More than a year after Infosys put automation software company Panaya up for sale and failed to find a buyer, the Bengaluru based software services exporter has begun to invest in the Israel-based company again as it looks to make the Vishal Sikka-era acquisition successful.
“In the end, the long-term strategic value exceeded the price they were offered. By doubling down, they are attempting to repair an asset which does, in fact, fit well into their digital direction. They still have the significant learning curve to come down on how to run a product company next to a services company,” said Peter Bendor-Samuel, CEO of IT consultancy Everest Research.
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But in performance rankings, TCS, Cognizant, HCL, Accenture and L&T Infotech are honored for creating best ‘overall experience’ for clients
Despite large-scale investments by service providers, 48 percent of enterprises surveyed by Everest Group are not satisfied with their service provider’s performance. In particular, service providers are performing poorly as “strategic partners” for enterprises and score an average rating of five on a scale of one to ten.
There are also significant gaps in enterprises’ expectations and service providers’ performance with respect to innovation, creative engagement models and day-to-day project management.
“Most service providers are perceived to be technically competent, but technical expertise and domain expertise are considered ‘table stakes’ by enterprises across industries,” said Chirajeet Sengupta, partner at Everest Group. “Enterprises now expect their service providers to move beyond day-to-day delivery and focus on larger strategic business issues. Unfortunately, service providers still have a long way to go to meaningfully engage clients and become strategic partners, and that is a significant concern for the industry. This research signals the wake-up call and offers service providers guidance on how to strategize their engagement approach and prioritize investments to meet mounting customer expectations.”
In general, enterprises believe that mid- and small-sized service providers bring considerably more innovation and engagement flexibility than their larger counterparts. In fact, enterprises believe some large service providers have become lethargic and complacent and are indifferent to client requirements.
In contrast to these sentiments, five predominantly large service providers received the honor of creating the best “overall experience” for clients, based on client commentary and weighted aggregate ratings given by interviewed enterprises on key assessment dimensions.
These results and other findings are explored in a recently published Everest Group report: “Customer (Dis)Satisfaction: Why Are Enterprises Unhappy with Their Service Providers?” The research summarizes over 130 interviews conducted with enterprises across the globe regarding the capabilities of their service providers with respect to applications, digital, cloud and infrastructure services. The report also details the technology investment priorities of enterprises and opportunity areas for service providers.
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Accenture, Cognizant, IBM, TCS and Wipro again top the list of IT service providers who consistently place among top performers in Everest Group’s PEAK Matrix™ reports.
Everest Group—a consulting and research firm focused on strategic IT, business services and sourcing—today announced the winners of the 2017 PEAK Matrix Service Provider of the Year™ awards for IT services. The awards, now in their second year, recognize IT service providers who have demonstrated consistent leadership in the PEAK Matrix reports issued by Everest Group in the previous year.
In 2016, Everest Group published 21 PEAK Matrix reports, evaluating a total of 73 service providers in various segments of the IT services market. Twenty of the 73 providers are recognized in the 2017 PEAK Matrix Service Provider of the Year Awards.
“Our PEAK Matrix reports evaluate market success—using factors like revenue growth, deals won or renewed, margins generated, and so forth—as well as service capabilities, where the emphasis is on innovation, because that is how providers are differentiating themselves in the eyes of enterprises today,” said Jimit Arora, partner at Everest Group. “Throughout the year, Everest Group examines what providers are investing in, what type of intellectual capital they have, how they’re devising their sourcing strategies, and whether they are experimenting with new service models or engagements with their customers. By taking all of that into account, these PEAK Matrix Service Provider of the Year awards recognize the IT providers that truly set themselves apart.”
The 2017 PEAK Matrix Service Provider of the Year Awards for IT Services comprise:
Accenture, Cognizant, IBM, TCS and Wipro won the top five spots (in that order). Accenture (which held the second position in 2016) has moved to the top of the list above Cognizant.
Companies recognized either as Leaders of the Year, Star Performers of the Year, or both, include Accenture, Atos, Capgemini, Cognizant, HCL, Hewlett Packard Enterprise, IBM, Tata Consultancy Services, VirtusaPolaris, and Wipro.
Accenture had a dominant presence in the 2017 honors, claiming the No.1 spot in the ITS Top 20 list as well as being “Leader of the Year” in the Overall IT Services and ADS categories. Accenture shared “Leader of the Year” honors with Cognizant in the HLS category.
Cognizant once again made a particularly strong showing, earning the No. 2 spot in the ITS Top 20 list as well as sharing “Leader of the Year” honors in two categories: BFSI and HLS. In addition, Cognizant was named “Star Performer of the Year” in the ADS category.
Capgemini and VirtusaPolaris shared the Star Performer of the Year award in the Overall IT Services category.
Five service providers improved their rankings:
New entrants to the ITS Top 20 list include Syntel (#17), Hexaware (#18) and NTT DATA (#20). Conversely, Fujitsu, Luxoft and Unisys dropped out of the Top 20 leaderboard.
***All winners are listed in the report, “2017 PEAK Matrix Service Provider of the Year Awards” available for complimentary download here.***
“Today’s enterprises must navigate a complex landscape of next-generation and legacy technologies, a global business footprint, and a complex provider portfolio,” said Abhishek Singh, practice director at Everest Group. “The PEAK Matrix Service Provider of the Year Awards are designed to help enterprise buyers identify the best of the best – the IT service providers with strong, broad-based capabilities and successful service strategies that align well with the evolving enterprise IT demand.”