Magic Quadrant forCRM Service Providers, Europe, 2008

Gartner RAS Core Research Note G00156913, Ed Thompson, Matthew Goldman, 29 April 2008, R2732 05152009

The “Magic Quadrant for CRM Service Providers, Europe, 2008”identifies the service providers that users should consider forpan-European projects.

WHAT YOU NEED TO KNOWThe relative positioning of vendors in this Magic Quadrant is based on factors Gartnerdetermined as relevant to this market. Consulting and system integration projects require ablend of skills in business, industry, technology, and project and program management thatmust align with your objectives, institutional and business culture and employees. Use thisMagic Quadrant to understand the market and relative positioning of the best consultants andsystem integrators for pan-European CRM projects.

Gartner advises enterprises not to only select firms from the Leaders quadrant. All selectionsare buyer-specific, so vendors in the Challengers, Visionaries or Niche Players quadrants maybe a better match for your requirements. Many smaller service providers not covered in thisMagic Quadrant may be appropriate for your needs on smaller or country-specific projects.

MAGIC QUADRANTMarket OverviewIn 2007, the Western European market for CRM consulting and system integration servicesexperienced faster annual growth (15%) than 2006 but slower than the CRM software marketgrowth rate of 22% in Europe. Central and Eastern Europe grew even faster. The overallEuropean market is well above the size it was at the last peak of 2001. Growth among CRMconsulting and system integrators was inconsistent, marked by wide variances, but mostexternal service providers (ESPs) on this Magic Quadrant grew revenue by the market rate orfaster. The main drivers of the growth in spending are continued high interest in revenuegeneration activities (such as improving sales effectiveness), increasing use of the Web channeland cross-selling or up-selling to established customers. This is being accompanied by anincrease in organizations seeking help in improving the customer experience. The result iscontinued high utilization rates of consultants at or above 75% at most providers and an urgentdrive to recruit more resources; rates continue to rise. Not coincidentally, the offshore, pure-playservice providers Gartner analyzed grew at rates far exceeding the market average, and, onaverage, their revenue bases are approaching those of one-quarter of the largest providers.

The mix of applications that CRM consulting and system integrators implement alters eachyear. At the worldwide level, more than 19% of projects had no software enhanced orimplemented – that is, purely consulting about the same as 2006. Of the projects that didimplement an application, the share of projects carried out using Oracle’s Siebel productdropped to 38% from 41%, SAP increased to 20% from 8%, salesforce.com rose to 6% from3% and Microsoft increased from 2% to 4%, while all other vendors were used at 2% or less.Thus, the technology vendors used on the projects are becoming more disparate. Thespecific strengths mentioned in this research for individual vendors highlights only where theyvary from this average mix of application skills.

2Market Definition/DescriptionThis Magic Quadrant focuses on pan-Europeanconsulting and solution implementation services – noton high-level business strategy or sourcing services.Consulting and solution implementation servicesinclude CRM strategy, business consulting, businesstransformation, development, configuration, anddeployment and training on packaged and customCRM software. The research focuses on suppliers’CRM practices (see Note 1) that Gartner has foundfrequently used by the 1,000 largest organizations inEurope for pan-European projects and programs.

To further illustrate this market, consider the followingdefinitions.

• Consulting and solution implementation:Consulting services are advisory services designedto help companies analyze and improve theeffectiveness of business operations andtechnology strategies. Gartner divides consultinginto two subsegments: business consulting and ITconsulting. For Gartner, the term “solutionimplementation” is synonymous with thedevelopment and integration services, whichincludes application development, deployment andintegration services. These are the service areas offocus for project-based CRM service delivery.

• CRM: Gartner defines CRM as a businessstrategy in which the outcomes optimizeprofitability, revenue and customer satisfaction byorganizing around customer segments, fosteringcustomer-satisfying behaviors and implementingcustomer-centered processes. The primarysolution areas of CRM are:• Sales – Field sales, telesales, retail sales, Web

sales and technology-enabled buying• Marketing – Marketing analyses, campaign management,

marketing process automation and all CRM analytics• Customer service and support – All customer service

processes

Inclusion and Exclusion CriteriaThe Gartner Magic Quadrant research process involves primaryresearch with direct client references supplied by CRM serviceproviders, as well as each service provider’s representation of itsorganization (see Note 2). The analysis involves weighting bothinformation sources, with heavy emphasis on client feedback. As aresult, many individual categories have “client reference” criteriafactored into the rating. Gartner considers client feedback to beone of the most critical measures of a service provider’s success.

Gartner evaluates service providers on their ability to execute andtheir completeness of vision. When the two sets of criteria areevaluated together, the resulting analysis provides a view of howwell the provider performs a spectrum of services relative to itspeers and how well it is positioned for the future. This evaluation isa snapshot in time. The competitive nature of the CRM service

challengers leaders

niche players visionaries

completeness of vision

abili

ty to

exe

cute

As of April 2008

AccentureCapgemini

Deloitte

IBM Global Business Services

BearingPoint

Tata Consultancy Services

Wipro Technologies

Infosys TechnologiesBT Global Services

Business & DecisionCognizantT-Systems CSC

Atos OriginLogica

Siemens IT Solutions and Services

Source: Gartner (April 2008)

Figure 1. Magic Quadrant for CRM Service Providers, Europe, 2008

The Magic Quadrant is copyrighted April 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined byGartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only thosevendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartnerdisclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

© 2008 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is for-bidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, complete-ness or adequacy of such information. Although Gartner’s research may discuss legal issues related to the information technology business, Gartner does notprovide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies inthe information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

Note 1CRM PracticesConsultancies historically have referred to their organizationalunits as “practices” and still do so even now that many are inlarger consulting and system integration organizations.

