Managing The Solutions Services Portfolio - A Competitive Analysis

Solution Integration Strategies
Managing the Solutions

Services Portfolio:
A Competitive Analysis
Analyst: Stephanie M. Torto
Filing Information
November 2001
Volume: 1
IDC #25777
Tab: Vendors
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Table of Contents
Page
Executive Summary ................................................................................................................................... 1
Overview .............................................................................................................................................. 1
Market Dynamics................................................................................................................................. 1
Competitive Trends.............................................................................................................................. 2
Comparative Analysis .......................................................................................................................... 2
Recommendations ............................................................................................................................... 3
Methodology............................................................................................................................................... 5
Vendor Selection Process .................................................................................................................... 5
Solutions Services Defined.................................................................................................................. 5
Related Research.................................................................................................................................. 6
Introduction ............................................................................................................................................... 7
Market Dynamics................................................................................................................................. 7
Competitive Trends .................................................................................................................................. 11
Managing the Solutions Services Portfolio ...................................................................................... 11
Solutions Services Portfolio by Company......................................................................................... 12
Benchmarking and Analysis .................................................................................................................... 15
Definition of Leadership Grid Parameters ........................................................................................ 15
Position of Solutions Services Firms ................................................................................................ 17
Recommendations and Conclusion......................................................................................................... 19
Conclusion......................................................................................................................................... 19
Recommendations ............................................................................................................................. 19
Profiles...................................................................................................................................................... 21
Accenture ................................................................................................................................................. 23
Overview ............................................................................................................................................ 23
Solutions Services Portfolio.............................................................................................................. 23
Strategy.............................................................................................................................................. 25
Marketing and Sales .......................................................................................................................... 25
Service Delivery ................................................................................................................................. 25
Partnerships....................................................................................................................................... 26
Andersen................................................................................................................................................... 27
Overview ............................................................................................................................................ 27
Strategy.............................................................................................................................................. 29
Partnerships....................................................................................................................................... 30
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Table of Contents Continued

Page
Cap Gemini Ernst & Young...................................................................................................................... 31
Overview............................................................................................................................................. 31
Solutions Services Portfolio .............................................................................................................. 31
Strategy.............................................................................................................................................. 33
Partnerships....................................................................................................................................... 34
Computer Sciences Corporation.............................................................................................................. 37
Overview............................................................................................................................................. 37
Solution Services Portfolio................................................................................................................ 37
Strategy.............................................................................................................................................. 39
Partnerships....................................................................................................................................... 40
Deloitte Consulting .................................................................................................................................. 41
Overview............................................................................................................................................. 41
Strategy.............................................................................................................................................. 43
Partnerships....................................................................................................................................... 43
EDS........................................................................................................................................................... 45
Overview............................................................................................................................................. 45
Strategy.............................................................................................................................................. 47
Partnerships....................................................................................................................................... 47
IBM Global Services ................................................................................................................................. 49
Overview............................................................................................................................................. 49
Strategy.............................................................................................................................................. 50
Partnerships....................................................................................................................................... 52
Table of Contents Continued

Page
KPMG Consulting .................................................................................................................................... 53
Overview ............................................................................................................................................ 53
Strategy.............................................................................................................................................. 54
Partnerships....................................................................................................................................... 56
PricewaterhouseCoopers.......................................................................................................................... 57
Overview ............................................................................................................................................ 57
Strategy.............................................................................................................................................. 58
Partnerships....................................................................................................................................... 59
Unisys ....................................................................................................................................................... 61
Overview ............................................................................................................................................ 61
Solution Services Portfolio ............................................................................................................... 61
Strategy.............................................................................................................................................. 62
Partnerships....................................................................................................................................... 64
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List of Tables
Table
Page
The Shift in Solution Services Market Dynamics ........................................................................ 7
Differences Across the Solutions Services ................................................................................. 13
Accenture Key Corporate Data ................................................................................................... 23
Accentures Key Partnerships and Alliances............................................................................... 26
Andersen Key Corporate Data..................................................................................................... 27
Andersens Key Partnerships ...................................................................................................... 30
Cap Gemini Ernst & Young Key Corporate Data ....................................................................... 31
Cap Gemini Ernst & Youngs Service Line and New Market Groups, 2001 .............................. 32
Cap Gemini Ernst & Youngs Key Partnerships ......................................................................... 35
10
CSC Key Corporate Data............................................................................................................. 37
11
CSC Consultings Services Offerings.......................................................................................... 38
12
CSCs Key Partnerships............................................................................................................... 40
13
Deloitte Consulting Key Corporate Data.................................................................................... 41
14
Deloitte Consultings Service Lines............................................................................................ 42
15
Deloitte Consultings Key Partnerships ..................................................................................... 44
16
EDS Key Corporate Data............................................................................................................. 45
17
EDS E.Solutions Service Lines.................................................................................................. 46
18
EDS Key Partnerships................................................................................................................ 48
19
IBM Global Services Key Corporate Data................................................................................... 49
20
IBM Global Services Business Innovation Services .................................................................. 50
21
IBM Global Services Key Partnerships ...................................................................................... 52
22
KPMG Consulting Key Corporate Data ...................................................................................... 53
23
KPMG Consulting Vertical Industries ........................................................................................ 55
24
KPMG Consultings Key Partnerships........................................................................................ 56
25
PwCs MCS Key Corporate Data.................................................................................................. 57
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List of Tables Continued

