ISG Provider Lens™ Quadrant Report on Digital Business

Home , HCL Technologies, Mindtree, Mphasis

Digital Business Solutions A research report and Service Partners comparing provider strengths, challenges U.S. 2019-20 and competitive differentiators

Quadrant Report

Customized report courtesy of: January 2020 ISG Provider Lens™ Quadrant Report | January 2020 Section Name About this Report

Information Services Group, Inc. is solely responsible for the content of this report. ISG Provider Lens™ delivers leading-edge and actionable research studies, reports and consulting services focused on technology and service providers’ strengths and Unless otherwise cited, all content, including illustrations, research, conclusions, weaknesses and how they are positioned relative to their peers in the market. These assertions and positions contained in this report were developed by and are the sole reports provide influential insights accessed by our large pool of advisors who are property of Information Services Group, Inc. actively advising outsourcing deals as well as large numbers of ISG enterprise clients who are potential outsourcers. The research and analysis presented in this report includes research from the ISG

Provider Lens™ program, ongoing ISG Research programs, interviews with ISG advisors, For more information about our studies, please email [email protected], briefings with services providers and analysis of publicly available market information call +49 (0) 561-50697537, or visit ISG Provider Lens™ under ISG Provider Lens™. from multiple sources. The data collected for this report represents information that ISG believes to be current as of July 3, 2019-August 19, 2019 for providers who actively participated as well as for providers who did not. ISG recognizes that many mergers and acquisitions have taken place since that time, but those changes are not reflected in this report. ISG Research™ provides subscription research, advisory consulting and executive

The lead author for this report is Pedro Luís Bicudo Maschio. The editors are Ambrosia event services focused on market trends and disruptive technologies driving change Sabrina and Grant Gross. The research analyst is Monica K and the data analyst is in business computing. ISG Research™ delivers guidance that helps businesses Vishal Kulkarni. accelerate growth and create more value.

For more information about ISG Research™ subscriptions, please email [email protected], call +49 (0) 561-50697537 or visit research.isg-one.com.

3 Introduction

15 Customer Journey Services © 2019 Information Services Group, Inc. All rights reserved. 21 Digital Product Lifecycle Services - Midmarket Reproduction of this publication in any form without prior permission is strictly prohibited. Information contained in this 26 Digital Product Lifecycle Services - Large Accounts report is based on the best available and reliable resources. 30 Digital Backbone Managed Services - Midmarket Opinions expressed in this report reflect ISG’s judgment at the time of this report and are subject to change without notice. 35 Digital Backbone Managed Services - Large Accounts ISG has no liability for omissions, errors or completeness of ™ ™ 40 Blockchain Services - Emergent Providers information in this report. ISG Research and ISG Provider Lens are trademarks of Information Services Group, Inc. 43 Blockchain Services - Established Providers

48 Methodology ISG Provider Lens™ Quadrant Report | January 2020 Section Name Executive Summary EXECUTIVE SUMMARY General Trends

ISG has assessed 56 service providers and qualified 39 for the U.S. quadrant report. an interaction path that influences the customer decision to buy or commit to a brand. Participants are ranked in seven quadrants. More service providers have demonstrated The measured business outcomes that are obtained from improving the customer interest in sharing information with ISG this year. This indicates that the outsourcing market journey can be found in each leader’s profile page of this report. The most frequent is gradually moving to digital themes. ISG observed a general interest in algorithms and benefits include sales increase and churn reduction. analytics, which appears in all service offerings. This report has elected 21 participating companies, seven leaders and two rising stars. Customer Journey Maturity The guidelines for sourcing customer journey services can be found in the quadrant report observations. Among the markets where innovation plays a critical role, the U.S. is ahead of other regions in terms of enhancing the customer journey. Most of the digital agencies acquired by IT Digital Product Lifecycle Services service providers in recent years have studios and experience labs in the U.S. to serve Twenty-eight companies were evaluated for this quadrant. They provide digital product the most relevant brands in the country. As most of the large U.S. companies are global, lifecycle services such as ideation, creation, and continuous delivery of updates customer journey service providers that are important in the U.S. are also crucial at a that improve functionality and performance. Agility is at the core of digital product worldwide scale. development. Its development practices have matured over the year to include more The U.S. is the leading consumer market, with a GDP of more than $20 trillion and a robust DevOps automation that would enable continuous delivery and assure the quality population of 325 million. An individual customer journey requires superior expertise, of each product update. The DevOps approach has now included the use of containers technology and execution capacity as the numbers are enormous when compared to to deploy digital products. Containers have been in the market for only five years and other countries, even for those companies of the U.S. midmarket. In addition to the size are gaining prominence for their multi-cloud deployments with consistent repetition and of the U.S. market, American consumers expect nothing less than optimum, which poses failure reduction. additional challenges to service providers. The API economy has emerged, defining the services around creating, testing, maintaining Customer experience is a prominent point of discussion for every business in all vertical and making available the APIs and microservices that do not belong to legacy applications markets. It is the capacity to drive customer decisions toward the desired action that defines their journey. By understanding customer behaviors, leading companies can design

Blockchain Services or digital products but must exist in the middle. The term “API economy” is attributed to The blockchain services market has attracted many service providers. However, the their isolation and market demand, which enable monetization. They are digital products. number of projects, experts and revenue has not grown much from last year. The market continues to be small in revenue. Most projects are rapid and involve small With so many complex changes, not all service providers have adjusted and adapted their teams, providing consistent business value. A few statistics are listed in the quadrant's service offerings. Many continue to refer to design thinking, agile organization and scrum observations page. as a novelty. In reality, this has become business as usual. ISG has identified providers that have 1,000 to 1,500 agile practitioners who work on automated DevOps pipelines. Scaling As this market evolves, the pure blockchain distributed ledger is being displaced by more agile is no longer a limitation for digital transformation. generic, permissioned distributed ledger technologies (DLTs). ISG has collected more than 100 blockchain case studies and most are permissioned with a central authority This year ISG separated the large accounts market and the midmarket, providing better or sponsor that handles the cost of running the DLT. In practical terms, DLT is easier to guidance to clients of different interests. For clients selecting their digital product partner implement, providing concrete results at lower complexity and cost. company, this study has identified a few critical criteria that are listed in each of the quadrant report observations. One hypothesis is that running costs hinder blockchain adoption. For instance, adding a mid-sized business to IBM Food Trust blockchain costs $1,000 per month for a new Digital Backbone Managed Services member. The suggested price according to Amazon Web Services’ (AWS) price calculators In many cases, new digital services are delivered under managed cloud contractual is $1,389 per month for a member. At Microsoft Azure, $697.92 is the minimum that models. No contractual best practice has emerged so far. Outcome-based contracts exist, its calculator allows to estimate for a standard business. At Kaleido.io, a ready-to-use but few providers have reported a significant percent of deals with an outcome-based platform, the price starts at $540 per month for an enterprise level node. Blockchain metric for financial compensation or penalty. may not replace any of the legacy systems when it adds new business functions without replacing old ones. When Walmart asks a farmer to join, it charges $1,000.00 per month All providers have incorporated DevOps support services. DevOps automation platforms for the cost structure. It is actually paying off for the food industry because buyers are have emerged as competitive differentiators, with multiple levels of artificial intelligence paying more for the safety it brings to the table. However, for many, the added cost may (AI) applied to power automation. ISG has identified 24 companies, separated into be hard to justify. providers for the midmarket and for large accounts. For clients procuring digital backbone services, a few insights are included in the quadrant report observations. ISG has identified 28 participants and named nine leaders and two rising stars, separated into two quadrants, for the emergent providers and the established providers of blockchain services.

Introduction Introduction

Definition

Simplified illustration Digital technologies are permeating all aspects of the traditional business. Using information technology to change the customer journey, Digital Business - Solutions and Service Partners 2019-20 improve business agility, or deliver digital products causes a digital disruption that spans across all business processes. These include sales, Customer Journey Services trading, production, supply chain, product design and human resource management, among others.

Digital Product Lifecycle Services Digital Backbone Managed Services Enterprise agility goes far beyond software development and encompasses how organizations can adjust business, development and operations Midmarket Large Accounts Midmarket Large Accounts workstreams to survive and thrive when competition and customer requirements are constantly changing. This adjustment and the speed at

Blockchain Services - Emergent Providers Blockchain Services - Established Providers which this happens are relevant and critical for increasing business value.

