IT Service Industry report_regional IT infrastructure providers

G00218024

Deal 'Sweet Spot' Analysis of Regional ITInfrastructure Services Providers in Asia/PacificPublished: 5 April 2012

Analyst(s): Jim Longwood, Rolf Jester

Gartner analyzes the deal sweet spots of 11 providers that have a significantshare of the IT infrastructure services market in at least three Asia/Pacificcountries. Our profiles will help sourcing managers shortlist suppliers as partof a market scan process.

Key FindingsThis document was revised on 11 April 2012. The document you are viewing is the correctedversion. For more information, see the Corrections page on gartner.com.

■ Asia/Pacific has a variety of infrastructure services providers, from which organizations canchoose full or best-of-breed outsourced solutions. Most of these providers have cloudconsulting and implementation offerings, but few have an enterprise-level infrastructure-as-a-service (IaaS) offering delivered from this region.

■ Some providers based in Asia/Pacific generate large IT management services revenues, but doso almost entirely from a single country, and are unable to deliver services directly in othercountries within the region.

■ Asia/Pacific includes countries with IT services markets at different stages of maturity, withoutsourcing contracts ranging from first-generation deals in China and India (India's market isslightly more mature than China's), to second-generation deals in Singapore and New Zealand,and third-generation deals in Australia (see Note 1).

Recommendations to Sourcing ManagersTo speed up the shortlisting of regional infrastructure services providers in Asia/Pacific:

■ Clarify the objective characteristics of the services you require and what subjectivecharacteristics would make a prospective provider a more compatible delivery partner.

■ Profile your organization's service requirements using the five deal sweet spot elementsidentified in this document, and compare our profiles of providers with your basic requirementsto filter out the less suitable candidates.

http://www.gartner.com/technology/about/policies/current_corrections.jsp

■ Once you have your shortlist, follow industry best practices (as described in Gartner's sourcingresearch) for a detailed evaluation process to make your final choice.

■ Develop and maintain an ongoing list of candidate vendors by gathering reference material foreach IT service tower using Gartner's publications, which include Magic Quadrants, VendorRatings and MarketScopes.

Table of Contents

Analysis..................................................................................................................................................3

Introduction...................................................................................................................................... 3

Qualification Criteria..........................................................................................................................4

General Market Summary.................................................................................................................5

Summary of Regional Asia/Pacific Providers' IT Infrastructure Services.......................................5

What Are Deal "Sweet Spots"?.........................................................................................................8

Characteristics of Generations of Service Provision Delivery Maturity.......................................... 9

Analysis of Regional Asia/Pacific Providers' Deal Sweet Spots for IT Infrastructure Services........... 10

Atos..........................................................................................................................................10

CSC......................................................................................................................................... 12

Dimension Data........................................................................................................................ 13

Fujitsu.......................................................................................................................................14

HCL Technologies.................................................................................................................... 16

HP............................................................................................................................................17

IBM.......................................................................................................................................... 19

NCS......................................................................................................................................... 20

Samsung SDS..........................................................................................................................21

Unisys...................................................................................................................................... 22

Wipro....................................................................................................................................... 24

High-Level Information on Other IT Infrastructure Services Providers in Asia/Pacific........................25

New Entrants............................................................................................................................26

Recommended Reading.......................................................................................................................27

List of Tables

Table 1. Five Key Characteristics of IT Infrastructure Services Providers' Deal Sweet Spots, Asia/Pacific

.............................................................................................................................................................. 8

Table 2. Atos — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific ........................... 11

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Table 3. CSC — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific............................ 13

Table 4. Dimension Data — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific...........14

Table 5. Fujitsu — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific......................... 15

Table 6. HCL Technologies — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific.......17

Table 7. HP — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific...............................18

Table 8. IBM — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific............................. 20

Table 9. NCS — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific............................ 21

Table 10. Samsung SDS — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific...........22

Table 11. Unisys — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific....................... 23

Table 12. Wipro — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific........................ 25

List of Figures

Figure 1. Summary of Asia/Pacific Providers' IT Infrastructure Services, 2011........................................ 7

Analysis

Introduction

This document profiles 11 Asia/Pacific providers with regional IT infrastructure outsourcing offeringsusing a deal "sweet spot" analysis framework. A service provider's deal sweet spot comprisescharacteristics that epitomize the nature and boundaries of the services with which the provider ismost likely to excel when delivering IT professional services to clients. These include:

■ The provider's ability to deliver the services you require in the locations you operate in.

■ Whether the provider is good at delivering deals of the size and complexity you require.

■ How well the provider can meet your quality requirements and consistently deliver the serviceoutcomes you need.

■ Whether the provider is culturally compatible with your business, will be easy to work with andwill understand the vertical nuances of your business.

■ How flexible the provider will be should your service baseline or service requirements changeduring the lifetime of a deal.

Our analysis covers external service providers with significant IT infrastructure services marketshare in at least three countries in Asia/Pacific, excluding Japan, based on our latest market sharedata for IT management services (see "Market Share: IT Management Services, 2010").

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Sourcing managers should consider these providers, and compare their deal sweet spots, whenperforming a market scan during the sourcing strategy or evaluation and selection phases of thestrategic sourcing life cycle (see Note 2). A market scan process is a less-expensive and quickerprocess than traditional approaches, such as releasing a request for "expression of interest" or"requests for information," when seeking to identify candidate service providers.

The aim of this report is to enable clients to speed up a market scan for pan-regional serviceproviders to identify a starting list of candidates or shorten a long list. To assist in this process, wesummarize the relevant providers' infrastructure and cloud service offerings, whether they are of aprimary or secondary importance, and include a deal sweet spot summary for each. We also brieflydiscuss some other prominent providers in certain countries in the region and provide a visualsummary of their traditional and emerging IT infrastructure utility service and IaaS offerings.

After a market scan sourcing managers should undertake an evaluation and selection process toshortlist specific providers that meet their requirements by following best practices published inGartner's research (see, for example, our recent range of "Outsourcing Advisory" foundationdocuments).

Qualification Criteria

This document covers global and regional providers that deliver IT infrastructure services (that is,data center, desktop, network, help desk and security services); that meet or exceed a minimum

threshold of IT management services1 revenue in Asia/Pacific (excluding Japan); and satisfy a

minimum but substantive level of revenue in at least three Asia/Pacific countries. We obtained thisinformation from our latest IT management services market share statistics ("Market Share: ITManagement Services, 2010").

