for Financial Services cloud solution). Atos is a certified Hana Enterprise Cloudprovider.


Cautions

■ Global coverage — Atos lags behind its Tier 1 competitors outside its main markets in Europe.Its brand and presence in North America, Asia and Latin America is limited. However, it isimproving and currently has seven offshore and nearshore global delivery centers and has localSAP presence in 35 countries. In Atos' main markets in Europe (Benelux, France, Germany andthe U.K.), it faces increasing competition from the large Indian service providers offering lower-cost options.

■ Lack of mind share outside product manufacturing industries — Although Atos has strongSAP applications and technical capabilities, it has not been very successful in gaining mindshare broadly as a leading SAP service provider or as an innovative provider outside of Europe.Atos is not well represented in competitive shortlists outside the product manufacturingindustries.

■ Vision, consulting capabilities and business expertise — While Atos' SAP application andsystem integration expertise are rated highly by clients, clients score Atos below average on itsvision and thought leadership, consulting/advisory and process improvement capabilities andbusiness acumen.

Capgemini

Capgemini has 14,870 SAP-skilled professionals. An estimated 65% of its global SAP business isderived from implementation, and 35% is derived from infrastructure services, hosting andapplication management. Nearly 40% of its SAP professionals are located in global delivery centers.Capgemini had more than 1,300 SAP service clients worldwide in 2013. Capgemini derived its SAPimplementation business from 21 out of the 22 industries defined in this Magic Quadrant, with themain ones being oil and gas, consumer goods, energy and utilities, and services. Capgemini derivesits SAP implementation business from companies of all sizes.

Capgemini focuses its investments in the following industries: retail/consumer packaged goods(CPG), oil and gas, utilities, manufacturing, public sector, and financial services.

Strengths

■ Heavy investments in newer technologies — Capgemini has made significant investments inSAP's newer technologies, which have resulted in Capgemini boasting a track record of doing/having done 10 Suite on Hana projects (five live), 30 BW on Hana projects, numerous newapplications on Hana, a mobile Direct Store Delivery application co-innovation with SAP, andproofs of concept with Hana and Hadoop for Big Data.

■ Alternative delivery and pricing — Capgemini continues to innovate on delivery and pricingmodels that offer clients different alternatives to buying and paying for SAP systems. Itsmanaged cloud as a service (MCaaS) offering, branded "OnePath," includes several of itspreconfigured industry solutions that are offered as a bundle of software and services — SAPlicense, design, implementation, infrastructure services, application management, hosting andbusiness process outsourcing (BPO) — and that can be bought on a subscription basis. TheseOnePath solutions are built on Suite on Hana.


■ SAP application expertise and rapid implementation — Clients are generally impressed withCapgemini's SAP application and product expertise, senior leadership engagement, and rapidimplementation.

Cautions

■ Limited coverage and client base in Asia/Pacific — Capgemini's traditional region is EMEA,which continues to provide more than half of its business. It is growing rapidly in North America,which now makes up over a third of its business. Its acquisition of CPM Braxis has improved itspresence and delivery capabilities in Latin America, particularly in Brazil. However, its localpresence in Asia/Pacific is currently limited, despite achieving triple-digit growth and recentlyannouncing the formation of a dedicated Asia/Pacific business unit designed to accelerate itsgrowth further. Currently, the majority of its consultants based in Asia/Pacific are in globaldelivery centers servicing European and North American clients.

■ Inconsistency in delivery quality — While Capgemini has invested in making its delivery moreglobally consistent through its iSAP methodology, global governance and common tools,delivery quality varies widely, with some clients reporting high levels of satisfaction while otherswere less than thrilled with their project team performance. Clients are cautioned to be diligentin checking the project team's qualifications.

■ Healthcare, education and insurance, Ariba, and hybris — Capgemini has relatively lessexperience and expertise outside the five key sectors of retail/CPG, utilities, manufacturing,public sector and banking. Capgemini's experience in Ariba and hybris is also more limited thanits competitors', although it is rapidly building its hybris capability.

Cognizant

Cognizant is one of the fastest-growing IT services firms. It is based in the U.S. but known for itsIndia-based offshore model. Cognizant has more than 7,700 SAP-skilled professionals. Anestimated 57% of its global SAP business is derived from implementation; the other 43% is frominfrastructure services, hosting and application management. About 70% of its SAP professionalsare located in global delivery centers. In 2013, Cognizant derived its SAP implementation businessfrom 17 out of the 22 industries defined in this Magic Quadrant, with the main ones beingmanufacturing, retail, consumer goods, life sciences, and utilities and energy. Cognizant derives themajority of its SAP implementation business from companies with more than 10,000 employees.

Cognizant focuses its investments in the following industries: life sciences and healthcare, retail andhospitality, manufacturing and logistics, consumer goods, financial services, communication,technology, and media.

Strengths

■ Strong growth — Cognizant's SAP practice has consistently grown in the 20%-to-30% rangeover the last few years, a result of strong sales, account management and delivery capabilities.In 2013, growth in Europe was especially strong; it has grown organically and through


acquisitions (such as the acquisition of Germany-based C1 Group). Strong growth has enabledCognizant to invest in its SAP practice (such as innovation centers, training, tools andcapabilities in the newer SAP family of products), as well as to attract good talent. It targetsspecific industries and domains for investments, and it continues to capitalize on its cost-effective offshore delivery model and strength in testing services.

■ Value for money — While Cognizant is not the least expensive service provider, clients citeCognizant as price-competitive and a good value for money. Cognizant's highly offshore-leveraged business model, coupled with investments in local resources to create whatCognizant calls the two-in-a-box model of pairing key onshore delivery roles with their offshorecounterparts — as well as investments in knowledge management systems, such as theCognizant 2.0 portal, and tools and reusable assets to accelerate implementation — haveresulted in quality work at a competitive price point.

■ Delivery focus — Clients are impressed by Cognizant's focus on successfully delivering theproject, its willingness to work with the client to overcome challenges, its commitment to along-term partnership, and its flexibility in staffing and adapting to the client's requirements,such as training its staff to use agile methodology to implement SAP for a Europeanconglomerate.

Cautions

■ Limited presence in Latin America and Asia/Pacific — North America and Europe continueto provide the bulk of Cognizant's SAP business, estimated at over 90% of its SAPimplementation business in 2013. Its local presence in Latin America and Asia/Pacific issporadic, and the majority of its consultants based in Asia/Pacific are in global delivery centersservicing European and North American clients.

■ Gaps in project delivery capabilities — Although rapidly improving, Cognizant's SAP practiceis still maturing as it moves up the value chain into more-complex global projects. While it hasdelivered projects in complex transformational programs, its track record in this space lagsbehind those of its major competitors. It needs to enhance its program and projectmanagement, change management, and advisory capabilities.

■ Limited industry capabilities outside its target verticals — Outside its focused industries,Cognizant has limited industry and process skills. Even within its target verticals, its bench ofconsultants with strong industry and process skills can be deeper.

CSC

CSC has more than 8,000 SAP-skilled professionals. About half of the SAP professionals arelocated in global delivery centers. An estimated 40% of its SAP business is derived fromimplementation, and the rest is derived from infrastructure services, hosting and applicationmanagement. In 2013, CSC derived its SAP implementation business from 19 out of the 22industries defined in this Magic Quadrant, with the main ones being public sector, aerospace anddefense, oil and gas/chemicals, and banking. CSC derives the majority of its SAP implementationbusiness from companies with more than 2,500 employees.


CSC has focused its recent investments in the following priority industries: aerospace and defense,public sector, banking, defense and security, chemicals, and automotive.

Strengths

■ Global alignment and renewed investments — As a result of CSC's global reorganization, itsSAP implementation practice is now a core part of its consulting practice, making it easierorganizationally for CSC to bring consulting capabilities to its SAP engagements. Among someof its key investments are industry-specific solutions, mobility, Hana, cloud solutions and corebanking.

■ Public sector — CSC has performed some of the most complex SAP engagements for severalU.S. government agencies, including the U.S. Army's Logistics Modernization Program andCustoms and Border Protection. CSC has approximately 370 U.S. federal SAP experts,specializing in solutions such as SAP financial management, federal logistics solutions, SAPfraud, waste and abuse, SAP mobility, and analytics/Hana solutions. CSC also providessignificant SAP public sector work in Australia and in parts of Europe.

■ Capabilities and delivery commitment — Clients are impressed by CSC's projectmanagement capabilities, SAP and IT expertise, commitment to delivery, and seniormanagement involvement. CSC is also strong in system integration, in particular, in theintegration of SaaS/cloud environments with on-premises SAP and legacy environments.