Table
Page
26
PwCs Key Partnerships............................................................................................................... 59
27
Unisys Overview .......................................................................................................................... 61
28
Unisys Services Offerings ........................................................................................................... 62
29
Unisys Key Partnerships............................................................................................................. 64
List of Figures
Figure
Page
Solutions Services Portfolio Share by Company, 2000.............................................................. 14
IDCs Leadership Grid: Solutions Services Market .................................................................... 16
Accentures Revenue by Solution Service, 2000 ........................................................................ 24
Andersens Revenue by Solution Service, 2000.......................................................................... 29
Cap Gemini Ernst & Youngs Service Line and New

Market Groups Revenue Share, 2001 ......................................................................................... 32
Cap Gemini Ernst & Youngs Revenue by Solution Service, 2000 ............................................ 33
CSCs Revenue by Solution Service, 2000.................................................................................. 38
Deloitte Consultings Revenue by Solution Service, 2000......................................................... 42
EDS Revenue by Solution Service, 2000 ................................................................................... 46
10
IBM Global Services Revenue by Solution Service, 2000 ......................................................... 51
11
KPMG Consultings Revenue by Solution Service, 2000 ........................................................... 54
12
PwC MCS Revenue by Solution Service, 2000 .......................................................................... 58
13
Unisys Revenue by Solution Service, 2000................................................................................ 62
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Abstract
Managing the Solutions Services Portfolio: A
Competitive Analysis
Several dynamics are converging within the solutions services
market. During the last few years clients needs have transitioned
from individual solutions to solutions that address the entire needs
of an integrated enterprise. As a result, service providers that once
went to market around segregated areas such as supply chain
management (SCM) services or customer relationship management
(CRM) services are being asked to tear down these marketing-related
terms in favor of a holistic approach to the enterprise.
This report outlines how the leading systems integrators are
responding to these challenges. It details each firms solutions
services portfolio, highlights recent changes, and analyzes each
firms strategy. It includes a leadership grid that evaluates the
leading systems integrators against selected criteria.
The systems integrators profiled in this report are as follows:
A IDC
Accenture
Andersen
Cap Gemini Ernst & Young
CSC
Deloitte Consulting
EDS
IBM Global Services
KPMG Consulting
PricewaterhouseCoopers
Unisys
Executive Summary
Overview
The solutions services market is shifting. Driven in part by clients
needs for an integrated approach to their business and IT needs,
service providers that once organized themselves around a specific
technology or business function are collaborating within their
organization more so than ever before in order to present a unified
solution to their clients overarching business problems.
Although these enhanced client demands may pose challenges for
services firms that aim to execute effectively on a global basis, it also
presents opportunities for firms to leverage, consolidate, and
reorient their service offerings, best practices, methodologies, and
expertise into tangible results.
Market Dynamics
Several fundamental shifts have occurred in the solutions services
market that have resulted in the following:
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Utilization of a holistic, integrated approach to the enterprise.

Whereas clients previously bought solutions services around a
particular business function, they are increasingly demanding a
more unified approach to their customers, partners, and
suppliers as well as the companys internal processes.
Inclusion of the business owner or C-level executive as a

primary stakeholder. The change in the primary decision maker
validates the clients need to understand the underlying business
value inherent in IT projects. In many cases, service providers
are making their sales pitch directly to the CEO.
Emphasis on creating business value through IT investments.