Source: ISG 2019

Definition (cont.)

This year, ISG introduced the ISG Digital Cube™, an interactive model of the The ISG Provider Lens™ study offers IT decision makers: enterprise capabilities that are required for digital transformation. The ISG Digital Transparency on the strengths and weaknesses of relevant providers; Cube™ illustrates the six capabilities any business must have to fully realize its digital ambitions. These include digital backbone, emerging technologies at scale, A differentiated positioning of providers by segments; enterprise agility, digital ecosystem, insights and business model innovation. Focus on different markets, including global, the U.S., the U.K., Germany, Brazil and the ISG will use Digital Cube™ as the main reference model to guide clients in their Nordic countries. digital transformation. This ISG Provider Lens™ study is focused on identifying the service providers that can support clients in these digital capabilities.

Digital-ready service providers understand the full scope of digital services in providing constant innovation to improve user experiences, accelerate business delivery and incorporate intelligent solutions. They partner with leading technology vendors and can articulate the use of cognitive computing and learning systems to digitize any client organization.

Definition (cont.)

Scope of the Report

The 2019 Digital Business Solutions and Service Partners report intends to assist Digital Product Lifecycle Services: This assesses a provider’s capacity to adapt the delivery buyers when reviewing their digital business strategy as well as choosing solutions model to each digital product with the required speed to enable a client enterprise to adopt agile and service providers. Enterprise clients will also benefit from the study because and adaptive operating models. A provider’s portfolio includes agile, testing and DevSecOps to it incorporates ISG’s strengths in global sourcing advisory, contract knowledge rapidly deploy or transform products and services according to market changes. The services are databases, regional research and expertise in technology ecosystems and provided for the midmarket and large accounts, which are categorized in two quadrants: innovations. For the midmarket: This quadrant evaluates service providers that typically serve clients with This study covers 38 participating companies ranked in six quadrants as illustrated less than 5,000 employees or generate less than $1 billion in revenue. These providers can below. The coverage depends on provider responses, participation and relevance. serve larger enterprises, but the quadrant is directed at the buyer company. The purpose is to The quadrant descriptions are as follows: give midmarket clients a starting point for their procurement process and facilitate a shortlist of the best providers that serve their needs. Customer Journey Services: This quadrant assesses a service provider’s portfolio and capacity to deliver business model innovation, enabling enterprises to build For large accounts: This quadrant evaluates service providers that typically serve large competitive differentiation in today’s digital economy. These providers design how enterprise clients with more than 5,000 employees or generate more than $1 billion in an ideal customer (or persona) interacts with a product and a brand. The design revenue. These providers can handle small deals and smaller corporate clients, but they are process includes technology experts, sales, marketing, designers and clients in a not much focused on developing small accounts. This quadrant facilitates the shortlist of the collaborative process. best providers that serve the needs of large enterprises.

Definition (cont.)

Digital Backbone Managed Services: This quadrant ranks providers of For large accounts: This quadrant evaluates service providers that typically serve large robust, secure and reliable operations based on microservices and application enterprise clients with more than 5,000 employees or generate more than $1 billion in programming interfaces (APIs) in a hybrid or pure cloud platform. It also offers other revenue. These providers can handle small deals and smaller corporate clients, but they are digital solutions such as mobile apps, Internet of Things (IoT) platforms and data not much focused on developing small accounts. This quadrant facilitates the shortlist of the services. Competitors in this segment have robust platforms that integrate with best providers that serve the needs of large enterprises. public cloud providers for autonomous, AI-based self-healing, provisioning, autoscale and performance optimization. The services are provided for the midmarket Blockchain Services: This quadrant assesses a service provider’s competence in consulting, and large accounts, which are separated in two quadrants: designing, deploying and operating blockchain. Leaders are identified by their experience in prototyping, testing and validation blockchain solutions, as well as by running blockchain solutions For the midmarket: This quadrant evaluates service providers that typically in production environments. ISG has found two groupings for participants as follows: serve clients with less than 5,000 employees or generate less than $1 billion Emergent providers: This quadrant covers participants that have pragmatic approaches in revenue. These providers can serve larger enterprises, but the quadrant to deploy use cases into production. It includes startups that have gained scale to provide is directed at the buyer company. The purpose is to give midmarket clients a blockchain services to enterprise clients, as well as IT service companies that have extended starting point for their procurement process and facilitate a shortlist of the best their application portfolio to include pragmatic uses of blockchain technologies. They have providers that serve their particular needs.

Definition (cont.)

consulting capabilities to advise clients on the best approach, platform and architecture for practical application development and are focused on deploying working solutions under project-based engagements with a well-defined scope.

Established providers: Service providers in this quadrant have established relationships with large enterprises and have an influential participation in blockchain consortia. These companies are long-time IT service providers and business consulting firms that have been experimenting blockchain technologies to address the needs of enterprise clients. They provide exploratory consulting to find new applications for distributed ledger technologies (DLT) and conceive new business models around it, sometimes involving or intermediating new consortium creation.

Provider Classifications

The ISG Provider Lens™ quadrants were created using an evaluation matrix containing four segments, where the providers are positioned accordingly.

Leader Product Market Contender Challenger Challenger The “leaders” among the vendors/ The “product challengers” offer a “Market challengers” are also “Contenders” are still lacking mature providers have a highly attractive product and service portfolio that very competitive, but there is still products and services or sufficient product and service offering and a provides an above-average cover- significant portfolio potential and depth and breadth of their offering, very strong market and competitive age of corporate requirements, but they clearly lag behind the “leaders.” while also showing some strengths position; they fulfill all requirements are not able to provide the same Often, the market challengers and improvement potentials in their for successful market cultivation. resources and strengths as the are established vendors that market cultivation efforts. These They can be regarded as opinion leaders regarding the individual are somewhat slow to address vendors are often generalists or leaders, providing strategic market cultivation categories. Often, new trends, due to their size and niche players. impulses to the market. They also this is due to the respective vendor’s company structure, and have ensure innovative strength size or their weak footprint within therefore still some potential to and stability. the respective target segment. optimize their portfolio and increase their attractiveness.

Provider Classifications (cont.)

Each ISG Provider Lens™ quadrant may include a service provider(s) who ISG believes has a strong potential to move into the leader’s quadrant.

Rising Star Not In

Rising stars are mostly product challengers with high future potential. This service provider or vendor was not included in this When receiving the “rising stars” award, such companies have a promis- quadrant as ISG could not obtain enough information to ing portfolio, including the required roadmap and an adequate focus on position them. This omission does not imply that the key market trends and customer requirements. Also, the “rising stars” service provider or vendor does not provide this service. has an excellent management and understanding of the local market. This award is only given to vendors or service providers that have made extreme progress towards their goals within the last 12 months and are on a good way to reach the leader quadrant within the next 12-24 months, due to their above-average impact and innovative strength.

