Report:
The Forrester Wave™: Digital Transformation Services, Q3 2025
How does Forrester define the Digital Transformation Services market in 2025?
Digital transformation services have entered a 'no blueprint' era driven by the emergence of generative AI and agentic AI. While mature blueprints existed across industry verticals for traditional transformation, agentic AI blueprints are only just emerging and remain immature. Service providers can use AI to accelerate delivery of traditional transformation domains with faster, outcome-based contracts, but advanced transformation scenarios require providers with early-stage blueprints or collaborative co-innovation approaches. The market is evolving toward AI-native transformation services where proprietary IP, deep industry expertise, and outcome-based pricing models will dominate.
Key Facts for The Forrester Wave™: Digital Transformation Services, Q3 2025 in 2025
- Publication Date: 12-Jun-2025
- Document ID: 001a000001AEkLTAA1
- Summary: In our evaluation of digital transformation services providers, we identified the most significant ones and researched, analyzed, and scored them. This report shows how each provider measures up and helps you select the right one for your needs.
- Authors: Manuel Geitz
How did the Digital Transformation Services market evolve in 2025?
- Digital transformation has entered a 'no blueprint' era due to generative AI and agentic AI
- Mature blueprints existed for traditional transformation, but agentic AI blueprints are only emerging
- Service providers can use AI to accelerate delivery of traditional transformation domains
- Advanced transformation scenarios require providers with early-stage blueprints or co-innovation approaches
- Customers should look for providers that balance rapid blueprint deployment with co-innovation
- Providers must emphasize the impact of change on employees as agentic AI transforms organizations
- Deep domain expertise is critical for automating processes and replacing workflows with technology
- 12 providers were evaluated across Leaders, Strong Performers, and Contenders categories
- Providers are investing heavily in AI platforms and employee upskilling
- Outcome-based pricing is expected to dominate AI-focused engagements
What product features are required to be included in this year's evaluation?
- Substantial revenue in the market: The vendor has at least $2 billion in annual revenue from digital transformation services in the past four quarters
- A dedicated services division for digital transformation services: The vendor shows its commitment to the market with a division dedicated to providing services in that space. The vendor has established the necessary capabilities to offer versatile and comprehensive services in the market
- Mindshare among Forrester's enterprise clients: Forrester clients frequently mention the vendor as one they are considering prior to a purchase. We have heard about the vendor from our enterprise and service provider clients in the form of inquiries, advisories, consulting engagements, and other interactions over the past year. Other vendors mention this vendor as a competitor
What are the common features of top products in the Digital Transformation Services space?
No common features specified.
Scope Exclusions
- Vendors with less than $2 billion in annual revenue from digital transformation services
- Vendors without a dedicated services division for digital transformation
- Vendors lacking established capabilities to offer versatile and comprehensive services in the market
- Vendors without significant mindshare among Forrester's enterprise clients
- Vendors not frequently mentioned by other vendors as competitors in the space
Inclusion Criteria
Vendors must, among other requirements:
- At least $2 billion in annual revenue from digital transformation services in the past four quarters
- A dedicated services division for digital transformation services showing commitment to the market
- Established capabilities to offer versatile and comprehensive services in digital transformation
- Mindshare among Forrester's enterprise clients with frequent mentions in inquiries, advisories, and consulting engagements
- Recognition as a competitor by other vendors in the market
Offering Strengths — Relative Weighting
- Business strategy consulting — 5%
- Business model innovation — 5%
- Transformation strategy and storytelling — 10%
- C-suite alignment — 5%
- Technology architecture — 5%
- Data strategy and architecture — 5%
- Emerging technologies — 5%
- Talent and skill strategy — 5%
- Organizational design — 5%
- Modern ways of working — 5%
- Culture change — 5%
- Enterprise transformation — 5%
- Transformation governance — 10%
- Resource orchestration — 5%
- Accelerator assets — 5%
- Data assets — 5%
- Engagement model — 5%
- Transformation scenarios — 5%
Strategy Strength — Relative Weighting
- Vision — 20%
- Innovation — 20%
- Partner ecosystem — 5%
- Pricing flexibility and transparency — 20%
- Supporting services and offerings — 15%
- Talent strategy — 20%
FAQs
Q: What does this research cover?