Cautions

■ Business transformation capabilities — Although CSC's SAP practice is now part of itsconsulting practice, clients continue to report that CSC can be better at businesstransformation and organizational change and design, in terms of a deeper bench, as well asdeeper expertise.

■ Global integration in progress — While CSC strives to become globally integrated, it is stillvery much a work in progress. It has pockets of strong capabilities in specific industries incertain countries, and different industries in other countries. Also, CSC's coverage and clientbase in Asia and Latin America are somewhat limited.

■ Size and growth of the SAP implementation business — CSC needs to balance its portfolioof SAP services to increase the percentage of business from implementation. With an estimated40% of its SAP business from implementation, it is one of the smaller providers in this study.Additionally, its SAP implementation service business has not performed as well as the otherproviders in terms of growth, which affects its scores in overall viability.

Deloitte

Deloitte is a global network of accounting, tax, consulting and advisory member firms with a broadIT services portfolio. It has more than 12,500 SAP-skilled professionals worldwide. About a quarterof its SAP professionals are located in global delivery centers. Around 88% of its SAP business isderived from implementation, and the rest is from its emerging application management practice. In


2013, Deloitte derived its SAP implementation business from 20 out of the 22 industries defined inthis Magic Quadrant, with the main ones being consumer goods, retail, life sciences, manufacturingand high tech. Deloitte derives the vast majority of its SAP implementation business fromcompanies with more than 2,500 employees.

Deloitte focuses its investments in the following industries: consumer business, energy andresources, financial services, life sciences and healthcare, manufacturing, technology/media andtelecom, and public sector.

Strengths

■ Multiple competencies — Deloitte has multiple competencies that it can draw on to assist anSAP-enabled business transformation. These competencies include strategy and operations,technology, human capital, tax, and enterprise risk services. In addition, Deloitte has "feet onthe ground" in 150 countries, allowing it to bring knowledge of local laws, regulations, businesspractices and culture to any engagement.

■ Quality delivery skills — Clients perceive Deloitte to be good at leading complex changeprograms, with the right level of partnership, flexibility and quality of service. Industry expertise,process knowledge and ability to bring best practices to the engagement are also cited asstrengths.

■ Track record and experience in newer technologies and innovation — Deloitte hasdemonstrated the ability to respond and achieve competitive success as opportunitiesdeveloped for newer SAP technologies. Specifically, it has implemented an above-averagenumber of engagements in Hana, SuccessFactors, Ariba, hybris and mobile. In addition,Deloitte has invested in a number of innovative solutions, including a Hana-based risk-on-demand analytic platform that consolidates and aggregates data to give a completeunderstanding of risk across the entire organization in real time.

Cautions

■ Premium price — Pricing is one of the most common reasons for clients to disqualify Deloitteduring the competitive bidding process. Its higher price is due to a combination of a largernumber of resources proposed and a higher percentage of more expensive resources in theproject team mix. Although it has significantly grown its offshore capabilities, Deloitte also tendsto utilize a lower percentage of offshore resources compared with some of its competitors,which also drives up its overall price in high-price locations.

■ Global consistency — Although Deloitte has taken steps in recent years to improve globalconsistency, capabilities continue to be uneven across different countries. Capabilities in single-country engagements in smaller markets are still maturing; the level of capabilities and use oftools can sometimes differ by country.

■ Inconsistent resource skills — While Deloitte is traditionally known for its changemanagement capabilities, several clients have been less than satisfied with the changemanagement resources assigned to their SAP programs. Clients have also noted weaker


resources in system integration and auxiliary work on non-SAP technologies. Integration acrossdifferent service lines is sometimes not as seamless as clients expect.

EY

EY (formerly Ernst & Young) is a global network of member firms that provide assurance, tax andadvisory services. It has more than 3,600 SAP-skilled professionals worldwide. About 10% of itsSAP professionals are located in global delivery centers. All of its SAP business is derived fromimplementation. In 2013, EY derived its SAP implementation business from 18 out of the 22industries defined in this Magic Quadrant, with the main ones being energy and utilities andautomotive. EY derives the vast majority of its SAP implementation business from companies withmore than 2,500 employees.

EY renewed its commitment to the SAP implementation market in 2010. Since then, it has grownvery rapidly, chalking up over 50% growth in 2013. It is also expanded through acquisitions, havingbought LogiStar Solutions for its SAP supply chain execution capabilities and Five Point for itscustomer care and billing system implementation services for the power and utility industry. EYfocuses its investments in the following industries: manufacturing, life sciences, finance andinsurance, consumer goods, power and utilities, and communications.

EY's position in the Visionaries quadrant reflects its strong vision in the application of newertechnologies, use of alternative delivery models, and investment in innovation, such as analytics,fraud management and governance, risk and compliance (GRC) cloud. However, EY has anemerging track record in large global SAP implementation and needs to continue its aggressivegrowth in some regions.

Strengths

■ Rapid growth built on traditional strengths — EY's strengths in its SAP practice are builtupon its core traditional strengths in performance improvement, finance, tax, controls and riskmanagement. Service offering strengths include program management; business engagementand readiness; requirement definition and process design; finance performance improvement;planning; budgeting; forecasting; implementing GRC, business planning and consolidation(BPC) and sales and operations planning; and tax-effective supply chain. Clients' feedbackindicates that EY consultants demonstrate strong leadership and industry expertise, are able torecommend more-efficient business processes, and are committed to project success.

■ Investments in innovation — EY is rapidly building up credentials in the newer technologies,including Hana, cloud and SuccessFactors. In addition, it has an analytics-as-a-service offeringand has several co-innovation initiatives with SAP, including predictive fraud management,integrated business planning on Hana Enterprise Cloud, tax transformation and GRC CloudServices — impressive for a relative newcomer to the SAP implementation scene.

■ Trusted advisor status — Leveraging the EY brand and other service line capabilities, EY'sSAP practice has credibility with business users and is able to align the SAP change program to


the needs of the business, making EY a strong contender to help its clients in quality assuranceand benefit realization in an SAP program.

Cautions

■ Lack of scale — Although growing rapidly, EY has a staff bench that can limit its ability toservice multiple large-scale global projects. It partners with other service companies for suchprojects.

■ Maturing global delivery model — Clients reported EY as being a higher-cost provider due toits limited offshore play. Globalization of its practice is still a work in progress: North Americaaccounts for over three-fourths of its revenue; in global projects, clients report that they need towork with EY partners in each member firm in the countries rather than a global team — whichEY sees as an advantage giving clients access to their local leadership — but some clientsprefer a consistent point of contact.

■ Less-mature assets — While EY is furiously investing in SAP implementation-specific toolsand assets, typically customizing the non-technology-specific ones it already has, they are notyet well-tested in multiple client engagements, hardened or industrialized. Clients report that itstools and accelerators are not as strong as demonstrated in the proposal, and implementationmethodologies are less defined.

HCL Technologies

HCL Technologies has more than 8,600 SAP-skilled professionals, of whom about 60% are locatedin global delivery centers. An estimated 66% of HCL's SAP business is derived fromimplementation, and the rest is derived from infrastructure services, hosting and applicationmanagement. In 2013, HCL derived SAP implementation revenue from 18 of the 22 industriesdefined in this Magic Quadrant, the key ones being aerospace and defense, oil and gas, utilities andenergy, transportation, consumer goods, and public sector. HCL derives the majority of its SAPimplementation business from companies with more than 2,500 employees.

HCL focuses its investments in the following industries: aerospace and defense, utilities,manufacturing, CPG/retail, and life sciences.

Strengths

■ Deep expertise and balanced investments — Overall, HCL has strong expertise across thecore set of SAP products and is investing in implementing both traditional and newer SAPtechnologies. It has built up good experience in Hana and hybris and is investing inSuccessFactors. By industry, it has a particular focus and strength in aerospace and defense,high-tech and manufacturing, consumer goods, life sciences, utilities and energy, and traveland transportation. In particular, it has deep industry knowledge in maintenance, repair andoperations (MRO) for aerospace and defense, and it brings to engagements its iMRO product,an SAP-endorsed, upgrade-compatible industry solution add-on. Its iCARE solution is a CRMtemplate that helps call center staff provide effective and efficient customer service.


