Report:

Magic Quadrant for Public Cloud IT Transformation Services

Top Vendor Products for Public Cloud IT Transformation Services in 2023

• Accenture
• Deloitte
• HCLTech
• Infosys
• Tata Consultancy Services
• Wipro

Public Cloud IT Transformation Services Vendor Product Comparisons 2023

• Accenture - Leader
  

  Pros:

  • Strong multicloud capability: Accenture has a significantly sized, exclusively dedicated business group for each major public cloud provider. This gives it considerable proximity to the cloud service providers' senior leadership and early insight into their plans. It also offers clients flexibility in cloud choices and enables Accenture to offer a fit-for-purpose solution.
  • Corporate commitment to cloud: Accenture is in Year 3 of its three-year, $3 billion cloud initiative investment, and has advanced its skills and capabilities across data, AI, edge, FinOps, sovereign cloud centers, green cloud, and its migrate, modernize and manage methods.
  • Flexible commercial deals: Accenture has revisited its pricing and offers a range of pricing options aligned to client needs. It offers outcome-based pricing as a preferred approach, with a percentage of fees tied to achieving the intended business outcome.

  Cons:

  • High price for services: One of the top issues that clients voice about Accenture is its relatively high price for services. While value for money is scored relatively well, it often takes clients some time to get over an initial sticker shock.
  • Complex offerings: Accenture has one of the largest portfolios of capabilities of any vendor in this market. A few clients find it challenging to navigate all the offerings to get the best solution for their specific situation.
  • Stability/integration of new acquisitions: Accenture has made multiple acquisitions into its cloud offering. Potential clients should exercise their due diligence in the seamless integration of these services into the total Cloud First platform offering and the experience of resources delivering these services.


• Atos (Eviden) - Challenger
  

  Pros:

  • Growth through acquisitions: Atos (Eviden) has made many acquisitions and positioned itself to grow into a more relevant PCITS provider. It has increased its capabilities in Azure and Google Cloud while continuing its AWS capabilities, thus strengthening its large-scale business transformation capabilities in applications and data transformations.
  • Cohesive alignment of offerings: Atos (Eviden) has consolidated its cloud capabilities, organic and acquired, into an umbrella portfolio, developing centralized cloud centers to provide a consistent delivery experience for its client base.
  • Centers of excellence: Atos (Eviden) has developed centralized cloud centers to provide consistent delivery experience for its client base. These centers cover migrations, cloud operations and platform engineering, and are mainly delivered in low-cost and 'nearshore' models.

  Cons:

  • Strategy change: Although the corporate organizational strategy speaks to a focused investment in PCITS, the path Atos is taking of spinning out the transformational business into a new company can often be even more disruptive to customers than a merger or acquisition. The uncertainty associated with the split may cause some talent loss.
  • Rationalization of services: Results associated with integration and consolidation of the numerous acquisitions made in 2022 can result in potential issues with portfolio rationalization. Clients must understand if the services they currently have contracted for are included in the solution set moving forward.
  • Limited new client growth: The majority of Atos' revenue growth is generated from its existing client base, lagging its peers in new clients added in 2022. It also has a significant portion of services revenue generated from infrastructure as a service (IaaS), signaling a lack of transformational services.


• Bespin Global - Visionary
  

  Pros:

  • Continued investment in growth: Bespin Global expanded its offerings on three primary fronts in the past year: horizontal expansion of its product offerings, vertical expansion of its industries and regional expansion. It opened new offices in Vietnam and Saudi Arabia and established a joint venture with e& to cover the Middle East and Africa (MEA) region.
  • Integrated cloud approach: Bespin Global is taking an integrated approach to achieve client value, combining professional services, automation and managed services. It is leading with a security-first approach with the goal of up-leveling security into a core part of the business (positioning itself as a MSSP).
  • Strong APAC footprint and environmental, social and governance (ESG): Bespin Global continues to have a strong APAC and Middle East presence, with North America being its fastest-growing region. ESG and representation of women are critical components of its plan, with innovative thinking around how to convert cloud cost savings to carbon tokens for customers.