Going forward, the underlying objective of IT projects will
revolve around companies abilities to leverage IT investments to
streamline
operational
processes,
identify
business
opportunities, and manage customers, partners, and suppliers
more effectively.
Focus on developing fewer relationships with service providers.

As the solutions services market has started to consolidate, in
part due to the softening economic environment and changing
client needs for comprehensive service capabilities from one
service provider, clients are turning to one partner for many of
their IT needs.
Specialization in vertical industries a must have. One way in

which service firms are able to differentiate themselves for
competitive advantage is through specialization in a particular
industry. This has become a business imperative and a
mechanism for which service providers can effectively
demonstrate their understanding of their clients business
processes.
Competitive Trends
IDC observed the following trends among the service providers
interviewed for this research:
Maintaining transparency to the client. While maintaining

individual practices areas are important from an organizational
standpoint so that consultants are recognized for their distinct
skill sets, it is becoming less relevant to customers who want
enterprisewide solutions. It matters less and less where the entry
point may be with a customer; what matters is the overriding
goal of the engagement.
Merging CRM services and SCM services. Corporations are

continually asking for an integrated view of their customers, be
they end users, suppliers, or partners, that warrants a joint
approach. As a result, some service providers have begun to merge
these two previously distinct practice areas in order to fully
leverage resources and bring a more unified face to their clients.
Utilizing a loose marketing approach to solutions. While

systems integrators continue to see the ambiguity and risk in
using such an overly used term in their marketing approaches,
many are still committed to doing so because of the flexibility it
allows them to constantly bend and massage their message.
Putting incentives in place to collaborate. Service firms are

adapting to the markets needs by not only using incentives to
ensure that separate practice areas work together but also holding
practice leaders and sales personnel accountable for doing so.
Continuing to develop specialized skills. Many of the firms

interviewed for this report train consultants in a particular
technology or business process but do not tend to cross-train
consultants. This approach ensures that consultants are experts
in a particular area and, therefore, are better positioned to
provide detailed, value-added advice to clients.
Comparative Analysis
In comparing the solution service areas tracked by IDC CRM
services, knowledge management (KM) services, ecommerce
services, SCM services, and enterprise resource management (ERM)
services with those of the vendors profiled, IDC notes the
following observations:
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Most vendors have dedicated service lines for CRM services and
SCM services, reflecting the growth potential of these two markets.
KM services and ecommerce services tend to be interwoven with

other functional areas of vertical groups.
ERM services can be integrated with other functional areas and

also act as a standalone offering in many cases.
Several vendors have organized around broad areas, such as buy,

sell, and supply.
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One vendor has merged its CRM services and SCM services
practices, a trend that IDC believes may increase.
Almost all vendors go to market by vertical industry.
Recommendations
To gain market share and align with market opportunities in the
solutions services market, IDC recommends the following:
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Strike a balance between specialization and being a full-service

provider. Not only are service providers being asked to fully
understand their clients businesses, they are also required to
possess a range of service capabilities along the services
continuum. In order to strike and maintain this balance, IDC
recommends the following:
Implement vertically focused marketing initiatives. While

the overall brand identify of a firm is critical to its ability to
enhance its market position, it is also increasingly important
to tailor different messages to various audiences.
Build or partner for full-service capabilities. IDC

recommends demonstrating and emphasizing the companys
depth of service offerings to clients. IDC believes the trend
toward aggregated service delivery will continue in the
solutions services market and recommends that those
service providers without service capabilities across the
design, build, and operate phases aggressively pursue them
via acquisition or partnership.
Develop the skill sets of experts and generalists. IDC

recommends that firms pursue targeted recruiting campaigns
to complement any lacking skill sets. At the same time, IDC
believes the role of the generalist should not be overlooked.
Maintain a dynamic organizational structure. IDC recommends

adopting a more flexible organizational structure around
particular themes. Although one could argue this may be
transparent to the client, the de-emphasizing of such marketingrelated terms as CRM and SCM may assist in keeping the
emphasis on getting to a solution.
Put systems in place to accurately track joint opportunities.