■ Focus on benefit realization — One of the first service partners to embed formal benefitrealization methodology into SAP program delivery, HCL works with clients to deploy solutionswith tangible business benefits, enabled through a comprehensive set of processes. Theseprocesses include identifying business benefits and converting these benefits into quantifiablefinancial gains, as well as ensuring decisions made during implementation are aligned withbusiness benefits identified — thereby maximizing the potential for the program to achieve itsdesired business value. Its willingness to put "skin in the game" through tying a portion of itsfees to the realization of identified benefits attests to its confidence in its delivery.

■ Partnership approach — Clients report that HCL is easy to work with, delivers what it says itwould deliver consistently, provides staff with excellent SAP skills and dedication to supportprogram objectives, and is committed to the success of the implementation. Clients alsoappreciate HCL's ability to give clear guidance and bring best practices.

Cautions

■ Limited presence in Latin America and Asia/Pacific — More than 90% of HCL's SAPbusiness comes from North America and Europe. Although HCL is delivering some large SAPprograms in Asia/Pacific, its local presence in Asia/Pacific is sporadic, and it has very limitedbusiness in Latin America. The majority of its consultants based in Asia/Pacific and LatinAmerica are in global delivery centers servicing European and North American clients.Geographic and language coverage are below those of its competitors, which has led tosubcontracting and the need for a high level of support from bigger practices, such as the U.K.and India.

■ Bench strength — HCL's bench strength of consultants globally is not as deep as its keycompetitors. Clients have noticed that while HCL has strong project managers, subject matterexperts and other key project resources, there is a very limited number of backup resources incases of attrition — which is higher than average — or leave of absence, increasing the risk ofthe project. It has also resulted in some clients getting weaker resources who needed to bereplaced or supplemented.

■ Too flexible — While flexibility is appreciated by clients, they note that HCL consultants aresometimes too flexible and could have pushed back on them with industry best practices thatmay have reduced some custom configuration in the end. Clients also comment that they wouldlike to see stronger project management.

HP

HP is a global provider of end-to-end SAP services with more than 9,200 SAP-skilled professionals.HP delivers these services at client sites and through 18 global delivery centers, where about 40%of its SAP professionals are located. An estimated 48% of its SAP business is derived fromimplementations, and the rest is derived from application management, infrastructure services andhosting support. In 2013, HP derived its SAP implementation business from 14 out of the 22industries defined in this Magic Quadrant, with the main industries being consumer goods, industrial


manufacturing and automotive. The majority of its SAP implementation business is from companieswith more than 10,000 employees, of which many are also its outsourcing clients.

HP focuses its investments in the following industries: consumer services and retail, manufacturing,travel and transportation, healthcare, and life sciences.

Strengths

■ End-to-end services — HP brings to clients a full complement of core and new SAP solutions,including on-premises and cloud solutions. Building on its traditional strengths in infrastructureand operations, HP offers end-to-end services — design, build, run and optimize — to new andexisting clients. HP is extending its focus on delivering business outcomes in its Run SAPServices to its implementation programs.

■ Strong technical capabilities and investments — HP is particularly strong in technology-based services, including infrastructure services, including networks, data center andvirtualization, security and integration, and Basis skills. HP has made significant investments inHana services, Hana-based applications, and the Hana appliance and can provide a bundledsolution, including Hana as a service. HP also excels in SAP Rapid Deployment Solutions (RDS)to get clients up and running quickly.

■ Client focus — Clients report that HP displays a strong sense of responsibility in projectsuccess, focuses on understanding business requirements in detail, and often advocates andrecommends industry best practices.

Cautions

■ Global delivery model is still maturing — While it has made a lot of progress in its globaldelivery model, some clients report that the quality of resources in HP's global delivery centersis inconsistent, and cost is perceived to be higher than average.

■ Capability gaps — Clients have observed that HP has some gaps in implementationcapabilities for some products in the SAP stack and limited bench strength in others. Some skillsets are not readily available in some geographies, and several clients have noted that turnoverof project team members is a challenge even as overall attrition at HP is quite muted. HPpartners with firms to deliver to full client demand where there are capability gaps.

■ Business consulting — While HP is strong in implementation, it does not yet have the fullspectrum of business consulting capabilities to be a one-stop provider in businesstransformational programs. For these, HP continues to partner selectively with its businessconsulting alliance partners, such as PwC.

IBM

IBM has more than 34,200 SAP-skilled professionals. About half of its SAP professionals arelocated in global delivery centers. An estimated 55% of its SAP business is derived fromimplementation, and the rest is derived from infrastructure services, hosting and applicationmanagement. In 2013, IBM derived its SAP implementation business from 18 out of the 22


industries defined in this Magic Quadrant, with the main ones being automotive, consumer goods,public sector, oil and gas, utilities and energy, life sciences, and travel and transportation. IBMderives the majority of its SAP implementation business from companies with more than 10,000employees, but its general business division offers SAP services to midsize clients using a moretemplated approach.

IBM focuses its SAP practice investments in the following industries: automotive, consumerproducts, financial services, life sciences, travel and transportation, telecommunications, andutilities and energy.

Strengths

■ Global reach and scale — IBM has the depth and breadth of technical, functional and processcapabilities across a large number of industries, as well as the global reach for the largest andmost complex global implementations for the largest companies. It offers midsize clientspackaged offerings using its preconfigured industry-specific solutions. IBM offers end-to-endservices, including design, build, rollout, host, manage/operate and BPO.

■ Delivery predictability — IBM has well-tested methodologies and an impressive collection ofreusable asset libraries and tools to help drive successful completion of SAP programs. Clientsappreciate IBM's strong expertise in SAP applications and multivendor capabilities to helpintegrate complex hybrid on-premise/cloud environments, as well as its project management,and commitment and ability to deliver under tight timelines.

■ Strengths and investments in SAP's newer technologies — IBM has shown commitment toSAP by investing in SAP's newer technologies and products, including developing newsolutions on Hana, even while having overlap with some of its own product offerings. Its "Labfor SAP Solutions" showcases end-to-end industry-specific offerings (such as Connected Care,loyalty management and predictive analytics), drives co-innovation activities, and provides aforum for customized client workshops to tackle problems or introduce innovative thinking —through leveraging the broader IBM capabilities from IBM Research, Watson, IBM Strategy andAnalytics, IBM Interactive Experience and IBM industry specialists.

Cautions

■ Less-suitable segments — IBM does implementation in a wide range of industries, focusingon selected ones for increased investments. Clients in other industries — including aerospaceand defense, media and entertainment, education, and not-for-profit — benefit less fully fromthese specific IBM investments. Small organizations — especially those below $500 million inrevenue — will not get the attention they need from IBM.

■ Tight controls and bureaucracy — Given IBM's size and reach, clients can sometimes bechallenged when working across IBM's vast internal landscape and processes. IBM's SAPpractice is currently simplifying its organizational structure and processes to make it easier towork with and pool resources, but in the meantime, some clients indicate that decision makingon contracts, approaches, changes and access to specialized resources can take longer thananticipated.


■ Resourcing challenges — Despite IBM's scale, some clients face challenges in project teamresourcing. Ability to secure local skilled resources with appropriate local knowledge, especiallyin the newer geographies and smaller countries, can be a challenge, and the quality of IBM'sresources can at times be inconsistent. In the last two years, IBM has made significantinvestments in education to increase high-quality resource capacity.

Infosys

Infosys has nearly 12,400 SAP-skilled professionals. An estimated 70% of its SAP professionals arelocated in global delivery centers. About 60% of its SAP business is derived from implementation,and the rest is derived from infrastructure services, hosting and application management. In 2013,Infosys derived its SAP implementation business from 17 out of the 22 industries defined in thisMagic Quadrant, with the main ones being automotive, life sciences, consumer goods, oil and gas/chemicals, high tech, utilities and energy, retail, and agriculture, mining and construction. Infosysderives the majority of its SAP implementation business from companies with more than 10,000employees.

Infosys focuses its SAP practice investments in the following industries: life sciences, retail, CPGand logistics, high tech, process manufacturing, automotive, utilities, financial services andinsurance.

Strengths

■ Focus on value realization — Infosys has developed frameworks and methodologies to focusthe implementation team on value realization, aligning the client's SAP programs with desiredbusiness outcomes. Its willingness to sign up for outcome-based pricing based on valuerealization — although seldom taken up by clients — is also a plus.

■ Investments in newer technologies and delivery models — Infosys is investing in newer SAPtechnologies, including mobile, cloud and SuccessFactors, Hana, UI5 and Fiori technologies.Investments in new delivery models include managed-cloud-as-a-service solutions for oil fieldservices and medical devices, as well as a business platform solution for indirect procurementthat is priced per transaction.