  Cons:

  • Lacks end-to-end solutions: As the market continues to move upstack to more digital business services instead of cloud IT services, Bespin Global did not provide evidence that it is tracking the trend. Bespin Global is comparatively weaker at building end-to-end business solutions than others in this research.
  • Lack of focus on business value and industry capability: While Bespin Global does have consulting capabilities, it lags others in this Magic Quadrant in consultative services. Bespin Global's industry experience is aligned to the industries of its major clients, as opposed to offering differentiating cloud-based capability (such as prebuilt accelerators) in these industries.
  • Lagging in operations automation: While Bespin Global is highly focused on automation and has automated a great deal of migration processes, it is lagging the market in automation related to operations. Both its level of automation and its client penetration for use of automation are low.


• Blazeclan Technologies - Niche Player
  

  Pros:

  • Agile or co-created deals: A large percentage of Blazeclan's public cloud transformation deals are agile- or co-creation-based as opposed to using traditional RFPs. Using these alternative sourcing methods can be advantageous to clients looking to speed up deal development, while still finding a value-based solution through a competitive sourcing process.
  • Automation capabilities: Blazeclan's offerings include reusable IP and patterns with a high degree of automation that also has a healthy adoption rate for its client base. This enables an efficient and effective foundation for both migration and operations capabilities.
  • Cloud-native solutions: Blazeclan comes from a position of deep technical capabilities forged in cloud-native solutions. Hybrid cloud solutions are peripheral to its strategy, which might otherwise serve as a distraction.

  Cons:

  • Limited outcome-based pricing models: Although Blazeclan consults with customers to understand their business needs, it has limited business outcome-based pricing and has a low percentage of deals that have any outcomes in their contracts.
  • Size and geographic constraints: Blazeclan is very small compared to other competitors in this Magic Quadrant. While its strategy is to focus on deals favoring large enterprise clients, those prospective customers will need to carefully review its resourcing and tools to ensure that they align with their business objectives and geographic reach.
  • High attrition: Blazeclan's attrition for its public cloud IT transformation employees is higher than the average for most other providers in this space. High attrition can lead to service delivery quality issues, and ultimately a lower customer satisfaction rating over time.


• Capgemini - Visionary
  

  Pros:

  • Strategic framework: Capgemini takes a customer-first approach that is based on intelligent industry and enterprise management. It also uses a CxO approach, based on the interest of the division and a framework that includes sustainability and FinOps. This allows it to bring a faster time to value based on identified client needs.
  • Depth of expertise: Capgemini has deep expertise in the engineering-centric verticals, with both a track record of success and recent expansions in capabilities by acquisition. It takes a pragmatic approach to transformation and applies prebuilt capabilities for the client. It also does custom-built cloud applications as needed.
  • Cloud business growth: Over the past year, Capgemini was able to grow its big deals significantly and enjoyed well-above-average growth in its cloud services, while maintaining a very high client retention rate. Its cloud team grew with a continued focus on people transformation and empowerment across a balanced and diverse workforce.

  Cons:

  • High attrition: Gartner estimates that Capgemini's employee attrition rate has risen from 12% in 2021 to above 25% in 2022. Although other providers have also seen attrition rise in the same time period, Capgemini's rate is well above average.
  • Focused primarily on large enterprises: Capgemini focuses mainly on large enterprise clients as its primary strategy. Midsize enterprises (MSEs) and smaller customers should carefully assess Capgemini's capabilities and commitments to serve their business needs. Capgemini pricing for MSEs is often not competitive.
  • Prebuilt intellectual property (IP): With Capgemini's significant investments into its own frameworks and accelerators, clients need to ensure that their individual competitive differentiation is not lost with the use of Capgemini's prebuilt accelerators.