IDC recommends that service providers further invest in or
optimize their own IT systems that can accurately measure the
opportunities in a particular area and monitor pipeline
generation across service areas and geographies.
De-emphasize solutions terminology. Although IDC

acknowledges that the quest for solutions is a noble one, IDC
recommends that service providers tone down the use of such
terminology. Its continual use and omnipresence have diluted its
exact intent; that is, to be a competitive differentiator.
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Methodology
This report is a product of both qualitative and quantitative
information that IDC has collected from a broad spectrum of
primary and secondary sources, including the following:
Comprehensive surveys and interviews with systems integrators
User surveys of IT spending, integrator usage, purchase plans,

issues, and concerns
Published financial records and quarterly reports
Published news articles, press releases, and information from

trade publications
IDC reports and bulletins
IDC demand-side and supply-side spending models
Historical market data
Note: All numbers in this document may not be exact due to

rounding.
Vendor Selection Process

The companies that IDC selected to be included in this research met
several criteria, including one of the following:
Total services revenue greater than $1 billion
Position within the top 10 spot in one or more of the five key
solutions services areas identified by IDC
Significant portion of revenue derived from outside the United

States
Solutions Services Defined

Solutions services include the consulting, implementation, support,
operations, and training services delivered around one or more
software applications either packaged or customized and
related hardware platforms (e.g., deploying an ERP application,
developing and managing an ecommerce site).
The parameters of solutions services include the following:
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A contract must exist that defines for both parties the terms and
conditions of the services to be provided.
A solutions services market includes multiple engagement types.
Solutions services exclude revenue generated from the sale of

hardware and/or software.
Solutions services include spending on business activities, such

as business strategy.
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A solutions services contract specifies both the solution being

delivered and the engagement type.
IDC tracks and analyzes solutions services in the following areas:
CRM services
KM services
eCommerce services
SCM services
ERM services
See the individual forecast and analysis documents listed below for
the definitions of these individual solutions services.
Related Research
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Worldwide Solution Integration Services Forecast and Analysis,

20002005 (IDC #24803, June 2001)
Worldwide Supply Chain Management Services Market Forecast

and Analysis, 20002005 (IDC #24694, June 2001)
Worldwide Internet Services Market Forecast and Analysis,

20002005 (IDC #24691, June 2001)
Worldwide ERM Services Market Forecast and Analysis,

20002005 (IDC #24645, June 2001)
Worldwide Customer Relationship Management Services

Market Forecast and Analysis, 20002005 (IDC #24684,
May 2001)
Knowledge Management: U.S. and Worldwide Forecast and

Analysis, 20002005 (IDC #24658, May 2001)
Worldwide Systems Integration Services Market Forecast and

Analysis, 20002005 (IDC #24638, May 2001)
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Introduction
Market Dynamics
Several dynamics are converging within the solutions services
market. The needs of clients have evolved during the past few years
from individual solutions to solutions that address all the needs of
an integrated enterprise. As a result, service providers that once
went to market around segregated areas, such as supply chain
services or CRM services, are being asked to tear down these
marketing-related terms in favor of a holistic approach to the
enterprise. This has increasingly placed challenges on systems
integrators to reorient their service offerings, service delivery
methods, marketing strategies, and partnerships to effectively
deliver services to clients.
An overview of these fundamental shifts in market dynamics are
outlined in Table 1.
Table 1
The Shift in Solution Services Market Dynamics
Two to Three Years Ago
Today
Discrete, functional approach to

solutions
Holistic, integrated approach to the

enterprise
Decisions made by IT manager
Stakeholders typically include the business

owner or C-level executive
Objective to solve a technical problem
Emphasis on creating business value

through IT investments
Multiple relationships with service

providers
Focus on developing fewer relationships

with service providers
Vertical industry knowledge a nice to

have
Vertical industry specialization a must

have
Source: IDC, 2001
Holistic, Integrated Approach to the Enterprise

Whereas clients previously bought solutions services around a
particular business function, they are increasingly demanding a
more unified approach to their customers, partners, and suppliers as
well as the companys internal processes. During the past year, this
has extended beyond the enterprise to include inter-enterprise
needs.
Prior buying patterns may have been driven by the rush to
implement packaged software solutions in light of Y2K uncertainty a
few years ago. As a result, various departments of multinational
companies invested in IT solutions that had little or nothing to do
with other areas of the company.
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With the Internet continuing to raise customers expectations and

