IDC MarketScape Shows Competition Is Fierce Among Vendors in the SAP-Based Systems Integration Ecosystem

FRAMINGHAM, MA. – May 18, 2010 – International Data Corporation (IDC) has released a new MarketScape report profiling and ranking the leading vendors who participated in the SAP implementation ecosystem in 2009. This IDC MarketScape assessment discusses both quantitative and qualitative characteristics and end user feedback that define success in the SAP implementation market. The evaluation is based on a comprehensive framework that assesses each vendor relative to a set of criteria, within a cohort and to one another. The framework highlights the factors expected to be the most influential for success in both the short-term and the long-term.

"There is close competition among the MarketScape participants in terms of breadth and depth of SAP implementation services offerings, SAP-related end-to-end services portfolio, innovation capabilities, strategy to enhance delivery capabilities, and customer retention," said Ali Zaidi, senior analyst, IT Consulting and Systems Integration Strategies at IDC. "Opportunities for improvement include increasing SAP talent pool and offshore presence for some vendors, scaling up SAP related managed services and business consulting practices for some, and enhancing pricing structures and models."

IDC MarketScape: SAP Implementation Ecosystem, 2009 Vendor Analysis (IDC #223353) evaluated twelve providers. Several types of factors emerge as most influential in predicting success:

* SAP implementation offerings are the most vital aspect of success for vendors participating in the SAP implementation ecosystem. Services providers should be able to provide a full range of SAP-based services and solutions globally and should possess implementation capabilities around key functional areas.

* The pricing model includes differentiated pricing approach, pricing methodology, and/or future pricing alignment or plans that will encourage further adoption of the full SAP suite. Successful services providers are developing pricing options and methodologies beyond the traditional fixed price approach and/or time and materials.

* A dedicated, direct sales force aligned with the core delivery team and, increasingly, being able to sell alongside other business units or the technology services organization for implementation or strategy consulting projects.

* A strategy that includes a blend from aportfolio strategy

* , to ensure that the client makes most effective use of the technology for business transformation, and elements from agrowth strategy

* to focus on emerging services areas such as SI services around cloud computing, SaaS or a more distributed global delivery model.

The vendors included in this analysis are Accenture, Capgemini, CSC, Deloitte, Fujitsu, HCL AXON, HP-EDS, IBM, Infosys, PwC, TCS, and Wipro. The IDC MarketScape methodology placed Accenture and IBM in the "Leaders" category. Many other vendors are close behind in the "Major Players" category.

"The dire effects of curtailed spending on implementation services during 2009, coupled with the very competitive nature of providers' services portfolios and the consolidation of players in the SAP ecosystem are likely to continue," added Sebastien Ruest, vice president, Project-based Services. "With growth rate revival ever more important and differentiation becoming harder to achieve, large providers will need to seek inorganic means to grow client bases."

About IDC MarketScape

IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.

For more information about IDC MarketScape, please contact Karen Moser at

About IDC

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. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 100 countries. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting [].