Authors: Erin Hichman, Gard Little
June 2024, IDC #US51406224e
This document is an excerpt from the IDC MarketScape: Worldwide Cloud Professional Services 2024 Vendor Assessment (Doc # US51406224). It includes the following sections: IDC Opinion, IDC MarketScape Vendor Inclusion Criteria, Essential Guidance, Vendor Summary Profile, Appendix, and Learn More. Figure 1 is also included.
Buyers of cloud professional services continue to enjoy a wealth of choices among provider types, and cloud professional service providers continue to expand their own end-to-end capabilities, making the selection process more challenging than ever. A record 24 vendors were evaluated in this sixth biannual evaluation, giving buyers a new snapshot of vendors to consider. Given this dynamic, IDC again recommends that buyers think about providers' expanding capabilities akin to a college graduate with a major and a minor and prioritize their needs accordingly.
When buyers were asked what characteristics are required for any cloud professional services vendor to be successful at a worldwide level, the number one attribute mentioned was "provide technical insights and competence," up from second place in the 2022 evaluation. The second attribute mentioned was "provide an appropriate and high-quality team for the project." This ordering of the top two attributes reversed the positionings seen in both the 2022 and 2020 evaluations. The increasing complexity of choices available for implementing hybrid cloud and multicloud solutions is likely one reason, but the surge of interest in using generative AI (GenAI), built on a solid cloud foundation, is also a factor. Conversely, the least important characteristics were "presence of local offices and local resources," and "previous track ratio of onshore/offshore efforts on the project."
In terms of how buyers are relying on their cloud professional services vendors to help deliver on business priorities, at a worldwide level, the top business priorities were "comply with new or existing regulations," followed by "improve operational efficiency." While regulatory compliance remained a top priority as it was in 2022 and 2020, improving operational efficiency moved up one spot to become the second most critical priority. IDC has seen a significant focus on cost efficiency over the past two years as buyers have faced considerable economic headwinds and uncertainty about the future. The lowest-priority response remained consistent in 2020, 2022, and 2024, which was to "expand into new markets/geographies."
The inclusion criteria for this IDC MarketScape consisted of two dimensions. The first was aggregate CY23 information technology (IT) project-based services revenue of $430+ million. Using the definitions detailed in IDC's Worldwide Services Taxonomy, 2022 (IDC #US47769222, July 2022), IDC aggregated IT services revenue for over 940 services vendors that are tracked in IDC's Worldwide Semiannual Services Tracker to determine qualification. Second, the aggregate professional IT services revenue was segmented into the three macroregions of the Americas, EMEA, and Asia/Pacific. Vendors with $30+ million of aggregate professional IT services revenue in each of the macroregions and $430+ million in total revenue were invited to participate in this study.
Many clients of the providers evaluated justified their vendor selections, whether they were considered good or not so good, with the old idiom, "you get what you pay for" -- but what exactly does that mean in the context of cloud professional services? Traditionally, professional service providers have considered three dimensions (price, speed, and quality) when engaging with clients and have only let clients pick two of the dimensions for a given project, thus allowing the provider some room to maneuver; but in the world of cloud services, it is often possible to deliver high quality quickly and at a good price, so other considerations must be involved. When pressed for details, a common theme among clients was that higher-priced firms provided much more contractual latitude in accommodating small changes in project scope, as well as providing limited doses of supplemental expertise not originally asked for. The reverse could be seen for lower-priced firms, but not all clients require a lot of contractual latitude. Another dimension relates to the total relationship between buyer and supplier where the cost for project-based services can be cross-subsidized by existing cloud managed services relationships or other partnerships/alliances with clients where joint solutions, such as industry clouds, are sold to other players in each ecosystem.
Finally, buyers should consider the following when selecting a cloud professional service provider:
This section briefly explains IDC's key observations resulting in a vendor's position in the IDC MarketScape. While every vendor is evaluated against each of the criteria outlined in the Appendix, the description here provides a summary of each vendor's strengths and challenges.
According to IDC analysis and buyer perception, Publicis Sapient is positioned in the Leaders category in this 2024 IDC MarketScape for worldwide cloud professional services.