3provider market affects the relative position of the evaluatedcompanies. In addition to understanding the positions in thisMagic Quadrant, enterprises must conduct due diligence andcheck references. Ensure that your business culture is synergisticor, at a minimum, is compatible with the service provider’s culture.The most critical criteria for project success are the provider’sability to work in the enterprise’s business culture and with itspeople to effect the organizational change essential to a successfulCRM program. Evaluation criteria for selecting service providersshould reflect your company’s desired business objectives andshould align with your enterprise and sourcing requirements.

Quantitative Criteria• Service providers that demonstrated consulting and system

integration service revenue derived from clients in Europe

• A minimum of $25 million (estimated for the 2007 calendaryear) in enterprisewide CRM service revenue (excludingoutsourcing, managed service revenue and softwaremaintenance and support fees) in Europe

• Evidence of operations and a direct presence for project-basedCRM in a minimum of three countries in the region

Qualitative Criteria• Overall market interest and visibility as determined by serious

consideration for selection from enterprise clients

• Gartner analysts’ interactions that reveal interest in specificCRM service providers

This Magic Quadrant evaluates the suppliers only on their project-based CRM consulting and system integration. It does notevaluate them on their CRM managed-service or outsourcingcapabilities. To be successful, CRM initiatives require multiple skillsand assets. Consulting and system integration companiesevaluated in this Magic Quadrant have a blend of the followingmajor capability categories:

• CRM business expertise (for example, business processdesign)

• Organizational expertise (for example, change managementand training)

• Industry expertise (for example, communications, healthcare,utilities and financial services)

• CRM vendor and product expertise (for example, Amdocs,Microsoft, Oracle, salesforce.com and SAP)

• Technical subject expertise (for example, multiapplicationintegration and customer data repository strategy)

• CRM implementation expertise (for example, development anddeployment frameworks, tools and templates)

• CRM delivery expertise (for example, solution centers andglobal locations)

• Consulting and system integration talent management (forexample, knowledge management, hiring and training)

• CRM program and project management expertise (for example,project management skills, portfolio management andgovernance)

• CRM ability for innovation (for example, customer experiencemanagement design and implementation)

A broad group of providers offers services to implement CRMsolutions. Magic Quadrants do not include all vendors in a givensector. Several hundred vendors with some capabilities listed in thisresearch are working in Europe. For this Magic Quadrant, manydifferent types of service providers were considered, includingconsulting firms, outsourcers, niche service providers and theprofessional service organizations of independent softwarevendors. The primary inputs that determined whether Gartnerconsidered a service provider for the Magic Quadrant are:

• The service provider’s current and potential market impact asmeasured by the frequency of its appearance on shortlists

• The visibility of the service provider in the market, includingreferences to them by Gartner clients

• The ability of the service provider to provide a broad range ofCRM consulting and system integration skills

Many service providers focus only on parts of the overall solution.The companies evaluated in this research act as advisors andprovide implementation services that encompass most or all levels ofa solution, as outlined earlier. Vendors then were evaluated in moredetail using a combination of qualitative and quantitative criteria.

The competitive nature of the CRM service provider market affectsthe relative position of evaluated companies. The evaluation criteriayour organization uses for selecting service providers should reflectyour company’s desired business objectives and should align withyour enterprise and sourcing requirements. Therefore, do not usethe criteria in this Magic Quadrant without considering theirapplicability to your circumstances.

AddedBusiness & DecisionCognizant Technology Solutions

DroppedNone

Note 2Additional Pan-European CRM ESPs Most Likely to Qualify for Inclusion in this Magic QuadrantSteria’s acquisitions of Xansa in the U.K. in 2007 andMummert Consulting in Germany in 2005 show that Steria haspieced together a significant CRM capability across Europe,which means that Steria likely will meet the minimum revenueand geographical coverage criteria soon to be included in thisMagic Quadrant.

HCL Technologies and Satyam, both based in India, arebeginning to emulate larger Indian ESPs that have been inEurope longer. Both companies have a small number ofexcellent client references in Europe, although they don’t yetmeet the minimum criteria to be included.

EDS is used primarily by established EDS customers inoutsourcing contracts. A large percentage of EDS’s CRMrevenue comes from the public sector and manufacturing. Thecompany does, however, have a presence in many locationsacross Europe.