In detail, our criteria for selecting providers were as follows:

■ Providers must have an IT management market share of at least 0.7% in Asia/Pacific (whichexcludes Japan), which equates to at least $125 million.

■ Providers must have delivered IT infrastructure services to customers in at least three countriesin the region during 2011.

■ Since this is an overview of providers with presence at a regional level, at least 10% of eachprovider's revenue must come from outside its single-largest country/market — that is, fromother countries in Asia/Pacific in which it has a presence.

■ Providers must achieve a minimum level market revenue in each of the three countries —typically $5 million to $10 million for countries with small or midsize IT management servicemarkets and more than $20 million for the region's larger country markets.

Our aim with these criteria was to ensure coverage of providers that are likely to warrantconsideration by Gartner clients with outsourcing needs spanning multiple countries in the Asia/Pacific region.


These criteria excluded some South Korean and Australian providers — such as Alphawest, LGCNS and Telstra — that generated significant IT management service revenue in Asia/Pacific, as toomuch of their revenue was derived from a single country.

Niche network services providers — such as GTL, NEC and Siemens Enterprise Communications —were also excluded, as they focused on a niche telecom-focused technology area, instead ofoffering a broad array of IT infrastructure services. In addition, Accenture, Infosys and TataConsultancy Services (TCS) were excluded as their managed service offerings in this region focusedon application services.

This document takes account of Atos's acquisition of Siemens IT Solutions and Services in July2011.

General Market Summary

As defined and tracked by Gartner, Asia/Pacific's IT infrastructure services market consists ofAustralia, China, Hong Kong, India, South Korea, Malaysia, New Zealand, Singapore, Thailand,Taiwan and the Rest of Asia/Pacific (which includes the Philippines and Indonesia). Thesegeographical markets contain a wide range of local, regional and multinational service providers.Global and pan-regional multinational service providers dominate in terms of market share in mostcountries in Asia/Pacific, except for India and South Korea where local service providers are equallyprominent.

Alternative delivery and acquisition models, such as infrastructure utility, IaaS and software as aservice (SaaS), are rapidly becoming more common in developed IT markets, such as Australia andSingapore, and we expect their adoption to grow significantly in the region as a whole during thenext two to five years.

Service providers headquartered in India, though not yet major competitors in Asia/Pacific'sinfrastructure services market are increasing their presence in the region with both IT outsourcingand application services. HCL, Infosys, TCS and Wipro are growing considerably in terms of marketshare in the region, typically by leveraging their application service offerings as well as remoteinfrastructure monitoring and support (RIMS) and some infrastructure outsourcing services. Thistrend is accelerating as Indian service providers look for growth outside their traditional U.S. andEuropean IT services markets and toward Asia/Pacific. We also see Indian providers offering RIMSservices, with HCL, TCS and Wipro starting to win some managed infrastructure services dealsoutside India.

Summary of Regional Asia/Pacific Providers' IT Infrastructure Services

Figure 1 summarizes providers' IT outsourcing offerings2 by group or tower of service and depth of

offering (see also Note 3). It is based on an aggregation of the services they deliver in the moremature information and communication technology (ICT) economies in Asia/Pacific. This high-levelsummary of service offerings, which provides indications of providers' established servicecapabilities (but not their recent track records), should prove useful when doing a preliminaryanalysis and/or market scan.


Figure 1 includes details of some non-regional providers' offerings. It covers the applicationmanagement services that typically contribute to their IT management service revenue, and givesdetails of some of their related cloud computing offerings that are relevant to the delivery ofinfrastructure services via an IaaS model aimed at enterprise clients.

The service providers are listed alphabetically within each market share segment as our intent is toprovide market positioning information rather than a ranking by revenue.


Figure 1. Summary of Asia/Pacific Providers' IT Infrastructure Services, 2011

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Common Infrastructure NetworkApplication

Management Cloud Computing

Large Asia/Pacific Market Share (>3.5%)

CSC � � � � � � � � � � � � �

HP � � � � � � � � � � � � �

IBM � � � � � � � � � � � �

LG CNS � � � � � � � � � � � �

Samsung SDS � � � � � � � � � � � �

Midsize Asia/Pacific Market Share (2.2% to 2.9%)

Fujitsu � � � � � � � � � � � � �

NCS � � � � � � � � � � � ¤ �

TCS � � � � � � � � � � �

Telstra � � � � � � � � �

Small Asia/Pacific Market Share (0.7% to 1.2%)

Accenture � � ¤ ¤ � � � ¤ ¤ �

Alphawest � � � � � � � � �

Atos � � � � � � � � � � � �

Dimension Data � � � � � � � � � � � ¤ �

HCL � � � � � � � � � �

Infosys � � � � � �

Unisys � � � � � � � � � � �

Wipro � � � � � � � ¤ � � �

Niche Multicountry Asia/Pacific Providers

Datacom � � � � � � � � � �

Gen-i � � � � � � � � ¤ ¤ � �

Logica � � � � � � � � � � �

� Primary � Secondary ¤ Partner "Blank" Does not offer

DRP = disaster recovery planning; IaaS = infrastructure as a service; TCS = Tata Consultancy ServicesSee also Note 3

Source: Gartner (April 2012)


What Are Deal "Sweet Spots"?

Table 1 summarizes the five key characteristics of a deal sweet spot and the typical questionsclients ask about each characteristic (see "Avoid 'Speed Dating' Practices When ShortlistingProspective Service Providers").

Table 1. Five Key Characteristics of IT Infrastructure Services Providers' Deal Sweet Spots, Asia/Pacific

CharacteristicTypical Questions to Ask When Matching Providers' ITInfrastructure Services to Your Needs

Service Offerings and GeographicalCoverageCan the provider deliver the services yourequire in the locations you operate in?

Are the services you require a primary offering that theprovider has delivered to a range of clients for some time?Does the provider deliver the services in the geographicalareas you want?

Scale of Outsourcing DealsIs the provider used to delivering deals ofthe size and complexity you envisage?

What is the optimum deal size and what is the best scale ofservice provision for the provider?

Maturity of Service Delivery ProcessesCan the provider meet your qualityrequirements and consistently deliver theservice outcomes you need?

Has the provider standardized and industrialized its servicedelivery processes — using ITIL, for example. Does it usecommon toolsets to deliver services to all its clients?

Cultural CompatibilityHow easy is the provider to work with,and does it understand your business?