competitive forces, clients are demanding a unified face to
customers that is supported by a robust internal infrastructure.
These systems must be able to create, disseminate, and aggregate
essential data points from across the company.
Thus, service providers with discrete practices such as CRM services
or ERM services are selling and delivering joint engagements more
than ever before. In recognition of this trend, KPMG Consulting
(KPMG) recently merged its SCM services and CRM services
practices.
Stakeholder Typically Includes the Business Owner or C-Level
Executive
As the relationship between IT investments and business objectives
grows more intertwined, the client stakeholder of IT projects has
also evolved. It is now strikingly common to have a more
collaborative effort on the part of the client that brings together
multiple stakeholders from both the IT and business functions. In
these instances, the IT department may act as the key link between
the internal stakeholders and the service provider rather than be
held responsible for the technical implementation only.
The change in the primary decision maker also validates the clients
need to understand the underlying business value inherent in any IT
project. In many cases, service providers are making their sales pitch
directly to the CEO. As a result, many service providers are adjusting
their sales approach. EDS, for example, uses principals, or highly
skilled business experts, to engage CEOs from the initial encounter.
Emphasis on Creating Business Value Through IT Investments
Going hand in glove with the changing nature of the primary
stakeholder of IT projects, clients are demanding to know just what
the return on their IT investments may be. Going forward, the
underlying objective of IT projects will revolve around companies
abilities to leverage IT investments to streamline operational
processes, identify business opportunities, and manage customers,
partners, and suppliers more effectively.
Furthermore, there has been a fundamental shift from the top line
to the bottom line; that is, from not only thinking about IT as an
avenue for generating business opportunities and other revenue
streams but as a means to achieve cost savings as well. Additional
factors may contribute to this shift, including the following:
The increased sophistication of the IT purchaser
An unwillingness to repeat past implementation mistakes
Smaller budgets due to an overall economic softening
In order to respond to this demand, many service providers now use

diagnostic tools to help their clients prioritize project needs and
identify areas in which they will receive the largest return on their
investments. For example, IBM Global Services is utilizing an
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eBusiness Evaluation tool that assists clients in identifying the

solutions services areas that have the greatest potential for their
business.
Focus on Developing Fewer Relationships with Service Providers
To complement the shift from segregated functional areas that
implement IT solutions to an enterprisewide approach, clients are
focusing on fewer, but deeper, relationships with service providers.
As the solutions services market has consolidated, in part due to the
softening economic environment and changing client needs for
comprehensive service capabilities from one service provider, clients
want to turn to one partner for many of their IT needs.
Clients are looking to the service provider as a trusted advisor who
can continue developing a deep understanding of their business,
rather than switch services providers as IT projects stop and start
again. Lastly, the idea of having one throat to choke may be
appealing to clients who may be tired of managing many
subcontractors. Instead, clients want to hold one company
accountable for a successful implementation.
Vertical Industry Specialization a Must Have
Several years ago, few service providers went to market by vertical
industry; today, there are few that do not. Part of this reason stems
from the increased competition that larger, more established firms
experienced during the late 1990s from smaller firms. One way in
which these firms were able to create a competitive differentiator
was through a specialization in a particular industry. This has
become almost imperative due to the fact that clients require service
providers to fully understand their business.
In order to achieve this goal, services providers have continued to
deepen their expertise by vertical industry, and it has become an
essential way in which service providers demonstrate their
understanding of their clients needs and business processes.
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Competitive Trends
Managing the Solutions Services Portfolio
The current market dynamics pose challenges for service providers.
Specifically, what do these changing dynamics mean for service
providers that have formalized practices in the areas outlined by
IDC? In addition, how are they responding to the challenges? Based
on the research conducted, IDC observes several trends, which are
outlined in the following sections.
Maintaining Transparency to the Client
While service providers have organized themselves over last several
years around distinct areas such as CRM services or ERM services, it
is becoming increasingly apparent that these marketing terms are
carrying less and less meaning to clients. While maintaining
individual practices areas are important from an organizational
standpoint so that consultants are recognized for their distinct skill
sets, it is becoming less relevant to customers that want
enterprisewide solutions. It matters less and less where the entry
point may be with a customer; what matters more is the overriding
goal of the engagement. This may pose challenges in the future in
accurately measuring revenue in these distinct areas.
In addition, putting together an appropriate service offering for a
customer may involve somewhat of a juggling act. Service providers
are challenged to bring together various components along industry,
geographical, and functional areas to present one face to their
customer. This requirement demands a constant balance between
flexibility on the part of the service provider and quick
responsiveness to market needs.
Merging CRM Services and SCM Services
While the majority of services providers interviewed for this research
continue to organize internally by separate areas of specialization, it
is important to note that KPMG Consulting is the first company to
actually merge its CRM services and SCM services practices.
According to KPMG Consulting, the company chose to merge the
two practices as a direct response to client needs.
Clients are continually asking for an integrated view of the
customer, be it an end user, supplier, or partner, that warrants a joint
approach. KPMGs commitment to combining these practices
attempts to address its clients business issues by better leveraging
its resources to deliver a holistic solution. Furthermore, KPMG is
placing less emphasis on marketing labels that may be distracting to
clients. IDC expects to see a continued trend toward the merging of
these two formally distinct areas.
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Utilizing a Loose Marketing Approach to Solutions