4

Evaluation Criteria

Ability to ExecuteProduct/Service: This criterion addresses core goods andservices offered by the provider that compete in and serve thedefined market. This includes product and service capabilities,quality, feature sets and skills offered natively or throughpartnerships, as described in the market definition and detailed inthe subcriteria. Subcategories include:

• Assessment of specific services in key CRM areas – sales,marketing and customer service knowledge and skills

• Analysis of technical knowledge and skills

Overall Viability (Business Unit, Financial, Strategy,Organization): Financial viability includes an assessment of theorganization’s overall financial health, and the financial andpractical success of the business units. It also includes thelikelihood of the individual business unit to continue investing in theservice, offering the service and advancing the state of the art inthe organization’s portfolio of services. Subcategories include:

• Assessment of the service provider’s practice area profile (thatis, financials, resources, use and attrition)

• Analysis of strategy and organization

Sales Execution/Pricing: This criterion covers the technologyprovider’s capabilities in all presales activities and the structuresthat support them. This includes deal management, pricing andnegotiation, presales support and the overall effectiveness of thesales channel.

Market Responsiveness and Track Record: This criterionaddresses the vendor’s ability to respond, change direction, beflexible and achieve competitive success as opportunities develop,competitors act, customer needs evolve and market dynamicschange. This criterion also considers the provider’s history ofresponsiveness. Subcategories include:

• Specific client feedback

• Demonstrated ability to adjust to market conditions

Table 1. Ability to Execute Evaluation Criteria

Evaluation Criteria

Product/Service

Overall Viability (Business Unit, Financial,Strategy, Organization)

Sales Execution/Pricing

Market Responsiveness and Track Record

Marketing Execution

Customer Experience

Operations

Weighting

standard

standard

low

high

no rating

no rating

high

Operations: This criterion covers the provider’s ability to meet goalsand commitments. Factors include the quality of the organizationalstructure – skills, experiences, programs, systems and othervehicles that enable the organization to operate effectively andefficiently on an ongoing basis. Subcategories include:

• Organizational and business model

• Global delivery model (downstream capabilities)

Completeness of VisionMarket Understanding: This criterion addresses the ability of theprovider to understand and translate buyers’ needs into productsand services. Vendors are evaluated based on their ability to showthe highest degree of vision, listen to and understand buyers’wants and needs, and can shape or enhance these wants withtheir added vision. Subcategories include:

• Service providers’ knowledge and articulation of key marketdirections and trends

• Analysis of the service providers’ executive leadership (includingcaliber, thought leadership, continuity and operationalcapabilities)

Sales Strategy: This criterion covers the strategy for selling servicesthat uses the appropriate network of direct and indirect sales,marketing, service and communication affiliates that extend thescope and depth of market reach, skills, expertise, technologies,services and the customer base. Subcategories include:

• Service providers’ strategies for partnerships and alliances

• Vision for creating new and/or additional CRM business

Offering (Product) Strategy: This criterion addresses thetechnology provider’s approach to product development anddelivery that emphasizes differentiation, functionality, methodologyand feature set as they map to current and future customerrequirements.

Vertical/Industry Strategy: The technology provider’s strategy todirect resources, skills and offerings to meet the specific needs ofindividual market segments, including vertical markets.

Innovation: Direct, related, complementary and synergistic layoutsof resources, expertise or capital for investment, consolidation,defensive or pre-emptive purposes.

Geographic Strategy: The technology provider’s strategy to directresources, skills and offerings to meet the specific needs ofgeographies outside the “home” or native geography directly orthrough partners, channels and subsidiaries, as appropriate for thegeography and market. In this Magic Quadrant, we are looking forthe ability to deliver on pan-European programs and projects.

LeadersLeaders are performing well, have a clear vision of market directionand are actively building competencies to sustain their leadershippositions in the market.

ChallengersChallengers execute well for the portfolio of work selected buthave a less-defined view of market direction. Consequently, theseESPs may be the emerging leaders or may not be aggressive andproactive enough in preparing for the future.

Source: Gartner

5

VisionariesVisionaries have demonstrated vision through their articulation ofimportant market trends and directions. However, these vendorsmay not be in a position to fully deliver or consistently execute theirvision, and may need to improve their optimization of servicedelivery.

Niche PlayersNiche players focus on a particular segment of the market, asdefined by characteristics such as functional area (that is, sales,marketing or service), vertical industry, client size or projectcomplexity. Their ability to execute is limited to these focus areas,and they were assessed accordingly. Their ability to be innovatorsmay be affected by this narrow focus.

Vendor Strengths and Cautions

AccentureStrengths

• Resources: Accenture is the largest CRM service provider inEurope in number of consultants and revenue from consultingand system integration projects. Most of its CRM resourcesand projects are in the U.K., Italy, Germany, Spain and France,and the company is well-coordinated for pan-Europeanprojects.

• Industries: Accenture’s largest CRM resource skills and projectexperience is in telecommunications, consumer goods, utilities,financial services and high-technology manufacturing.

• Global delivery: The vendor has a mature offshore capability,with most CRM projects using offshore for an average of 30%to 35% of the work. Clients report high use of offshore in theU.K., Belgium, the Netherlands and Scandinavian countries butlow use in France, Germany and Spain.

• Vision: Accenture’s vision for CRM continues to stand out forits level of innovation, breadth of scope in different industriesand balance across implementation and consulting.