Does the provider work in a way similar to yours, and is it easyto do business with?Does the provider have people who understand the nuancesof your industry?

Flexibility and ExtensibilityHow well can the provider managechanges in your service requirementsduring the life of the deal?

Are the provider's processes rigid, or can it adapt and beflexible?Will the provider need to "reinvent the wheel" each time youpresent it with a new requirement?If you are doing a lot of project work implementing newtechnologies or solutions, does the provider have relatedcapabilities to assist you?


The scale of deal varies by world region. For Asia/Pacific, the following broad ranges typically apply,which are generally smaller than in Western Europe and the U.S.:

■ Small-scale deal: client has 500 to 2,500 end users/desktops.

■ Mid-scale deal — client with 2,500 to 10,000 end users/desktops.

■ Large-scale deal — client with over 10,000 end users/desktops.


Although we have not specifically addressed scaling relative to the value of the deal or number ofservers or nodes managed in the data center or managed network; the number of desktops typicallyreflects the scale of the enterprise, at least in terms of the number of end users. Usually it alsoreflects the likely scale of processing capacity in the data center or the number of network nodes tobe supported, as well as the value of the resulting deal. There are, however, always examples, suchas in the financial services sector, where processing requirements are quite large even for somesmall and midsize companies with relatively few users. Our aim is to provide a "rule of thumb" forscaling clients' outsourcing requirements, which is also likely to reflect the deal's financial size.

The following analysis of 11 providers' deal sweet spots includes separate commentary on eachcharacteristic. As part of this analysis we discuss the maturity of service delivery in the context of"xth generation" service provision. This maturity may vary, depending on the country in which theservice providers have operations. For more detailed information on each generation of servicematurity, see "Understand How Methodologies Evolve Into Standards to Achieve ServiceExcellence."

Characteristics of Generations of Service Provision Delivery Maturity

This document uses a high-level "generational" model that reflects the evolution of providers'service delivery capabilities and their ability to deliver service excellence via repeatable and reliableservice outcomes for clients. The extent of implementation of the ITIL industry framework across allof a provider's service towers is a useful guide when categorizing at a high level the maturity of its

service delivery capabilities from an end-user organization's perspective.3

Below we summarize some of the key characteristics used in our analysis.

First-Generation Service Provision

In this generation, service provision generally focuses on the "processization" and "standardization"of service delivery processes based on ITIL v2 or ISO 20000. We note that some providers mayhave ITIL fully adopted for help desk or RIMS services, but only partially for other areas of itsoperations and service delivery.

Other typical signs of first-generation service provision are that the provider delivers some ITservices in much the same way as clients did, with minimal adoption of standardized processes; theprovider is only part of the way through its ITIL v2 implementation and rollout; and the provider isgenerally reactive and only improves processes in response to major problems.

Second-Generation Service Provision

Providers with service provision at this stage are actively industrializing their service deliveryprocesses and moving from ITIL v2 to v3 capabilities.

Some other signs include some variability in delivery processes across delivery centers or clients;good internal methodologies based on standardized service delivery; ongoing investment in the ITIL


v2 to v3 journey, along with quality management processes like Six Sigma, Lean and Kaizen; and, insome cases, delivery according to outcome-based performance contracts.

Third-Generation Service Provision

This is the ideal future state, whereby providers will have a common way of doing business andcommon delivery processes for their services, all around the world, for all clients.

Signs that we are seeing evolution in line with this scenario include evolution of global deliveryprocess models used consistently across geographies; ongoing investment in knowledgemanagement of related best practice processes and staff training; and service excellence becomingpart of providers' "DNA."

Analysis of Regional Asia/Pacific Providers' Deal Sweet Spots for IT InfrastructureServices

This section provides deal sweet spot summaries for the following 11 providers, which are listed in

alphabetical order:4

■ Atos

■ CSC

■ Dimension Data

■ Fujitsu

■ HCL Technologies

■ HP

■ IBM

■ NCS

■ Samsung SDS

■ Unisys

■ Wipro

Atos

Atos is a global provider of full infrastructure services. Its parent company, based in France, hasmature service delivery models and service management capabilities. It also has applicationmanagement, consulting, system integration and transaction service offerings, as well as somecloud computing offerings.

Atos's geographical presence in Asia/Pacific was strengthened by the 2011 global acquisition ofSiemens IT Solutions and Services. Its regional headquarters is in Singapore and it has goodregional presence, except in Australia and New Zealand where it uses local partners to deliver


services to Atos global clients. For infrastructure services, Atos targets large organizations mainly inthe finance, government, energy and utilities, and manufacturing sectors. It has customers in India,Singapore, Taiwan, China, Hong Kong, Malaysia, Japan and Thailand. It has an infrastructure utilityoffering in Hong Kong and Singapore. It has some offshore presence in India and the Philippines.

Home page: http://ap.atos.net

Deal Sweet Spot Summary

Table 2 outlines the characteristics of the infrastructure services deals that Atos typically pursuesand does well at.

Table 2. Atos — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific

Characteristic Analysis

Service offerings andgeographicalcoverage

Atos is a full infrastructure services provider with a track record in regional andglobal deals. It has a strong presence in Singapore, Taiwan, Hong Kong andsome emerging ICT economies in Asia, including China, India, Indonesia,Philippines and Thailand. It offers some cloud computing offerings in partnershipwith Ufida, EMC and VMware. It also has an infrastructure utility offering called"Atos in a box," which it offers from centers in Singapore and Hong Kong.

Scale of outsourcingdeals

Regionally, Atos has a range of well-established midsize infrastructure servicesdeals. It has also scaled up to large deals for some regional clients, including forthe Olympic games.

Maturity of servicedelivery processes

In Europe, Atos has second-generation service provision capabilities with amature service delivery methodology aligned to ITIL v2- and Lean-basedmethodologies. Its rollout of a global standardized and industrialized servicedelivery approach varies by location and customer in Asia. Atos is rolling out ITILv3 capabilities globally.

Cultural compatibility Atos's culture is based on building trusted long-term relationships and deliveringoperational competitiveness and service excellence through mature technologicalsolutions. Many of its outsourcing engagements result from solutions designedand implemented by Atos. It targets larger organizations mainly in the finance,government, and energy and utilities sectors, as well as the manufacturing sectorfor its infrastructure services.

Flexibility andextensibility

Atos generally has well-defined contract change management processes. It offersa range of complementary industry-solution-based services in applicationmaintenance and development, consulting and system integration, as well as in"operating technologies." It also offers BPO services in the region for paymentand card management services.