■ Strong capabilities at a competitive price — Clients indicate Infosys offers strong deliverycapabilities — including program management (feedback from legacy Lodestone clients), SAPapplication and technology expertise, and flexible and knowledgeable resources — at acompetitive price.

Cautions

■ Need to expand presence in Latin America and Asia/Pacific — While it has clients in LatinAmerica and Asia/Pacific, Infosys has limited SAP implementation business from these regionsand few implementation professionals on-site in many countries in these regions.

■ Consulting skills — While Infosys has invested significantly in consulting capabilities, includingthe acquisition of Lodestone, client feedback indicates that Infosys can improve its depth of


bench in program/project management, change management, depth of knowledge aroundbusiness processes, local knowledge, thought leadership and ability to bring best practices tothe engagements.

■ Attrition — Attrition at Infosys is above average for this peer group. At the corporate level, thedeparture of numerous key executives is distracting; at the project level, continuity ofconsultants has been a cause for concern among some clients.

Neoris

Neoris was originated in 2000 from the in-house technology arm of Cemex, a leading company inthe building materials industry. Cemex continues to rely on Neoris for its SAP implementation andglobal platform support, arming Neoris with experience in global rollouts in multiple countries aswell as experimentation with innovations like Hana, high-performance analytics and supply chainfunctions. Following acquisitions and organic growth, Neoris today has nearly 3,000 SAPconsultants, and SAP makes up three-quarters of its total business. It is the largest and mostexperienced Latin American-heritage SAP implementation service provider, serving local and Pan-Latin American clients, as well as global clients in a nearshore model. Nearly 90% of its SAPbusiness is derived from implementation; the rest is derived from infrastructure services, hostingand application management. About 60% of its SAP professionals are located in global deliverycenters.

In 2013, Neoris derived its SAP implementation business from 14 out of the 22 industries defined inthis Magic Quadrant, with the main ones being manufacturing, financial services, high tech, utilitiesand energy, CPG, and agriculture, mining and construction. Neoris derives the majority of its SAPimplementation business from companies and business units with more than 2,500 employees.Neoris focuses investments in many industries (manufacturing, natural resources, consumer goods,agribusiness, healthcare, higher education, financial services, telecommunications, retail andutilities), but its core strengths are in manufacturing.

Neoris is a very strong candidate for selected solutions, such as Manufacturing Integration andIntelligence (MII) and analytics, for implementations in Latin America and for nearshore support.Clients are generally highly satisfied with Neoris. It is positioned in the Niche Players quadrantchiefly because of its smaller scale and incomplete coverage for larger geographically dispersedSAP projects.

Strengths

■ Latin American and nearshore capabilities — Neoris is particularly strong in Latin Americanrollouts, and client feedback confirms that Neoris consultants display the skills and knowledgeof local business and statutory requirements that clients seek. In addition to Latin Americanrollouts, Neoris is also a strong candidate for nearshore support of clients in North America dueto a similar time zone, cultural fit, operational reliability and clients in Spanish and Portuguese-speaking Europe due to its language capabilities.


■ Targeted investments in innovation — Neoris is investing in innovation in areas where it has atrack record: MII manufacturing solutions and machine automation through MII; 3D digitalfactory (connecting shop floor to business operations using SAP Virtual Enterprise andMicrosoft Kinect); Hana and high-performance analytics; hybris, omnichannel and retail; videowall visualization of supply chain and other operations (leveraging MII in the back end); asolution utilizing Google Glass for shop floor and warehouse management; and mobile solutions(such as SAP MII on mobile devices to allow employees to access shop-floor databases andcreate their own personalized control panel).

■ Application and technical expertise — Clients report high satisfaction with Neoris,commenting that its consultants generally possess high levels of business and technicalcapabilities and knowledge of SAP. They also cite Neoris' good service quality andunderstanding of clients' requirements, as well as good value for money (although not thelowest price) as strengths.

Cautions

■ Limited presence outside Latin America — Neoris is globalizing its SAP practice through itssupport of its global clients, especially Cemex. However, presence outside Latin America, Spainand Portugal is still small. While Neoris has made expansion in the U.S. a key growth strategy,its current penetration in the U.S. is still low.

■ Partial capabilities and experience in some solutions — Neoris' smaller scale and focus onselect solutions means that it has limited resources and experience in other solutions, such asAdvanced Planning and Optimization (APO), Transportation Management (TM), ExtendedWarehouse Management (EWM) and human capital management (HCM). Neoris continues torely on the support of its established partner network for the implementation of these solutionsoutside of Latin America.

■ Some resourcing challenges — Clients have reported difficulty in staffing scalability in quick-turnaround situations or some geographical locations out of their immediate reach and hencethe need for Neoris to work with its established network of subcontractors.

NTT Data

NTT Data's SAP practice was initially formed through the acquisition of a number of anchorcompanies: Keane, itelligence and Intelligroup. Acquired companies in North America are organizedand integrated under the NTT Data brand. Itelligence continues to use its own brand, but it is nowunder the umbrella of NTT Data Business Solutions. The acquisition spree continued in 2013,adding Optimal (U.S.-based SAP specialist), Everis (Spanish IT firm with Latin American reach), ebs(Romania-based nearshore application management services provider), Aster Group (U.S.-basedSAP BPC specialist), 4C Management Consulting (Danish analytics and performance managementcompany) and Software AG/IDS Scheer in Central and Eastern Europe (SAP regional partner; NTTData had earlier acquired its Canadian counterpart).

NTT Data's SAP Global One initiative integrates the various skills, resources and best practicesunder the NTT Data brand, bringing together nearly 8,000 SAP consultants in 40 countries. An


estimated 40% of its SAP professionals are located in global delivery centers. About 54% of its SAPbusiness is derived from implementation, and the rest from infrastructure services, hosting,application management and license sales.

In 2013, NTT Data derived its SAP implementation business from all the 22 industries defined in thisMagic Quadrant, with the main ones being manufacturing, consumer goods, high tech, automotive,services, and life sciences. NTT Data focuses its investments in the following industries: discretemanufacturing, chemicals, high tech, pharmaceuticals, medical devices, distribution, consumergoods, automotive and higher education. NTT Data derives its SAP implementation business fromcompanies of all sizes — from small enterprises to large corporations.

Strengths

■ Broad geographical reach with local presence — Through numerous acquisitions, NTT Datanow has significantly increased its reach and scale in North and Latin America and Southernand Eastern Europe, with nearshore capabilities for Europe and Latin America, in addition to itsIndian offshore centers. The result is that its SAP revenue is split fairly evenly across NorthAmerica, EMEA and Asia/Pacific. NTT Data clients cite good performance overall with keystrengths in SAP knowledge and the ability to effectively deliver a successful project

■ Investments and experience in newer products and delivery models — NTT Data is quicklyamassing experience in SAP's newer products. It has garnered over 50 engagements andproofs of concept in Hana/Suite on Hana and over 50 engagements in Business ByDesign in2013, making it one of the most experienced providers in these two products. It also has over20 clients in SuccessFactors and is investing in hybris, mobile, MCaaS and Hana EnterpriseCloud.

■ Small-and-midmarket segment — NTT Data is a strong provider for small and midmarketenterprises, because it has invested significantly in prescriptive templates, including over 70RDS and 20 industry solutions, to reduce costs, as well as increase speed and predictability ofimplementation in such organizations. The small-and-midmarket segment is also a sweet spotfor several of the acquired companies, and hence they have a strong track record withgreenfield SAP implementations for such enterprises.

Cautions

■ Limited large-deal track record — NTT Data has numerous large-enterprise clients; however,most engagements are relatively small compared with other vendors. This reflects its focus butcould signal less ability to support large complex deals.

■ Focus needs fine-tuning — With 8,000 consultants, NTT Data runs the risk of spreading itselftoo thinly by expanding in all geographies and nearly all sectors, and serving companies of allsizes. A sharpened focus is needed to build more depth, differentiation and clarity around itssweet spots.

■ Integration is still in progress — Due to NTT Data's ongoing acquisition strategy, itsstrengths, weaknesses and target markets still vary by geography. Capabilities of consultants


still tend to align with each of the legacy companies' traditional strengths, and some clientshave reported challenges in working between countries. NTT Data's One Method initiative hasbeen launched for global consistency, but some NTT Data consultants are not familiar with ordo not practice the project methodologies used.