Table 2. Completeness of Vision Evaluation Criteria

Weighting

high

no rating

low

standard

no rating

high

high

standard

Cautions

• Price: The most common cause of Accenture’s losing acompetitive bid is the price of its services, according to Gartnerreference checks.

• Geographic coverage: Accenture doubled its CRM practice inScandinavian countries during the past year but remains small,as compared with competitors. In Central and Eastern Europe,Accenture continues to open new CRM practices (for example,as in Russia), but these are only just reaching critical mass.

• Culture: Accenture’s culture is not for everyone. Although clientfeedback is invariably positive from those seeking performance-driven results, it is sometimes negative from those whereAccenture’s tendency to be singularly focused doesn’t meshwith the focus of the client organization’s staff.

Atos OriginStrengths

• Countries: Most Atos Origin CRM resources and projects arelocated in Spain, France, the Netherlands and the U.K: Gartnerestimates that three-quarters of Atos’ CRM revenue comesfrom these countries.

• Industries: Atos Origin’s CRM resource skills and projectexperience vary widely by country, with a focus onmanufacturing, banking and retail in Spain; telecommunications,banking and automotive in France; banking in the Netherlands;and nonprofit and membership services in the U.K.

• System integration: Atos’ revenue mix remains around 15 to85 for consulting work vs. implementation; its strength lies morein system integration than in business consulting.

Cautions

• CRM focus: Atos Origin has no dedicated pan-European CRMpractice, although in 2007 it started to coordinate knowledgeand resource sharing more frequently among the separatelymanaged countries.

• Global delivery: Offshore CRM resources doubled in 2007, butit was from a small base and they are only starting to be usedby the different European CRM practices in each country.

• Software partner traction: Atos Origin’s relationship withmarket-leading CRM application vendors is limited, although itis gaining traction with Microsoft Dynamics CRM in the U.K.and the Netherlands, and with Unica in France and Spain.

• Financial results: Poor corporate performance in 2006 forcedan ongoing operational transformation (called the 303 program).Change is still under way, and the 2007 financial report showsprogress. However, this is forcing the CRM area to reorganize,build offshore capacity and coordinate more globally.

BearingPointStrengths

• Countries: Most BearingPoint European CRM resources andprojects are located in France and Germany, followed by theNetherlands and Scandinavia.

• Industries: The largest proportion of BearingPoint’s CRMresource skills and project experience in 2007 was intelecommunications, followed by utilities, then spread evenlyacross retail, transportation, banking/insurance andpharmaceuticals.

Evaluation Criteria

Market Understanding

Marketing Strategy

Sales Strategy

Offering (Product) Strategy

Business Model

Vertical/Industry Strategy

Innovation

Geographic Strategy

Source: Gartner

6• Vision: The company’s customer experience vision has

strengthened, with follow-through in its training and theidentification of 38 solutions that have been mapped andmodified to improve customer experience. The revenue mix is75 to 25 for consulting work vs. implementation.

• Growth: BearingPoint’s European CRM practice is growingfaster than the market rate in Europe – a turnaround from 2005and 2006. The mix of work is biased toward higher-marginbusiness consulting.

• Customer satisfaction: The company has an above-averagescore for satisfaction in Gartner European-client referencechecks, particularly for the business acumen of its consultants,system integration expertise and functional knowledge inmarketing and CSSs.

Cautions

• Geographic coverage: Although BearingPoint is growing fastin the U.K., the company had few notable wins, and thesewere from a very small base. Despite its growth in the U.K.,BearingPoint has a limited CRM presence in that area, one ofthe biggest consulting and system integration (C&SI) markets inEurope. BearingPoint also has limited resources inScandinavian countries and Central Europe. Thesecircumstances limit the company’s ability to deliver on pan-European projects.

• Global delivery: BearingPoint uses offshore resources formost of its pure system integration projects, but thiscontributes to less than 30% of sales revenue in Europe. Thus,the company does not have the same ability as competitors toscale as a system integrator.

• Financial results: BearingPoint’s corporate financial problemsmay have been largely resolved, but they have causeduncertainty about the firm’s direction.

BT Global ServicesStrengths

• Growth: Gartner estimates that BT Global Services grew itsCRM C&SI business at well above the market rate again in2007, demonstrating an improved ability to execute.

• Industries: BT Global Services’ largest proportion of CRMresource skills and project experience in 2007 was in banking,the public sector, retail and wholesale distribution.

• Pan-European projects: A total of 70% of revenue comesfrom global or pan-regional projects, highlighting the company’sability to successfully deliver in multiple geographies.

• Contact centers: BT Global Services manages more than4,000 contact centers for worldwide clients, of which morethan 40 are fully hosted. Although this Magic Quadrant doesnot evaluate the company on this capability, it has enabled BTGlobal Services to develop deeper “bench strength” forconsultants in contact center projects.

• Added value: The company was rated above average in theadded value it provided when taking into account fees charged,as reported in reference checks with its European clients.

Cautions

• Narrow scope: BT Global Services’ narrow focus, mainly oncontact centers, has limitations in sales and marketing and forservices outside contact-center-related work.

