Magic Quadrant on Service Providers Provides a Boost for Accenture

Accenture sets the gold standard for CRM service providers, according to Gartner’s recently published "Magic Quadrant for CRM Services Providers, North America." In addition to Accenture at the top of the list, the report also identifies Capgemini, Deloitte, and IBM Global Business Services as other "leaders" in the market, with 12 other companies evaluated and separated into "challengers," "visionaries," and "niche players." As the prevailing takeaway from the report, Gartner issues a strong warning to customers: Given today’s world of economic uncertainty, be sure to evaluate players of all sizes and shapes prior to investment.

Gartner found the CRM services market increased by 8.4 percent in 2007, a slight deceleration from the 9.2 percent growth the previous year. While many consultancies continue to expand, a number have failed to maintain market share due to inabilities meeting market rate. Offshore pure-plays, on the other hand, continue to grow rapidly in this space, due to a focus on high-level technology and vertical applications, according to the report.

Matthew Goldman, research vice president at Gartner and co-author of the report, notes that the way customers go about choosing service providers has changed in recent years. "There was a time when the basis of competition was price, references, or industry expertise -- but it was a bit general in evaluation." Today, Goldman cites a central trend in the marketplace: customers looking for "best for need." Rather than going with a heavily branded industry name, customers are seeking out a service provider deemed best to tackle a specific business problem. Prefacing the evaluation the report reads, "Do not simply select service providers in the leaders quadrant…vendors in the Challengers, Visionaries or Niche Players Quadrant may be more appropriate for your requirements."

That said, the leaders this year came out on top due to excellent ratings in their ability to execute as well as in their completeness of vision. The report explains that high performer Accenture has solid innovation and keen business insight with its strength in expansive, internationally reaching CRM initiatives. The report notes that Capgemini, recommended for IT-heavy deployments, has a good mix of business and technical knowledge, but at times "overreaches…failing to demonstrate an understanding of client’s needs." The report lauds Deloitte for its sharp focus on CRM, but notes that many customers perceive its price point to be too high. The final leader, IBM Global Business Services, excels in technology-driven initiatives, but has weakness surrounding user adoption and change management, according to the report.

The Magic Quadrant places the other evaluated providers in the following categories:


  • Tata Consultancy Services
  • Wipro Technologies


  • BearingPoint
  • CSC

Niche Players

  • Cognizant
  • Business & Decision / Inforte
  • eLoyalty
  • Fujitsu
  • Hitachi Consulting
  • Infosys Technologies
  • Patni Computer Systems
  • Satyam Computer Services

In a crowded market with so many strong contenders to choose from, Goldman reiterates that customers must look at all options to find the best fit. "I encourage clients to look beyond the brand," he says. "Where do you get the best combination of the services you need at the price you want?"

CRM Covers
for qualified subscribers
Subscribe Now Current Issue Past Issues

Related Articles

Consulting the Gartner Magic Quadrant for CRM Service Providers

Magic Quadrant for CRM Service Providers '09: The market for CRM consulting and solution implementation services grew in 2008, but the next year will bring challenges for all providers, including the foursome Gartner rated tops: Accenture, Capgemini, Deloitte, and IBM Global Services.

On-Demand Is In Demand within Gartner Magic Quadrant for Multichannel Campaign Management

Magic Quadrant for MCM '09: A tough economy calls for tough, but cheaper, solutions.

MDM Inside the Box

Cognizant's modular master data management solution prompts industry pundits to ruminate about the space's maturity.

IBM Launches a SaaS Center of Excellence

destinationCRM Exclusive: The consultancy gathers its resources and expertise in software-as-a-service CRM -- and stresses that SaaS may not be right for everyone.

Salesforce.com and Deloitte Consulting Ally

The companies forge a strategic alliance that may bolster Salesforce.com's efforts to add more enterprise-size organizations to its client roster.

How to Evaluate CRM Consultants

For every successful CRM implementation that benefited from outside consulting services, there's at least one other that's a tale of woe. What should your company do when contemplating a consulting engagement to maximize your chances for a successful project?

Market Focus: Professional Services -- Consultants Adapt to Changing CRM Landscape

On-demand CRM remains an ongoing challenge, but social networking promises to be the real wild card.

Consultancies Change with the Times

A look at Ernst & Young Applications Services and its focus on Java for integrating Internet and intranet front ends with existing systems.

CRM Consulting or Insulting?

While the larger consultancies have, in recent months, been making moves to change both their structure and traditional approach, in the skills-starved front-office area it is often the client which loses out.

Accenture and Inforte Get Top Ranking

Magic Quadrant '03: The report puts leading service providers into four key areas (challengers, leaders, niche players, and visionaries), all measured against each other by their ability to execute.

Are CRM Consultants Objective?

In the current market of integrators owning shares in vendors, companies need to be aware of the basis for some recommendations.

Stand By Me

Feature: Long after an implementation is complete a CRM project may still need adjustments and customization that can be beyond the grasp of an in-house IT team.

Market Focus: Professional Services: Servicing the Law

Companies are now paying CRM vendors for complete comprehension when it comes to regulatory software products.

A SWITCH in the Top 10 Service Providers

New Gartner research details the strong growth and strengths of India-based service providers, and their inevitable arrival among the global top 10.

Consultants Are Standing By

Siebel and Oracle partners try to relieve customer headaches.

Gartner Hears CRM Accents Across the Pond

Magic Quadrant '06: This year's European CRM service provider quadrant reveals Accenture and IBM BCS as the strongest implementation partners.

A Business Decision for Inforte

Business & Decision Group announces plans to acquire Inforte at a 33 percent price premium, spelling big wins for Inforte shareholders and a broader U.S. presence for Business & Decision.

Infosys, Tata, and Wipro Top Gartner's Magic Quadrant for Offshore ASPs

The offshore market has reached "a unique point" as service providers continue to perfect the global delivery model and offer more domain expertise.

Siebel, IBM, Accenture Lead CRM Brands

The ITSMA presents a short list of top-tier CRM software and CRM services companies.

The Consulting Trap

Is the potential high cost of using consultants worth it?

Accenture Leads Consulting Pack

Using a methodology called the Forrester Wave, the research group examined the consulting firms' CRM practices across three areas: market presence, strategy, and current offerings.

The 2007 Market Awards: Consultancies

Demand for CRM professional services remains strong--and steadily increasing.