Digital Business – Solutions and Service Partners - Quadrant Provider Listing 1 of 4

Digital Product Digital Product Digital Backbone Digital Backbone Customer Journey Blockchain Services - Blockchain Services - Lifecycle Services - Lifecycle Services - Managed Services - Managed Services - Services Emergent Providers Established Providers Midmarket Large Accounts Midmarket Large Accounts

Accenture 4 L 4 Not In 4 L 4 Not In 4 L 4 Not In 4 L

Applied Blockchain 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 PC 4 Not In

Atos 4 PC 4 Not In 4 PC 4 Not In 4 PC 4 Not In 4 RS

Birlasoft 4 Not In 4 PC 4 Not In 4 C 4 Not In 4 C 4 Not In

Bridgei2i 4 C 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In

Capgemini 4 RS 4 Not In 4 PC 4 Not In 4 PC 4 Not In 4 PC

CGI 4 Not In 4 Not In 4 C 4 Not In 4 C 4 Not In 4 C

Cognizant 4 L 4 Not In 4 L 4 Not In 4 L 4 Not In 4 L

ConsenSys 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 L 4 Not In

CSS Corp 4 PC 4 PC 4 Not In 4 RS 4 Not In 4 Not In 4 Not In

4 L – Leader / 4 PC – Product Challenger / 4 C – Contender / 4 MC – Market Challenger / 4 RS – Rising Star

Digital Business – Solutions and Service Partners - Quadrant Provider Listing 2 of 4

Deloitte 4 PC 4 Not In 4 MC 4 Not In 4 Not In 4 Not In 4 C

Deutsche Telekom 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 PC 4 Not In BCSC

DXC 4 PC 4 Not In 4 PC 4 Not In 4 RS 4 Not In 4 C

eInfochips 4 Not In 4 C 4 Not In 4 PC 4 Not In 4 Not In 4 Not In

EY 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 L

Fujitsu 4 Not In 4 Not In 4 Not In 4 C 4 Not In 4 Not In 4 Not In

GlobalLogic 4 Not In 4 L 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In

HCL 4 L 4 Not In 4 L 4 Not In 4 PC 4 Not In 4 PC

Hexaware 4 Not In 4 L 4 Not In 4 L 4 Not In 4 C 4 Not In

IBM 4 L 4 Not In 4 L 4 Not In 4 L 4 Not In 4 L

4 L – Leader / 4 PC – Product Challenger / 4 C – Contender / 4 MC – Market Challenger / 4 RS – Rising Star

Digital Business – Solutions and Service Partners - Quadrant Provider Listing 3 of 4

Infinite 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 PC 4 Not In

Infosys 4 L 4 Not In 4 RS 4 Not In 4 PC 4 Not In 4 L

Intellectsoft 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 L 4 Not In

LTI 4 Not In 4 MC 4 Not In 4 L 4 Not In 4 L 4 Not In

Mindtree 4 MC 4 L 4 Not In 4 L 4 Not In 4 Not In 4 Not In

Mphasis 4 MC 4 L 4 Not In 4 L 4 Not In 4 PC 4 Not In

NIIT Technologies 4 Not In 4 C 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In

NTT 4 C 4 Not In 4 Not In 4 Not In 4 PC 4 Not In 4 C

Persistent 4 Not In 4 C 4 Not In 4 Not In 4 Not In 4 C 4 Not In

Publicis Sapient 4 L 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In

4 L – Leader / 4 PC – Product Challenger / 4 C – Contender / 4 MC – Market Challenger / 4 RS – Rising Star

Digital Business – Solutions and Service Partners - Quadrant Provider Listing 4 of 4

Softtek 4 C 4 PC 4 Not In 4 C 4 Not In 4 C 4 Not In

Stefanini 4 Not In 4 PC 4 Not In 4 Not In 4 Not In 4 Not In 4 Not In

TCS 4 PC 4 Not In 4 PC 4 Not In 4 L 4 Not In 4 PC

Tech Mahindra 4 L 4 Not In 4 C 4 Not In 4 PC 4 Not In 4 L

Trianz 4 C 4 PC 4 Not In 4 PC 4 Not In 4 Not In 4 Not In

Unisys 4 Not In 4 Not In 4 Not In 4 Not In 4 C 4 Not In 4 Not In

UST Global 4 Not In 4 C 4 Not In 4 Not In 4 Not In 4 MC 4 Not In

Wipro 4 RS 4 Not In 4 PC 4 Not In 4 L 4 Not In 4 PC

Zensar 4 PC 4 RS 4 Not In 4 PC 4 Not In 4 RS 4 Not In

4 L – Leader / 4 PC – Product Challenger / 4 C – Contender / 4 MC – Market Challenger / 4 RS – Rising Star

Customer Journey Services CUSTOMER JOURNEY SERVICES

Definition

The Customer Journey Services quadrant assesses a service provider’s portfolio and capacity to deliver business model innovation, enabling enterprises to build competitive differentiation in today’s digital economy.

Customer journey design is transforming how companies organize marketing, sales, delivery and post-sales processes. Consequently, it changes an enterprise’s entire business process around the customer. It is a customer-centric approach. The customer journey revolves around how digital companies design differentiation. New customer journeys create new business models that require innovative technologies and business ecosystems.

CUSTOMER JOURNEY SERVICES

Definition (cont.) Eligibility Criteria

These companies design the process of interaction between an ideal Consulting firms, service providers and digital agencies focus on user experience to customer (or persona) with a product and a brand. The design process design apps, web and product/services with an omnichannel approach. involves technology experts, sales, marketing, designers and clients A participating company employs design thinking or alternative methodologies to involve in a collaborative process. Design thinking and lean are common the customer in designing products and services. methodologies in use. Leading firms use analytics to extract insights from user data. Cognitive computing extracts data from conversations, The company provides services with local expertise in the U.S. texts and social media. The experience is measured with simple A/B tests as well as complex sentiment analyses that are captured from customer interactions.

The customer journey is not a project or event. Daily monitoring and measuring of the customer experience drive changes to the journey, the supporting technology and business processes. The customer journey team produces a continuous change of digital businesses, delivering business model innovation and allowing enterprises to build competitive differentiation.

CUSTOMER JOURNEY SERVICES

Observations

Among the markets where innovation plays a critical role, the U.S. is Customer experience is a prominent point of discussion for every business in all vertical ahead of other regions in improving customer journeys. Most of the markets. It is the capacity to drive customer decisions toward the desired action that defines digital agencies that were acquired by IT service providers in recent their journey. By understanding customer behaviors, leading companies can design an years have studios and experience labs in the U.S. to serve the most interaction path that influences the customer decision to buy or commit to a brand. relevant brands in the country. As most of the large U.S. companies An appealing design is fundamental to capture an individual's attention, which is why most are global, customer journey service providers that are important in leading companies have acquired design agencies. Design is applied to stores, branches, the region are also crucial at a worldwide scale. For this reason, their apps, web sites, campaigns, and shows how a customer can interact with the touchpoints. strengths in this quadrant have little variation from the global quadrant Digital marketing has now emerged as a critical differentiator because it adds the skills report. Their competitive positions change because of each participant’s that are needed to understand and improve the touchpoints' effectiveness, including social capacity and geographic coverage in the U.S. media. It involves heavy use of research and statistics. Vast volumes of data are captured The U.S. is the leading consumer market with a GDP of more than $20 at each touchpoint. This requires sophisticated data analytic tools, powered by artificial trillion and 325 million people. An individual customer journey requires intelligence (AI) and machine learning (ML), to provide smart insights. Data-driven AI/ML superior expertise, technology and execution capacity, as the number insights do not replace people but allow for scaling operations. of consumers and economy size are enormous when compared to For client companies, it is essential to separate the customer journey design from product other countries, even for those companies in the U.S. midmarket. development. The latter is assessed in the Digital Product Lifecycle Services quadrant, where American consumers expect nothing less than optimum besides the clients can find the scope and buying selection criteria. Customer journey improvements size, which poses additional challenges to service providers.

CUSTOMER JOURNEY SERVICES

Observations (cont.)

involve more than digital products. Improvements in existing This report has qualified 21 participating companies and elected seven leaders and two applications and processes are often necessary, but new development rising stars. Three leaders in last year’s study are now product challengers that have is not a rule. When contracting customer journey services, clients retained strong competencies. They have not improved their footprint at the same speed as should examine the proponent's capacity around market research, the leaders and have not added to their digital marketing competencies. Improved positions design, customer behavior analytics, business process improvements, in relation to the previous year include Infosys and Tech Mahindra. prototyping and validation, and its ability to change the client Accenture Interactive division is focused on developing customer journeys through organization to improve customer centricity. design, marketing and content, with a rich skillset obtained through more than 28 Customer journey services should have clear definitions of scope acquisitions in digital marketing and design over the last three years. In the U.S., Fjord and delivery. One alternative is to start defining the journey in scope, is its major design and innovation unit and the recently acquired Droga5 is its for instance, in-store sales, ecommerce navigation, omnichannel creative agency. experience, taking a client from the landing page to the buy button, and Cognizant Interactive division offers design and marketing expertise, leveraging the other action sequences that define a journey. The project delivery or acquisitions of Idea Couture, Cadient, Zone, Mirabeau, Netcentric and Mustache. Its outcome should be measurable such as an improvement in the sales unique focus on understanding human behavior differentiates it in the market, enabling conversion rate of one item or product line, an increase in in-store or it to deliver outstanding digital enterprise transformation. ecommerce traffic, and a rise in the number of requests for quotes. Enterprise clients can gain better project control by restricting the change perimeter.