• Geographic coverage: The company’s vision is truly global,and there has been a steady shift to more international projectsin its new customer wins, but the company has a heavy focuson U.K.-based clients and relies heavily on U.K.-based staff forconsulting and project implementation work.

• CRM breadth: BT Global Services’ clients highlight itstechnology-focused implementation skills but revealed that itdoes not often demonstrate a holistic perspective of CRMacross channels.

Business & DecisionStrengths

• Countries: Most of Business & Decision’s (B&D’s) work is inFrance, with a growing presence in Spain, Belgium, theNetherlands and the U.K.

• Industries: The greatest proportion of European CRM resourceskills and project experience in 2007 was in banking,pharmaceuticals, telecommunications, utilities, automotive andtransportation, and the public sector.

• Growth: B&D grew its CRM practice organically at above themarket rate in 2007 and added to the growth through theacquisition of Inforte, which had a small office in the U.K.

• Analytics: Although B&D generates more than 60% of overallrevenue from business intelligence, it is developing stronganalytical CRM skills in cooperation with this larger businessintelligence practice.

Cautions

• Geographic coverage: Although B&D expanded its Europeancountry coverage rapidly in 2007, the company lacks presencein Italy and Scandinavian countries, and has a limited presencein Germany, which limits its ability to deliver on pan-Europeanprojects.

• Pan-European coordination: B&D has formed CRM practicesin different countries via acquisition, but this does not meanthat the company has a European CRM practice yet. B&D hasimplemented pan-European service centers, such as formarketing automation and Oracle CRM On Demand in France,but the CRM capabilities must be further integrated as a singleorganization to coordinate to win the biggest projects.

• Global delivery: B&D gained a small Indian offshore resourcefrom Inforte and has others in Tunisia, Romania and Mauritius.B&D has pioneered the use of “close-shore” centers in France,such as in Nantes, but the company still lags behindcompetitors in the ability to use substantial offshore resourcesto deliver CRM services.

CapgeminiStrengths

• Growth: Gartner estimates that Capgemini’s CRM servicerevenue in Europe grew above the market rate during 2007,and it is the second-largest provider across Europe – whichdemonstrates a strong ability to execute.

• Pan-European coverage: Capgemini’s CRM resources andprojects are concentrated in France, the U.K. and theNetherlands – the company is growing fastest in Sweden, withindustry depth in consumer goods in France, manufacturing inGermany and the public sector in the U.K.

7• Global delivery: Capgemini competes in the U.K. and the

Netherlands directly with the offshore vendors using its globaldelivery capabilities but uses local delivery almost exclusively inFrance and Germany. The company does more than 60% of allworldwide CRM project work offshore.

• Customer satisfaction: Capgemini has an above-averagescore for satisfaction from Gartner European-client referencechecks, particularly for thought leadership in CRM, userchange management skills and influence with seniormanagement.

• Vision: Capgemini’s vision for CRM has improved. The degreeof innovation in CRM, sensitivity to local Western Europeanmarket differences and improved CRM leadership havecontributed.

Cautions

• Business consulting: Although Capgemini has demonstratedthe ability to execute a number of pure CRM strategy projects,it still has fewer resources skilled in strategic and CRMbusiness consulting, as compared with other leading vendorsin this Magic Quadrant.

• Geographic coverage: Experienced CRM resources inGermany and Central Europe are limited, as compared with theU.K. and France. Germany also has less breadth-of-industrycoverage.

• Customer advocacy: Despite strong satisfaction scores, thewillingness of European reference customers to recommendCapgemini was well below average, giving CRM practice a lownet promoter score.

CognizantStrengths

• Growth: Cognizant’s growth in Europe was far above themarket growth rate in 2007 from a smaller revenue base. In thepast, Cognizant met all other qualifying criteria for the MagicQuadrant for CRM Service Providers, Europe, except therevenue criterion. The company’s growth ensured itsqualification in this year’s Magic Quadrant.

• Industries: Cognizant is building skills and solutions in morethan 20 industries worldwide, but its real depth in Europe is inpharmaceuticals and banking.

• Analytics: There is a strong focus on analytics, businessprocess management CRM and a customer data integration(CDI) practice, which differentiates the firm from most othervendors that focus more on traditional CRM.

Cautions

• Geographic coverage: Cognizant has few resources outsidethe U.K., although it is recruiting local language-consultingskills in 10 countries and is succeeding in delivering projectsthat involve pan-European rollouts in more than 20 countries.

• Business consulting: The revenue mix is ~10% for consultingwork vs. ~90% implementation in Europe; the company’sreputation is primarily for offshore-delivered, technology-heavywork and lags behind Cognizant’s CRM business in the U.S. inits move toward more pure-business-consulting work.

• Vision: Cognizant demonstrated little uniqueness or innovationin work at its reference customers.

• Experienced resources: The company has less than one-tenththe revenue of the average leading CRM ESPs in Europe andlacks a direct local presence and experience in most smallercountries and industries, as well as in some CRM functional areas.

CSCStrengths

• Countries: Most CSC CRM resources and projects are in theU.K., Germany and France, with a presence in Italy,Netherlands and Belgium.