The definition of a solution remains a great mystery. While
systems integrators continue to see the ambiguity and risk in using
such an overly used term in their marketing approaches, many are
still committed to doing so. When peeling the onion back a few
more layers, it becomes apparent that the ambiguity in the term
solution is an intentional one that allows service providers to
bend, mold, and massage the term as needed.
However, most service providers do not place strict boundaries
around the term solution, such as that it must include hardware,
software, and services together or focus on a particular service
offering or industry. Instead, the term is used vaguely to refer to the
services wrapped around a particular industry, process, and
technology, but must ultimately solve a business problem. This term
undoubtedly may leave the client asking, Well, just what is not a
solution? This may be a tougher question to answer, and it
highlights the risk in using the term.
Putting Incentives in Place to Collaborate
Service firms are adapting to the market needs not only by using
incentives to ensure that separate practice areas work together but
also holding practice leaders and sales personnel accountable for
doing so. For example, the practice leader for CRM services may be
compensated for generating business through the supply chain
services practice rather than through his or her discrete area only.
However, services providers recognize the challenges in capturing
the appropriate measurements accurately and in keeping client
satisfaction the top priority.
Many account managers are being motivated to identify and sell
collaborative engagements. For example, EDS implemented a
robust, global measurement system for its client executives in order
to ensure collaborative selling. Over a year ago, the company
implemented a standardized selling scorecard to facilitate this
process. Initial results have been positive and have contributed to
the firms ability to execute effectively.
Continuing to Develop Specialized Skills
Many of the firms interviewed for this report train consultants in a
particular technology or business process but do not tend to crosstrain consultants. This approach ensures that consultants are
experts in a particular area and, therefore, are better positioned to
provide detailed, value-added advice to clients. However, consultants
receive an overview of other solutions services so that additional
opportunities can be identified outside their particular area of
specialization.
Solutions Services Portfolio by Company

IDC recognizes that vendors utilize a variety of different approaches
in organizing their services offerings. IDC has attempted to
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highlight the differences by company and by the five major solutions

services areas tracked by IDC (see Table 2).
Table 2
Differences Across the Solutions Services
CRM Services
KM Services
eCommerce
Services
Accenture
Standalone service
line
Part of Human
Performance
service line
Andersen
Customer and
Channel service
line
CGE&Y
SCM Services
ERM Services
Part of Solutions
Engineering
service line
Standalone service
line
Part of Solutions
Engineering
service line
Part of Strategy,
Organization &
People
Part of Technology
Integration
Standalone service
line
Part of Enterprise
Applications
Standalone service
line
Embedded in other
services lines
Embedded in other
services lines
Standalone service
line
Standalone service
line
CSC
Customer
Solutions service
line
Recently launched,
focusing on the
energy space
Part of SCM
services
Standalone service
line
Organized by ISVs:
SAP, Oracle,
Peoplesoft
Deloitte Consulting
Standalone
offering in Sell
Side
Part of Exchanges
Standalone service
in Buy Side
Standalone service
in Inside
EDS
Standalone in
Digital Value Chain
Integrated with
CRM services
Embedded in other
services lines
Standalone in
Digital Value Chain
Standalone in
Digital Value Chain
IBM Global
Services
Standalone in Sell
& Support
Part of eBusiness
integration
Embedded in Sell
& Support and Buy
& Supply
Standalone in Buy
& Supply
Part of Enterprise
Resources
KPMG Consulting
Merging with SCM

services
Embedded in other
services lines
Embedded in other
services lines
Merging with CRM