BPO = business process outsourcing; ICT = information and communication technology



http://ap.atos.net/

CSC

CSC is a global full-service provider with mature and well-developed service delivery models andservice management capabilities. It has core strengths in consulting, system integration, ITmanagement and some process management services. It also has a range of cloud serviceofferings, including a by-invitation, "community"-style IaaS offering available regionally, and relatedcloud consulting and implementation services.

More than two-thirds of CSC's Asia/Pacific business derives from Australia alone. Its business inAsia/Pacific is concentrated in the natural resources, manufacturing, government, health andfinancial services sectors. CSC has customers in Australia, Singapore and Malaysia, as well asoffshore capabilities in India, Vietnam and China.

Home page: www.csc.com


Table 3 outlines the characteristics of the infrastructure services deals that CSC typically pursuesand does well at.


http://www.csc.com/

Table 3. CSC — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific


Service offerings andgeographical coverage

CSC is a full infrastructure services provider with track record in local andglobal deals. It can provide IaaS offerings for public and private clouds forregional clients. It has a strong presence in Australia and the mature ICTeconomies in Asia/Pacific (excluding New Zealand and Japan). It has a regionalRIMS services facility in Malaysia.


Regionally, CSC has a range of well-established midsize and largeinfrastructure services deals, and it can scale up to megadeals.


With second-generation infrastructure services provision capabilities, CSC hasa mature service delivery methodology and enterprise services managementframework aligned to ITIL v3. Its rollout of a global standardized service deliveryapproach varies by location and customer in Asia.

Cultural compatibility CSC has a strong focus on IT architecture and processes when deliveringservices. It commonly works as prime contractor and subcontractor, and it hasgood partnership and collaboration skills for large, complex engagementsrequiring multiple third-party technologies and innovation. It tends to deliverservices according to the "intent" of the contract, as long as that intent is wellexpressed.CSC has infrastructure services clients in most of its target vertical markets. Itis strong in the government, financial services and natural resources sectors.


CSC generally has well-defined contract change management processes. Itoffers a range of complementary services in application maintenance anddevelopment, package implementation, consulting and system integration.

IaaS = infrastructure as a service; ICT = information and communication technology; RIMS = remote infrastructure monitoring andsupport


Dimension Data

Headquartered in Johannesburg, South Africa, Dimension Data is an IT services and solutioncompany that provides services for planning, building and supporting IT infrastructures. It providesnetworking, security, operating environments, storage and contact center technologies, and createscustomized solutions via its consulting, integration and managed services. Its core strength is innetwork-centric services. Dimension Data became a wholly owned subsidiary of Nippon Telegraphand Telephone Corporation (NTT Holdings) of Japan in 2011.

In Australasia, Dimension Data provides IT services under its own name and is present in mostcapital cities. In the rest of Asia/Pacific, it historically operated through its subsidiary Datacraft Asia,but has now rebranded as Dimension Data regionally. It also has some presence in Europe.


Home page: www.dimensiondata.com


Table 4 outlines the characteristics of the infrastructure services deals that Dimension Data typicallypursues and does well at.

Table 4. Dimension Data — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific



Dimension Data is a best-of-breed managed network service provider with goodpresence in Australasia and throughout Asia. It can provide a full range ofinfrastructure services, but only for small clients. It recently launched a portfolioof cloud (computing as a service) offerings. Its parent company, NTT, has arange of regional IaaS offerings as well.


Dimension Data specializes in midsize and large managed network service dealsand smaller managed infrastructure services deals.


Dimension Data has second-generation infrastructure services provisioncapabilities. It has a mature ITIL v3-aligned Global Services delivery OperatingArchitecture (GSOA) and a Managed Services Framework (MSF) that has beenrolled out globally.

Cultural compatibility Dimension Data has a strong people-oriented focus on technology, serviceexcellence, and close collaboration with clients. It collaborates well to get the jobdone as a subcontractor or in multisourced environments. It can also primecontract managed network services deals. It is strong in the financial services,government, manufacturing, communications and services sectors.


Dimension Data is reasonably flexible, with defined contract changemanagement processes. It offers a range of network-centric, technical,communications, data center, security, application and system integrationservices, and call center solutions.

IaaS = infrastructure as a service


Fujitsu

Fujitsu has the capability to deliver a complete range of outsourcing services, as well as consultingand system integration services. In Australia and New Zealand, Fujitsu has leveraged its U.K.experience in implementing ITIL within its service delivery processes. It is the third-largest ITservices provider worldwide. It has a strong infrastructure services presence in Australia, Singaporeand New Zealand, as well as in Japan. The company is also present in South Korea, Hong Kong,Taiwan, China and Thailand. Fujitsu supports many Japanese operating companies in this region,particularly in countries that are members of the Association of Southeast Asian Nations (ASEAN). Ithas data centers in Australia, New Zealand, Singapore and Thailand.


http://www.dimensiondata.com/

In Australia, Fujitsu has built its service business both organically and through acquisitions, whichinclude, apart from KAZ, the local operations of Atos, DMR Consulting, Supply Chain Consultingand others. In Australia, it is present in most capital cities and many regional centers, particularly viaits desktop support deals with the Department of Defence and Qantas.

Home page: www.fujitsu.com/au/services/infrastructure-services/index.html


Table 5 outlines the characteristics of the infrastructure services deals that Fujitsu typically pursuesand does well at.

Table 5. Fujitsu — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific



Fujitsu, which is based in Asia and Europe but also has some North Americanpresence, is a full infrastructure services provider with a long track record ofserving clients both locally and globally. In Asia, it is stronger in Australia, Japan,New Zealand and Singapore than in emerging ICT economies. For regional clientsit can provide IaaS offerings for public and enterprise-level private clouds. It hasregional help desk facilities in Malaysia and Australia.


Fujitsu has focused on midsize deals. It is a best-of-breed provider for mid- andlarge-scale desktop services.


Fujitsu has second-generation service provision capabilities in Australia, but first-generation in Asia/Pacific as a whole. It has a very mature service deliverymethodology compatible with ITIL v3 and ISO 20000, but also has some legacy"as is, where is" clients. Fujitsu has complementary SLA-monitoring toolsets.Through its Triole program, Fujitsu is investing in ever more industrialized servicesto enhance robustness and cost-effectiveness.