• Industries: Its greatest portion of CRM resource skills andproject experience is in pharmaceuticals, insurance, banking,discrete manufacturing and government.

• Business consulting: CSC is strongest in business andanalytics consulting. Its revenue mix remains 60 to 40 forconsulting work vs. implementation. Yet, the company hassignificant strength in European SAP CRM skills, as comparedwith competitors.

• Analytics: CSC’s domain expertise continues to strengthen incustomer intelligence with the acquisition of Covansys in India,CDI and data quality, and CSC has skills in high-performancecontact centers.

• Vision: CSC’s focus on highly industry-specific offerings, withconsistent evidence of innovation, demonstrates a strongpractice vision, although the rate of innovation slowed in 2007.

Cautions

• Customer satisfaction: CSC received below-average scores foroverall client satisfaction in Gartner European reference checks forthe third year in a row, and CSC references had a comparativelylow intended rehire rate. The main areas of dissatisfaction wereexpertise levels in marketing, customer service and softwarepackages, as well as weak vendor partnerships.

• Geographic coverage: CSC has restructured in Germany andis rebuilding its presence, but is in transition.

• Resource constraints: As in 2006 and 2007, CSC’s CRMresources are being used more heavily than average, makingthem difficult for clients to obtain. These resources are “soldout” in some industries and countries.

• Global delivery: Although CSC is steadily growing its offshoreresources, they remain limited. CSC makes use of its CSC inIndia Offshore Advantage program and of Covansys on 5% ofCRM projects overall, as compared with nearly all ERP projects.

DeloitteStrengths

• Countries: Deloitte has a strong CRM practice in the U.K.,Belgium, Spain, the Netherlands and Italy.

• Industries: The greatest portion of CRM resource skills andproject experience in 2007 was in process manufacturing (forexample, consumer goods) discrete manufacturing (forexample, automotive) and banking.

• Business consulting: Deloitte’s focus is on advisory-ledconsulting services, such as strategy planning, value mappingand pricing, with a revenue mix of 70 to 30 for consulting workvs. implementation, and it is growing this at a faster rate thanimplementation work. Deloitte has a higher proportion than itscompetitors of CRM projects that involve no technology.

8• Vision: Deloitte continues to build on its strong, differentiated

vision, which focuses on higher-value business consulting andon the systematic use of its methodology across the CRMpractice.

• Culture: Deloitte embodies traditional partnership-styleconsulting and attracts high-profile recruits from otherconsultancies at a higher rate than competitors.

Cautions

• Price: When Deloitte is rejected by buyers, it is typically forbeing too expensive, according to Gartner reference checks.

• Global delivery: Deloitte uses some offshore resources onmost projects – but this typically represents less than 10% ofthe work delivered, because it tends to be input from a smallnumber of high-caliber individuals. This is not the same modelas competitors but indicates that Deloitte does not have thesame offshore capabilities.

• Geographic coverage: Deloitte is rebuilding its CRM practicein France, so it is proportionately smaller than other countries.The company has a smaller presence than other marketleaders in Central European countries and Scandinaviancountries. Both factors limit Deloitte’s ability to deliver pan-European CRM projects with local resources in these regions.

IBM Global Business ServicesStrengths

• Geographic coverage: IBM Global Business Servicescontinues to have the widest local CRM presence across allEuropean countries, with an above-average presence inGermany, France, Netherlands, Denmark and Switzerland.

• Industries: The greatest proportion of IBM Global BusinessServices’ CRM resource skills are focused intelecommunications, insurance, banking and industrialmanufacturing, with ongoing rapid growth in government.

• Vision: Innovation in CRM continues to be well above average,as demonstrated through the company’s work on theCustomer Focused Enterprise.

• Global delivery: IBM Global Business Services makes stronguse of offshore capabilities in India, which Gartner estimates isused for about 70% to 80% of implementation projects todeliver about 40% to 50% of the workload.

Cautions

• Price: The most common cause of IBM Global BusinessServices losing business in a competitive bid is price,according to Gartner reference checks.

• Customer satisfaction: The company earned a below-average score for overall satisfaction in Gartner European-clientreference checks, a low net promoter score and acomparatively low intention-to-rehire rate. The main areas ofdissatisfaction were project management skills, the total cost ofservices and the business acumen of consultants.

• Local resources: IBM Global Business Services is stilldiscovering the right balance of global vs. local CRM resources– a side effect of corporate strategy to make greater use of itsglobal delivery model. As a result, and despite being in morecountries, IBM has fewer local CRM resources than majorcompetitors and is comparatively below other market leaders inthe U.K., Spain, Belgium and Sweden.

• Software as a Service (SaaS): IBM has less experience withSaaS in Europe, as compared with other market leaders.

Infosys TechnologiesStrengths

• Growth: Gartner estimates that Infosys Technologies’ CRMservice revenue in Europe again grew at a rate significantlygreater than that of the market during 2007, demonstrating astrong ability to execute.

• Global delivery: Infosys has a higher ratio of CRM businessconsultants on site than other offshore competitors (with 40%of work done on shore), which is starting to provide a slightadvantage in business consulting, rather than purelyimplementation work.