PwC

PwC is a global network of member firms that provide assurance, tax and advisory services. PwChas more than 6,200 SAP-skilled professionals. Less than 20% of its SAP professionals are locatedin global delivery centers. Virtually all of PwC's SAP business is derived from implementation. In2013, PwC derived its SAP implementation business from 21 of the 22 industries defined in thisMagic Quadrant, with the main ones being consumer goods, retail, utilities and energy,manufacturing: high tech, manufacturing: life sciences, manufacturing: industrial discrete, andmanufacturing: oil and gas/chemicals, and process and resource.

PwC derives the majority of its SAP implementation business from companies with more than 1,000employees.

Strengths

■ Business transformation approach — PwC takes a business transformation approach to itsSAP engagements and is able to bring together strategy, industry, process, tax and softwareexpertise to bear on a program. It emphasizes putting process improvement and best practicesbefore system-level decisions, which makes it a clear fit for advisory and consulting related toSAP-enabled transformation, and implementation projects involving significant changemanagement or process transformation.

■ Relationships with business executives — PwC's brand and relationships with C-levelexecutives and finance professionals position it well in SAP projects that involve sponsorship,buy-in and engagement of these professionals. Clients point to PwC's dedication to results andthe client's success as key strengths. PwC is often the preferred provider for SAPimplementation following its business consulting work for the same client, and it is able to useits prior experience of client organization to overcome technical and organizational challenges.PwC's expertise in finance, risk management and operations enables its consultants totranslate technical topics into business language, providing the ability to build strongrelationships with the business and IT.

■ Broadening capabilities — PwC's strongest segments continue to be financial transformation,performance management, enterprise asset management, supply chain management and GRC.PwC is increasing investments in its implementation capabilities in many newer areas of theSAP portfolio, including SuccessFactors, Ariba, Fiori and Sales and Operations Planning (S&OP)on Hana.

Cautions

■ Tools and prebuilt solutions — PwC approaches the client's business problems as uniqueand, in some cases, invests in and leverages fewer automated tools, repositories, and prebuilt


Hana applications or industry solutions. PwC trails competitors in new business models, suchas MCaaS.

■ Inconsistent resource quality — While PwC continues to shine with high-quality resources inits more traditional consulting spaces, such as project management and design, a few clientshave noticed some variation in quality of its technical and application-specific resources, and insome cases, difficulty in finding qualified staff.

■ Price — While PwC has improved its pricing, clients continue to point to its higher price as anarea for improvement. A common comment is that PwC does a good job but it comes at apremium price. A few clients also suggest PwC can improve on challenging users on businessrequirements to steer them toward using the standard SAP applications.

SAP Services

SAP Services, the service arm of SAP, delivers SAP implementation services globally through about16,000 delivery consultants, as well as more than 1,200 custom development consultants andcollaboration with more than 8,000 active support professionals. SAP Services provides primeintegrator services that compete directly with its SI partner ecosystem, but it is aligning moreclosely with SAP's overall strategy by focusing on supporting adoption of SAP innovations,especially Hana, big data and cloud. An estimated 15% of its delivery professionals are located inglobal delivery centers. In 2013, SAP Services derived its SAP implementation business from allindustries, but its strategic industries are financial services, retail, healthcare, public sector andtelecommunications. SAP Services derives the majority of its implementation business fromcompanies with more than 2,500 employees.

Strengths

■ Product expertise — Clients are generally impressed by SAP Services' in-depth knowledgeacross the major products, including the acquired SuccessFactors and Ariba. SAP Services isalso involved with more clients in newer products, making it a good fit for such products bothfor its experience and for the ability to have "one throat to choke." Clients can also tap into SAPServices' deep product expertise through specific service offerings, such as its InnovationControl Center to minimize customization during implementation, its Value Partnership programfor consulting services, and its Learning Hub for state-of-the-art training.

■ A comprehensive portfolio of services aligned to customer needs — SAP Services hasdeveloped a full spectrum of services that allows clients to buy the services most relevant totheir needs: transformation services for high-value consulting, technology services for adoptingnew products, custom development services for unique functionalities, deployment services forindustrialized solutions, premium engagement services for management and support, andlearning services for workforce training.

■ Increasing delivery speed and minimizing the total cost of ownership (TCO) — SAPServices has been focusing on ways to increase delivery speed and minimize TCO. Initiativeshave included an extensive set of fixed-fee/fixed-scope RDS, "assemble to order" and


"industrialized" delivery models that emphasize reuse and repeatability, and a "world template"that facilitates rapid rollouts to multiple countries.

Cautions

■ Less experience working with multiple technology vendors — The flip side of beingspecialized and highly skilled in one family of products is limited capabilities in other softwarevendor technologies. SAP Services has limited capabilities to assist in highly heterogeneousprojects involving multiple software vendors in which SAP solutions are only one of a number ofon-premises and cloud applications and technologies.

■ High hourly rates — SAP Services' hourly rate is higher than its service partners'. SAPServices claims that efficient delivery and faster results for customers result in lower overall totalcost of implementation and lower TCO. SAP Services has committed to an "outcome based"approach that guarantees agreed-upon outcomes. Clients are advised to compare like-for-likeby contracting on a fixed-price basis, an approach also favored by SAP Services.

■ Capability gaps — SAP Services is not as broad or deep as some of its partners in businessconsulting capabilities, such as industry knowledge, process change, large-scale program/project management and change management. For niche products, like service parts planning,SAP Services relies on its ecosystem for scale, expertise and cost reasons. It is also rapidlyramping up its resources to meet demand, resulting in challenges staffing the highly qualifiedconsultants that clients expect from SAP Services.

Tata Consultancy Services

Tata Consultancy Services (TCS), the largest Indian IT services firm, has more than 13,500 SAP-skilled professionals. An estimated 67% of its SAP professionals are located in global deliverycenters. About 52% of its SAP business is derived from implementation, and the rest is derivedfrom infrastructure services, application management and hosting. In 2013, TCS derived its SAPimplementation business from 18 out of the 22 industries defined in this Magic Quadrant, with themain ones being industrial, high tech, utilities and energy, life sciences, consumer goods and retail.TCS derives the majority of its SAP implementation business from companies with more than 2,500employees.

TCS focuses its investments in the following industries: manufacturing, retail, consumer goods, hightech, financial services, media/information services, travel/transportation and hospitality.

Strengths

■ Strong growth — TCS has one of the highest growth rates in the SAP implementation marketin 2013: over 30% (versus a midteen growth rate for TCS as a whole). As a consequence, TCS'sSAP practice enjoys priority funding for investments, including acquisitions in new geographiesand for additional capabilities.

■ Investments in newer technologies — TCS is investing heavily in newer SAP products andtechnologies, including training over 50 hybris professionals and over 500 Hana consultants,setting up a customer experience lab for hybris and a user experience center of excellence with


a focus on Fiori and personas, and building industry-specific Hana apps and accelerators, suchas pricing analytics and assortment planning for the retail industry and smart meter analytics forutilities. TCS has partnered with SAP for seven RDS packages, including in the areas of mobilityand Hana.

■ Commitment to successful delivery — TCS has knowledgeable, well-trained and diligentresources that demonstrate strong commitment to successful delivery and meeting challengingtimelines at an attractive price. Clients also indicate that TCS is accommodating and flexible inmeeting their changing program demands.

Cautions

■ Business transformation capabilities — TCS is a strong contender in providing SAP technicaland functional resources in support of client-led business transformation programs, butbusiness consulting and advisory capabilities lag. It is taking significant steps to strengthen itsconsulting and advisory services by forming a transformation team, which focuses on providingbusiness consulting, business process re-engineering, facilitation, change management,communications, business stakeholder engagement, and program leadership skills.

■ Onshore resource challenges — As TCS is heavily oriented toward an offshore deliverymodel, clients have noticed challenges in finding appropriately skilled resources onshore inmultiple locations globally. Delay in getting work visas for Indian consultants to come onshorealso contributes to staffing challenges, which can lead to a slow ramp-up of a project and/orresource rotation from one client to another. TCS's acquisition of Alti, a French company, willhelp to address some of these challenges in France and parts of Europe, but availability of localresources, particularly in North America and Europe, falls short of client requirements. TCS isaddressing this issue by ramping up local recruitment in these geographies.

■ Structured knowledge sharing processes — TCS can improve on its knowledge sharing atthe companywide level. Clients report that they seem to get only the expertise of the team ontheir project when they think they are buying the institutional knowledge base of TCS. Clientsstate that they would like to see more support from TCS's wider community, including its topmanagement, and more structured knowledge sharing practices. TCS is addressing this issuethrough its internal knowledge management portal, where all solutions, best practices, assetsand templates from the projects are captured and available to all associates for use. Also, TCShas formed its internal online discussion platform for sharing issues and getting help from theinternal associates on solutions and ideas.

