Report:
The Forrester Wave™: IT Sustainability Service Providers, Q3 2023
How does Forrester define the IT Sustainability Service Providers market in 2023?
Services related to environmental sustainability and carbon footprint reduction exclusively in the enterprise IT stack, covering IT in the workplace, IT development, and IT infrastructure. The market includes providers from diverse backgrounds including management consultants, IT services firms, data center infrastructure product firms, and boutique specialists. Metrics, best practices, and benchmarks for decarbonizing IT are still evolving. Technology leaders are cognizant of IT's contribution to organizational environmental sustainability strategy, which varies by industry, organizational maturity, and existing partnerships.
Key Facts for The Forrester Wave™: IT Sustainability Service Providers, Q3 2023 in 2023
- Publication Date: 27-Aug-2023
- Document ID: RES178516
- Summary: In our 28-criterion evaluation of IT sustainability services providers, we identified the most significant ones and researched, analyzed, and scored them. This report shows how each provider measures up and helps technology leaders select the right one for their needs.
- Authors: Abhijit Sunil, Stephanie Balaouras, Sara Sjoblom, Marissa Fritz
How did the IT Sustainability Service Providers market evolve in 2023?
- IT sustainability services market includes management consultants, IT services firms, data center infrastructure product firms, and boutique specialists
- Evaluation focuses on capabilities that help organizations decarbonize the IT stack and manage IT's environmental impact
- Metrics, best practices, and benchmarks for decarbonizing IT are still evolving
- Services cover IT in the workplace, IT development, and IT infrastructure
- Enterprises are at varying stages of IT environmental sustainability maturity in 2023
- Provider capabilities vary significantly depending on their heritage and background
- Most providers partner with third parties to address end-to-end services and complement in-house platforms
- Evaluation assessed 11 providers across 28 criteria
- Revenue threshold for inclusion: approximately $50 million annual revenue from dedicated IT sustainability services
What product features are required to be included in this year's evaluation?
- Approximately $50 million annual revenue from dedicated IT sustainability services engagements — not from IT sustainability as a component of other digital transformation projects
- Has an exclusive IT sustainability service focus or service line separate from other sustainability services, with substantial client base within IT infrastructure decarbonization in multiple industries as evidenced by number of focused consultants, experts, projects, and published case studies
- Offers comprehensive capabilities or exceptional specialization in one or more areas: data center water and energy management, IT infrastructure sustainability, cloud sustainability, end-user device decarbonization, IT asset management, e-waste management, renewable energy procurement services, sustainability in application development and data management, and decarbonizing the IT supply chain
- Strong Forrester client interest based on multimodal analyses and interactions including inquiry logs, advisories, and consulting engagements
What are the common features of top products in the IT Sustainability Service Providers space?
No common features specified.
Scope Exclusions
- Revenue from IT sustainability as a component of other digital transformation projects (only dedicated IT sustainability services revenue considered)
- Revenue from other sustainability service offerings beyond IT
- Providers without exclusive IT sustainability service focus or service line
- Providers without substantial client base within IT infrastructure decarbonization in multiple industries
- Broader environmental, social, and governance (ESG) market services not specifically focused on IT stack decarbonization
Inclusion Criteria
Vendors must, among other requirements:
- Approximately $50 million annual revenue from dedicated IT sustainability services engagements
- Has an exclusive IT sustainability service focus or service line separate from other sustainability services
- Offers comprehensive capabilities or exceptional specialization in one or more areas including data center water and energy management, IT infrastructure sustainability, cloud sustainability, end-user device decarbonization, IT asset management, e-waste management, renewable energy procurement services, sustainability in application development and data management, and decarbonizing the IT supply chain
- Strong Forrester client interest based on multimodal analyses and interactions including inquiry logs, advisories, and consulting engagements
Offering Strengths — Relative Weighting
- Tools and specialization — 15%
- Data center and cloud sustainability — 15%
- Cloud carbon footprint mapping optimization — 20%
- Embodied/lifecycle carbon emissions reduction — 10%
- Application development and sustainability — 20%
- End of life and circular economy — 20%
Strategy Strength — Relative Weighting
- Vision — 25%
- Innovation — 10%
- Partner ecosystem — 10%
- Community — 20%
- Talent strategy — 15%
- Global delivery strategy — 20%
FAQs
Q: What does this research cover?