CUSTOMER JOURNEY SERVICES

Observations (cont.)

HCL Technologies nurtures a culture of invention, with 15,000 Infosys’ acquisitions of Brilliant Basics in 2017 and Wongdoody and Fluido in 2018 employees in the U.S. It uses digital accelerators, including AI increased its marketing and customer experience capacity. Infosys Digital Marketing algorithms for next-best offerings, cross-selling, churn analytics, covers customer experience management, analytics, campaign management, marketing risk analysis and sentiment analysis. In 2019, it acquired Strong- operations, customer relationship management (CRM) and loyalty management. Infosys Bridge Envision, a U.S.-based digital consulting firm specialized in is committed to grow in the U.S., investing in new delivery centers. Its U.S. studios and customer experience strategy, business transformation and change large delivery team can respond to demanding clients. management. HCL has long committed to the U.S., reinforced by Publicis Sapient has 24 locations and around 7,000 employees in the U.S. It is the its recent acquisitions. Its service approach enables it to develop digital business transformation hub of Publicis Groupe, a French advertising and public long-lasting client relationships around digital services. relations company. Leading brands in the U.S. contribute 53 percent to Publicis Group’s IBM iX is IBM’s design studio for digital strategy, customer revenue. In 2019, it acquired Epsilon, a data-driven marketing agency based in the experience and digital platforms. In the U.S., IBM iX studios are region, to strengthen the group position in digital marketing. in Atlanta, Austin, Cambridge, Chicago, Columbus, New York, San Tech Mahindra has a comprehensive portfolio that was built through acquisitions and Francisco, Washington, D.C., and in Montreal and Toronto in Canada. is centered on Pininfarina and The BIO Agency. The firm has a strong focus on design, The company has translated its inventive process into IBM Garage™, engineering services, conception and manufacturing impactful products. The BIO Agency which merges design thinking with labs and rapid prototyping drives change through digital strategy, service design, ecommerce solutions, digital retail, capabilities. IBM iX adds digital marketing with the acquired connected products, and innovation. Tech Mahindra engineers' build the software that companies, Resource Ammirati, aperto, ecx.io, bluewolf and vívant. power digital products for transforming the customer journey.

CUSTOMER JOURNEY SERVICES

Observations (cont.)

Rising Star Capgemini acquired Fahrenheit212 (innovation) in 2016, idean (design) and ITELIOS (omnichannel) in 2017, and Adaptive Lab (journeys) and liquidhub (experience) in 2018. These were all merged to create Capgemini Invent, with 6,000 strategy and transformation consultants, creative designers, emerging technology experts, and data scientists and engineers. Capgemini Invent is growing in the U.S. and is leveraging the experience acquired from working with global European brands.

Rising Star Wipro has a commitment to the U.S. and has 64 percent of its employees who were hired locally. Its marketing capabilities include the web, mobile, social and other digital channels. Its leverages Appirio and Designit divisions to think, design and implement next-generation customer experiences. Its main studios are in Indianapolis and San Francisco. Wipro also delivers digital content and marketing services.

DIGITAL PRODUCT LIFECYCLE Digital Product Lifecycle Services - Midmarket SERVICES - MIDMARKET Definition

This quadrant evaluates service providers that typically serve clients with less than 5,000 employees or generate less than $1 billion in revenue. These providers can serve larger enterprises, but this quadrant is directed at the buyer company. The purpose is to give midmarket clients a starting point for their procurement process, facilitating a shortlist of the best providers to serve their needs.

The Digital Product Lifecycle Services quadrant assesses a provider’s capacity to adapt its delivery model to each digital product with the required speed, enabling a client enterprise to adopt agile and adaptive operating models. A provider’s portfolio includes agile, testing and DevSecOps to rapidly deploy or transform products and services according to market changes.

DIGITAL PRODUCT LIFECYCLE SERVICES - MIDMARKET Definition (cont.) Eligibility Criteria

Service providers organize their professionals in squads with The service provider delivery model should include agile and DevOps in organizations with many multi-functional teams that use design thinking, real-time analytics, developers and clients’ product owners in product squads. product and service performance data, benchmarking, social network The participating company may provide an organizational change program to transform a feedback, agile development and many specialized tools to change client’s product and service development process. products and offerings in a short timeframe for nearly immediate deployment. Two to four weeks of release cycles are frequent goals. The technology employed includes automation and continuous development platforms This also requires continuous integration, continuous testing and should include trunks synchronization, code repository, version control, release management, DevSecOps for continuous delivery. All these processes need discipline, automated testing, and automated build and deploy tools. governance and automation. Otherwise, the delivery process becomes The company should have Cloud Foundry or OpenShift qualified professionals. costly, ineffective and slow. Quality assurance methodologies should be assessed for ranking the participating providers. The participating companies may be using development platforms that allow applications to be seamlessly deployed in multiple clouds. The consistency of one application running in multiple clouds elevates the availability, security and business continuity at lower costs as compared to deprecated clustering and disaster recovery methods.

DIGITAL PRODUCT LIFECYCLE SERVICES - MIDMARKET Observations

The digital product lifecycle phases are ideation, creation, and continuous Midmarket clients usually focus on making pragmatic technology implementations. Funding delivery of updates that improve functionality and performance. Agile invention and product development can be costly. For example, midmarket clients want ready-to- development practices have matured to include more robust DevOps use algorithms for AI-based solutions rather than investing in training ML to discover innovative automation that enables continuous delivery and quality assurance. approaches. For this reason, they prefer providers that act as partners and extend their IT capacity to bring in ready-to-use solutions. While midmarket clients select their digital product partner company, they should check if the providers have sufficient DevOps automation ISG observed that service providers in this market scale operations with re-utilization, leveraging knowledge to handle data repositories, containers configuration, test proprietary platforms and cloud-ready partner solutions from Adobe, AWS, IBM, Oracle Cloud, automation, security testing, event tracking and rollback. Services should Microsoft Azure, Salesforce and Pegasystems, the most common vendors cited by providers. include continuous integration and delivery (CI/CD) pipeline management, Some are one step ahead; Mindtree, Mphasis, Softtek, Stefanini and Zensar have developed AI tools integration and DevOps operation, including artifacts and repositories. as a service and ready-to-deploy use cases that accelerate digital product deployment. They also Ideation, customer experience, product design and scrum are vital services. facilitate improvements in future releases. Product-oriented development teams (pods) are desirable but not essential.

DIGITAL PRODUCT LIFECYCLE SERVICES - MIDMARKET Observations (cont.)

This quadrant assesses 15 service providers and has identified four leaders Mindtree has 14 offices, two delivery centers and generates $730 million in revenue in the U.S. and one rising star. The firm applies its domain knowledge and accelerators to bring new initiatives to the market faster. Mindtree’s adopts an inventive mobile-first approach to deliver neat cloud-native digital GlobalLogic is a privately held company founded in 2000. It provides products that enrich the customer experience of leading American companies. digital product engineering, including design and software engineering. Its revenue stands at around $650 million globally. In the U.S., the firm Mphasis generates $780 million in revenue from the U.S., where it operates in 16 locations. The operates in San Jose, Washington, Plano and New York. It has entered the firm values transformation, cognitive technologies and rich data. The Mphasis X2C2™ formula leader’s quadrant for the first time. drives the shift to the cloud and powers everything with cognitive computing. Its innovation mindset and robust tooling allows for managing the digital product lifecycle from inception to Hexaware delivers $522 million in the Americas with delivery centers continuous improvement. in Virginia, New Jersey and Georgia. It leverages its NextGen framework and Hexaware Assist, an end-to-end managed service platform that Rising star Zensar Technologies delivers $425 million in revenue from 11 locations in the U.S. complies with the industry’s standard processes, including ISO, ITIL, It is a digital solutions and technology services company with a focus on enterprise digital COBIT and SAFe®. The firm is improving its customer experience offering transformation. It has offerings across the digital value chain and a proven track record of and enhancing its capacity to deliver end-to-end digital product lifecycle innovation. Zensar offers a differentiated portfolio, leveraging as a service options for an services. accelerated implementation and agility to change digital products.