services
Part of Enterprise
Solutions
PwC
Standalone service
line
Embedded in other
service lines
Embedded in other
services lines
Standalone service
line
Part of SCM
service line
Unisys
Standalone service
line
Embedded in other
services lines
Standalone service
line
Part of industry
groups
Source: IDC, 2001
It is evident from looking at Table 2 that the majority of companies

have standalone offerings in CRM services and SCM services, which
highlights the strong growth in these two areas. In fact, these two
areas have been the least affected by the slowdown in the economy
due to their focus on increasing efficiencies, cutting costs, and
managing relationships with customers. In addition, relatively
speaking these two areas are less mature than ERM services, for
example, and may dictate the development of specific skill sets.
Conversely, ERM services, the most mature area of the five major
areas, has tended to be more embedded within vertical industry
groupings. Unisys, for example, has tailored its ERM services
offerings to vertical industries in order to provide detailed, valueadded solutions targeted at specific client needs.
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It is also interesting to note that over the past year several service
providers have tended to group their offerings under looser, more
fluid headings to reflect their service offerings. For example, Deloitte
Consulting now organizes its practices under headings such as Buy
Side, Inside, and Sell Side. IBM Global Services also uses such
terminology, and EDS and Unisys are migrating toward this model.
KM services and ecommerce services tend to be more intertwined
throughout other standalone offerings and is reflective of their
cross-functional applicability rather than being distinct areas. KM
services, in particular, represents a relatively smaller market
opportunity; thus, it can be argued that KM services are more
effective when integrated with other services offerings.
Figure 1 presents an overview of the worldwide solutions services
portfolios by company.
Figure 1
Solutions Services Portfolio Share by Company, 2000
Source: IDC, 2001
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Benchmarking and Analysis

In an attempt to measure how well the services firms profiled in this
report are aligned with the market opportunity and how well each
services firm is positioned to capture market share, IDC developed the
Solutions Services IDC Leadership Grid. This benchmarking analysis
is meant to provide a comparative overview of vendors solutions
services offerings and competitive positioning. At the same time, the
IDC Leadership Grid is intended to help vendors as they position
themselves in the market via marketing messages and activities.
Definition of Leadership Grid Parameters

The Leadership Grid has been constructed along two axes: alignment
with market needs and ability to gain market share. The axes are
intended to be treated separately. Thus, poor alignment with market
needs has no bearing on how well a service provider is positioned to
gain market share.
Opportunity Alignment (X-Axis)
This axis communicates how well a service firm has aligned its
services with the market need. In measuring a service providers
alignment with market needs, IDC evaluates a vendors ability to set
standards, its market share, its potential for market dominance, and
its services breadth.
Ability to set industry standards. Vendors were measured based

on their ability set the standards within the services industry.
Considered were dynamics such as the vendors expertise within
vertical industries, cutting-edge solution development for
clients, and thought leadership.
Market share. IDC evaluated vendors by their aggregate revenue

in the solutions services market as defined by IDC.
Potential for market dominance. This measurement relates to a

vendors potential to increase revenue and thus gain market
share and overall market positioning.
Services breadth and depth. Driving the services market is the

need to integrate projects with other IT systems and business
needs. To do this effectively, established service firms need to
offer a full set of end-to-end services in order to be aligned with
market need. The established vendors ability to do so internally
and with partnerships is measured.
Ability to Gain Share (Y-Axis)

This measure illustrates a companys ability to gain market share
based on a broad qualitative averaging of a vendors brand
recognition, its ability to manage across solutions services, and the
effectiveness of a collaborative selling model.
A IDC
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Figure 2
IDCs Leadership Grid: Solutions Services Market
High
Niche
Leadership
Accenture
KPMG
IBM GS
CGE&Y
PwC
Andersen
Ability to Gain Share
Deloitte
EDS
Low
CSC
Unisys
Legacy
Crisis Potential
Low
Opportunity Alignment
High
Source: IDC, 2001
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Brand recognition. The level of customers familiarity with

certain vendors contributes to a vendors ability to gain share.
Thus, based on IDCs ongoing quantitative and qualitative
research, IDC evaluated a services providers brand recognition.
Ability to manage across solutions services. The shifts in the

solutions services market demand that service providers bring
together resources from separate functional groups to provide
holistic solutions to their clients. Thus, vendors were measured
on their overall solutions services strategy as well as their joint
service delivery method.
Effectiveness of collaborative selling model. Going forward, there

is no question that a unified sales model will become the most
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A IDC
crucial factor in a service providers ability to gain share. IDC

assesses the level to which service firms utilize various mechanisms
and measurements to ensure a collaborate selling model.
Position of Solutions Services Firms