Wipro

Wipro has nearly 10,300 SAP-skilled professionals. An estimated 66% of its SAP professionals arelocated in global delivery centers. About 50% of its SAP business is derived from implementation,and the rest is derived from infrastructure services, hosting and application management. In 2013,Wipro derived its SAP implementation business from 20 out of the 22 industries defined in thisMagic Quadrant, with the main ones being industrial, consumer goods, oil and gas/chemicals, and


utilities and energy. Wipro derives the majority of its SAP implementation business from companieswith more than 2,500 employees.

Wipro focuses its SAP investments in the following industries: retail/consumer goods, utilities,discrete and process manufacturing, energy and natural resources, healthcare/pharmaceuticals,and engineering and construction.

Strengths

■ Strong SAP capabilities at a competitive price — Leveraging tools, a reuse-led factory modeland offshore/landed labor, Wipro is able to provide solid expertise at an excellent price. It isalso investing in preconfigured templates, more than 700 process maps that include keyperformance indicators, and RDS to reduce the total cost of implementation. Clients generallyfind that Wipro is able to meet or exceed their technical needs, and its project teams in generalpossess strong technical and SAP application capabilities.

■ Commitment and flexibility — Clients report that Wipro consultants show great commitmentand flexibility to deliver the project, despite all odds. They display a strong partnershipapproach to help clients reach their goals, including creative and predictable pricing.

■ Investments in newer technologies — Wipro continues to be a leading partner for newer SAPproducts and technologies. It has an above-average track record in consulting andimplementing projects and proofs of concept in Hana (including Suite on Hana), hybris, SAPmobile technologies and Ariba. It has invested in managed cloud as a service and now offerssubscription-based industry solutions on the Hana platform for the mining, chemicals and waterindustries. In addition, Wipro is SAP's partner for the River Definition Language (RDL)development, a new language for building native Hana applications.

Cautions

■ Business knowledge — While resources from Wipro Consulting Services are knowledgeableabout business processes and how they are expressed in SAP, clients notice that Wipro'soffshore delivery resources need to scale up in their business process understanding andindustry and functional depth.

■ Proactive guidance — Clients continue to notice that Wipro tends to be shy about offeringadvice and instead is more comfortable executing decisions and solving technical problems.Given its vast experience in consulting and implementing SAP, clients would like to see Wiprobe more proactive in proposing alternatives to business design requirements and approaches,and challenging clients' decisions

■ Project planning and communications — Clients note that Wipro can improve on projectplanning and communications. A few commented that they would like to see Wipro conduct amore thorough and detailed scoping of the project effort and deliverables at the outset of aproject, and communicate in a more timely fashion, especially when things do not go smoothly.


Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as marketschange. As a result of these adjustments, the mix of vendors in any Magic Quadrant orMarketScope may change over time. A vendor's appearance in a Magic Quadrant or MarketScopeone year and not the next does not necessarily indicate that we have changed our opinion of thatvendor. 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

EY has been added because it meets the inclusion criteria.

Dropped

CGI and Fujitsu were dropped because they do not meet the inclusion criteria for revenue.

Inclusion and Exclusion CriteriaThe criteria for inclusion of service providers for the Magic Quadrant are based on a combination ofquantitative and qualitative measures.

Quantitative Criteria

■ Providers must have a minimum of $250 million in revenue (estimated for fiscal year 2013) inworldwide SAP implementation services.

■ SAP implementation service revenue must be derived from clients in at least three of the fourregions: North America, EMEA, Latin America and Asia/Pacific (including Japan).

■ No more than 80% of the revenue should be derived from the largest region. A minimum of $50million in revenue (estimated for fiscal year 2013) must be derived from the second-largestregion.

Qualitative Criteria

■ Client interest in specific SAP service providers, as revealed by Gartner analysts' interactionswith enterprise buyers and/or Gartner analysts' opinion on the attractiveness of specificproviders to Gartner enterprise clients

■ Overall market interest in and visibility of the provider, determined by serious consideration forselection from enterprise clients

■ Ability to provide consulting and solution implementation services across multiple SAP modulesand with multiple competencies


Evaluation Criteria

Ability to Execute

Gartner evaluates service providers on their Ability to Execute and their Completeness of Vision —as per the definitions below. When the two sets of criteria are evaluated together, the resultinganalysis provides a view of how well the provider performs a spectrum of services compared withits peers and how well it is positioned for the future.

For more information on Gartner's Magic Quadrant research methodology, refer to our ResearchMethodologies on the Gartner website and/or review "How Gartner Evaluates Vendors and Marketsin Magic Quadrants and MarketScopes."

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

Product or Service: This criterion assesses core services that are offered by the provider and thatcompete in/serve the defined market. This includes current service capabilities, quality, skills, andso on. Subcategories include:

■ Breadth and depth of capabilities in the full portfolio of SAP applications

■ Capabilities in business/process consulting and industry knowledge

■ Capabilities in other key delivery success factors: project management, change management,communication, and so on

■ Demonstrated track record in successfully executing large complex global engagements

Overall Viability: Viability includes an assessment of the overall organization's financial health andthe financial and practical success of the business unit, and the likelihood of the individual businessunit to continue to invest in the service and continue to offer the service, advancing the state of theart within the organization's portfolio of services. Specific assessment includes the size and growthof the SAP implementation business.

Sales Execution/Pricing: This criterion assesses the service provider's capabilities in all presalesactivities and the structure that supports them. These include deal management, pricing andnegotiation, presales support, and the overall effectiveness of the sales channel. Subcategoriesinclude:

■ Pricing strategy and alternative pricing models

■ Customer feedback on value for money

Market Responsiveness/Track Record: This criterion assesses the vendor's 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


http://www.gartner.com/technology/research/methodologies/research_mq.jsp

http://www.gartner.com/technology/research/methodologies/research_mq.jsp

considers the provider's history of responsiveness and ability to quickly build capabilities tosuccessfully implement new SAP products (cloud, mobility and Hana) and in new markets(emerging countries and new industries)

Customer Experience: This criterion assesses the relationships, products and services/programsthat enable clients to be successful with their SAP programs. This criterion also considers clientfeedback on overall experience working with the SAP application service provider.

Operations: This criterion assesses the ability of the organization to meet its goals andcommitments. Factors include the quality of the organizational structure, ability to manageutilization and attrition, tools, methodologies, knowledge management systems, training programs,global presence, global delivery centers, centers of excellence, and other vehicles that enable theorganization to operate effectively and efficiently on an ongoing basis.

Table 1. Ability to Execute Evaluation Criteria

Criteria Weight

Product or Service High

Overall Viability Medium

Sales Execution/Pricing Medium

Market Responsiveness/Track Record Medium

Marketing Execution No Rating

Customer Experience High

Operations Medium


Completeness of Vision

Gartner analysts evaluate technology providers on their ability to convincingly articulate logicalstatements about current and future market direction, innovation, customer needs, and competitiveforces and how well they map to the Gartner position. Ultimately, technology providers are rated ontheir understanding of how market forces can be exploited to create opportunity for the provider.

Market Understanding: This criterion assesses the ability of the provider to understand buyers'needs and translate these needs into products and services. Vendors that show the highest degreeof vision listen and understand buyers' wants and needs, and they can shape or enhance thosewants with their added vision. Subcategories include the service provider's knowledge andarticulation of key market direction and trends, and the service provider's reputation as a thoughtleader.


Marketing Strategy: This criterion assesses a clear, differentiated set of messages that areconsistently communicated throughout the organization and are externalized via communications,advertising, customer programs and positioning statements.

Sales Strategy: This criterion assesses the strategy for selling services, which uses the appropriatenetwork of direct and indirect sales, marketing, service, and communications affiliates that extendthe scope and depth of market reach, skills, expertise, technologies, services and customer base.Subcategories include:

■ Service provider's strategies for partnerships and alliances

■ Account management and vision for creating new and/or additional SAP service business

Offering (Product) Strategy: This criterion assesses a service provider's approach to SAPimplementation service development and delivery that emphasizes depth and breadth ofcapabilities, differentiation, and methodologies as they map to current and future requirements,such as enhancements/extensions to SAP products, innovative use cases for Hana and mobility,benefit realization, and continual investments into making delivery speedier, less costly and withreduced risks.

Vertical/Industry Strategy: This criterion assesses the technology provider's strategy to directresources, skills and offerings to meet the specific needs of individual market segments, includingverticals. This includes vertical, industry and process investments, as revealed by dedicatedresources, training and related templates/preconfigured solutions/process maps and otherintellectual-property development in selected verticals, industries and processes.