A: This research evaluates 11 IT sustainability service providers across 28 criteria, focusing on their capabilities to help organizations decarbonize the IT stack and manage IT's environmental impact. It covers services related to environmental sustainability and carbon footprint reduction exclusively in the enterprise IT stack, including IT in the workplace, IT development, and IT infrastructure. The evaluation assesses current offerings (tools and specialization, data center/cloud sustainability, carbon footprint mapping, lifecycle emissions reduction, application development sustainability, and circular economy), strategy (vision, innovation, partner ecosystem, community, talent, and global delivery), and market presence.
Q: Who should use this research?
A: Technology leaders should use this research to select the right IT sustainability service provider for their organization's needs and maturity level. It helps buyers understand which providers have the required specialization, strongest partnerships and in-house tools, and most focused approach to IT environmental sustainability. The research is particularly valuable for organizations evaluating providers based on their specific requirements such as data center expertise, green software capabilities, regulatory compliance needs, or industry-specific solutions. Buyers can use the Excel-based vendor comparison tool to adapt criteria weightings to their individual needs.
Q: What are the mandatory features of vendors included in this market?
A: Vendors must generate approximately $50 million in annual revenue exclusively from dedicated IT sustainability services engagements (not as components of broader digital transformation projects). They must have an exclusive IT sustainability service focus or service line that is separate from other sustainability services, with a substantial client base within IT infrastructure decarbonization across multiple industries. Providers must offer either comprehensive capabilities or exceptional specialization in areas including data center water and energy management, IT infrastructure sustainability, cloud sustainability, end-user device decarbonization, IT asset management, e-waste management, renewable energy procurement, sustainability in application development and data management, and IT supply chain decarbonization. Finally, providers must demonstrate strong Forrester client interest based on inquiry logs, advisories, and consulting engagements.
Q: What are some reasons for not being included in this report?
A:
- Annual revenue from dedicated IT sustainability services below approximately $50 million threshold
- Lack of exclusive IT sustainability service focus or service line separate from other sustainability offerings
- Insufficient client base within IT infrastructure decarbonization across multiple industries
- Limited evidence of focused consultants, experts, projects, and published case studies in IT sustainability
- IT sustainability offered only as component of broader digital transformation services rather than dedicated offering
- Lack of comprehensive capabilities or exceptional specialization in required areas
- Insufficient Forrester client interest based on inquiry logs, advisories, and consulting engagements
- Primary focus on broader ESG services rather than IT stack decarbonization specifically
Q: What should buyers consider when evaluating products in this market?
A:
- Required specialization to address organizational maturity and needs, especially for customers at higher maturity seeking specialized services for unique challenges
- Quality and robustness of partner ecosystem to address end-to-end services and complement in-house platforms, considering potential additional overhead costs
- Depth and quality of in-house tools and capabilities versus reliance on third-party partnerships
- Strong focus on IT environmental sustainability rather than sustainability as a byproduct of existing IT services or digital transformation consulting
- Ability to achieve carbon footprint reductions beyond what standard IT modernization provides
- Prevention of patchwork disjointed carbon reduction efforts and avoidance of greenwashing
- Provider's heritage and background (management consultant, IT services firm, data center infrastructure firm, or boutique specialist) and how it aligns with needs
- Participation in industry consortiums developing metrics and best practices
Q: How has the IT Sustainability Service Providers market evolved in 2023?
A:
- Metrics, best practices, and benchmarks for decarbonizing IT are still evolving
- Enterprises are at varying stages of IT environmental sustainability maturity
- Growing need for specialized services to address unique challenges such as software sustainability, data center power optimization, and circular economy concepts
- Most providers partner with third parties to address end-to-end services and complement in-house platforms
- Industry consortiums where experts develop metrics and best practices are becoming increasingly important
- Digital transformation and IT modernization efforts concurrently lower carbon and environmental footprints
- Risk of greenwashing from disjointed carbon footprint reduction efforts
- Provider capabilities vary significantly depending on their heritage (management consultants, IT services firms, data center infrastructure firms, boutique specialists)
Q: What differentiates Strength of Offering vs. Strength of Strategy?
A: Current Offering (vertical axis) evaluates the strength of vendors' existing capabilities including tools and specialization, data center and cloud sustainability, carbon footprint mapping, emissions reduction, application development sustainability, and circular economy. Strategy (horizontal axis) evaluates vendors' future-focused capabilities including vision, innovation, partner ecosystem, community involvement, talent development, and global delivery strategy. Current Offering focuses on what vendors can deliver today, while Strategy assesses their long-term market position and ability to evolve.
Reference
- Forrester, The Forrester Wave™: IT Sustainability Service Providers, Q3 2023, 27-Aug-2023, ID RES178516
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