• Claranet - Niche Player
  

  Pros:

  • Managed services focus: Claranet emphasizes run operations as its core sales strategy and business operating phase. It provides strategic end-to-end life cycle management for its client's assets, and its hybrid cloud managed services solutions include a focus on foundational run services and a move to an 'improve and modernize' approach.
  • Business objectives: Claranet is capable of taking customer business objectives and translating them into cloud-based solutions. It partners with consulting to augment its profile service capabilities to identify and deliver business value.
  • Cybersecurity focus: Claranet states that 'security is not an option' and incorporates a security mindset into all its services. It has a strong managed security services provider (MSSP) practice where it is continuously monitoring for breaches to provide fast intervention.

  Cons:

  • Integration of acquisitions: Claranet has made many acquisitions over the past year to fill operational gaps and cover a wider geographic spread. Integrating newly acquired companies takes time to fully integrate across all solutions and business processes.
  • Infrastructure-led: Claranet is primarily an infrastructure-led organization with limited application development capabilities. It performs a high percentage of 'lift and shift' (IaaS) engagements and some platform as a service (PaaS). Additionally, there is little SaaS experience outside the retail industry solutions.
  • Federated model: Claranet operates its services in a federated model that allows geographic regions or industries to operate somewhat independently, which can translate to inconsistencies in expertise and processes between regions and industries.


• Cloud4C - Niche Player
  

  Pros:

  • Balanced automation and customization: While it achieves significant automation on average across all phases of cloud IT services, Cloud4C purposefully chooses to complement automation with customized solution components to unlock solution value that is unique to the customer's specific situation.
  • Multicloud capabilities: Cloud4C demonstrates a clear capability to go beyond the typical expectations of multicloud solutions, delivering cloud-spanning solutions in which the same application runs across two or more public clouds as a single solution.
  • Underserved regions: Cloud4C has made significant investments to serve Africa, the Middle East and many parts of APAC. These areas are often less important to other providers who may have a presence in those regions but are more heavily invested elsewhere.

  Cons:

  • IaaS-centric: Cloud4C is significantly invested in IaaS as a dominant method of delivery for clients. This implies a 'lift and shift' approach, whereas most clients are taking a pragmatic approach to cloud that looks for solutions delivered in the most appropriate model, which is increasingly IaaS in combination with PaaS and SaaS.
  • Weak outcome enforcement: Cloud4C claims to be business outcome-oriented, but most engagements have traditional IT measures of success. Although these IT-based outcomes may lead to business outcomes indirectly, the business outcomes are not specified in the contract.
  • Mainly Azure: Of the three major hyperscale partners, Cloud4C has the strongest presence with Microsoft Azure. It has some AWS capabilities and is continuing to build those out, as well as some Google Cloud capabilities.


• Cognizant - Challenger
  

  Pros:

  • Breadth through acquisition: Cognizant is investing heavily in the cloud transformation market, with many acquisitions over the last year. The intent of these acquisitions is to build out its talent pool across cloud transformation technologies, from legacy to next generation, and data and analytics (D&A) and low-code/no-code capabilities.
  • Leveraging AI: Cognizant's use of AI spans both development and operations, and ties them together. Its machine learning models make recommendations to development teams as they modernize application code, resulting in solutions that are optimized for observation and automated management by its platforms.
  • Flexible commercial model options: Cognizant offers innovative pricing and investment options with PCITS deals, which can include partner-based delivery models. It also offers a hybrid studio and factory model with three-shore presence (onshore, nearshore, offshore).

  Cons:

  • More general than transformative: Cognizant has a broad base of traditional IT services, hybrid services and services that deliver infrastructure transformation that it must continue to maintain. Customers looking for a provider focused on cloud-native solutions based purely in public cloud may find Cognizant's approach to be comparatively unfocused.
  • Data and analytics opportunity: Cognizant's acquisition of Contino in 2019 brought it the D&A capability that enabled it to meet the inclusion criteria for this research. However, Gartner's evaluation of materials submitted by Cognizant to support this research saw little evidence of the integration of Contino's D&A capabilities into the overall Cognizant offering.
  • High employee attrition: While Cognizant has shown improvement in the last year, it still has one of the highest rates of attrition among providers featured in this research. High rates of attrition can impact client satisfaction due to turnover of client knowledge and a continuous learning curve.


