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Best of the Software LeaderBoard: Profile on

RIS IT SERVICES Leaderboard 2010 Infosys Is #1 Provider In IT Services LeaderBoard In head-to-head rankings Infosys comes out on top

By Joe Skorupa The retail IT services landscape has shifted over the past decade Of the three lists where Infosys appears in the top spot it should as providers have elevated their role in the IT hierarchy. Instead come as no surprise that one is the Top-10 master list, which is the of being counted on for simple cost-reduction capabilities and only comprehensive head-to-head ranking in the report. augmentation of skills, today’s IT services providers offer such IT services providers that make it onto the Top-10 master list major strategic functions as change management, business are not specialists with finely targeted skills. Instead they excel transformation and IT consulting. across multiple disciplines, including all seven Criteria in the IT This is not to imply that competency in cost reduction and Services LeaderBoard. These Criteria are: Domain Experience, skills augmentation are not important. They are. But many lead- ing IT services providers are so large and diverse that they pos- 2010 TOP 10 IT SERVICES LEADERS sess a deep pool of talent found nowhere else, both off-shore and on-shore, that retailers tap for both strategic planning and 1 Infosys 31.80 project execution. 2 JDA 31.68 One company that has successfully made this transition is Infosys, which beat out 32 providers that have strong practices 3 31.34 in the retail industry to earn the number one ranking in the 2010 4 Microsoft 28.92 RIS IT Services LeaderBoard. 5 IBM Global Serives 27.85 Best of the Best 6 Oracle 26.20 Retail CIOs turn to IT services providers as trusted partners and key team members when they need to make critical mid-course 7 Services 25.25 corrections, launch major initiatives in new channels or deploy 8 NCR 22.80 emerging technologies. Based on the outstanding scores achieved in the 2010 IT Ser- 9 Verizon 19.75 vices LeaderBoard, Infosys is a provider that does all of this at a 10 AT&T 19.63 high level of proficiency. That Infosys is at the top of its game is borne out by a number-one ranking in three of the eight top-10 10 19.63 lists in the report and a top-three finish in all other lists.

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Depth of Offerings, Integration Capabilities, On Time/On Budget, Meeting Expectations, Strategy TOP 10 LEADERS IN DEPTH OF OFFERINGS TOP 10 LEADERS IN INTEGRATION CAPABILITIES & Innovation, and Strength of Recommendation. 1 JDA 4.62 1 Infosys 4.80 The scores for each of these Criteria are com- bined into a single, comprehensive score that is 2 Infosys 4.60 2 JDA 4.78 the basis of the Top-10 master list. 3 Accenture 4.33 3 Accenture 4.33 Providers that make the comprehensive list 4 4 not only possess industry-leading skills and ex- Microsoft 4.30 IBM Global Services 4.07 pertise, but they are also innovators and thought 5 Fujitsu Services 4.25 5 Microsoft 4.02 leaders that meet or beat the high expectations 6 IBM Global Services 4.02 6 Oracle 3.50 their retail clients place on them. In many ways, Infosys is a poster child for 7 Oracle 3.90 7 Fujitsu Services 3.25 broad strengths like these, a fact that is validated 8 Verizon 3.25 8 Verizon 2.75 throughout the LeaderBoard report. 9 NCR 3.20 9 NCR 2.60 Number One Rankings 10 Cognizant 2.75 10 Cognizant 2.50 The unique characteristic that makes the RIS IT Services LeaderBoard a must-read report is its methodology, which is based on the premise that TOP 10 LEADERS IN ON TIME/ON BUDGET TOP 10 LEADERS IN MEETING EXPECTATIONS customer satisfaction is the key indicator of suc- 1 Accenture 4.33 1 Accenture 4.67 cess in IT services engagements. The overall score, which is shown in the Top- 2 JDA 4.30 2 Infosys 4.40 10 master list, is composed of seven individual 3 Infosys 4.20 3 Microsoft 4.38 Criteria scores worth five points each. Points are based on retailer evaluations of IT services pro- 4 Microsoft 4.05 4 JDA 4.36 viders they have had experience with in the last 5 Fujitsu Services 3.75 5 IBM Global Services 3.84 12 months. Retailers select a number from one to five, with five representing the highest level 6 IBM Global Services 3.65 6 Fujitsu Services 3.50 of satisfaction. Since there are seven Criteria 7 NCR 3.40 7 Oracle 3.40 the maximum number of points a provider can 8 Oracle 3.00 8 NCR 3.20 achieve is 35. The focus on customer satisfaction in the IT 9 Cognizant 2.68 9 Verizon 2.75 Services LeaderBoard resembles the method- 10 AT&T 2.43 10 Cognizant 2.75 ologies used by such well-known studies as the Zagat restaurant reports, J.D. Power and Associ- ates rankings, and the “Consumer Reports” sur- TOP 10 LEADERS IN STRATEGY & INNOVATION TOP 10 LEADERS IN RECOMMENDATION vey of products. 1 When each Criterion is broken out into indi- 1 Accenture 4.67 Infosys 4.60 vidual lists Infosys scores number-one rankings 2 Infosys 4.60 2 JDA 4.57 in two key areas. They are: Top 10 Leaders in 3 JDA 4.52 3 Accenture 4.33 Integration Capabilities and Top 10 Leaders in Recommendation. 4 Oracle 4.40 4 IBM Global Services 4.12 TOP 10 LEADERS IN DOMAIN EXPERTISE 5 IBM Global Services 4.08 5 Oracle 4.00 1 Accenture 4.67 6 Microsoft 3.92 6 Microsoft 3.95 2 Infosys 4.60 7 NCR 3.20 7 Fujitsu Services 3.88 3 JDA 4.53 8 Cognizant 3.13 8 NCR 3.80 4 Microsoft 4.30 9 Fujitsu Services 2.88 9 Verizon 3.50 5 IBM Global Services 4.07 10 AT&T 2.60 10 Cognizant 3.13