Cultural compatibility Fujitsu has a strong technology-focused system engineering heritage — "TheFujitsu Way." it is a practical, "down to earth" service provider with industrializedservice delivery processes. Fujitsu has infrastructure services clients in thetransport, financial services, government, manufacturing, telecom and utilitiessectors. It works well both as a subcontractor and in multisourced environments.Historically, each Fujitsu subsidiary has had a degree of local autonomy in itscountry-based operations, but Fujitsu is now gradually moving to morestandardized approaches globally and to "glocalized" operating models.


Fujitsu is reasonably flexible. It has standard contract change managementprocesses. It offers a range of complementary technical consulting, applicationand system integration services.

IaaS = infrastructure as a service; ICT = information and communication technology



http://www.fujitsu.com/au/services/infrastructure-services/index.html

HCL Technologies

HCL, which is headquartered in India, is an application and infrastructure services provider withmaturing service delivery models and service management capabilities. It has regional offerings intechnical consulting (for example, for data centers and cloud computing), technology integration, ITmanagement, RIMS and process management services.

HCL has a strong client base in India, some clients in Singapore and on the east coast of Australia,and a growing presence in Europe and North America. Through its application service clients, manyof which may not use its infrastructure services, HCL also has geographic coverage in NewZealand, Malaysia and Hong Kong.

Home page: www.hcltech.com


Table 6 outlines the characteristics of the infrastructure services deals that HCL typically pursuesand does well at.


http://www.hcltech.com/

Table 6. HCL Technologies — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific



HCL offers a full range of asset-light infrastructure services whereby it managesbut does not own the infrastructure used. It specializes in RIMS services. Its maininfrastructure services clients are in India, but it also has some smaller clients inAustralia and Singapore, and a range of RIMS clients throughout the region. HCLdoes some technology consulting on cloud enablement and can manage andmonitor cloud environments for clients.


HCL specializes in single-tower-based outsourcing for large deals and totaloutsourcing for small to midsize deals in India, Australia and Singapore. It alsodoes small to midsize RIMS deals in the region.


In Asia, HCL tends to deliver on an "as is, where is" basis, and is therefore buildingsecond-generation service provision capabilities. It has ITIL v2-based help deskprocesses and is now rolling out the full ITIL v3 suite of processes among itsinfrastructure services clients regionally. It has some basic performancemonitoring and reporting toolsets and leverages its service management-tool-as-a-service (MTaaS) platform. It has adopted Lean-like quality managementprocesses and can provide ITIL v3-based processes for its Gold Standard serviceclients.

Cultural compatibility HCL has an open, entrepreneurial culture with empowered "glocalized" operationsand a focus on delivering client value. It has a strong focus on delivering excellentclient service using standard processes and its "Employee First, CustomerSecond" philosophy. It is used to partnering with vendors, has strong productengineering roots in India, and is not risk-averse. HCL has a strong presence in thebanking, insurance, communications and manufacturing sectors, and somepresence in the government, retail and transportation sectors.


Although flexible to work with, HCL may not have standard contract changemanagement processes. It does have complementary BPO, technical consulting,change management, system integration and application service offerings.

BPO = business process outsourcing; RIMS = remote infrastructure monitoring and support


HP

HP supplies PC systems, imaging and printing products, technology solutions, and IT andoutsourcing services globally. HP's acquisition of EDS in 2008 strengthened its infrastructureservices offerings in areas like network voice/telephony management, application management andWeb and email hosting services, both in Asia/Pacific and globally.

HP is one of the top four providers of infrastructure services in Asia/Pacific. About half of its regionalIT services revenue comes from Australia and New Zealand. HP is represented in most of theinfrastructure services markets of the other countries in the region. Its IT management service


market share has been dropping in the region during the past two years as it has lost some ofEDS's larger legacy deals or parts thereof. HP has an evolving set of cloud and enterprise-focusedIaaS offerings that address requirements for private, hybrid and public clouds.

Home page: www.hp.com


Table 7 outlines the characteristics of the infrastructure services deals that HP typically pursues anddoes well at.

Table 7. HP — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific



HP is a full infrastructure services provider with a long track record of workingwith global clients. It has managed service offerings for smaller clients. It isstronger in Australia and New Zealand than in the rest of Asia/Pacific. It isbuilding some cloud IaaS data centers in Australia and Singapore and has plansfor Japan and India. Through its strong hardware market presence, HP cansupport clients in most parts of Asia/Pacific.


HP has a range of large deals and megadeals in Asia/Pacific. Its deployment ofcloud services is targeted at large- and small-scale clients.


HP has second-generation infrastructure services provision capabilities throughits acquisition of EDS. Its Service Delivery Excellence Program (SDEP) is a verymature service delivery methodology, compatible with ITIL v3, which HP isprogressively rolling out to its smaller, legacy clients. HP has a performancedashboard that it can share with clients.

Cultural compatibility HP has a mixed product and system engineering culture with a focus on serviceexcellence using standard processes. It works well in complex environments, as aprime contractor and in well-scoped contracts. HP recently announced a"Multisupplier Integration and Management" services offering. It hasinfrastructure services clients in the financial services, government, retail,services, manufacturing and communications sectors in Asia. It has deep domainexpertise in the manufacturing and communications sectors.


HP generally has well-defined contract change management processes andoffers a range of complementary technical, application and system integrationservices, as well as some BPO services.

BPO = business process outsourcing; IaaS = infrastructure as a service



http://www.hp.com/

IBM

IBM is a global full-service provider with the largest share of the IT infrastructure outsourcingservice market, both globally and regionally. It has mature service delivery models and servicemanagement capabilities. The company also has core strengths in consulting and systemintegration, and can provide end-to-end solutions for clients. It recently released a publicSmartCloud offering hosted in Singapore and Japan, and it has some regional clients for this. IBMalso plans to enhance its SmartCloud range of offerings and target more enterprise-focusedrequirements in the region.

IBM has a strong IT services presence in most countries in the region. In Australia, it is present in allcapital cities and some regional centers.

Home page: www.ibm.com and www.ibm.com/au/en


Table 8 outlines the characteristics of the infrastructure services deals that IBM typically pursuesand does well at.


http://www.ibm.com/

http://www.ibm.com/au/en

Table 8. IBM — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific



IBM is a full infrastructure services provider with a track record in global deals. Itis particularly strong in Australia and New Zealand, but also has good presenceacross the region, including in Hong Kong, India and Singapore. It can buildprivate IaaS offerings for regional clients, and has both a public IaaS offering andan IT utility offering.


IBM is strong in midsize and large infrastructure services deals in the region andcan scale up to megadeals.


IBM has second-generation service provision capabilities and is building third-generation capabilities, including a common service catalog based onstandardized service delivery processes. It has a mature service deliverymethodology, which is being retrofitted to ITIL v2 and v3. Quality of service canvary by location and customer in Asia/Pacific.

Cultural compatibility IBM's approach to its clients has a long-standing focus on senior business-levelconsultation. It prefers to be the sole source or prime contract provider, ratherthan a subcontractor. Sometimes IBM is seen as over-bureaucratic and risk-averse and to be seeking clients who will commit to sole-source long-term deals.IBM has infrastructure services clients in most industries, and is strong in thegovernment and financial services sector.


IBM generally has well-defined contract change management processes, but thechange process can be daunting for small or less mature clients. IBM offers arange of complementary services for BPO, applications, consulting and systemintegration.



NCS

NCS is a midsize regional service provider headquartered in Singapore. It was spun off in 1996 bythe Singaporean Government as a commercial IT services provider, and in 1997 became a whollyowned subsidiary of SingTel, which also owns Optus/Alphawest in Australia. NCS has offerings inconsulting, application development and IT management services. It also offers cloud computingaggregation, integration and enablement services. NCS's owner, SingTel, offers a full suite ofhosting, infrastructure utilty, IaaS and SaaS services.

NCS is an established IT services provider to government agencies in Singapore and some globalcommercial enterprises. More than 80% of NCS's Asia/Pacific business derives from Singapore,with the rest coming from customers in Australia, China and Hong Kong. It has some presence inother emerging economies, namely the Philippines, Indonesia and Malaysia.

Home page: www.ncs.com.sg


http://www.ncs.com.sg/


Table 9 outlines the characteristics of the infrastructure services deals that NCS typically pursuesand does well at.

Table 9. NCS — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific



NCS is a full IT outsourcing service provider with a track record in local andregional deals. It has a strong presence in Singapore, Australia and China, andoffices in many countries, including some emerging ICT economies in Asia/Pacificand the Middle East. It offers cloud consulting enablement and implementationservices and leverages SingTel's IaaS offerings. It also provides a shared-serviceinfrastructure utility-type hub for some Singapore Government agencies.


Regionally, NCS has a range of well-established small to midsize infrastructureservices deals. It can also scale up to larger deals.


NCS has first-generation service provision capabilities and is part of the waythrough a standardization of its service delivery processes. It is also part of theway through rolling out ITIL V2 in its operations. It has developed a range ofstandardized delivery methods and processes, but its services approach variesaccording to client needs. It is ISO 9001-certified. NCS has a strong commitmentto quality and continuous improvement.

Cultural compatibility NCS's culture reflects its public service roots. It has a collaborative work cultureand believes that delivering business value is key to its customer relationships.NCS has a proprietary suite of service delivery methodologies called the BusinessTransition for Value (Bizval) model that focuses on delivering timely businessoutcomes for all stakeholders. It is strong in the government sector and hasdelivered infrastructure services to organizations in industries such as aviation,defense, education, financial services, healthcare and life sciences, manufacturingand logistics, telecommunications, transportation and utilities.


NCS generally has well-defined contract change management processes. It offersa range of complementary services for application maintenance and development,consulting and system integration, and engineering.

IaaS = infrastructure as a service; ICT = information and communication technology


Samsung SDS

Samsung SDS is a regional infrastructure services provider headquartered in South Korea. It startedas a shared IT services facility for the Samsung Group of companies, but now operates as aseparate IT services company and does a significant amount of business outside the Group. About80% of Samsung SDS's Asia/Pacific IT management revenue comes from South Korea. It hasmoved with its clients around the world and is piloting global delivery centers in China and India. It


provides a full suite of infrastructure outsourcing services and has consulting and system integrationcapabilities.

Home page: www.sds.samsung.com


Table 10 outlines the characteristics of the infrastructure services deals that SDS typically pursuesand does well at.

Table 10. Samsung SDS — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific



Samsung SDS, the largest IT services provider in South Korea, is a full ITinfrastructure services provider. It has a good track record of serving SouthKorean clients in China and provides some services in Singapore and India. Itprovides some IaaS-based offerings.


Samsung SDS has historically focused on midsize to large deals for theSamsung Group and other clients.


Samsung SDS has relatively mature first-generation service provisioncapabilities. It is evolving from a shared services delivery model andstandardizing on IT Service Management (ITSM) for IT services deliveryprocesses. It is used to working with SLA-based contracts based on ITIL v2delivery requirements.

Cultural compatibility Samsung SDS has a client-intimate working model and prefers to work with itsclients on a sole-source or prime contractor basis. Samsung SDS attractsgood business from the South Korean public sector and the financial servicesindustry, and some from the manufacturing and services industries.


Samsung SDS prefers to work with stable demand requirements. It offers arange of complementary technical consulting, application and BPO services, aswell as Internet Protocol telephony.



Unisys

Unisys is a global service provider with a focus on infrastructure services and high-availabilityinfrastructure. It provides a full suite of infrastructure outsourcing services and has some systemconsulting, applications and system integration capabilities. It offers cloud implementation servicesregionally and secure hosted cloud solutions (private or public) from the U.S.

In recent years Unisys has refocused on its core strengths. It targets large local and regionalenterprises in Asia/Pacific, midsize global enterprises for full IT outsourcing engagements, and large


http://www.sds.samsung.com/

global enterprises for single-service-line engagements. This is appropriate for a provider of its sizeand aligned with the company's global strategy of recent years for turning its performance around.

Unisys has a strong presence and data centers in Australia and New Zealand. It also has a presencein China, Singapore, Hong Kong, Malaysia, the Philippines, India and Taiwan.

In Australia, Unisys is present in east-coast capital cities and some regional centers.

Home page: www.unisys.com and www.unisys.com.au


Table 11 outlines the characteristics of the infrastructure services deals that Unisys typicallypursues and does well at.

Table 11. Unisys — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific



Unisys is a full infrastructure services provider, with a good track record ofserving global and local regional clients. It is strongest in Australia and NewZealand, but also has good presence in China, Hong Kong, Taiwan and Malaysia.It provides consulting services for clients wishing to implement private cloud andsome IaaS services out of the U.S.