A: This research evaluates the 12 most significant digital transformation services providers, analyzing their current offerings, strategies, and customer feedback. It covers their capabilities in business strategy consulting, business model innovation, technology architecture, data strategy, emerging technologies, talent strategy, organizational design, and transformation governance in the context of AI-driven transformation.
Q: Who should use this research?
A: This research should be used by organizations seeking digital transformation partners who can balance rapid deployment of proven blueprints with co-innovation in emerging areas like agentic AI. It helps buyers identify providers based on their specific needs: enterprisewide reinvention, co-innovation partnerships, complex transformation scenarios, AI adoption support, or technical excellence in specific domains.
Q: What are the mandatory features of vendors included in this market?
A: To be included in this Forrester Wave evaluation, vendors must have: 1) At least $2 billion in annual revenue from digital transformation services in the past four quarters, demonstrating substantial market presence; 2) A dedicated services division for digital transformation services with established capabilities to offer versatile and comprehensive services; 3) Significant mindshare among Forrester's enterprise clients, evidenced by frequent mentions in inquiries, advisories, consulting engagements, and recognition by other vendors as a competitor in the market.
Q: What are some reasons for not being included in this report?
A:
- Annual revenue from digital transformation services below $2 billion threshold
- Lack of a dedicated services division specifically focused on digital transformation
- Insufficient capabilities to offer versatile and comprehensive digital transformation services
- Limited mindshare or recognition among Forrester's enterprise clients
- Lack of competitive recognition from other vendors in the digital transformation services market
- Inability to demonstrate commitment to the digital transformation services market
Q: What should buyers consider when evaluating products in this market?
A:
- Seek providers that can balance rapid blueprint deployment with co-innovation approaches for areas where proven blueprints don't yet exist, especially for agentic AI adoption
- Prioritize providers that emphasize the impact of change on employees and equip change practitioners with deep AI tools, training, research, and accelerators
- Choose providers with deep domain expertise and proven track records in your industry, particularly for agentic automation initiatives
- Evaluate providers' accelerator assets in areas where rapid modernization is needed
- Assess the provider's approach to creating blueprints for agentic AI in strategically important areas
- Consider the provider's talent strategy and whether staff possess AI fluency, systems thinking, and domain specialization
- Evaluate pricing flexibility and the provider's readiness for outcome-based engagement models
- Assess the provider's innovation roadmap and strategic investments in AI-native capabilities
Q: How has the Digital Transformation Services market evolved in 2025?
A:
- Digital transformation has entered a 'no blueprint' era with the emergence of generative AI and agentic AI
- Service providers are investing heavily in defining agentic blueprints, though most remain immature and untested
- AI is being used to augment and accelerate delivery based on existing playbooks, enabling faster delivery with outcome-based contracts
- Co-innovation approaches are becoming critical for advanced transformation scenarios where proven blueprints don't exist
- Organizations face larger changes to talent strategies, practices, culture, and organizational design due to agentic AI
- Deep domain expertise is increasingly important for automating processes and replacing workflows with technology
- The market is shifting from time-and-materials contracts to outcome-based pricing models
- AI-driven hyper-productivity is evolving toward AI industrialization and enterprise-wide 'agentification'
- Competitive advantages are experiencing rapid decay, even for AI-native companies, driving continuous strategy reinvention
Q: What differentiates Strength of Offering vs. Strength of Strategy?
A: Strength of Offering (vertical axis) evaluates the current capabilities and service delivery of vendors, including their consulting expertise, technology architecture capabilities, people change management, governance approaches, and transformation-specific assets and accelerators. Strength of Strategy (horizontal axis) assesses vendors' forward-looking vision for the market, innovation roadmaps, partner ecosystems, pricing models, supporting services, and talent development strategies for the future of digital transformation services.
Reference
- Forrester, The Forrester Wave™: Digital Transformation Services, Q3 2025, 12-Jun-2025, ID 001a000001AEkLTAA1
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