MINDTREE Overview Caution Mindtree is a global technology consulting and services company with 21,000 employees and more than 350 Mindtree should catch up with the market trend of merging marketing and clients in 15 countries. In the U.S., it has 14 offices and two delivery centers, generating $730 million in revenue. customer experience design. It has started integrating its design capabilities into It is a Larsen & Toubro Group Company. Mindtree is helping customers shift and operate in a product IT digital marketing. ISG will continue to observe how Mindtree develops its portfolio operating model focused on enabling business outcomes and accelerating high-quality product delivery. in this market.

Strengths

Excellent references and relevant brands: Mindtree serves midmarket and large accounts. It has renowned brands in its portfolio and maintains long-lasting relationships. With more than 300 digital clients, Mindtree offers an attractive portfolio and robust delivery capabilities.

From customer journey to digital performance: Mindtree’s consulting-led approach centers on human-centric and AI-first to deliver digital experiences, proposing solutions and platforms to make AI pervasive. Mindtree Decision Moments provides industry-specific, self-learning algorithms to drive faster and better decision-making across a wide range of industries and organizations. The vertical specialization covers insurance, consumer packaged goods (CPG) and travel industries. Mindtree has other platforms that automate DevOps, continuous integration and delivery (CI/CD), testing automation, analytics and accelerators for mobile-first and cloud-native digital products. 2019 ISG Provider Lens™ Leader

Innovative mindset: Mindtree has invested in intellectual property (IP) and accelerators, enabling emerging technologies such as AI/ML, AR/VR, conversational solutions and blockchain to build intelligent enterprises. It has Mindtree offers an inventive mobile-first planned to scale its digital solutions to market as-a-service and subscription-based components that accelerate approach to deliver neat cloud-native innovation and digital product delivery. Digital Pumpkin is a collaborative lab that helps clients accelerate digital digital products that enrich the customer innovation, conduct primary research and create functional prototypes and pilot solutions. At the lab in the U.S., clients build roadmaps to get consumer behavior insights, define business visions and identify disruptive experience of leading American companies. innovative ideas using emerging technologies around digital business solution based on trends and business goals of clients.

DIGITAL PRODUCT LIFECYCLE Digital Product Lifecycle Services - Large Accounts SERVICES - LARGE ACCOUNTS Definition

This quadrant evaluates service providers that typically serve large enterprise clients with more than 5,000 employees or generate more than $1 billion in revenue. These providers can handle small deals and smaller corporate clients, but are less focused on developing small accounts. This quadrant report facilitates the shortlist of the best providers that serve the needs of large enterprises.

DIGITAL PRODUCT LIFECYCLE SERVICES - LARGE ACCOUNTS Definition (cont.) Eligibility Criteria

Service providers organize their professionals into squads with The service provider delivery model should include agile and DevOps in organizations with many multi-functional teams that use design thinking, real-time analytics, developers and clients’ product owners in product squads. product and service performance data, benchmarking, social network The participating company may provide an organizational change program to transform a feedback, agile development and many specialized tools to change client’s product and service development process. products and offerings in a short timeframe for nearly immediate deployment. Two to four weeks of release cycles are frequent goals. The technology employed includes automation and continuous development platforms should This also requires continuous integration, continuous testing and include trunks synchronization, code repository, version control, release management, automat- DevSecOps for continuous delivery. All these processes need discipline, ed testing, and automated build and deploy tools. governance and automation. Otherwise, the delivery process becomes The company should have Cloud Foundry or OpenShift qualified professionals. costly, ineffective and slow. Quality assurance methodologies should be assessed for ranking the participating providers. The participating companies may be using development platforms that allow applications to be seamlessly deployed in multiple clouds. The consistency of one application running in multiple clouds elevates the availability, security and business continuity at lower costs as compared to deprecated clustering and disaster recovery methods.

DIGITAL PRODUCT LIFECYCLE SERVICES - LARGE ACCOUNTS Observations

The digital product lifecycle phases include ideation, creation, and The DevOps practice has started involving the use of containers to deploy digital products. continuous delivery of updates that improve functionality and Containers have been in the market for only five years and are gaining prominence for their multi- performance. In today's concept, the continuous delivery of updates cloud deployments with consistent repetition and reducing failures. prevents products from reaching obsolescence, wherein products Microservices, APIs and serverless have gained importance for digital products. The API economy would never need replacement. However, the market does not exist has emerged, defining the services around creating, testing, maintaining and making available the long enough to validate this assumption. APIs and microservices that do not belong to legacy applications or digital products but must exist Agile development practices have matured from last year to include in the middle. The term “API economy” is attributed to their isolation and market demand which more robust DevOps automation to enable continuous delivery enable monetization. They are digital products. and assure the quality of each product update. DevOps is gradually For clients selecting their digital product partner company, this study has identified a few critical replacing the term “agile” to describe the process of continuously criteria. For scoping, service providers must have DevOps automation knowledge to handle developing and deploying the updates. The importance of DevOps is on data repositories, containers configuration, test automation, security testing, event tracking and the rise. This is not only because it empowers agile, but also because deploying roll back. Services should include continuous integration and delivery (CI/CD) pipeline companies now recognize the importance of automated testing even management, tools integration and DevOps operation, including artifacts and repositories. more. Initially, client organizations would see testing automation tools Ideation, customer experience, product design and scrum (or similar) are vital services. Product- as costly additions to the product production process, or pipeline. oriented development teams (pods) are desirable but not essential. For selection, differentiation However, without automation, testing cycles can take from hours to begins with the ability of service providers to deliver agile at scale, wherein there are more than days, slowing the pipeline. With security testing becoming mandatory, 300 developers in a single product development pipeline. They must consider continuous training, the demand for automation has increased. Due to this sophistication, learning platforms and recruiting strategies because of their impact on quality and innovation. leading service providers are relying on powerful automation platforms.

DIGITAL PRODUCT LIFECYCLE SERVICES - LARGE ACCOUNTS Observations (cont.)

Providers that enable access to labs, startups, or innovation hubs keep HCL Technologies has 15 offices and six delivery centers and makes $5 billion in revenue from digital product teams motivated and open to innovate. the Americas. The firm has been consistently growing in the digital space. It offers a comprehensive portfolio, transformational approach and innovation capabilities to drive enterprise clients This quadrant assesses 13 service providers and has identified four through a digital business transformation. HCL provides all services that are required to support leaders and one rising star. the digital product lifecycle. Accenture has 50,000 employees in 40 cities across the U.S. to IBM leverages its experience in product development to enrich its digital product lifecycle provide comprehensive agile, DevOps and automated testing services. Its tooling includes automated testing, automated DevOps, container management, services as part of its digital product lifecycle services. In 2018, the and multiplatform deployment with Red Hat OpenShift, which is currently available through firm invested heavily in employee development and has trained a IBM Cloud Paks. IBM Global Business Services (GBS) provides a wide array of applications and large part of its workforce in automation, agile development and engineering services to support digital products. intelligent platforms. It has a robust quality assurance practice and can handle large, multinational clients. Rising star Infosys has a robust portfolio to support end-to-end digital product lifecycle, including automation, engineering and agile practices. It has an outstanding capacity with more Cognizant makes $12.3 billion in revenue from North America. It than 9,000 certified and 20,000 trained agile professionals, 500 DevOps experts, plus 10,000 has 42 offices and six delivery centers in the U.S. Cognizant extends experienced continuous integration and delivery (CI/CD) professionals. Infosys API Economy and and uses the expertise of the Softvision division. Softvision designs, engineering provide additional value. The company is expanding its presence in the U.S. and is engineers and delivers digital products and experiences that drive acquiring new logos, making it positioned to enter the leaders’ quadrant soon. digital-first business models. Cognizant is a leader in digital product lifecycle services with advanced design capabilities, a robust agile delivery capacity and digital quality assurance.

DIGITAL BACKBONE MANAGED Digital Backbone Managed Services - Midmarket SERVICES - MIDMARKET Definition

This quadrant evaluates service providers that typically serve clients with less than 5,000 employees or generate less than $1 billion in revenue. These providers can serve larger enterprises, and in fact they do, but this quadrant is directed to the buyer company. The purpose is to help midmarket clients have a starting point for their procurement process, facilitating the short-list of the best providers to serve their particular needs.

