For Sourcing & Vendor Management Professionals

March 11, 2011

Accenture Is A Leader Among Global IT Infrastructure Outsourcing Vendors

Excerpted From The Forrester Wave: Global IT Infrastructure Outsourcing, Q1 2011
by Bill Martorelli and Wolfgang Benkel with Christine Ferrusi Ross and Mark Grannan

Accenture Is A Leader Among Global IT Infrastructure Outsourcing Vendors Accenture offers a strong consulting-led value proposition for IT infrastructure management and offers clients a strong global distribution of delivery staff. Accenture also gets high marks for ecosystem participation as well as a strong focus on innovation and continuous improvement. See below for more information on Accentures current offering, strategy, and market presence.
Forrester Wave: Global IT Infrastructure Outsourcing, Q1 11
Risky Bets Strong Contenders Strong Performers Leaders Infosys CSC IBM HCL Accenture TCS HP Wipro GWA Siemens (SIS) Unisys Capgemini

Go online to download the Forrester Wave tool for more detailed product evaluations, feature comparisons, and customizable rankings.

Fujitsu Mahindra IT & Business Svcs. Dell

Cognizant

ACS Current oering Logica CGI

Accenture, with a Forrester score of 4.18, is a Leader in this Forrester Wave. Market presence Weak Weak Strategy Strong
Source: Forrester Research, Inc.

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Accenture Is A Leader Among Global IT Infrastructure Outsourcing Vendors

Sourcing & Vendor Management Professionals

Accenture Evaluation Overview

CURRENT OFFERING Global delivery model Accenture provides end-to-end services via on-site, nearby domestic centers, virtual offshore centers, or a hybrid, leveraging its global delivery capabilities and sourcing options. Infrastructure outsourcing delivery is based on implementation of Accentures Integrated Service Delivery Model (ISDM) to integrate and enhance delivery between its 20 delivery centers (spread across most major geographies for good regional balance) for infrastructure services, client sites, and its supplier network. Accenture relied on tools and assets already in place for outsourcing delivery, namely the Accenture Global Delivery Network (GDN), Accenture Delivery Suite for Outsourcing (ADSO), and Accenture Delivery Methods (ADM). Accenture actively works with third-parties throughout the outsourcing dealcycle as appropriate (whether for traditional infrastructure providers or emerging cloud providers). Accenture maintains a supplier management function in the infrastructure outsourcing organization to evaluate, select, and manage the portfolio of suppliers it utilizes. Global geographic staffing distribution Accenture has extensive global delivery capabilities with more than 16,000 people providing infrastructure services. More than 65% of this workforce is located in cost-effective locations: * Americas: 22%. * EALA: 33%. * APAC: 45%. Accenture has a client base distributed and balanced across multiple regions. This is a strong evidence of a truly global presence. Accenture has more than 345 clients receiving IO services, including 70 Navitaire clients for whom Accenture is providing infrastructure services: North America: 117 (34%). EALA: 169 (49%). APAC: 55 (16%). Accenture has a rich consulting heritage and market knowledge; it can offer strategic and operations consulting to all levels of client firms. The infrastructure outsourcing business is aligned with Accentures Technology Growth Platform including technology consulting, systems integration, and infrastructure and application outsourcing. Accentures infrastructure practice is focused on five core offerings like data center services, workplace enablement services, network technology services, infrastructure outsourcing services, and IT service excellence. Accentures infrastructure services include strategic growth areas such as cloud computing as well as alliance offerings such as the Accenture and Cisco Business Group (ACBG) and Microsoft Business Productivity Online Suite.