• Deloitte - Leader
  

  Pros:

  • Generative provider: Deloitte sees customer opportunities as transformative relationships in which it delivers incremental value over time. As such, Deloitte is less focused on upfront payment for its services, easing the upfront investment by opting for long-term evergreen engagements that become steady revenue streams.
  • Strong global presence: Most of Deloitte's PCITS clients are spread out in multiple geographies. Global clients should take advantage of Deloitte's experience and expertise handling regional business nuances during their cloud transformation journey.
  • Business outcome contracting: Deloitte is one of the few vendors featured in this research that ties contractual terms to business outcomes for multiple clients. Many providers say they sell outcome-based services, but often the outcomes are not true business outcomes, or the outcomes are not contractually bound.

  Cons:

  • Premium pricing: Deloitte has MSE-targeted offerings, but the price point may not be in line with the budgets for many organizations of that size. Similarly, customers with a cost-cutting focus may not find Deloitte to be the best fit for their needs.
  • Not a traditional data center outsourcing/hybrid infrastructure managed services (DCO/HIMS) provider: Deloitte does not have the long history of DCO/HIMS service provision that many of the other Leaders in this research possess. It has evolved its MSP services more recently. The percentage of cloud staff that are cloud-native engineers or cloud application developers is significantly lower than many other providers featured in this research.
  • Acquisitions impact: Deloitte uses acquisitions to quickly build out implementation and operation capabilities to complement its strong advisory capabilities. Clients need to consider how their services might be impacted by a rationalization of these acquisitions.


• HCLTech - Leader
  

  Pros:

  • Substantial ERP and CRM experience: HCLTech serves a variety of industries for large, global clients with lift-and-optimize migration and managed services. It is sticking to its vision based on digital foundation, business and engineering in a 'cloud smart' approach. This is based on value realization for the customer that is a balance of migration and modernization.
  • Deep vertical expertise: HCLTech has deep vertical expertise offering more than 100 industry cloud solutions and more than 20 horizontal offerings/capabilities. It has significant DevOps expertise and resources, particularly for RISE with SAP and Salesforce.
  • Strong partnering with clients: HCLTech has proven, client-driven business outcomes such as a high-percentage reduction in customer onboarding time, and an expected increase in customer experience, making it an excellent partner for co-creation as well as business outcome-based services. Over half of HCLTech's deals are co-created through its consultative front-end process.

  Cons:

  • Confusing service offerings: HCLTech has a large and complex set of service offerings that can be confusing to clients. Clients need to work diligently to remain current on the possible solution/service paths that HCLTech offers and to ensure that it has the right set for their needs.
  • Weak MSE percentages: HCLTech is built for large enterprises, with its average deal size being for two to three years of duration, and in the tens of millions in spend. MSEs account for a very small percentage of its client base.
  • Unable to break through perceptions: While HCLTech has many capabilities that the others in the Leaders quadrant have, clients have expressed concerns about the lack of innovation brought to the engagement, which is counter to experiences with other providers.


• Hitachi Vantara - Niche Player
  

  Pros:

  • Multicloud capability: Hitachi Vantara continues to be one of the few vendors that has expert DevOps certifications in all three major hyperscalers. It also offers SAP migrations and managed services on AWS, and is one of the few with a certified Google Cloud SAP specialization.
  • Application modernization: Hitachi Vantara has average numbers for application modernization, but has built and scaled its as-a-service offerings through its global reliability centers, leading many others in this Magic Quadrant.
  • Strong operations: Hitachi Vantara built a cloud center of excellence in May 2022, allowing for more agile end-to-end services and possibly accounting for its strong renewal rate among all vendors.

  Cons:

  • Emerging automation: While Hitachi Vantara realizes the need for better FinOps and automation usage, it lags others currently offering observability and monitoring, with automated provisioning or proactive storage placement capabilities to be added in 2023.
  • PaaS focus: Hitachi Vantara has significant consulting capabilities, but lower than average cloud-native and application development capabilities, compared to other Magic Quadrant participants. This is incongruous with the high PaaS numbers that most of its clients are using.
  • Limited multigeographical presence: Hitachi Vantara has the capabilities to work both multicloud and multigeography, but lags considerably behind its peers in this research with only a small percentage of clients operating globally.


• IBM - Visionary
  

  Pros:

  • Unique approach to add business value: IBM offers a client-centric, business value-driven approach to co-design, co-creation and cooperation though its methodologies. It has evolved these methodologies to solution development, ecosystem selection, delivery and cloud service provider differentiation. Most of IBM's PCITS client engagements now include an element of contracted innovation.
  • Expanded cloud capabilities through acquisitions: The acquisitions of Nordcloud and Taos in 2021 have been received and reviewed positively by clients. The mergers seem to have not only improved IBM's bench, but also its certifications and skills gap, allowing it to reduce its attrition numbers far under the average at 16% and create stability for its organization and clients.
  • Extensive global coverage: IBM has the widest geographical coverage globally of any vendor in this Magic Quadrant, including a heavy presence in Latin America.

  Cons:

  • Validate business outcomes: IBM has a large pipeline with financial services and insurance clients, delivering business outcomes such as revenue enhancement and new areas for growth, while maintaining operational agility. However, IBM's business outcomes must be measured appropriately to ensure that metrics such as 'reduction in cycle time to realize value from initiatives' demonstrate the value promised.
  • Late to modernize: IBM, as the main seller of mainframes over the last century, has recently intensified its efforts to create and codify mainframe modernization patterns to bring its clients to the cloud. This is a little behind its peers, but on the right path to catch up with Leaders in this Magic Quadrant.
  • Longer migration times: IBM continues to build out its automation capabilities; however, with its AI-driven control plane for automated and optimized workload placement for hybrid cloud, it is still slightly behind others in this research. In particular, some client feedback mentioned migrations taking too long.


• Infosys - Leader
  

  Pros:

  • Broad industry capabilities: Cloud is an integral part of Infosys' service offering and represents the largest portion of its revenue. It has evolved its service offerings to move toward business outcomes and vertical industry focus. Infosys takes a broad approach to cloud services, bringing customers a large portfolio of capabilities and services suitable for use across a wide variety of industry verticals.
  • Bifurcation of clients: Infosys has done a good job of dividing its clients into two camps: clients that are driven by cost savings and those that are focused on growth and disruptive business. It has a standard set of offerings that are readily available to both camps. This packaging helps customers more quickly navigate offerings and make sense of them as a whole.
  • Leverage existing relationships: Infosys drives many transformation engagements through its existing customer base based on cost optimization and value creation. It creates value through its focus on business outcomes, led by design studios and the assessment of clients' existing processes.

  Cons:

  • Limited industry depth: Infosys claims expertise in a wide variety of industry verticals but provides only a limited demonstration of a strategic focus on specific verticals. Customers expecting profound business outcomes need to be sure to understand the specifics of Infosys' offerings relative to other providers' industry and segment approaches.
  • Limited MSE focus: While Infosys is developing standardized vertical industry solutions that are portable to the MSE market, it is still considered by many as primarily focused on large enterprises. MSE clients need to assess Infosys' standardized solutions against their needs and proceed based on fit for purpose.
  • Attrition: Infosys' attrition has certainly improved over the last year, but it remains slightly higher than average compared to other participants in this Magic Quadrant. Attrition may result in decreased levels of satisfaction from clients that must retrain provider resources and have to deal with loss of knowledge about the client and culture.


• Insight - Niche Player
  

  Pros:

  • Custom hybrid capabilities: Insight's background as a value-added reseller and data center outsourcer gives it a perspective on cloud that aligns well with customers needing hybrid cloud capabilities integrated with transformative public cloud solutions. Insight uses its consulting services to create a roadmap for each client that is individualized based on client needs.
  • Client-centric view: Insight takes a client-centric view to operations with a focus on innovation, data, speed and security. Insight is one of the only Azure managed services partners with all seven solution partner designations, which makes it a good choice for Microsoft Azure clients.
  • Enterprise to midsize: Insight has created repeatable services and processes so it can scale enterprise solutions for its midsize clients in a cost-effective manner. Over half of Insight's clients are MSEs — a higher percentage than its peers in this research — indicating it's a good fit for these clients.

  Cons:

  • Azure and North America: Insight is heavy on Azure expertise and, while emerging into AWS and Google Cloud, it does not have the multicloud nor multigeographic capabilities as compared to many others in this Magic Quadrant. Clients with multiple geographies or multicloud needs may not be a good match for Insight.
  • Heavy acquisition activities: Insight has been on a significant acquisition run to enhance its cloud capabilities and skills. Clients will have to be cautious with acquisition rationalization and need to ensure they have a level of comfort that the service Insight is offering will remain in the future plans.
  • Limited automation and MSP focus: Insight has developed levels of automation on par with other Magic Quadrant participants. It, however, is slightly below average in its use of automation among its client base. Insight is taking a managed services-first approach to this market, which is also focused on security.


• LTIMindtree - Visionary
  

  Pros:

  • Focus on business value: LTIMindtree has a focus on business outcomes/KPIs with about half of its contracts aligned to committed business-outcome SLAs. LTIMindtree leverages its professional services across the cloud life cycle, utilizing its proprietary framework to guide in purposeful cloud adoption, platform selection and management.
  • Deep application development capabilities: Through the Mindtree merger, LTIMindtree has bolstered its cloud-native development and transformation capabilities with close to half of its business in the rearchitect and rebuild transformation approaches. A comprehensive suite of tools and technologies form the core to deliver value across the customer cloud adoption life cycle with a focus on intelligent automation through its Infinity and Canvas platforms.
  • Comprehensive life cycle management platform: LTIMindtree launched a single end-to-end cloud acceleration platform for assessment, strategy, mass migration, modernization, DevSecOps, FinOps, observability and sustainability. The offering includes a short self-assessment mapping tool that produces a starting application map within minutes.

  Cons:

  • New company: LTI and Mindtree recently merged, putting the vendor in its first full year of operation as an integrated LTIMindtree. As is typical in most integration phases, customers should be prepared to navigate variations in market messaging, engagement patterns, and service packaging and offerings.
  • Primarily large enterprise focus: LTIMindtree is a relatively large provider with limited focus on the MSE segment. MSE clients should validate LTIMindtree's alignment with their industry to determine its relevance as a potential cloud transformation service provider.
  • Varied industry capability: LTIMindtree's offerings (strategy/consulting, application modernization/development, and managed services) across its primary industries are at different levels of evolution, capability and scale. Clients should validate the maturity of the service offering for their respective industry.


• Persistent - Challenger
  

  Pros:

  • Investing in delivering modernization: Persistent continues to strive for best-in-class modernization for its clients through its recent cloud-related acquisitions (MediaAgility, Data Glove, Shree Partners, SCI Fusion, Sureline and Capiot). Persistent possesses multicloud capabilities and drives its priorities centered around user-centric solutions, data modernization and intelligent automation offerings.
  • Focused on individual customer needs: Persistent is increasingly focusing on business outcomes to tailor solutions and cater to the unique requirements of individual customer needs. As it continues expanding multicloud capabilities with the goal of being cloud-agnostic, Persistent can prescribe optimal solutions on an individual client basis. Persistent has a good mix of large and midsize clients.
  • Innovative and flexible solutions: Persistent focuses on building and expanding cloud-neutral expertise and specializations using automation and AI to enable flexibility for clients to operate. It leverages a hand-picked robust partner ecosystem that enables innovative and flexible solutions for clients in its vertical scope (financial services and healthcare and life sciences).

  Cons:

  • Lack of co-creation: Despite Persistent's agile vision, it lags in co-creation capabilities compared to its peers. The organization seems focused on technical solutions rather than business outcomes. Clients prioritizing an accelerated path to transformation may find Persistent's lack of co-creation and its ecosystem of partners working to add business outcomes to the environment less innovative in comparison.
  • Technology-led: Persistent remains a technology-led cloud supplier with a large percentage of its deals coming from professional services that are not followed with ongoing managed services.
  • Geographic limitations: Persistent's multigeographical capabilities are limited, as a vast majority of its clients are based in North America. Persistent has demonstrated capabilities in Europe, APAC (including China and ANZ), although its presence in these markets is still relatively small for it.


• Rackspace Technology - Niche Player
  

  Pros:

  • Reorganization to focus on cloud: Rackspace recently completed a companywide reorganization that structured the organization into two business units, one that focuses on public cloud and the other on private cloud. This provides Rackspace with a focused cloud transformation environment built on six pillars of operation: value, effectiveness, verticalization, alliances, next-generation and capabilities.
  • Flexible operating model: Rackspace has introduced a flexible operations model that helps traditional customers ease into cloud-native operations over time. It is a pragmatic approach to transition to cloud-native solutions for customers not yet ready for it at one end to full cloud-native operations at the other.
  • Business outcomes: Rackspace has built a framework of services with templated solutions to accelerate time to value. Business outcomes for Rackspace are centered around agility, customer experience, operational efficiency and the reduction of risk.

  Cons:

  • Reorganization brings confusion: Rackspace has only recently undergone the reorganization to focus on cloud, which could lead to some confusion as the business units flesh out responsibilities. Having separate business units for public and private cloud may make sense from a focus perspective, but in today's hybrid market, public and private cloud are nearly always used together.
  • High attrition: Rackspace reports a relatively high level of attrition among the participants in this Magic Quadrant. High levels of attrition often lead to lower levels of client satisfaction. Several Rackspace clients noted low client satisfaction across service areas.
  • Large deal focus and growth challenges: Rackspace will mine its existing client base for new opportunities and expand its revenue base for growth; however, it is focused on large deals in pursuit of new revenue growth. Clients taking a cautious approach to cloud transformation may not be a good fit. It has one of the lowest revenue growth rates among participants in this Magic Quadrant.


• SADA - Niche Player
  

  Pros:

  • Customer centricity: SADA operates with a 'customer-for-life' philosophy to create a deep, durable relationship with its clients. It is aligned with Gartner's generative provider concept, seeking relationships and outcomes with its customers, and innovating with technology to create solutions built for purpose.
  • Value creation: SADA can align to customers' needs and bring transformation, tools and capabilities at the correct time with integrated partners. It offers a program designed exclusively for ISVs seeking to build SaaS services on Google Cloud.
  • Service product catalog: SADA offers a service catalog providing clients with an easy-to-navigate point of entry into its popular services and platforms related to infrastructure and application modernization, data analytics, security, machine learning, and productivity and collaboration.

  Cons:

  • Limitations in multicloud expandability: SADA is not appropriate for clients that have multicloud solutions since it exclusively works with Google Cloud. While a single cloud solution can bring focus and expertise, sometimes that cloud is not the best solution for client workloads.
  • Lack of global reach: SADA focuses almost exclusively on North America. Although it is seeking to expand its reach to Europe, this could still take some time. Clients will need to consider their geographic limitations when evaluating SADA's fit with business requirements.
  • Performance lag: SADA's ERP offerings are moderate in comparison to others in this research, as SADA prefers using partners for ERP support. The use of automation and penetration with its clients also lags its Magic Quadrant peers.


• Tata Consultancy Services - Leader
  

  Pros:

  • Business beyond enterprise: TCS' vision is based on consultant-led approaches that assess the client environment to accelerate change. It has identified three focus areas of transformation — digital core, ecosystems and innovative business models — to drive change. TCS also offers global reach capabilities that are beyond most of the other participants in this Magic Quadrant.
  • Factory capabilities: TCS leverages significant cloud factory capabilities to drive transformation into its client base faster. It has a wide array of accelerators across its service towers that are highly standardized to optimize time and cost. These are delivered in a pod-based approach that provides flexibility based on its clients' needs.
  • Pricing and contracting flexibility: TCS offers a wide range of pricing and contracting models, including business outcome and more traditional approaches like time and materials, and fixed or unit-based pricing.