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Retailing in 2011 Customer trends and new technology adoptions as per Dinesh Bajaj, Vice President, Infosys Retail and CPG Practice

Which customer trends in retailing do you see as What are some things retailers can do to simul- being critical to success in 2011? taneously deliver better custom service/satis- There is no doubt that the recession has created a dramatic faction and achieve essential differentiation in change in consumers’ consumption habits. Even as the economy the marketplace? recovers and discretionary spending comes back in 2011, con- Retailers cannot just turn on consumer insights and analytics, sumers will continue to be cautious and will display value based mobility and multichannel integration. For these initiatives to be buying behavior. Brand loyalty will continue to be challenged as optimal, back-end functions and infrastructure must be able to well. Consumers are more socially-conscious. The country’s de- keep up and work seamlessly with these initiatives. For example, mographics are also changing - the baby boomers will start to supply chains should be involved with multichannel integration retire in 2011 and the U.S. minority population is approaching activities as supply chains have to respond to customer needs majority population. Retailers will need to respond to the rising as well. Today many POS systems cannot handle new payment demand for personalization, facilitated by growing digital technolo- systems. The bottom line is that many POS and supply chain gies and social media. Online engagement is a powerful and grow- systems are outdated. There are opportunities for retailers to in- ing consumer shopping tool. Peer and consumer reviews are af- crease efficiency as well as reduce costs in areas such as supply fecting buying decisions. The successful retailers will look at social chain optimization and visibility and better support initiatives like media as an organized business support model as opposed to the Multi channel commerce, mobility, etc. more open-ended view retailers have today. Overall, investment in technologies and strategies that create a seamless experience for In your view, what are major global forces tak- consumers from multiple touch points, where and when they want ing shape right now that will have a big impact on it, will help retailers in the coming year. retailing in 2011? There are two/three major global forces that are impacting What specific technologies, solutions or IT retailing in 2011 and beyond: emerging markets, mobile tech- strategies do you see as being keys to success in nology and social networking. Retailers are eyeing emerging mar- 2011 and beyond? kets such as China, India, Latin America and Russia, and in the Based on the consumer trends, retailers should continue to next few years will be entering these markets to drive growth. In concentrate on areas such as consumer insights and analytics, addition, there is a growing ecosystem of new mobile technolo- and multichannel integration including mobility and localization, gies and applications that will have a big impact on retailing. We’ll which are important as they carve out strategies for pricing, mer- see growing consumer interest in areas such as e-wallets, mobile chandise assortment and packaging. Many of the retailers who payments and social networking apps to search, browse, com- used the downturn period to invest in consumer- centric tools and pare and product information/reviews. All this adoption by strategies are in a good position today. consumers will incentivize the retailers to invest in the adoption If we were to pick out the top retail buzz words for 2011, these of these technologies. n would be consumer insights, localization and analytics. Retailers must focus on harnessing and understanding the data that they have at their fingertips to help them better understand their cus- tomers and buying patterns, and cater to local markets. What are they buying? What products are they talking about? How do they feel about what they are buying? 2011 IT priorities and areas of investment also include multi- Infosys’ Retail & CPG Business Unit provides business solutions to channel integration (online, mobility and social commerce), mobil- the industry’s leading firms to enable them to become more competi- ity, business intelligence and analytics, supply chain optimization tive. Our client base spans all major segments of the value chain, from and shared services. Finally, green IT is becoming important for retailers to distributors and CPG manufacturers. The 10,000+ strong retailers as well as consumers. Specific solutions include enter- practice provides services that include business process conceptual- prise asset management, and software and automated systems. ization, process engineering, package selection and implementation.