The Digital Backbone Managed Services quadrant assesses the providers of robust, secure and reliable operations based on microservices and APIs in a hybrid or a pure cloud platform, and all other digital solutions such as mobile apps, IoT platforms and data services. These providers offer consulting services to transform legacy systems and move to a cloud environment.

DIGITAL BACKBONE MANAGED SERVICES - MIDMARKET Definition (cont.) Eligibility Criteria

The cloud enables serverless computing, infrastructure as code, Consulting and managed service providers that can transform legacy applications to run in microservices, Kubernetes and containers for rapid horizontal expan- the cloud. Simple lift-and-shift is excluded. The participant should demonstrate the capacity to sion into multiple geographies or vertical scale of operations. These rewrite applications to include API and microservices to enable the use of native cloud services; are crucial elements to reduce time to market and quickly respond to Managed services include business process monitoring and digital product performance. demand changes. Competitors in this segment have robust platforms Outcome-based contracts are rated but not mandatory; that integrate to public cloud providers with autonomous, AI-based self-healing, provisioning, autoscale and performance optimization. The service provider operates the digital platform to optimize business performance including dynamically changing the configuration to reduce costs and improve performance; the provider Leaders in this market comply with zero outage goals. They monitor uses AI-powered tools to automate the digital platform; real-time digital product usage and transaction volumes, dynamically changing the backbone capacity to optimize business performance. The provider supports digital product development, co-participating in DevOps; They are accountable for API and microservices response time and Providers monitor security and resolve incidents, including data breaches and hacker attacks. availability, data access speed, connectivity and application perfor- They provide consulting on security and compliance. mance. Optionally, they comply with outcome-based contracts.

DIGITAL BACKBONE MANAGED SERVICES - MIDMARKET Observations

A digital backbone is comprised of more than public cloud, serverless For clients procuring digital backbone managed services, the scope definitions should include API computing and infrastructure as code. These are included and added and microservices catalog management, DevOps support, end-to-end performance management by API and microservices performance management, service catalogs, of applications, APIs, microservices, digital products, AI, bots and RPA at minimum. application performance monitoring (APM), AI platform management, Typical providers in this market make $400 million in revenue in the U.S. and employ 1,700 people and other emerging operations that require management for efficiency. in the country (linear averages). Their digital backbone services rely on automation and offshoring Traditional managed service providers do not consider these additions. for 24x7 operations, not demanding much from their U.S. staff. Digital backbone service providers have moved a level up on a service maturity scale, monitoring the business process performance, oper- ISG has identified 11 companies for this quadrant, electing four leaders and one rising star: ating on IoT data, and measuring business outcomes, including the Hexaware delivers $522 million in revenue from the Americas. Its value proposition is to external customer experience. Automate Everything™, Cloudify Everything™ and Transform Customer Experiences™ to

All providers have incorporated DevOps support services. DevOps accelerate the journey of enterprise clients to the digital era. Its Gen 4 Managed Services automation platforms have emerged as competitive differentiators, are focused on digitalization in the form of application-aware infrastructure and superior with multiple levels of AI applied to power automation. user experience.

DIGITAL BACKBONE MANAGED SERVICES - MIDMARKET Observations (cont.)

LTI has offices in 14 cities in the U.S., contributing $901 million to the Mphasis delivers $780 million in revenue in the U.S., where it operates in 16 locations. The company’s overall revenue. The company bets on its Mosaic platform firm values transformation, cognitive technologies and rich data. In 2018, it acquired Stelligent for automation, AI and analytics to improve client experiences. In Systems, a U.S.-based DevOps specialized partner of AWS. Mphasis next-gen infrastructure 2019, it acquired Lymbyc a specialist AI, ML and analytics company, services are designed to improve business availability, enhance the customer experience, and to strengthen its fast-growing digital and analytics offerings. LTI prepare the client organization for the digital era. leverages analytics, automation and microservices to deliver a Rising star CSS Corp. is a new age services company with 6,400 technology professionals across robust digital backbone. 18 global locations. It has four offices in the U.S. which support more than 90 percent of the Mindtree is a global technology consulting and services company business. The firm applies the power of digital technologies to deliver innovative services that with 14 offices in the U.S. and generates $730 million in revenue. drive the company’s growth. It has a differentiated approach to manage the digital backbone by It offers end-to-end managed application and infrastructure focusing on external customer experience and service support. With its extensive use of AI, the services with MWatch, an integrated IT infrastructure management company is growing fast in the U.S. market. and service platform, to provide an integrated digital backbone dashboard. Mindtree offers smart services based on robust tools, including AI and analytics.

MINDTREE Overview Caution Mindtree is a global technology consulting and services company with 21,000 employees, serving more than Mindtree has a concentration of cases that leverage Microsoft’s products. It should 350 clients in 15 countries. In the U.S., the firm has 14 offices, two delivery centers and generates $730 million develop additional capabilities to improve its AWS offerings. in revenue. It is a Larsen & Toubro Group company. Mindtree offers an end-to-end managed application and infrastructure services with MWatch, an integrated IT infrastructure management and service platform, to provide an integrated dashboard that monitors the network, servers, applications and other components that are combined to form a digital backbone. Strengths

Proven automation capabilities: MWatch tools standardize operations and eliminate time-consuming manual processes. Decision Moments is a data analytics platform that uses learning algorithms to drive insights from large data pools and is powered by Microsoft Azure Cortana Intelligence Suite. The CAPE automated platform supports development, testing, application management, infrastructure and packages to enable continuous integration and delivery (CI/CD), DevOps, RPA and test automation.

Optimum backbone performance: Mindtree provides a single point of ownership and consolidated support for its "applistructure," services that combine the application and infrastructure responsibility. It offers an end-to-end solution to boost the performance of digital products running on a client’s digital backbone. The firm 2019 ISG Provider Lens™ Leader provides managed cloud services, application performance monitoring with MWatch, microservices and APIs performance, CI/CD pipeline operations, and fine-tuning of the infrastructure for optimum performance.

Robust partnership ecosystem: Mindtree offers data infrastructure modernization with Databricks. This year, Mindtree offers smart services based on it received the preferred partner status within the Microsoft Azure Kubernetes Service (AKS) program. Mindtree robust tools, including AI and analytics, to provides Kubernetes infrastructure, application development, scaling and deployment. It maintains more than provide a streamlined digital backbone. 35 partnerships, including with Adobe, Google Cloud Platform, Sitecore, Salesforce and Mulesoft. It recently joined the Hyperledger consortium.

DIGITAL BACKBONE MANAGED Digital Backbone Managed Services - Large Accounts SERVICES - LARGE ACCOUNTS Definition

This quadrant evaluates service providers that typically serve large enterprise clients with more than 5,000 employees or generate more than $1 billion in revenue. These providers can handle small deals and smaller corporate clients, but they are not much focused on developing small accounts. This quadrant report provides a shortlist of the best providers that serve their needs.

The Digital Backbone Managed Services quadrant assesses providers of robust, secure and reliable operations based on microservices and APIs in a hybrid or a pure cloud platform as well as other digital solutions such as mobile apps, IoT platforms and data services. They offer consulting services to transform legacy systems and move to a cloud environment.

DIGITAL BACKBONE MANAGED SERVICES - LARGE ACCOUNTS Definition (cont.) Eligibility Criteria

The cloud enables serverless computing, infrastructure as code, The consulting and managed service provider can transform legacy applications to run in the microservices, Kubernetes and containers for rapid horizontal expan- cloud. Simple lift-and-shift is excluded. The participant should demonstrate the capacity to sion into multiple geographies or vertical scale of operations. These rewrite applications to include API and microservices to enable the use of native cloud services. are crucial elements to reduce time to market and quickly respond to Managed services include business process monitoring and digital product performance. demand changes. Competitors in this segment have robust platforms Outcome-based contracts are rated but not mandatory. that integrate with public cloud providers for autonomous, AI-based self-healing, provisioning, autoscale and performance optimization. The service provider operates the digital platform to optimize business performance, including dynamically changing the configuration to reduce costs and improve performance. It uses Leaders in this market comply with zero outage goals. They monitor AI-powered tools to automate the digital platform. real-time digital product usage and transaction volumes, dynamically changing the backbone capacity to optimize business performance. The provider supports digital product development, co-participating in DevOps. They are accountable for API and microservices response time The provider monitors security and resolve incidents, including data breaches and hacker and availability, data access speed, connectivity and application attacks. It also provides consulting on security and compliance. performance. Optionally, they comply with outcome-based contracts.