Innovation: This criterion assesses the direct, related, complementary and synergistic layouts ofresources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes. Italso includes reputation as an innovator and co-innovation activities with SAP.

Geographic Strategy: This criterion assesses the provider's strategy to direct resources, skills andofferings to meet the specific needs of geographies outside the "home" or native geography,including global delivery locations, either directly or through partners, channels and subsidiaries, asappropriate for that geography and market.


Table 2. Completeness of Vision Evaluation Criteria

Evaluation Criteria Weighting

Market Understanding High

Marketing Strategy Medium

Sales Strategy Medium

Offering (Product) Strategy Medium

Business Model No Rating

Vertical/Industry Strategy Medium

Innovation Medium

Geographic Strategy Medium


Quadrant Descriptions

Leaders

Leaders are performing well today, gaining traction and mind share in the market; they have a clearvision of market direction and are actively building competencies to sustain their leadership positionin the market. The players in this quadrant generally have a global client base, a track record ofimplementing complex SAP programs globally that support business transformation, and well-balanced business, process and industry consulting and implementation capabilities that aresupported by rigorous tools and methodologies.

Challengers

Challengers execute well today for the portfolio of work selected, but they have a less-defined viewof market direction. Consequently, these service providers are the "up and comers" of the future.Vendors in this quadrant generally have some gaps in consulting or other capabilities, sales,marketing, innovation, geographic presence or offering strategy.

Visionaries

Visionaries articulate important market trends and direction. They have a vision for changing marketrules, but they are not in a position to fully deliver and consistently execute.


Niche Players

Niche Players focus on a few segments of the market, such as certain geographies, verticalindustries, client segments or functional areas. Their ability to execute is limited to these focusareas and, therefore, is assessed accordingly. Their ability to innovate is also affected by thisnarrow focus. Many of the providers in this segment were rated highly for customer satisfaction,and many can be considered to be leading players within their niche market focus. Niche Playersneed to increase their geographic sales and delivery, as well as increase overall breadth and depthof capabilities, innovation and bench strength.

ContextA large service ecosystem of over 7,400 services and channel partners supports SAP's customersand helps it sell into organizations. Needless to say, the 17 service providers included in this MagicQuadrant make up a small fraction of the thousands of service providers that implement SAP. Manycapable providers are not included in this study due to our inclusion criteria and methodology.These include (but are not limited to) ABeam Consulting, Bluefin Solutions, Bristlecone, CGI, Ciber,Clarkston Consulting, Dell Services, Epi-Use, Fujitsu, Hitachi Consulting, Igate, KPMG, Keneos,Keytree, L&T Infotech, Tech Mahindra, NGA Human Resources, Sita Corp, Softtek, KPIT,TEKsystems and Yash Technologies. Market Guides, Cool Vendors and Hype Cycle reports featuresmaller and/or niche SAP service providers that may be a better fit for specific SAP implementationprojects, depending on the SAP module, resourcing objectives, size of project and other factors.

This Magic Quadrant analyzes the largest providers of SAP implementation services. The relativepositioning of vendors in this Magic Quadrant is based on Gartner's standard Magic Quadrantmethodology. We analyze consulting and system integration projects that typically require a blendof process, industry, SAP application and technology, and program and project management skills.

When considering implementation partners for a request for information or request for proposal,clients are advised not to simply select service providers in the Leaders quadrant. All selectionrequirements are enterprise-specific; consequently, vendors in the Challengers, Visionaries or NichePlayers quadrants may prove to be more appropriate for their engagement. For example, eachprovider will have a different deal sweet spot, reflecting the scale of deals in which it performs well,its culture and industry coverage, as well as the maturity of service provision that its clients value(see "Deal 'Sweet Spot' Analysis Accelerates Service Provider Evaluation and Selection").Additionally, because the inclusion criteria in the Magic Quadrant result in the analysis of the mostestablished providers in the SAP implementation market, clients should not disqualify any potentialcompetitors. Other IT services providers not evaluated in this Magic Quadrant may present betteralternatives for your business requirements. A Gartner analyst can help with a shortlist of the mostsuitable candidates based on client requirements.

This Magic Quadrant evaluates only the consulting and system integration capabilities required fordiscrete project work and excludes multiyear contractual engagements typical of outsourcingagreements.


For this document, we obtained 177 references to the 17 leading SAP service providers tosupplement our views based on daily interaction with Gartner clients and vendors.

Market OverviewWhile great strides have been made in SAP implementation, clients continue to struggle with age-old challenges:

■ How can enterprises implement faster and less expensively, with less risk and morepredictability?

■ How can enterprises ensure that the implementation brings about the business benefitspromised in the business case?

Added to these age-old issues are new opportunities and challenges to help clients with their digitaltransformation, enabled by the ever-expanding SAP family of new and acquired products andtechnologies — such as Hana, mobility, Ariba, hybris, Fiori, cloud and SaaS.

Service Providers Have Stepped Up Investments to Address Opportunities andChallenges

While the SAP service market is a large one, competition is intense with over 7,400 services andchannel partners in the ecosystem. Service providers are furiously investing to differentiatethemselves to win in this marketplace. Service providers' investments for differentiation thataddress the challenges and opportunities in the SAP implementation market include:

■ Capabilities and offerings in new products and disruptive technologies: SIs differentiate oncapabilities in newer products and disruptive technologies, such as in Hana, hybris,SuccessFactors and mobile. These new products are driving a flurry of investment activitiesamong SIs eager to get in front of demand, such as hiring and (re)training talent, investing innew use cases and centers of excellence, putting together a full set of offerings fromassessment and road maps to migration factories.

■ Alternative delivery models: SIs also innovate on newer delivery and consumption models,such as financial re-engineering of bundled hardware, software and services into subscription-based billing, known as managed cloud as a service (MCaaS). Examples include Capgemini'sOnePath and industry-specific MCaaS offerings by NTT Data (for example, education), Infosys(for example, oil field services), Wipro (for example, mining, water and chemicals) and others.As-a-service models are particularly embraced by service providers in Hana and mobility tomake it easier and faster for clients to buy and consume these newer SAP products withoutmaking a large capital investment or hiring in-house staff with the right skill sets. For example,HP has an as-a-service solution for Hana, Accenture has its subscription-based MarketingPerformance Solution built on Hana, EY is making investments in analytics as a service, andAtos offers a cloud-based mobility solution based on SAP Mobile Platform.


■ Benefit realization: On-time and on-budget delivery continues to be the yardstick of successfor many enterprises, but increasingly, sophisticated clients are demanding measurable returns.More service providers — including Accenture, Deloitte, HCL, IBM and Infosys — are nowstepping up to offer both methodology and fee-at-risk contracts that more likely lead to benefitrealization.

■ Business capabilities: Leading service providers are investing in industry, business processand local knowledge to differentiate from their more technically oriented competitors. India-centric providers, such as Cognizant, Infosys, TCS and Wipro, are hiring consultants withspecific industry experience and local consultants in specific geographies, in addition toacquisitions in some cases, for such capabilities.

■ Reusable assets: Leading SIs have invested heavily in accelerators, reusable assets inindustry-specific or horizontal niche functionalities, and preconfigured solutions. SAP hasdeveloped a portfolio of RDS that encompasses highly targeted fixed-scope solutions that canbe implemented quickly so clients reap benefits early. Some SIs — including CSC, NTT Data,Infosys and Wipro — are also developing RDS to offer to their clients. Leading service providersalso co-innovate with SAP or develop applications on top of SAP products to round out thestandard functionalities and make the combined products a better fit to clients' requirements ina specific subvertical or process. Examples include Infosys' Oil Field Services solution, HCLiMRO and PwC's "GRC in a box."

■ Tools and automation: Tools and automation cut costs of implementation and often indicate aservice provider focus in that particular service offering. Tools such as Accenture's BOSS andDeloitte's Process X-Ray automate process discovery, often eliminating lengthy — and oftenerroneous — manual gathering of information, while Atos' Live Tools, IBM's cloud-basedtraceability tool for regulatory reporting, Cognizant's Upgrade Plus and NTT Data's Uptimizeraccelerate implementation and reduce its costs. While commercial tools — such as Panaya —exist, tools brought by service providers to a project are typically included in the service fees,and clients do not explicitly pay for the use of these tools.

■ Local capabilities: Clients are increasingly expecting more local support and capabilities.India-centric providers are responding by actively building up their local consulting capabilitiesthrough both hiring of locals and acquisitions. Examples include TCS's acquisition of Paris-based Alti, Infosys' acquisition of Lodestone and Cognizant's acquisition of Germany's C1.

