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Everest Group’s PEAK Matrix for Digital Services Focus on Accenture October 2016 Copyright © 2016 Everest Global, Inc. This document has been licensed for exclusive use and distribution by Accenture EGR-2016-4-E-1954 Introduction and scope Everest Group recently released its report titled “Digital Services – PEAK Matrix™ Assessment and Market Trends: “Is Digital the New Normal?”. As a part of this report, Everest Group analyzed 18 leading service providers on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix specific for digital services into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a composite framework that provides an objective, data-driven, and comparative assessment of digital service providers based on their absolute market success and delivery capability. Based on the analysis, Accenture emerged as a Leader. This document focuses on Accenture’s digital services experience and capabilities and includes: Accenture’s position on the digital services PEAK Matrix Detailed digital services profile of Accenture Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand the service providers’ relative strengths and gaps. However, it is also important to note that while the PEAK Matrix is a useful starting point, the results from the assessment may not be directly prescriptive for each buyer. Buyers will have to consider their unique situation and requirements, and match them against service provider capability for an ideal fit. Copyright © 2016, Everest Global, Inc. 2 EGR-2016-4-E-1954 Background of the research Background of the research Enterprises are challenged by intensifying competition, uncertain macroeconomic environment, digital-savvy nimble firms, and ever-increasing demands of digital-native consumers. They are leveraging digital technologies to not only tackle these challenges, but also stay ahead of the competition, both current and potential Responding to enterprise priorities, service providers are rapidly ramping up their digital services portfolio. They have invested in acquiring newer capabilities, realigning their workforce, and developing contextualized solutions to help enterprises in their digital transformation efforts In this research, we present the assessment and detailed profiles of 18 IT service providers featured on the digital services PEAK Matrix. Each service provider profile provides a comprehensive picture of its service focus, key Intellectual Property (IP)/solutions, domain investments, and recent developments The assessment is based on Everest Group’s annual RFI process for the calendar year 2016, interactions with leading digital services providers (including product development specialists), client reference checks, and analysis of the digital services market Scope of this report Services: Digital services Geography: Global Service providers: 18 leading IT service providers This report includes the profiles of the following 18 service providers featured on the digital services PEAK Matrix: Leaders: Accenture, Cognizant, IBM, and TCS Major Contenders: Atos, Capgemini, CGI, CSC, Dell Services, HCL Technologies, Infosys, L&T Infotech, Tech Mahindra, VirtusaPolaris, and Wipro Aspirants: EPAM, Luxoft, and Syntel Copyright © 2016, Everest Global, Inc. 3 EGR-2016-4-E-1954 Accenture is positioned as a Leader on the Everest Group PEAK Matrix for digital services Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix for digital services - 2016 75th percentile High Leaders Leaders Accenture Major Contenders Major Contenders IBM Aspirants Star Performers TCS Cognizant enterprise adoption) enterprise percentile and and Wipro HCL Technologies Capgemini th Infosys Atos 75 CSC CGI Tech Mahindra Market success Market L&T Infotech VirtusaPolaris EPAM percentile Aspirants Dell Services th 25 Syntel Luxoft Low (Digital services revenue, growth, growth, revenue, services (Digital Low 25th percentile High Digital services delivery capability (Scale, scope, domain expertise & innovation, delivery footprint, and buyer satisfaction) Note: Assessment for Capgemini, CGI, IBM, and Infosys excludes service provider inputs on this particular study, and is based on Everest Group’s estimates which leverage Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage of these service providers, public disclosures, and interaction with buyers. The assessment for CSC excludes the company’s erstwhile North American public sector business, which has been merged with SRA International to form CSRA Inc. Source: Everest Group (2016) Copyright © 2016, Everest Global, Inc. 4 EGR-2016-4-E-1954 Accenture | Digital services profile (page 1 of 3) Digital services overview Strengths Areas of improvement Accenture leverages its consulting heritage to drive buyers’ digital Accenture has been cited to be less open to pricing flexibility, though transformation efforts. Its digital practice capitalizes on its global scale some instances of change have surfaced and broad service portfolio to tackle buyers’ core business challenges It is also perceived to be a latecomer to some market opportunities Its investments in the design space (acquisitions and hiring) have helped where its peers have established themselves well buyers to procure integrated and holistic offerings Digital services revenue by geography >25% 10-25% <10% Overview of digital services practice: Complete integrated digital business and technology services – digital marketing, mobility, analytics, social and cloud. Offerings support every phase of the digital journey – Europe from developing digital strategies to implementing digital technologies and running digital processes. End-to-end services span everything from strategy, business process, people, organizational change and technology. UK North Digital services: Top 5 industries >20% 15-20% 10-15% <10% America APAC Retail, BFSI distribution, MEA & CPG South America Telecom, media, Energy & Manufacturing & entertainment utilities Digital services revenue by segment >25% 10-25% <10% Digital services revenue by buyer size >50% 20-50% <20% Small (annual revenue < US$1 billion) Social Mobility Analytics & big data Medium (annual revenue = US$1-5 billion) Internet Cognitive Cloud applications Large (annual revenue = US$5-10 billion) of Things intelligence Others Mega (annual revenue > US$10 billion) Source: Everest Group (2016) Copyright © 2016, Everest Global, Inc. 5 EGR-2016-4-E-1954 Accenture | Digital services profile (page 2 of 3) Digital services solutions and co-innovation labs Vision: Accenture Digital focuses on helping clients harness digital innovation not only for efficiency gains, but also to generate growth and create new business models that drive higher performance across the entire organization. Digital services – proprietary solutions (representative list) Solution Details Accenture Marketing ● Interactive marketing software that runs diagnostics of actual performance and investment patterns to generate more accurate Analytics Platform marketing models using multidimensional data processing Analytics Insights ● Comprehensive solution comprising an integrated suite of leading technologies and enterprise support with a pre-configured, Platform (AIP) industrialized, end-to-end architecture to help generate actionable analytics insights Accenture Customer ● Cloud-based managed service for the development, execution, and measurement of digital marketing; helps marketers to Engagement (ACE) deliver engaging customer experiences in a simple, agile, and cost-effective way Accenture Cloud ● Services and solutions designed to help organizations integrate and manage the hybrid cloud environments that span multiple Platform vendor platforms and are critical to providing flexibility and supporting emerging technologies Accenture Connected ● An open architecture platform for the IoT market. Data-driven and designed to run connected applications, CPaaS enables Platform as a Service companies across industries to develop and deploy IoT solutions, using technology from a wide variety of vendors Design studios / co-innovation labs (representative list) Location Details Multiple locations ● Accenture Digital brings design and innovation capabilities to its clients by leveraging its network of 30 design studios globally, worldwide 5 Advanced Analytics Centers and 13 Accenture Innovation Centers for Mobility ● Accenture has over 20 Innovation Centers that work with clients as applied R&D institutes to innovate and incubate solutions ● Accenture Open Innovation teams with global venture capital firms, with incubators, startups, and accelerators, with the R&D arms of major technology companies, and with leading research universities to help clients to embrace open innovation and proactively brings promising ideas to clients to guide them to adopt industry-transforming innovations ● Accenture’s technology, innovation, and R&D engine: The Labs focus on technology innovation to invent and commercialize new technologies that impact clients and own business; they work in close collaboration with internal and external stakeholders to test and pilot new capabilities and POCs that become service offerings Source: Everest Group (2016) Copyright © 2016, Everest Global, Inc. 6 EGR-2016-4-E-1954 Accenture | Digital services profile (page 3 of 3) Digital services investments and partnerships Digital services investments (representative list) Investment theme Details Acquisitions
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