Unisys focuses on midsize full-scope IT outsourcing deals, but has best-of-breedcapabilities for larger-scale help desk and desktop services. It can scale itsservices up or down according to the local country requirements.


Unisys has second-generation service provision capabilities in Australia and NewZealand. It has a very mature service delivery methodology compatible with ITILv3, and a range of end-to-end performance management and reporting tools.

Cultural compatibility Unisys is a technology-based organization focused on core offerings in selectedvertical markets. It works on building positive relationships with clients at multiplelevels. It is strongest in the government, financial services and transportationsectors. It works well both as a prime contractor and a subcontractor inmultisourced environments, particularly in a multisourcing service integration(MSI) role.


Unisys is reasonably flexible in its dealing with customers and has standardcontract change management processes. It offers a range of complementarytechnical consulting, application and system integration services.

IaaS = infrastructure as a service



http://www.unisys.com/

http://www.unisys.com.au/

Wipro

Wipro, which has headquarters in India, is an offshore application and infrastructure managementservices provider. It provides a full suite of application and infrastructure outsourcing services andhas some system consulting and system integration capabilities. Its data center outsourcingcoverage is strongest in North America and Europe. Wipro has some emerging cloud serviceofferings, including some industry-specific solutions, which will be delivered using a SaaS businessmodel.

Wipro has recently restructured and refocused on its core strengths in key vertical markets, as isappropriate for a provider of its size. The restructuring included combining its infrastructure servicesoperating divisions for India and the rest of the world. Wipro has good presence in ASEAN countriesand in Australia and New Zealand. In Australia, it is present mainly in east-coast capital cities.

Home page: www.wipro.com and www.wipro.com.au


Table 12 outlines the characteristics of the application services deals that Wipro typically pursuesand does well at.


http://www.wipro.com/

http://www.wipro.com.au/

Table 12. Wipro — Deal Sweet Spot Summary, IT Infrastructure Services, Asia/Pacific



Wipro offers a full range of asset-light infrastructure services whereby it managesbut does not own the infrastructure used. It specializes in RIMS services. Its mainregional infrastructure service clients are in India. It has a few small clients inAustralia, and a range of RIMS clients throughout the region. It has sometechnology consulting offerings for cloud computing, and can help clientsmigrate to public-cloud-based IaaS offerings.


Wipro specializes in small to midsize full IT outsourcing and some large desktopoutsourcing deals in India; mainly small infrastructure services deals in Australia;and small to midsize RIMS deals in the region as a whole.


Wipro tends to deliver "as is, where is," according to client requirements. It hasreasonably mature first-generation service provision capabilities with ITIL v2 helpdesk processes and is starting to roll out ITIL v3 processes for some of itsinfrastructure services clients. It uses its Global Command Center RIMScapabilities to improve the quality of its services. It also uses Six Sigma.

Cultural compatibility The company's "Spirit of Wipro" philosophy gives it a strong focus on deliveryexcellence, drawing on standard "Flex Delivery" processes and a strongtechnological heritage. A publicly owned company with a dominant shareholder,Wipro takes a top-down approach to decision making.Regionally, Wipro has its strongest presence in the banking, communicationsand manufacturing sectors. It also has some presence in the higher education,consumer packaged goods, insurance, retail, transportation and utility sectors.Wipro grows through mergers and acquisitions, but also partners well.


Wipro is flexible to work with and has standard contract change managementprocesses. It also has complementary BPO, technical consulting, systemintegration and application service offerings.

BPO = business process outsourcing; IaaS = infrastructure as a service; RIMS = remote infrastructure monitoring and support


High-Level Information on Other IT Infrastructure Services Providers in Asia/Pacific

A range of service providers have a presence in some countries in the region. This section providesa brief overview of them.

Two important South Korean providers have not been profiled above because they failed to satisfyour inclusion criteria: LG CNS and SK C&C.

LG CNS is the IT services business of the South Korean LG Group, providing services to Groupcompanies as well as some external clients. It derives some IT management business from China, alittle from India, and an insignificant amount from the rest of Asia/Pacific, but 93% comes from its


home market of South Korea. LG CNS competes widely in South Korea for the full range of ITservices, including IT infrastructure outsourcing, and it is actually somewhat larger in this segmentthan Samsung SDS.

Similarly, SK C&C operates as the IT services arm of the SK Group. Nearly all of its business is donein its home market.

These two providers, like Samsung SDS, focus on the South Korean market but support their owngroup companies globally and are also powerful brands among South Korean organizations outsidethese groups. They can be considered for specific South Korean service requirements, but are likelyto be classified as first-generation service providers.

Siemens Enterprise Communications (part of Nokia since July 2011) appears in our top 20 bymarket share, but is omitted from the main profiles because it only offers services related tocorporate networking and telephony, mainly Internet Protocol telephony and unifiedcommunications. Also, most of its business in the region is done in China, with only small amountsdone in other countries.

Historically, Siemens' worldwide IT services business was mostly operated by Siemens IT Solutionsand Services, which is now part of Atos.

Alphawest met the market share criteria but is omitted from the main profiles because it operatesonly in Australia. It is one of a small number of IT services firms to have originated in Perth, WesternAustralia, one of the key centers for the booming resources sector. It was acquired some years agoby SingTel-Optus, the Australian subsidiary of the Singaporean telecom provider.

Alphawest's focus is network-centric services, such as unified communications, mobility solutionsand security. It generally targets midsize to large organizations, rather than taking a vertical-marketapproach. Its parent company's Optus Business unit is a key channel to market, generatingsubstantial managed services deals in the enterprise and government sector. As part of the SingTelgroup, it complements NCS's services.

Accenture is also in the top 20 for IT management revenue in Asia/Pacific, but because theoverwhelming majority of its business comes from application management deals, we do notinclude it in our main profiles. Accenture now offers IT infrastructure management services as partof broader deals, but it does not use this as a primary go-to-market offering in Asia/Pacific.Infrastructure services may be offered where Accenture has developed or implemented anapplication or is managing business process outsourcing (BPO) for a client. Accenture'sinfrastructure, including several data centers in Asia/Pacific, staff and skills are also used for someof its other operations, such as BPO. But the company avoids taking on its clients' IT assets.

New Entrants

Among the newer providers, Amazon's Web Services business unit now offers cloud-based ITinfrastructure services from its base in Singapore. It began by targeting startup businesses thatneeded quick access to infrastructure and rapid scalability, as well as minor requirements withinlarge organizations, such as pilot projects and short-term requirements for specific campaigns. It


has now added application software partners and started to partner with system integrators.Consumer-aware companies, such as Amazon, are likely to stimulate a "snowball effect" in theadoption of cloud services.

Telecom carriers, such as Telstra in Australia and SingTel in Singapore and other parts of theregion, have extended their hosting capabilities to offer IT utility, hosting and cloud services.Although Telstra sold its IT services business, Kaz, to Fujitsu, it has rebuilt a capability to offerstandardized IT infrastructure utility offerings and started to win some customers. It recentlyannounced substantial future investments to provide a range of IaaS-based cloud service offerings.

Recommended ReadingSome documents may not be available as part of your current Gartner subscription.

"Competitive Landscape: Cloud IaaS Services, Asia/Pacific"

"Data Center Outsourcing, Hosting or Cloud? Use Gartner's Market Map and Compass to Decide"

"Magic Quadrant for Desktop Outsourcing, Europe"

"Magic Quadrant for Help Desk Outsourcing, Europe"

"Magic Quadrant for Desktop Outsourcing Services, North America"

"Magic Quadrant for Help Desk Outsourcing, North America"

"Magic Quadrant for Managed Hosting"

"Data Center Services: Regional Differences in the Move Toward the Cloud, 2012"

"User Survey Analysis: Infrastructure as a Service, the 2011 Uptake"

"Magic Quadrant for Public Cloud Infrastructure as a Service"

"Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, North America"

"Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, Europe"

Evidence

1 For Gartner's definition of IT management services, which covers both infrastructure services (thefocus of this analysis) and application management services, see "Market Definitions andMethodology: IT Services."

2 Figure 1 is based on information from market scan surveys and competitive analysis workconducted by Gartner, along with updated input from our regional analysts based on their long


industry experience and knowledge of service providers, vendor briefings, and industry and pressreleases, including those announcing deals and offerings. See further:

■ "Competitive Landscape: IT Infrastructure Outsourcing in Asia/Pacific at a Difficult Stage"

■ "Market Overview: IT Outsourcing Service Providers, Asia/Pacific, 2009"

■ "Market Overview: IT Outsourcing Service Providers in Country Marketplaces in Asia/Pacificand Japan, 2010"

■ "Using Gartner's Market Overviews to Identify IT Services Providers in Asia/Pacific and Japan"

3 See the results of the following historic study showing how end-user enterprises expect serviceproviders in mature IT economies to use industry frameworks like ITIL as part of their servicedelivery process: "User Survey Analysis: Influence of ITIL and ISO 20000 on Selection of Providersfor Data Center Outsourcing and Hosting."

4 The deal sweet spot assessments are based on our long-term interactions with the respectiveproviders and extensive discussions with end-user clients of their infrastructure services. We havedrawn on a range of assessments of the providers by global as well as regional Gartner analysts toreach a final regional assessment of their respective deal sweet spots.

Globally, Gartner's IT services sourcing analysts have taken over 820 calls on vendor evaluation andselection in the past year, with over 45% coming from our largest customers. About 17% originatedfrom clients in Asia/Pacific, but there were also a range of calls from European and North Americanclients seeking to understand who the infrastructure services providers in this region are and howthey are positioned in markets such as India, China and Singapore.

We have also used a variety of Magic Quadrants, MarketScopes and Vendor Ratings that Gartner'sIT services sourcing analysts have published on providers' global capabilities and offerings, and arange of SWOT and Competitive Landscape reports.

Note 1 Summary of Deal Generation Characteristics

Below we summarize the high-level characteristics of each generation of deal. For more informationon each generation and lessons learned, see "Understand the Three Generations of Outsourcing toImprove Deal Outcomes."

First-Generation Deals

Typically, first-time outsourcing clients move from insourced to outsourced, engaging a singleprovider or prime contractor, and sometimes they engage with a small number of providers or evena single-source full outsourcing provider. Usually, a cost-outcome-focused outsourcing decision isadopted following a tactical outsourcing approach to contract negotiation and management. Theclient generally has weak relationship management skills and the vendor's contract is used, whichtypically entails lower risk for the vendor and higher risk for the client.


Second-Generation Deals

In their second round of outsourcing, clients tend to move from single-source providers to selectivebest-of-breed providers. Organizations continue to focus on cost savings while developing moremature outsourcing processes, with an emphasis on improving relationship management anddelivering consistent service outcomes. Contracts are more likely to be structured by the client andto have limited to good performance behavior drivers such as incentives and penalties.

Third-Generation Deals

In this stage, clients focus on developing the competencies and processes necessary to exist andthrive in a multisourced environment, and are starting to use some industrialized services, such asSaaS, infrastructure utilities and cloud-based services. They also begin to take a more disciplinedapproach to multisourcing services integration (MSI), implementing advanced governancetechniques to integrate service delivery, such as operating-level agreements, and have SLAs basedon business service metrics. Contracts are fully performance-based and mostly drawn up by theclient. Some measures are often business-outcome-based and stipulate payments for meeting ornot meeting outcome objectives.

Note 2 Definition of Market Scan

A market scan is a strategic planning process that involves "scanning" service providers or vendors'products in a given market to identify potential suppliers, services and products that could meet acompany's business requirements. It is undertaken during the sourcing strategy and/or early stagesof the evaluation and selection phases of the sourcing life cycle.

A market scan process based on a deal sweet spot analysis is less expensive and quicker thantraditional approaches such as releasing "expressions of interest" and "requests for information."

Note 3 Depth of Offerings

The depth of providers' service offerings is defined as follows:

■ "Primary" implies that many or most of a provider's infrastructure services clients use itsservices for delivering that line of service (to qualify as a "primary" regional capability, theseservices must be used by a wide range of clients in multiple markets with mature ICTeconomies, such as Australia, Singapore and Hong Kong).

■ "Secondary" implies that only some of a provider's infrastructure services clients use itsservices for delivering that line of service.

■ "Partner" implies that a provider subcontracts 100% of this line of service to other providers,which then deliver this service to clients on its behalf.

■ "Does not offer" implies that a provider does not offer this line of service, or that none of itsinfrastructure services clients use its services for delivering that line of service.


Gartner has based these assessments on historic market overview surveys, information obtained atvendor briefings and from vendors' websites. Where we had limited feedback or information wemade a conservative attempt to summarize the provider's offerings, based on our marketknowledge and/or secondary sources.


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