  Cons:

  • Complicated terminology: TCS's cloud offerings can be confusing to its clients for a topic that is already difficult for many to understand. Clients need to ensure that they do not become overwhelmed with terminology and understand the basis of the proposed solutions that TCS is offering.
  • Factory solutions and continued innovation: TCS' extensive use of factory solutions tends to replicate solutions with little customization. Templating and accelerators don't lend themselves to a generative engagement model and offer less opportunity for customer differentiation in the proposed solution. While co-solutioning occurs upfront, clients must continue to focus on their journeys throughout the process as several existing clients cite a lack of innovation in ongoing operations.
  • Large enterprise focus: TCS continues to focus mainly on large enterprise agreements and has a limited MSE revenue base. MSE clients would need to ensure that they receive the proper level of attention.


• TO THE NEW - Niche Player
  

  Pros:

  • Born in cloud: TO THE NEW comes from a digital engineering background, with deep expertise in AWS cloud-native solutions. Infrastructure and operations capabilities are more recent additions to the service portfolio that establish TO THE NEW as an end-to-end provider. It focuses on FinOps and cost optimization and cites its top three industries as ISVs, media and entertainment, and fintech.
  • Lead with digital: TO THE NEW takes a bifurcated approach to the market with two distinct segments. It leads with digital services and expands to cloud managed services once it demonstrates value in digital business.
  • MSE and enterprise capabilities: TO THE NEW has reached a size where it is not too small to scale and not too large to be slow. It has a mix of large and small clients, with roughly 65% of its revenue generated from MSEs and the remainder coming from large enterprises.

  Cons:

  • AWS focus: TO THE NEW is heavily focused on AWS cloud-native solutions. Although it can work with other clouds, extensive multicloud and hybrid cloud solutions are not core to its strategy. Clients with these needs should carefully consider its capabilities.
  • Lack of automation: TO THE NEW's automation capabilities are some of the lowest among the Magic Quadrant participants, but it is using these capabilities in a reasonable number of client engagements.
  • Limited consulting and MSP: TO THE NEW is a technical solution-focused organization. While it does have professional services and consulting capabilities, it is significantly behind most of the participants in this Magic Quadrant in its consulting capabilities. TO THE NEW moved into delivering MSP services based on customer demand, though it is a relatively new offering.


• Wipro - Leader
  

  Pros:

  • Composable business model: Wipro has developed a composable business architecture that allows it to build a custom environment for each client based on their needs and desires. It focuses on data and cloud to enable transformation while providing insights, and it leverages automation for efficiency.
  • Goal mapping: Wipro uses a standardized framework to determine individual client transformation goals that range from commodity (price-sensitive) to differentiated (value-driven) and that are mapped to themes. This allows Wipro to offer a tailored set of deliverables solutions specific to each business. It leverages plug-and-play components and standardized assets to deliver value quickly.
  • Cloud investment: Wipro continues to make investment in its cloud capabilities organically and through acquisitions. Acquisitions have focused on vertical solutions, application modernization capabilities and security.

  Cons:

  • Co-creation contracting: While Wipro has improved its consultative approach to engagements and embedding professional services in its deal structure, it is still slightly below average compared to other participants in the Magic Quadrant in co-creation deals. A few clients still express the need for Wipro to bring innovation and thought leadership to their engagements. There are also still a lot of deals that focus on traditional SLAs and cost savings.
  • Geographic reach: Wipro's primary focus is on large deals in North America and Europe, with limited presence beyond those two areas. Clients that do not fit these demographics need to confirm Wipro's desire to meet their needs.
  • Attrition rates improving, but still high: Wipro's attrition rates have been improving. While it did report a slightly lower than average attrition rate than its peers in this Magic Quadrant for this market segment, a few clients continue to note some concerns with resourcing engagements.

Reference

• Gartner, Magic Quadrant for Public Cloud IT Transformation Services, 16 August 2023, ID G00776432

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