Publicis Sapient believes one of the largest mindset changes all clients face is shifting from managing a hybrid cloud infrastructure (e.g., access, security, uptime, support, and performance) to managing digital outcomes (e.g., growth, trust, experience, and productivity). To that end, it has a suite of professional services aligned with four different customer transformation strategies. First is optimization, which is a technology-led, but business-savvy, rationalization through the migration and modernization of clients' applications and data. Second is transformation at the enterprise level using cloud-native technology and data/AI-centric models in specific industry sectors. Third is reimagination, essentially industry-level disruption involving the reassessment of the value chain roles of participants in the clients' sector. And finally, reinvention, using a smart ecosystems approach across industries and on multiple clouds, with a heavy use of data and AI for decision-making. Publicis Sapient's industry cloud offers, like for financial services, are part of the company's reimagination strategy but, along with other industry clouds (e.g., retail services and transportation), are connected via the company's smart ecosystem to integrate industry specialists with other cloud-enabled partners from multiple different industries. The company positions its three key strengths for clients as end-to-end engineering and technology capabilities, a business impact and business outcome-led approach to transformation, and its ecosystem capabilities to help clients and partners innovate and cocreate. Publicis Sapient also has an internal venture capital firm to fund selected ecosystem plays. And while not all clients are at the same level of maturity for cloud adoption, Publicis Sapient always focuses on how to build and sustain the digital outcomes clients desire.
Publicis Sapient's strength is for offering breadth, cloud professional services life-cycle evolution, and next-generation tools and technologies. A client noted that compared with other SIs considered, Publicis Sapient has higher-quality personnel and more breadth of industry experience. IDC sees other strengths including justifying expenditures for clients, portfolio of cloud professional services life-cycle offerings, and methods to ensure delivery consistency.
Increasing competencies and specializations related to cloud professional services is a good next step for Publicis Sapient to pursue as the firm moves forward with its offering strategy. A client noted that an improvement area for Publicis Sapient is in providing the necessary knowledge transfer to support client success.
Consider Publicis Sapient if you want a balance of creative and technical capabilities applied to your cloud-driven business transformation. Publicis Sapient excels on projects sitting at the intersection of CMO- and CIO-led initiatives and is skilled at winning both hearts and minds when driving business change. For an example of this balance, check out some of its Impact Films, which are a nontraditional take on describing client case studies.
For the purposes of this analysis, IDC divided potential key measures for success into two primary categories: capabilities and strategies.
While the 24 vendors evaluated represent the majority share of spending for worldwide cloud professional services, there are other vendors that participate in this market and are worth considering based on your needs. These include Atos, AWS Professional Services, BCG, Cisco, Fujitsu, Hitachi Digital Services, Huawei, Indra, Infosys, Microsoft Consulting Services, McKinsey, NCR, NEC, Oracle Consulting, Tech Mahindra, and Wipro.
IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC judgment about the market and specific vendors. IDC analysts tailor the range of standard characteristics by which vendors are measured through structured discussions, surveys, and interviews with market leaders, participants, and end users. Market weightings are based on user interviews, buyer surveys, and the input of IDC experts in each market. IDC analysts base individual vendor scores, and ultimately vendor positions on the IDC MarketScape, on detailed surveys and interviews with the vendors, publicly available information, and end-user experiences in an effort to provide an accurate and consistent assessment of each vendor's characteristics, behavior, and capability.
The cloud professional services market includes elements from four of IDC's services foundation markets, which are defined in their entirety in IDC's Worldwide Services Taxonomy, 2022 (IDC #US47769222, July 2022). Examples of specific cloud professional services are shown below:
Related Research:
This IDC study represents a vendor assessment of the 2024 cloud professional services market through the IDC MarketScape model. This research is a quantitative and qualitative assessment of the characteristics that explain a vendor’s success in the marketplace and help anticipate the vendor’s ascendancy. This IDC MarketScape covers a variety of vendors participating in the worldwide cloud professional services market. This evaluation is based on a comprehensive framework and set of parameters expected to be most conducive to success in providing cloud professional services in both the short term and the long term. A component of this evaluation is the inclusion of the perception of cloud professional services buyers of both the key characteristics and the capabilities of the provider evaluated. Buyers were surveyed across all three of IDC’s macroregions for the vendors participating.
"Buyers of cloud professional services continue to enjoy a wealth of choices among provider types, and cloud professional service providers continue to expand their own end-to-end capabilities, making the selection process more challenging than ever," said Gard Little, research vice president, Global Services, Markets, and Trends, IDC. "A record 24 vendors were evaluated in this sixth biannual evaluation, giving buyers a new snapshot of vendors to consider."
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG, Inc.).
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