The Forrester Wave™: Application Modernization And Multicloud Managed Services, Q1 2025

Application Modernization And Multicloud Managed Services Vendor Product Comparisons 2025

Key features and pros and cons of top Application Modernization And Multicloud Managed Services products:

Accenture - Leaders

Pros:

Vision balances technology and business value better than any other company
Superior scale with $1.1 billion annual investment in personnel development
Setting the pace in AI/ML with significant investments ($3 billion in genAI)
Pioneered and furthered close partner relationships with hyperscalers
Strong multicloud managed services with all meaningful MSP credentials
Market-leading scale across most categories of modernization and multicloud management

Cons:

Relatively high pricing and inflexibility in contract administration
Some customers suggest junior staff perform too much of delivery
Generally satisfied customers but concerns about value for premium pricing

Capgemini - Leaders

Pros:

Innovative software house concept - customizable co-creation program for modern software delivery
Strong strategic advisory and application/infrastructure managed services
Particular strength in applications modernization
Top marks for supporting services including sustainability and superior talent strategy
Notable cloud managed services capabilities, especially Microsoft Azure (expert MSP specialization)
Solid proprietary toolsets such as Clear Sight portfolio evaluation platform

Cons:

Software house concept requires high degree of commitment - not all customers will qualify
Struggles to deliver consistently positive customer experiences
Some customers report mixed signals in communications with the company

Cognizant - Leaders

Pros:

Strong technical vision for AI-native ecosystem evolution
Advanced engineering mindset toward platform-based delivery
Significant strength in managed applications services
Sizable R&D spending on genAI ($2.5 billion investment announced)
Strong development, testing, and database migration capabilities
Cloud-native capabilities from prior acquisitions (Softvision and Devbridge)
Significant investments in tooling (Neuro operations platform, Flowsource genAI framework)

Cons:

Sometimes struggles to deliver consistently across geographies and acquired entities
Less relative scale in multicloud managed services than modernization services
Customers seek more rapid response times and improved ability to deliver net-new innovations

HCLTech - Leaders

Pros:

Uniquely flexible in contractual relationships, routinely going the extra mile
Long-standing employee-first philosophy helps reduce turnover impact
Broad capabilities across applications, infrastructure, and cloud domains
Ambitious approach to IP development including AI Force for genAI acceleration
Investing aggressively in vertical industry accelerators (AI Foundry)
Customers praise extraordinary flexibility and close-knit family business feel
Works well with other providers

Cons:

Extraordinary client focus fails to take advantage of broader HCLTech ecosystem
Customers want HCLTech to be more of a strategic advisor than operational supplier
Industry strength perceived to have lagged competitors in recent years

Infosys - Leaders

Pros:

Envisions AI-first future with strong vision for platform engineering
Transitioning cloud assets to AI-based delivery
Known for focus on employee education and training (Infosys Global Education Center)
Extensive capabilities across most categories including development, modernization, and testing
Leverages large applications management business as springboard to modernization
Customers generally satisfied with delivery capabilities and consistent quality

Cons:

Multicloud managed services capabilities less pronounced than other suppliers
Reference customers do not view as particularly innovative despite innovation activities
Needs to improve advisory capabilities
Some desire for sharing insights from other engagements
Potential to better explain Cobalt asset organization for improved impact

Tata Consultancy Services - Leaders

Pros:

Largest of core Indian providers at $30 billion annual revenues
Excels in capabilities across applications, infrastructure, and cloud
Scale and personnel in application modernization among largest in market
Historically strong infrastructure management capabilities propelling multicloud managed services leadership
Active and vibrant community including Co-Innovation Network (COIN)
Known to be highly aggressive on pricing
Customers find supplier highly reliable and view as strategic partner

Cons:

Not celebrated for employee experience
Reference customers do not view as particularly innovative
Most customers don't look to TCS for pure cloud-native development
Only one reference customer responded to Forrester's outreach

Deloitte - Strong Performers

Pros:

Expansive 'build with purpose' vision combining business strategy and technical expertise
More experienced talent profile than most in market
Strong AMS business for launching modernization and multicloud managed services
Strategic advisory services reach higher and further than most companies
Notable vertical expertise and solutioning
AI Assist genAI solution supports customers
Customers appreciate flexible, partnership-oriented approach without preconceived solutions

Cons:

Lags competitors in scale of offshore operations and entry-level personnel training
Lags in cloud-native investment
Does not consistently deliver in teams-based models
High billing rates accompany technical and business acumen benefits
Auditing relationship with Microsoft limits public participation in Azure programs
Did not provide reference customers for evaluation

EPAM - Strong Performers

Pros:

Superior talent strategy with consistent quality of delivery
Strong engineering talent spanning both cloud-native and legacy technologies
Focuses on depth and quality of service
Primarily focuses on cloud-native development and applications modernization
Clients recognize value of continuous learning philosophy
Sometimes chosen for most difficult technical challenges

Cons:

Lacks scale in managed infrastructure services and MSP competency qualifications
No heritage AMS business to support growth
Company size limits length of consulting tail
Billing rates generally higher than India-based competitors
Clients struggle to justify price profile compared with less expensive competitors
Tends to do work in capacity models including staff augmentation

IBM - Strong Performers

Pros:

Uniquely positioned as both software provider and global systems integrator
Platform-based approach with IBM Consulting Advantage and Garage methodology
Notable record of innovation from decades of IBM R&D
Comprehensive migration and modernization solutions for collaborative development
Strong capabilities for alternative cloud platforms including extensive support for its own
Strong database migration and modernization capabilities
Clients value as strategic partner and recognize dedication to client success