SAP Implementation Is, in the Final Analysis, a People Business

While the advantages that come with methodologies, tools, automation and preconfigured solutionsare very real, SAP implementation is, in the final analysis, a people business. This Magic Quadrantevaluates the providers' institutional strengths and cautions; every project team and its teammembers from any one firm vary by expertise, experience, people skills and temperament.Consistency in quality is, by definition, difficult. Leading SIs have ameliorated this through training,enforced use of common tools, methodologies and knowledge management systems, among otherthings. But as this Magic Quadrant shows, consistency continues to be a challenge, even for themost mature SIs. Consistency is especially problematic in smaller or emerging countries where localresources are spotty and experience with SAP implementation is not proven. Clients are advised to


evaluate both the institutional capabilities and the key people proposed for the engagement whenselecting implementation partners.

Leading SIs have continued to keep their utilization of resources — especially onshore resources —high, which has brought about challenges, such as difficulty in staffing projects, delays in findingprofessionals with the right skill sets (especially for newer SAP products), and project attrition.Some leverage the contractor market to supplement their own employees, which can be a boon inthat these contractors are typically highly specialized in their fields, but this approach can also be abig challenge because they are not familiar with the SI's methodology and tools, and they have lessvested interest in staying on to the end of the project. Clients are advised to ensure their chosen SIhas the right resources in place within the time frame required and have incentives in place toencourage staff to stay to the end of the engagement or, at a minimum, to the end of a significantmilestone.

With some exceptions, clients are generally pleased with the "hard" (for example, application andtechnical) skills demonstrated by SIs but find many of the SIs' "soft" skills somewhat limited.Change management, communications, industry and business process knowledge, businessacumen and project management continue to be challenges. Clients are advised to evaluate the SIon these factors and insist on strong candidates with these soft skills in staffing key roles.


Acronym Key and Glossary Terms

BI business intelligence

BPC business planning and consolidation

BPO business process outsourcing

CPG consumer packaged goods

GRC governance, risk and compliance

Hana SAP's in-memory High-Performance Analytic Appliance

MCaaS managed cloud as a service

MII Manufacturing Integration and Intelligence

MRO maintenance, repair and operations

RDL River Definition Language

RDS Rapid Deployment Solutions

S&OP Sales and Operations Planning

SaaS software as a service

SI system integrator

TCO total cost of ownership

Gartner Recommended ReadingSome documents may not be available as part of your current Gartner subscription.

"How to Partner With ERP Implementation Service Providers for Program Success"

"Market Trends: Seeking Opportunities in a Crowded SAP Service Market"

"How to Increase Your IT Project Success Rate"

"Deal 'Sweet Spot' Analysis of Pan-Regional Application Service Providers in Asia/Pacific"

"How Markets and Vendors Are Evaluated in Gartner Magic Quadrants"


Evidence

Evaluation in this Magic Quadrant is informed by:

■ Primary research — Face-to-face and phone briefings with the 17 participating serviceproviders in the Magic Quadrant.

■ Primary research — Gartner inquiries and discussions conducted in the past 12 months withservice providers and user organization clients.

■ Primary research — Discussions with Gartner clients that generously provided impartialfeedback on their service providers.

■ Primary research — Feedback from 177 client references, submitted by the participating serviceproviders, using online surveys and follow-up interviews with a subset of these references.

■ Primary research — A detailed vendor survey covering revenue, staffing, geographiccapabilities, industry and process assets, partnerships, joint initiatives, investments and otherrelevant information.

■ Secondary research — Press releases and publicly available information, including companywebsites and financial reports.

■ Other Gartner analysts — This document was peer-reviewed by 14 other Gartner analysts; theirviews and comments were taken into account. In addition, this document was presented anddefended at the 5 June 2014 Gartner Application Services Research Community session.

Note 1 Industries

This Magic Quadrant addresses the capabilities of the included vendors in the following 22industries:

■ Financial services: Banking

■ Financial services: Insurance

■ Financial services: Other financial services

■ Manufacturing: Oil and gas, chemicals, process and resource

■ Manufacturing: Automotive

■ Manufacturing: Aerospace and defense

■ Manufacturing: Industrial discrete

■ Manufacturing: High tech

■ Manufacturing: Consumer goods

■ Manufacturing: Other manufacturing

■ Manufacturing: Life sciences


■ Healthcare (Provider)

■ Public sector

■ Communications

■ Utilities and energy

■ Wholesale

■ Retail

■ Services

■ Travel and transportation

■ Agriculture, mining and construction

■ Education

■ Not for profit

Note 2 Countries per Region

This Magic Quadrant addresses worldwide capabilities of the included vendors in the followingregions:

■ North America: United States and Canada

■ Latin America: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala,Mexico, Panama, Peru, Uruguay and Venezuela

■ Asia/Pacific and Japan: Australia, Bangladesh, China, Hong Kong, India, Indonesia, Japan,South Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan,Thailand and Vietnam

■ EMEA: Austria, Algeria, Azerbaijan, Bahrain, Belarus, Belgium, Bulgaria, Cameroon, Côted'Ivoire, Croatia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece,Hungary, Iceland, Ireland, Israel, Italy, Jordan, Kazakhstan, Kenya, Kuwait, Lebanon, Libya,Lithuania, Luxembourg, Morocco, Netherlands, Nigeria, Norway, Oman, Poland, Portugal,Qatar, Romania, Russia, Saudi Arabia, Serbia, Slovakia, Slovenia, South Africa, Spain, Sweden,Switzerland, Syria, Tunisia, Turkey, Ukraine, United Arab Emirates, the United Kingdom andYemen

Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the definedmarket. This includes current product/service capabilities, quality, feature sets, skills


and so on, whether offered natively or through OEM agreements/partnerships asdefined in the market definition and detailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financialhealth, the financial and practical success of the business unit, and the likelihood thatthe individual business unit will continue investing in the product, will continue offeringthe product and will advance the state of the art within the organization's portfolio ofproducts.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and thestructure 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 andachieve competitive success as opportunities develop, competitors act, customerneeds evolve and market dynamics change. This criterion also considers the vendor'shistory of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designedto deliver the organization's message to influence the market, promote the brand andbusiness, increase awareness of the products, and establish a positive identificationwith the product/brand and organization in the minds of buyers. This "mind share" canbe driven by a combination of publicity, promotional initiatives, thought leadership,word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enableclients to be successful with the products evaluated. Specifically, this includes the wayscustomers receive technical support or account support. This can also include ancillarytools, 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. Factorsinclude the quality of the organizational structure, including skills, experiences,programs, systems and other vehicles that enable the organization to operateeffectively and efficiently on an ongoing basis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needsand to translate those into products and services. Vendors that show the highestdegree of vision listen to and understand buyers' wants and needs, and can shape orenhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistentlycommunicated 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 ofdirect and indirect sales, marketing, service, and communication affiliates that extendthe scope and depth of market reach, skills, expertise, technologies, services and thecustomer base.

Offering (Product) Strategy: The vendor's approach to product development anddelivery that emphasizes differentiation, functionality, methodology and feature sets asthey map to current and future requirements.

Business Model: The soundness and logic of the vendor's underlying businessproposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills andofferings to meet the specific needs of individual market segments, including verticalmarkets.

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 tomeet the specific needs of geographies outside the "home" or native geography, eitherdirectly or through partners, channels and subsidiaries as appropriate for thatgeography and market.


GARTNER HEADQUARTERS

Corporate Headquarters56 Top Gallant RoadStamford, CT 06902-7700USA+1 203 964 0096

Regional HeadquartersAUSTRALIABRAZILJAPANUNITED KINGDOM

For a complete list of worldwide locations,visit http://www.gartner.com/technology/about.jsp

© 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. Thispublication may not be reproduced or distributed in any form without Gartner’s prior written permission. If you are authorized to accessthis publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information containedin this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy,completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. Thispublication consists of the opinions of Gartner’s research organization and should not be construed as statements of fact. The opinionsexpressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues,Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company,and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner’s Board ofDirectors may include senior managers of these firms or funds. Gartner research is produced independently by its research organizationwithout input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartnerresearch, see “Guiding Principles on Independence and Objectivity.”


http://www.gartner.com/technology/about.jsp

http://www.gartner.com/technology/about/policies/usage_guidelines.jsp

http://www.gartner.com/technology/about/ombudsman/omb_guide2.jsp

Documents

Magic Quadrant for Sap Imple 261880