DIGITAL BACKBONE MANAGED SERVICES - LARGE ACCOUNTS Observations

The participating service providers have all the tools and knowledge to Most clients and providers are not ready to negotiate the scope and service-level agreements of provide value-added digital backbone services. However, most of them digital backbone services and may require the support of external advisors to balance negotiations. position their offerings as regular managed services for applications Outcome-based contracts exist, but few providers have reported more than 20 percent of the deals running in public and private clouds. In fact, they have deployed a with an outcome-based metric for financial compensation or penalty. All providers have incor- digital backbone and are delivering end-to-end digital services. Service porated DevOps support services. DevOps automation platforms have emerged as competitive providers and clients will require a few more years to understand and differentiators with multiple levels of AI applied to power automation. adjust their expectations for scope and service responsibility. For clients procuring digital backbone managed services, scope definitions should include API and A digital backbone is comprised of more than public cloud, serverless microservices catalog management, DevOps support, end-to-end performance management of computing and infrastructure as code. These are included and added applications, APIs, microservices, digital products, AI, bots and RPA at minimum. by API and microservices performance management, service catalogs, As a large enterprise client may have several providers of digital products and multiple agile teams, application performance monitoring (APM), AI platform management, all working on a single digital backbone, the responsibility matrix becomes more complex. The new and other emerging operations that require management for efficiency. middleware of APIs, microservices and AI engines can be consumed and updated by multiple teams In some cases, service providers have described catalog management, and providers simultaneously. The digital backbone manager needs to orchestrate those additions API services and real-time monitoring in their service responsibilities. and changes. Providers have not presented governance frameworks to accelerate the responsibility They have moved a level up on a service maturity scale, monitoring the matrix, which needs to be negotiated case by case. No best practice has emerged so far. business process performance, operating on IoT data and measuring business outcomes.

DIGITAL BACKBONE MANAGED SERVICES - LARGE ACCOUNTS Observations (cont.)

Service providers in this market make $7 billion in revenue in the U.S. Cognizant is a U.S. company with 42 offices and six delivery centers in the country. Its Cloud and employ 24,000 people in country (linear averages). Their digital Enablement services deliver on digital backbone managed services. Its experts employ a backbone services rely on automation and offshoring to ensure 24x7 tailored, risk-mitigated cloud strategy using proprietary tools. Cognizant’s Cloud Management operations, not demanding much from their U.S. staff. Platform (CMP) provides comprehensive automation. It has robust delivery capabilities to support the most demanding global enterprises. ISG has identified 14 companies for this quadrant, electing five leaders and one rising star. IBM is an American icon, delivering $36.9 billion in revenue from the Americas. The firm employs robust management systems that have matured over the years and uses IBM Watson Accenture operates through 52 offices in the U.S. Its product AI to power its managed services platform automation. IBM has appealing solutions to support and platform engineering services practice involves designing, the delivery of world-class services for clients seeking to build a digital backbone for their digital implementing and supporting platforms and developer ecosystems. enterprise. Accenture Intelligent Platform provides a combination of core platforms, cloud, digital, IoT, AI, ML and security. The firm has robust Tata Consultancy Services (TCS) reported $10.6 billion in revenue in North America in FY19. tools, partnerships, scale and expertise to help large enterprises It has 24 offices, including 14 delivery centers. It proposes the Machine First Delivery Model™ build differentiated digital business platforms. (MFDM™) to enable digital transformation. TCS makes heavy use of automation, ML and AI for a superior execution capacity in digital business transformation and digital services execution.

DIGITAL BACKBONE MANAGED SERVICES - LARGE ACCOUNTS Observations (cont.)

Wipro operates 40 facilities in 23 states across the U.S. The company reported $4.3 billion in revenue from the region (FY18). Its Digital Operations and Platforms (DOP) provide next-generation technology to global enterprises. Wipro’s services leverage robust automation, providing reliability and efficiency to scale digital services while providing a differentiated customer experience.

Rising star DXC Technology delivered $7.7 billion in revenue from the U.S. in 2018. The firm leverages its experts, robust service management platform and DXC Bionix™ AI platform. Its long experience in IT operations, highly skilled professionals and robust ecosystem enable it to aspire for a top market position.

BLOCKCHAIN SERVICES - EMERGENT Blockchain Services - Emergent Providers PROVIDERS Definition

The Blockchain Services quadrant assesses a service provider’s competencies in consulting, designing, deploying and operating blockchain.

Emergent providers have pragmatic approaches to deploy use cases into production. This quadrant includes startups that have gained scale to provide blockchain services to enterprise clients, as well as IT service companies that have extended their application portfolio to include pragmatic uses of blockchain technologies. They have consulting capabilities to advise clients on the best approach, platform and architecture for practical application development and are focused on deploying working solutions under project-based engagements with a well-defined scope.

Blockchain’s decentralized, open and cryptographic nature allows enterprises to transact on a peer-to-peer basis, reducing the need for intermediaries. The technology is open source, providing full transparency and long-term continuity despite the corporation behind the platform.

BLOCKCHAIN SERVICES - EMERGENT PROVIDERS Definition (cont.) Eligibility Criteria

Every transaction is registered in multiple databases and is encrypted Blockchain service providers are members of at least one blockchain consortium. by a common hash code that changes every few minutes, forming The provider has developed consulting expertise to design viable solutions. a data block chain in multiple databases. Rather than having one database as the sole source of truth, blockchain provides multiple Participating companies have tested several blockchain use cases, providing a library that sources for validating a single transaction. accelerates new deployments. Blockchain has proven viability with numerous use cases available from The provider has qualified and trained practitioners to deploy and operate the platform for service providers. The banking, financial services and insurance sector their customers. uses blockchain to share information, improve security and reduce The company provides services with local expertise in the assessed region or country. transaction costs such as in money transfers. Viable use cases are also found in the supply chain, tracking, payment services and document and contract processing. ISG estimates that the global market value of blockchain could exceed $300 billion by 2025 and more than $2 trillion by 2030.

BLOCKCHAIN SERVICES - EMERGENT PROVIDERS Observations

The blockchain services market has attracted many service providers ConsenSys is a U.S.-based, privately held company that develops enterprise applications, and is continuing to be a hot topic in the media. Though many service invests in startups, builds developer tools and offers blockchain education. The firm supports providers have emerged, the number of projects, experts and revenue more than 60 Ethereum-related startups and actively participates in the Ethereum community. per participant has not grown much from last year. It hosts events and training and provides consulting services to leading enterprise corporations and service providers. As this market evolves, pure blockchain distributed ledger has been displaced by more generic, permissioned distributed ledger Intellectsoft is a digital transformation consultancy headquartered in Palo Alto. Its team at technologies (DLTs). ISG has collected more than 100 blockchain case Blockchain Lab team helps clients extract real business value from blockchain and DLT. The lab studies, most of which are permissioned with a central authority has access to a vast pool of blockchain engineering, cryptography and cybersecurity talent to or sponsor that handles the cost of running DLT. In practical terms, develop and deploy enterprise-grade blockchain solutions. DLT is easier to implement and provides concrete results at a lower LTI is a global IT service provider with offices in 14 cities across the U.S. Its North American complexity and cost. revenue stands at $901 million. The firm has demonstrated a superior delivery capacity with Service providers have informed their qualifications by platform. In skilled experts. LTI leverages its partner ecosystem to scale and access additional experts the order of adoption, the most prominent providers are Hyperledger if necessary. It has been making improvements in its blockchain delivery capacity to deploy Fabric, Ethereum and R3 Corda. The most frequent use cases are innovative solutions. identity management, banking and insurance (smart contracts), trading, Rising star Zensar Technologies has more than 10,000 associates in 25 offices (with 11 in the and track and trace. U.S.) and generates $425 million from the U.S. The company has invested in developing IP For the Blockchain Services — Emergent Providers quadrant, ISG has around blockchain, producing three patents that are pending and one granted to power the identified 13 participants and named three leaders and one rising star. ZenSmartBlox accelerator platform. Zensar’s approach to facilitate a blockchain fabric puts the company on the right path to acquire new enterprise clients.

