FOR INFRASTRUCTURE & OPERATIONS PROFESSIONALS The Forrester Wave™: Next-Generation Infrastructure Outsourcing, Q4 2017 The Modern Services Of Infrastructure Outsourcing by Bill Martorelli October 31, 2017 Why Read This Report Key Takeaways In our 24-criteria evaluation of next-generation HCL, Wipro, Atos, IBM, Accenture, And TCS infrastructure outsourcing providers, we identified Lead The Pack the 15 most significant ones — including Forrester’s research uncovered a market in which Accenture, Atos, Capgemini, CGI, Cognizant, HCL, Wipro, Atos, IBM, Accenture, and TCS lead DXC Technology, Fujitsu, HCL, IBM, Infosys, NTT the pack. Capgemini, Cognizant, Infosys, Fujitsu, DATA, Tata Consultancy Services (TCS), Tech DXC Technology, NTT DATA, and Tech Mahindra Mahindra, Unisys, and Wipro — and researched, offer competitive options. CGI and Unisys are analyzed, and scored them. This report shows Contenders. how each provider measures up and helps I&O I&O Pros Are Looking For Help In professionals make the right choice. Infrastructure Transformation Next-generation infrastructure outsourcing remains of interest because more I&O professionals see it as a way to address their top challenges, which include being able to thrive in a hybrid world. I&O pros require next-generation infrastructure outsourcing providers to act as strategic partners and to advise them on key infrastructure-related decisions. Emphasis On Customer Experience And Satisfaction Emerge As Key Differentiators As the traditional approach to infrastructure outsourcing becomes outdated and less effective, improved customer experience will dictate which providers will lead the pack. Furthermore, vendors that can successfully blend data center and workplace services with broad geographic reach and a differentiating value proposition will position themselves to successfully deliver next- generation infrastructure outsourcing services. FORRESTER.COM FOR INFRASTRUCTURE & OPERATIONS PROFESSIONALS The Forrester Wave™: Next-Generation Infrastructure Outsourcing, Q4 2017 The Modern Services Of Infrastructure Outsourcing by Bill Martorelli with Eveline Oehrlich, Aaron Kinch, Peter Harrison, and Peggy Dostie October 31, 2017 Table Of Contents Related Research Documents 2 Infrastructure Outsourcing Customers Be Aware Of These Sourcing Trends For Managed Need A New Experience Services And Cloud Legacy Outsourcers Struggle With Comprehensive Services Integration Needs More Emerging Requirements Than Just Conventional SIAM 3 Next-Generation Infrastructure The Forrester Wave™: Global Infrastructure Outsourcing Evaluation Overview Outsourcing, Q1 2015 Evaluated Vendors And Inclusion Criteria 6 Vendor Profiles Share reports with colleagues. Leaders Enhance your membership with Research Share. Strong Performers Contenders 15 Supplemental Material Forrester Research, Inc., 60 Acorn Park Drive, Cambridge, MA 02140 USA +1 617-613-6000 | Fax: +1 617-613-5000 | forrester.com © 2017 Forrester Research, Inc. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378 FOR INFRASTRUCTURE & OPERATIONS PROFESSIONALS October 31, 2017 The Forrester Wave™: Next-Generation Infrastructure Outsourcing, Q4 2017 The Modern Services Of Infrastructure Outsourcing Infrastructure Outsourcing Customers Need A New Experience Despite continuing challenges of cloud migration and adaptation to hybrid cloud structures, infrastructure outsourcing remains a sizable opportunity.1 Suppliers of conventional infrastructure outsourcing services have done a good job of delivering basic infrastructure services at low cost; however, new requirements, including a new customer experience, remain unaddressed. For these reasons, I&O pros need a new vision for infrastructure outsourcing.2 › Cloud migration and DevOps are morphing the nature of infrastructure outsourcing. Support for the emerging hybrid cloud environment has become one of the central features of the next- generation infrastructure outsourcing market. But just because people don’t want to own their infrastructure does not mean they don’t have to manage it any more. Cloud migration services and services for managing cloud operations are emerging as significant opportunities for next- generation infrastructure outsourcing (NGITO) suppliers. Adaptation of DevOps is contributing to the merger of the I&O and development towers, while some suppliers are now selling solutions in which management of both stacks are combined and sold back to customers as a utility. › Workplace services rise in importance as data center exodus continues. Customers like General Electric have made no secret