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Being the leader in Integration Capabilities means that Infosys is All-Around Strength capable of delivering industry-leading expertise in tasks necessary Aside from its three number-one rankings, Infosys achieved im- to execute and maintain IT projects that require integrating complex pressive scores in all other top-10 lists in the IT Services Leader- patchworks of home-grown code, best-of-breed solutions and suites Board, where it finished no lower than third place. In each case of applications from multiple vendors. Infosys scores the top spot in the marks achieved by Infosys were fractions of a point from the this Criterion, which is a crucial competency in tier-one retailing with leaders. The stellar Criteria rankings include: its typical hodge-podge of interoperable systems. What does it mean to be ranked number one in the Top 10 · #2 Leaders in Domain Experience Leaders in Recommendation list, the second Criterion where In- · #2 Leaders in Depth of Offerings fosys takes the top spot? · #2 Leaders in Meeting Expectations In many ways this is the defining Criterion on the IT Services · #2 Leaders in Strategy & Innovation LeaderBoard report, because it measures how strongly a retailer · #3 Leaders in On Time/On Budget would recommend a provider to his colleagues. This is where the rubber meets the road, because many retail CIOs are measured by The outstanding performance by Infosys in the 2010 IT Ser- the success of their vendor selection decisions. vices LeaderBoard highlights the continued maturity of a major That Infosys scores higher in this Criterion than any other IT ser- player in the retail technology landscape and a company to watch vices provider indicates it has earned the respect of its clients to be in 2011 and beyond. n a trustworthy partner when risk is on the line, and there is always risk in large enterprise-class projects. LeaderBoard Methodology

The RIS IT Services LeaderBoard is a highly regarded report Customer satisfaction leads to loyalty, and loyalty leads to that compares IT services providers in head-to-head rank- strength, growth and profits. That is the mantra of the classic ings. Over the years it has become a must-read report for CIOs business book, “The Loyalty Effect,” written by Frederick F. Reich- planning to undertake their next IT services engagement, which held, and it is also the mantra of the RIS LeaderBoard series. is an increasingly essential element in virtually all large retail The IT Services LeaderBoard takes the pulse of a constituency organizations. that most savvy business people believe is the key to success in Polling for the report took place over the summer months of the marketplace — customers (retailers in this case) and their 2010, and only senior-level retailers with experience using the IT perception of satisfaction. services providers they evaluated within the last 12 months were Scoring for the Top-10 master list is based on total points ac- allowed to be qualified voters. This year 70 retailers with revenue cumulated in seven individual Criteria, each worth five points. greater than $500 million submitted evaluations of 32 different Retailers evaluate IT services providers by selecting a number IT services providers. The independent, third-party research firm from one to five, with five representing the highest level of satis- —Litchfield Research—helped aggregate the data used to create faction. Since there are seven Criteria the maximum number of the top-10 lists in the report. points available in the master list is 35. Scoring for the overall master list and the individual Criteria The seven individual Criteria are: Domain Experience, Depth break outs is based on converting customer satisfaction (retailer of Offerings, Integration Capabilities, On Time/On Budget, Meet- satisfaction) into a numerical ranking system. This element is ing Expectations, Strategy & Innovation, and Recommendation the distinctive component that makes the IT Services Leader- (which refers to how strongly a retailer would recommend the IT Board unique. services provider).

About Infosys

Infosys’ Retail & CPG Business Unit provides business solutions to the industry’s leading firms to enable them to become more competitive. Our client base spans all major segments of the value chain, from retailers to dis- tributors and CPG manufacturers. The 10,000+ strong practice provides services that include business process conceptualization, process engineering, package selection and implementation.

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