BLOCKCHAIN SERVICES - ESTABLISHED Blockchain Services - Established Providers PROVIDERS

Definition

The Blockchain Services quadrant assesses a service provider competence in consulting, designing, deploying and operating blockchain.

Service providers in this quadrant have established relationships with large enterprises and an influential participation in blockchain consortia. These companies are long time IT service providers and business consulting firms that have been experimenting blockchain technologies to respond to the needs of enterprise clients. They provide exploratory consulting to find new applications for distributed ledger technologies (DLT) and conceive new business models around it, sometimes involving or intermediating new consortium creation.

BLOCKCHAIN SERVICES - ESTABLISHED PROVIDERS

Definition (cont.) Eligibility Criteria

Every transaction is registered in multiple databases, encrypted by a Blockchain service providers are members of at least one blockchain consortium. common hash code that changes every few minutes, forming a data The provider has developed consulting expertise to design viable solutions. block chained in multiple databases. Rather than having one database as the sole source of truth, blockchain provides multiple sources for Participating companies have tested several blockchain use cases, providing a library that validating a single transaction. accelerates new deployments.

Blockchain has proven viability with numerous use cases available The provider has qualified and trained practitioners to deploy and operate the platform for from service providers. The banking, financial services and insurance their customers. sector is using blockchain to share information, improve security and The company provides services with local expertise in the assessed region or country. reduce transaction costs such as in money transfers. Besides the banking sector’s interest in blockchain, viable use cases are found in the supply chain, tracking, payment services and document and contract processing. ISG estimates that the global market value of blockchain could exceed $300 billion by 2025 and more than $2 trillion by 2030.

BLOCKCHAIN SERVICES - ESTABLISHED PROVIDERS

Observations

The blockchain services market has attracted many service providers Since the enterprise resource planning (ERP) boom in the late 1990s, the market is expecting newer and is continuing to be a hot topic in the media. However, the number technologies that would push for subtle growth. CRM had its chance as well as business intelli- of projects, experts and revenue has not grown much from last year. gence, Web 2.0, mobile apps and big data, but nothing has been able to replicate the early dramatic The dominant player in this market is IBM, which reports 1,600 experts impacts of large ERP projects. This study finds that blockchain is not the right candidate to boost a on its webpage. This is a small number when compared to most of its service provider's revenue. business units. For comparison purposes, a provider of application As this market evolves, pure blockchain distributed ledger is being displaced by more generic, development and maintenance service with 1,600 consultants is a small permissioned distributed ledger technologies (DLTs). ISG has collected more than 100 blockchain contender in the global market. case studies, most of which are permissioned by a central authority or sponsor that handles the Positive findings also exist. In a small sample survey, nine participants cost of running DLT. These technologies are easier to implement and provide concrete results at a informed they had tested 400 use cases, of which 190 proved business lower cost and lesser complexity. value and 46 went into production. On average, a proof of concept Service providers have informed their qualifications by platform. In the order of adoption, the most (PoC) exercise costs less than $200,000. To go into production, projects prominent providers are Hyperledger Fabric, Ethereum and R3 Corda. The most frequent use cases take seven months on an average and ROI is obtained in around 18 are identity management, banking and insurance (smart contracts), trading, and track and trace. months. Blockchain projects cost low and can be quickly executed, which indicates the need for only small teams.

BLOCKCHAIN SERVICES - ESTABLISHED PROVIDERS

Observations (cont.)

For this quadrant, ISG has identified 15 participants, naming six leaders EY is a global provider of assurance, tax, transaction and advisory services. In 2019, the and one rising star. company generated $16 billion in revenue from the Americas. Its investments in IT services and technologies are part of its digital transformation strategy. It works with leading IT vendors Accenture operates in 52 countries and has more than 492,000 em- to create pioneering solutions, including AI, blockchain, IoT and cybersecurity. EY is evolving ployees. Accenture Blockchain services include strategy assessment, quicker than other companies in this market. With solid accounting and auditing expertise, the hands-on training and rapid prototyping, solution design, build and firm is uniquely positioned to deliver business value from blockchain. implementation, assets and solutions, and ecosystem management. The firm excels on blockchain research and advisory, providing deep IBM reported $36.9 billion in revenue from the Americas in 2018. The firm is a visionary of knowledge to conceive new business applications for the technology. blockchain business impact. With 1,600 experts, it assures a clear leadership in execution capacity. IBM has an extensive portfolio, delivering blockchain on any technology or platform Cognizant is a U.S. company with 42 offices and six delivery centers required by clients. Its vision, strategy and capacity to execute bold transformations position it in in the region. It participates in several blockchain consortia and a superior competitive level for blockchain solutions. contributes to the development of the technology. The firm provides consulting, awareness workshops, proofs of concept (PoCs) and Infosys generated $7.1 billion in revenue from North America in FY19. With 18 locations across blockchain development and integration services. Cognizant can the region, the firm addresses blockchain and adjacent technologies, including shared ledger, scale complex blockchain solutions, including for consortium clients, distributed ledger and smart contracts. Its growing presence in the U.S. market, coupled with and is ready to deploy them for American companies. blockchain expertise, allows it to provide robust solutions to enterprise clients.

BLOCKCHAIN SERVICES - ESTABLISHED PROVIDERS

Observations (cont.)

Tech Mahindra (TechM) makes $2.3 billion in revenue from the U.S. with 34 locations. It provides blockchain consulting and implementation services. The company has provided robust cases and has a global capacity around blockchain technologies. TechM has been progressing in providing practical applications using blockchain technologies and has reported consistent success in delivering tangible results.

Rising star Atos acquired the Syntel in 2018 to bolster its strength in the North American market. The firm generated $2 billion in annual revenue from the region. It provides distributed ledger technology-related services such as data anchoring, digital assets and digital contracts. Atos has in-depth knowledge and robust cases to leverage its international experience in the American market and continues to replicate its successful blockchain projects.

Methodology ISG Provider Lens™ Quadrant Report | January 2020

METHODOLOGY The research study “ISG Provider Lens™ 2019-20 – Digital Business Solutions and Service Partners” analyzes the relevant software vendors/service providers in the U.S. market, based on a multi-phased research and analysis process. It positions these providers based on the ISG Research methodology.

The study was divided into the following steps:

1. Definition of Digital Business Solutions and Service Partners market 5. Detailed analysis & evaluation of services & service documentation based on the facts & figures received from providers & other sources. 2. Use of questionnaire-based surveys of service providers/vendor across all trend topics 6. Use of the following key evaluation criteria: Strategy & vision 3. Interactive discussions with service providers/vendors on capabilities − Innovation & use cases − − Brand awareness and presence in the market 4. Leverage ISG’s internal databases & advisor knowledge & experience − Sales and partner landscape (wherever applicable) − Breadth and depth of portfolio of services offered − Technology advancements

Pedro L. Bicudo Maschio, Author Distinguished Analyst Distinguished analyst and author Pedro Bicudo brings extensive experience in the research of Brazilian and Pan Americas services markets. Pedro is a senior consulting partner at TGT Consult in Brazil. With more than 30 years of experience, he has developed vendor assessments plus contract restructuring, services scope and IT benchmarking programs for diverse vertical markets. Before TGT and ISG, Pedro was managing vice president at Gartner Inc., responsible for the consulting business in Asia and Latin America.

Jan Erik Aase, Editor Director Jan Erik Aase is a director and principal analyst for ISG. He has more than 35 years of collective experience as an enterprise client, a services provider, an ISG advisor and analyst. Jan Erik has overall accountability for the ISG Provider Lens™ reports, including both the buyer-centric archetype reports and the worldwide quadrant reports focused on provider strengths and portfolio attractiveness. He sets the research agenda and ensures the quality and consistency of the Provider Lens™ team.

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm special- izes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.