of their ambition to migrate applications wholesale to the cloud, thereby enabling them to close data center facilities.3 As the emphasis on emptying the data center continues, enabling the workforce becomes more important, not only to customers but to suppliers as a means of account control. › Growth in NGITO is slow and hard to achieve. Forrester believes core infrastructure markets are still maintaining modest growth. While demand for conventional service delivery shrinks, demand for emerging, cloud-centric delivery expands.4 But for most suppliers, growth in NGITO services is hard to come by. Although Indian suppliers have used infrastructure services as a growth engine, relatively few are growing their NGITO businesses faster than their overall corporate growth. Meanwhile, global system integrators are either merely holding their own or managing through a continuous reduction in revenues. Legacy Outsourcers Struggle With Emerging Requirements Suppliers of infrastructure management services will have to up their game to address evolving needs of their customers. Suppliers of NGITO services face substantial headwind in their continuing efforts for growth. › Customer experience, particularly initial experience, is a sore spot for customers. Suppliers deliver a mixed bag when it comes to creating a positive experience for outsourcing customers. Customers are generally happy with the providers who are flexible in adjusting work processes or contractual terms for their benefit, but the initial experience of outsourcing lags ongoing experience © 2017 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. 2 [email protected] or +1 866-367-7378 FOR INFRASTRUCTURE & OPERATIONS PROFESSIONALS October 31, 2017 The Forrester Wave™: Next-Generation Infrastructure Outsourcing, Q4 2017 The Modern Services Of Infrastructure Outsourcing by a substantial margin.5 Moreover, suppliers tend to cling to survey-based measures of customer satisfaction, as opposed to more proactive methods of gauging customer satisfaction like continuous monitoring of the client’s workplace. › Automation looms large in outsourcing’s future, but customers have doubts. It’s virtually impossible to discuss infrastructure outsourcing without running headlong into the subject of automation. Virtually every supplier either already has or is about to disclose an automation strategy encompassing new heuristic technologies, which promise, at the very least, to substantially reduce service desk interactions. However, client references as a group also have lingering doubts about the ability of suppliers to introduce automation, as they also doubt suppliers’ ability to introduce innovation more generally.6 › The names remain largely the same, but the requirements have changed. With the exception of DXC Technology, most of the supplier names in this analysis are well known to Forrester clients. However, requirements for leadership in the NGITO segment are different and ultimately more challenging than for conventional infrastructure outsourcing. That’s not to say that new players aren’t making their presence felt. For example, smaller India-based players like Hexaware and NiiT are striving to become more mainstream players, while a new domestic US player, Ensono, has emerged from the former Axciom. Meanwhile, these mainstream NGITO suppliers are facing a challenge from cloud-oriented specialists like 2nd Watch. Next-Generation Infrastructure Outsourcing Evaluation Overview To assess the state of the next-generation infrastructure outsourcing market and see how the vendors stack up against each other, Forrester evaluated the strengths and weaknesses of top infrastructure outsourcing vendors. After examining past research, user need assessments, and vendor and expert interviews, we developed a comprehensive set of evaluation criteria. We evaluated vendors against 24 criteria, which we grouped into three high-level buckets: › Current offering. Each vendor’s position on the vertical axis of the Forrester Wave™ graphic indicates the strength of its current product offering. Key current offering criteria include approach to automation, market penetration, cloud capabilities, service desk capabilities, engagement profile, and customer experience. › Strategy. A vendor’s position on the horizontal axis indicates the strength of its go-to-market strategy. Forrester evaluates strategy by measuring overall value proposition, vision for the future of data center and workplace services, vision for business outcomes, and the supplier’s potential for innovation and the supplier’s execution road map. ›