• Industries: The greatest proportion of Infosys’ CRM resourceskills and project experience is in insurance andtelecommunications, banking, discrete manufacturing and utilities.

• Countries: Most CRM resources and projects are concentratedin the U.K., but the company had success in Norway andFrance, with local CRM in seven other countries.

Cautions

• Customer satisfaction: Infosys earned a below-average scorefor satisfaction in Gartner’s European-client reference checks,specifically in system integration expertise, productindependence and industry expertise.

• Experienced resources: Gartner estimates that Infosys hasrevenue that is one-fifth that of the average leading ESP inEurope. Therefore, it lacks local presence and experience inmultiple industries and countries, and in some functional areas.

• Vision: Infosys’ vision around the Experience Co-CreationPartnership and the innovation factory approach show promisebut is yet to be fully developed.

• Business consulting: Although Infosys has comparativelymore CRM business consultants than competitors, clients stilltend to choose Infosys primarily for technology projects.

LogicaStrengths

• Countries: Most of Logica’s CRM resources, projects andreferences are in France, Sweden, Finland and Germany (in thatorder). The company has a smaller CRM presence in theNetherlands, U.K. and three other countries.

• Industries: Logica’s greatest proportion of CRM resource skillsand project experience is in telecommunications, utilities,banking, business services and manufacturing (particularlyautomotive).

• Analytics: Logica is developing analytical CRM skills incooperation with its larger business intelligence practice, whichis strongest in the U.K.

Cautions

• Geographic coverage: Logica is underrepresented for CRM inSpain, Italy and Central Europe.

• CRM focus: The company does not have a pan-EuropeanCRM services practice. Its CRM capabilities are located in itsindustry divisions. Logica does share best practices acrosscountries but doesn’t have the focus that it does with businessintelligence and ERP.

9• Business consulting: Gartner estimates that the revenue mix

for consulting work vs. implementation is approximately 20 to80, which is lower than average for business consulting amongleading providers in Europe.

• Global delivery: Offshore resources were used for fewer thanone-third of CRM-related projects during 2007 to do less than35% of the work. Logica has some “nearshore” CRMresources in Central Europe and Morocco.

• Rehire: The company had a comparatively low rehire rate inGartner European reference checks for 2007.

Siemens IT Solutions and ServicesStrengths

• Countries: Most Siemens IT Solutions and Services (SIS) CRMresources and projects are located in Germany, Italy, Austriaand the U.K., with a direct presence in seven other countries.SIS has the second-largest CRM practice in Germany.

• Industries: The greatest portion of CRM resource skills andproject experience is in discrete manufacturing, utilities,process manufacturing, telecommunications and the publicsector.

• SAP CRM: SIS is the largest independent implementer of SAPCRM projects in Germany, and it is working on the largestongoing implementation of SAP CRM worldwide.

Cautions

• Growth: After a revenue decline in 2006, Gartner estimatesthat SIS’s CRM solutions experienced a below-averagerevenue increase in 2007, which limits the potential forinvestment in CRM.

• Global delivery: SIS’s limited offshore capabilities (that is,Russia and India) represent a slow response to pure-playoffshore vendors and other larger ESPs that have builtcapabilities more quickly.

• CRM focus: CRM is of secondary focus to practices such asERP, and SIS’s strategy relies heavily on Germany-headquartered clients for CRM consulting and projectimplementation work, which limits its market potential.

• Business consulting: SIS rarely is mentioned by referencecustomers for CRM business consultancy; clients engage SISprimarily for technology-related deployment projects.

T-SystemsStrengths

• Countries: Most T-Systems CRM resources and projects arelocated in Germany and France, with a strong CRM presencein Spain, Austria, Turkey and Central Europe.

• Industries: More than 75% of T-Systems’ work is intelecommunications and automotive, where it has great depthof knowledge.

• Leveraging managed services: The company generates morethan 95% of revenue from its largest 100 customers, mainlythrough outsourcing and managed service contracts, which itcross-sells into system integration projects.

Cautions

• Global delivery: T-Systems’ offshore capabilities in India andRussia are not large-scale and are used on fewer than 5% of

CRM projects. In first-quarter 2008, T-Systems announced apartnership with Cognizant, in which resources in Indiatransferred from T-Systems to Cognizant.

• Business Consulting: The company has limited CRMbusiness-consulting resources, with a revenue mix of 15 to 85for consulting work vs. implementation, which is low inconsulting as compared with leading CRM ESPs.

• Financial results: T-Systems’ financial performance was weakin 2007 and is causing uncertainty about its future.

Tata Consultancy ServicesStrengths

• Customer satisfaction: Tata Consultancy Services (TCS) againearned a well-above-average score for satisfaction in GartnerEuropean-client reference checks. TCS has strong technicalimplementation skills and a track record of on-time and on-budget delivery.

• Growth: Gartner estimates that TCS again grew its CRMbusiness in Europe far faster than the market rate during 2007,demonstrating a higher ability to execute.

• Industries: TCS’s greatest portion of CRM resource skills andproject experience in Europe is in telecommunications, banking,insurance and transportation, with growth in utilities.