Cons:

Pricing flexibility and transparency are lacking
Limited collaboration with others (reminiscent of 'old IBM')
High pricing and inflexible contracts
Balanced talent development strategy less focused on rapid training of entry-level personnel

NTT DATA - Strong Performers

Pros:

Notable commitment to innovation with R&D spending of $3.7 billion (12% of revenues)
Network of global data centers offering end-to-end delivery capability
Expertise across multiple industries including automotive, manufacturing, financial services, insurance, hospitality, and public sector
Solid cloud credentials across modernization, migration, and MSP domains
Range of supporting services encompasses both AI/ML and sustainability
Customers state personnel exhibit high degrees of dedication to achieving business results

Cons:

Vision reasonable but lacks visibility and client mindshare despite enormous scale
Recent reorganizations have challenged clients' ability to keep up
Weaknesses include database migration, AI/ML, IP solutions and tooling, and collaboration model
Did not provide reference customers for evaluation

Tech Mahindra - Strong Performers

Pros:

Robust application development, testing, and delivery services
Modernization approach rooted in ADMSNXT platform for applications management
Benefit of incumbency with AMS capabilities as entry point
Strong background in engineering and industrial use cases including telco and 5G
Clients pleased with overall professionalism and commitment
Works well with other providers and responsive to client requests

Cons:

Go-to-market approach similar to peers with potential to differentiate further
Could improve consultative capabilities - partners with EY and McKinsey to compensate
Lacks scale of larger market players limiting some competencies
MSP expertise developed for Microsoft but still building for AWS and GCP
Weaknesses include infrastructure modernization and cloud-native development
Clients desire more forthcoming communication and thorough quality reviews
Community scale is work in progress

Wipro - Strong Performers

Pros:

Substantial scale and experience in service personnel for app modernization
Solid hyperscaler credentials with relevant competencies on build and run (MSP) side
Strong mainframe modernization capabilities
Reference customers appreciate skilled resources and cost efficiency
Cost-effectiveness is significant asset
Significant investments in AI and cloud ($1 billion), Wipro Ventures ($470 million), and over 500 early patents

Cons:

Weaknesses include service accelerators and history of underperforming compared with peers
Innovations don't always translate to improved customer experiences
Customers feel could better address business goals
Struggled with effective executive engagement and consistency in client advocacy
Believe could leverage technology advancements more quickly
Only one reference customer responded to Forrester's outreach

LTIMindtree - Contenders

Pros:

Extensive and thorough approach to cloud operations with CloudXperienz platform
Multicloud managed operations stand out
MSP competencies for Azure and Oracle OCI
Reference customers view as more flexible and responsive than larger counterparts
Overall delivery is solid
Performs well in both very large and midsized environments
Tested by working for some of biggest banks in world

Cons:

Highly practical approach avoiding enormous investments - limited vision and investment capability compared with very large players
Weaknesses across community, supporting services, and talent strategy
While capable in app modernization, less pronounced than multicloud operations
Weaknesses include strategic advisory, cloud-native development, database migration, and collaboration model
Client references would like to see more industry vertical expertise for true consulting partnership
Only one reference customer responded to Forrester's outreach

Mphasis - Contenders

Pros:

Extensive experience in transaction-intensive industry modernization and legacy technologies
Serves important role in specialized industries
Strong pricing flexibility and transparency
Offerings encompass most major legacy platforms including IBM's Transaction Processing Facility (TPF)
Proficiency in managing HPE GreenLake environments
In core industries, can hit ground running because of extensive domain expertise

Cons:

Size and relative scale position it as niche provider
Weaknesses in most strategic categories apart from pricing and supporting services
Playing catch-up to capabilities larger suppliers offer
Lacks comprehensive MSP competency certifications
Needs to improve customer engagement
Customers recognize lack of scale and knowledge in some key legacy environments
Would like to see more consistency in contributing innovative ideas

Virtusa - Contenders

Pros:

Product-based and platform-based approach to delivery pioneered before widely popularized
Deep capabilities on development side
Shines in product-oriented development engagements
Lengthy experience in banking and other high-intensity environments
Currently supplies both AMS and cloud managed services for AWS customers
Served some banks for more than 30 years with exposure to legacy environments including mainframe

Cons:

Lacking massive scale of larger providers
Relatively weaker applications management and multicloud managed services
Previously had GCP accreditation but found demand unfulfilling
Scale lacking in most categories
Some clients had mixed opinions on delivery quality
Could enhance client engagement capabilities

FAQs

Q: Which vendors are Leaders in 2025?

A: Accenture, Capgemini, Cognizant, HCLTech, Infosys, Tata Consultancy Services

Q: What does "Leader" mean in Forrester Wave terms?

A: Leaders in the Forrester Wave represent vendors that have the strongest current offerings and strategies in the application modernization and multicloud managed services market. These vendors demonstrate superior capabilities across most evaluation categories, strong market presence, and solid strategic vision for future growth and innovation.

Q: How do I interpret a Forrester Wave?

A: https://www.forrester.com/policies/forrester-wave-methodology/

Report:

Top Vendor Products for Application Modernization And Multicloud Managed Services in 2025

Application Modernization And Multicloud Managed Services Vendor Product Comparisons 2025

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FAQs

Q: Which vendors are Leaders in 2025?

Q: What does "Leader" mean in Forrester Wave terms?

Q: How do I interpret a Forrester Wave?

Reference