Global client geographic distribution

Operations and strategy consulting

March 11, 2011

2011, Forrester Research, Inc. Reproduction Prohibited

Accenture Is A Leader Among Global IT Infrastructure Outsourcing Vendors

Sourcing & Vendor Management Professionals

Accenture Evaluation Overview

Ecosystem participation Accenture has excelled in partnering with other companies and suppliers like some very nontraditional players (e.g., Google and Amazon) and including nontraditional offerings from traditional players (e.g., Oracles grid, Microsofts BPOS, and EMCs utility storage offerings, which provide cloud-like characteristics). Integrating and managing various cloud providers requires a service management capability, which Accenture is building. In Accentures outsourcing business, it has a set of suppliers that help deliver its standard outsourcing services. Accenture maintains a supplier management function in the infrastructure outsourcing organization to evaluate, select, and manage the portfolio of suppliers. Accenture follows the same approach and strategy whether for traditional infrastructure providers or emerging cloud providers. Accenture has a network of close to 400 relationships and formal alliances with 130 leading technology, hardware, and software partners that extend Accentures technology and business capabilities. Accenture is generally the prime service provider for its clients. Accenture has assumed the role of a service integrator responsible for monitoring and managing other (outsourcing) service providers selected and contracted by the client. Innovation and continuous improvement Accentures technology insights are driven by proprietary research, real-world knowledge from working with clients every day, and Accenture Technology Labs (the dedicated technology research and development organization within Accenture) expertise. These insights are key inputs into Accentures innovation process. Accentures High Performance IT Research is a global effort to measure the performance of an organizations IT innovation, IT agility, and IT execution as an indicator of high performance. Within Accentures infrastructure outsourcing organization, it has a dedicated team specifically focused on innovation and offering management as it relates to each service domain. At the client level, Accenture puts in place a three-tiered governance structure (strategic, tactical, and operational) that integrates with the clients organization to establish touch points from the executive level down to the service delivery level. Infrastructureas-a-service offerings Through Accentures next-generation data center (NGDC)/private cloud solution blueprints, Accenture is able to implement both on-premises and off-premises private cloud environments for clients which can be contracted to suit the clients requirements. Additionally, Accenture offers services including Accentures application migration factory that industrializes ability to migrate the clients application to the private/public cloud and Accentures application portfolio optimization offering that re-platforms legacy environments so they are able to be migrated to cloud environments. Accenture Cloud Enterprise Services (ACES) provides integration services between external cloud services, private cloud, and the existing legacy/enterprise environments.

March 11, 2011

2011, Forrester Research, Inc. Reproduction Prohibited

Accenture Is A Leader Among Global IT Infrastructure Outsourcing Vendors

Sourcing & Vendor Management Professionals

Accenture Evaluation Overview

Client feedback on implementation Client feedback on account management Client feedback on service quality Client feedback on general satisfaction STRATEGY Customer value proposition and vision Accentures vision for infrastructure outsourcing services is focused on providing business improvements to clients through its consulting-rich, asset-light approach that is focused on transformation and high performance. Key to Accentures vision is the ability for customers to integrate cloud-based services from multiple sources, using four key capabilities including virtualization, automation, integration, and orchestration. Toward this end, Accenture has made a variety of investments in intellectual property including its Accenture Cloud Enterprise Services (ACES). Accentures vision also encompasses deep industry experience. Accenture realizes the importance of services integration to enable effective multisourcing and the coming challenge brought by cloud services. Accenture also believes that further standardization in technology platforms and commoditization of platforms, coupled with service orientation, will ultimately yield an app store model of IT consumption, enabled by storefront portals, service catalogs, ITL process alignment, and service automation. Accentures vision is aggressive, thorough, and forward-looking. The focus for Accentures planned enhancements to its IT infrastructure services includes the ACES platform and the focus on web-based storefronts, together comprising an aggressive vision for cloud service across dedicated IT infrastructure, private clouds, and public cloud infrastructure. Additional focal points for Accenture include its Business Process Assurance Process, a component of Accentures overall governance framework that includes measures such as a business performance index and quality of service measure, to both optimize IT costs in line with business conditions and to drive alignment with user expectations and enable continuous improvement. Accenture intends to leverage its strengths in fostering operational excellence for its clients by continuing to balance cost management and practical innovation. Specific plans for growth entail a focus on rapidly growing markets such as the BRIC countries plus South Korea and Mexico, as well as focusing on cloud services where Accenture believes growth will be more rapid. Although Accenture has grown by acquisition, it does not stress its intent to grow by inorganic means. Accenture averaged 4.44 on a 5-point scale.