• Vision: The TCS CRM leadership vision has matured steadilyduring the past three years, with a strong industry-specificinvestment solution focus and unique approaches to areassuch as customer experience management. However, this isnot yet visible to customers when they buy.

• Global delivery: TCS has a price advantage due to offshoreresources; the company uses offshore resources on nearly allprojects, and 70% of all work typically is done offshore.

Cautions

• Experienced resources: Gartner estimates that TCS is onlyone-fifth the size of average leading ESPs in Europe, so it stilllacks the depth of experienced resources of market leaders.

• Business consulting: TCS has yet to achieve strong tractionfor business-consulting services. Gartner estimates that pureconsulting revenue is 5% to 10% of all work, which is belowthe average of European CRM ESPs.

• Geographic coverage: TCS generates most work in the U.K.Although it has local CRM resources in 10 other Europeancountries, the company is still relatively weak in countries suchas France, Germany and Spain, as compared with marketleaders.

Wipro TechnologiesStrengths

• Growth: Gartner estimates that Wipro Technologies’ EuropeanCRM service revenue again grew at a rate well above that ofthe market during 2007, demonstrating a high ability toexecute.

• Implementation skills: Wipro has strong technology skills inSiebel and SAP version upgrades, testing, packageconfiguration and integrating main CRM packages, as well as incustom-developed CRM projects, where the company isexpanding service-oriented architecture and business processmanagement work.

10• Industries: The greatest portion of European CRM resource

skills and project experience in 2007 was intelecommunications, automotive and high-technologymanufacturing, and utilities.

• Global delivery: Wipro has a strong global delivery model thatit uses to deliver 70% of CRM project work offshore and togain a price advantage over the competition.

Cautions

• Business consulting: Despite recruiting and beginning to buildbusiness-consulting expertise, the services offered are stillevolving. Wipro’s revenue mix has shifted to 15 to 85 forconsulting work vs. implementation.

• Experienced resources: Wipro is still only one-seventh thesize of average leading CRM ESPs in Europe, so it lacks adirect local presence and experience in most smaller countriesand industries, as well as in some CRM functional areas.

• Geographic coverage: Wipro’s CRM coverage is limitedoutside the U.K., Germany, Finland and Saudi Arabia.

• Vision: Wipro’s vision is improving as it focuses on industrysolutions but remains comparatively narrow and does not touchon areas now prevalent in the market, such as customerexperience management.

Vendors Added or DroppedWe review and adjust our inclusion criteria for Magic Quadrants andMarketScopes as markets change. As a result of these adjustments,the mix of vendors in any Magic Quadrant or MarketScope maychange over time. A vendor appearing in a Magic Quadrant orMarketScope one year and not the next does not necessarilyindicate that we have changed our opinion of that vendor. This maybe a reflection of a change in the market and, therefore, changedevaluation criteria, or a change of focus by a vendor.

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Evaluation Criteria Definitions

Ability to ExecuteProduct/Service: Core goods and services offered by the vendor that compete in/serve the defined market. This includes currentproduct/service capabilities, quality, feature sets, skills, etc., whether offered natively or through OEM agreements/partnerships asdefined in the market definition and detailed in the subcriteria.

Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes an assessment of the overall organization’sfinancial health, the financial and practical success of the business unit, and the likelihood of the individual business unit to continueinvesting in the product, to continue offering the product and to advance the state of the art within the organization’s portfolio of products.

Sales Execution/Pricing: The vendor’s capabilities in all pre-sales activities and the structure that supports them. This includes dealmanagement, pricing and negotiation, pre-sales support and the overall effectiveness of the sales channel.

Market Responsiveness and Track Record: Ability to respond, change direction, be flexible and achieve competitive success asopportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers thevendor’s history of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization’s message in orderto influence the market, promote the brand and business, increase awareness of the products, and establish a positive identificationwith the product/brand and organization in the minds of buyers. This “mind share” can be driven by a combination of publicity,promotional, thought leadership, word-of-mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enable clients to be successful with the productsevaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillarytools, customer support programs (and the quality thereof), availability of user groups, service-level agreements, etc.

Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizationalstructure including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively andefficiently on an ongoing basis.

Completeness of VisionMarket Understanding: Ability of the vendor to understand buyers’ wants and needs and to translate those into products andservices. Vendors that show the highest degree of vision listen and understand buyers’ wants and needs, and can shape or enhancethose with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization andexternalized through the Web site, advertising, customer programs and positioning statements.

Sales Strategy: The strategy for selling product that uses the appropriate network of direct and indirect sales, marketing, serviceand communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and thecustomer base.

Offering (Product) Strategy: The vendor’s approach to product development and delivery that emphasizes differentiation,functionality, methodology and feature set as they map to current and future requirements.

Business Model: The soundness and logic of the vendor’s underlying business proposition.Vertical/Industry Strategy: The vendor’s strategy to direct resources, skills and offerings to meet the specific needs of individualmarket segments, including verticals.

Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation,defensive or pre-emptive purposes.

Geographic Strategy: The vendor’s strategy to direct resources, skills and offerings to meet the specific needs of geographiesoutside the “home” or native geography, either directly or through partners, channels and subsidiaries as appropriate for thatgeography and market.