Accenture averaged 3.71 on a 5-point scale.

Accenture averaged 4.38 on a 5-point scale.

Accenture averaged 3.96 on a 5-point scale.

Planned enhancements

Plans for growth

March 11, 2011

2011, Forrester Research, Inc. Reproduction Prohibited

Accenture Is A Leader Among Global IT Infrastructure Outsourcing Vendors

Sourcing & Vendor Management Professionals

Accenture Evaluation Overview

Investment to support strategy Accenture has long pointed to substantial investments in R&D, in which it spent $435 million for fiscal year 2009. Moreover, Accenture has an extensive research and innovation program including its R&D organization Accenture Technology Labs, which identifies and develops promising technologies. Accenture does not disclose investments into its IO practice, but Forrester believes the I&O R&D to be approximately 3%. Accentures vision for cloud services is aggressive, encompassing a full range of plan, build, and operate services including the use of cloud technologies as a delivery platform across infrastructure, software, applications, and business process services. Accenture intends to aggregate and integrate cloud services with customers legacy environments with the goal of creating technologyenabled business services. Accenture has embraced partnering opportunities in the cloud including salesforce.com, Microsoft Azure, Microsoft BPOS, Google, and others. Accenture is in an excellent position to pursue its strategy of linking cloud technologies to business impact. While planning a leading role in providing cloudoriented consulting and integration services, Accentures vision is not to become a provider of IaaS services on its own.

Vision for cloud services

MARKET PRESENCE Service market presence Financial strength IT infrastructure services client base Vertical alignment IT infrastructure service employees Total employees Accenture appears to have a geographically balanced IO client base across most IO services; however, Forrester was unable to determine the full extent of Accentures data center management experience. Accentures financial strength is considerable, and despite IO revenues making up a small percentage compared to competitors, this segment is growing faster than overall corporate growth. Accenture had 345 IT infrastructure services outsourcing customers at the completion of the most recent fiscal year. Accentures top three IT infrastructure services verticals are high-tech, BFSI, and public sector. Accenture had 16,000 employees dedicated to IT infrastructure management services at the completion of the most recent fiscal year. Accenture had 204,000 employees at the completion of the most recent fiscal year.

March 11, 2011

2011, Forrester Research, Inc. Reproduction Prohibited

Accenture Is A Leader Among Global IT Infrastructure Outsourcing Vendors

Sourcing & Vendor Management Professionals

Executive Summary From The Forrester Wave: Global IT Infrastructure Outsourcing, Q1 2011 In Forresters 36-criteria evaluation of global IT infrastructure management vendors, we found that IBM leads a closely packed group of leaders including HCL, Capgemini, Wipro, Infosys, TCS, Accenture, Cognizant, HP, CSC, and Siemens (SIS). Strong Performers include Fujitsu, Mahindra IT & Business Services, Getronics Workspace Alliance (GWA), ACS, Unisys, Dell, Logica, and CGI. The market for IT infrastructure management services is evolving rapidly with the preference for asset-light transactions, continuing growth in global delivery, and the impact of the cloud serving to converge value propositions between leading contenders. The market for IT infrastructure management services is growing after a difficult period of economic uncertainty curtailed demand and as customers embrace IT outsourcing as a way to achieve cost efficiencies.

Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 19 key roles at major companies providing proprietary research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 27 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com. 2011 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective owners. Reproduction or sharing of this content in any form without prior written permission is strictly prohibited. To purchase reprints of this document, please email clientsupport@forrester.com. For additional reproduction and usage information, see Forresters Citation Policy located at www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. 58037_accenture