The following section provides a qualitative analysis of each services
firm in the IDC Leadership Grid and summarizes each service firms
competitive position. A detailed profile of each services firm appears
later in this report.
IBM Global Services
IBM Global Services (GS) is well positioned to capture market share
based on its strong brand recognition and its depth and breadth of
services, both within the Business Innovation Services unit and its
other lines of business. IBM GS recognizes the areas in which it
needs to bolster its capabilities and has taken steps to do just that, as
evidenced by its recent acquisition last spring of Mainspring
Consulting, a strategy boutique. At the same time, IBM GS heritage
in systems integration and outsourcing will bode well for the
company as clients increasing look for vendors to complete the
services continuum.
Accenture
Despite Accentures recent name change earlier this year, the
company continues to enjoy strong brand recognition. Accenture has
continued its path as a thought leader, particularly within the CRM
services and SCM services arenas. The companys strong consulting
heritage plays to its favor due to the current market dynamics.
Accentures outsourcing capabilities is an area of strategic investment
for the company and one that can nicely round out its services
capabilities and diversify its revenue streams. Accentures challenge
will be to smoothly transition to its new status as a public company.
PwC brings strong brand recognition with it to the solutions services
market. The company is able to bring a solid blend of consulting and
technical skills to the table. PwCs biggest challenge may be in
understanding just want its next step will be. While many of its
competitors have either spun off from their auditing parents and gone
public or merged with public companies, PwCs preoccupation with
its next step could cause it to lose momentum. Nonetheless, the
companys thought leadership and track record serve it well.
EDS
EDS alignment with the market opportunity can be attributed to its
full-scale service offerings across its four major service lines. EDS has
also gained momentum over the past few years in its E.solutions
business, particularly as it has more clearly articulated its relationship
A IDC
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with A.T. Kearney. EDS challenge will be to further enhance its brand
in order to gain market share from its competitors.
KPMG Consulting
KPMG Consulting is well aligned with the ability to gain share due
to the companys progressive strategy in managing its solutions
services portfolio as well as its foray into the outsourcing business, a
move that may be instigated by its new status as a public company.
However, KPMG has lost considerable strength overseas in going
public. It is now trying to make up lost ground, and this loss could
pose a challenge for the company going forward.
With CGE&Ys integration complete, the firm is able to more
effectively execute and combine its strengths in systems integration
from Cap Gemini with its consulting abilities at Ernst & Young. The
firm has made progress in communicating its new brand, but it still
lacks somewhat in this area behind its U.S. competitors. Conversely,
CGE&Ys presence in Europe may give it an advantage in the
emerging mobile technology and services areas.
Deloitte Consulting
IDC believes Deloittes renewed momentum from its internal
reorganization as well as its marketing initiatives may benefit the
firm in the future and allow it to gain market share. Deloitte has a
strong and flexible structure that allows it to more effectively deliver
joint engagements to its customers.
CSC
CSC has strong technical capabilities but continues to have less
brand recognition than its competitors, and it is more known for its
strong heritage in outsourcing than consulting. However, the
companys recent reorganization, although somewhat late, may help
give the company the focus and clearly articulated message it has
needed over the past few years.
Unisys
Unisys position reflects the companys gradual progress within the
solutions services market. At times plagued by its hardware heritage,
the company lacks a certain brand cache in the solutions services
space. However, the company bring strong vertical expertise that will
be an asset as it further develops its capabilities and demonstrates its
value to clients.
Andersen
Although Andersen has strong business consulting capabilities, the
company lacks the full-scale services offerings of its larger
competitors. Andersen is also somewhat hampered by its lack of
brand recognition or even confusion, having been associated with
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A IDC
Accenture, formerly Andersen Consulting, and recently switching its

name from Arthur Andersen to simply Andersen.
A IDC
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Recommendations and Conclusion

Conclusion
The solutions services market is undergoing change. Driven by
companies needs for a fully integrated approach to the enterprise,
service providers are enhancing their consulting capabilities,
targeting high-growth vertical industries, and delivering projects
jointly more than ever before.
While these enhanced client demands may pose challenges for
services firms that aim to execute effectively on a global basis, it also
presents opportunities for firms to leverage, consolidate, and
reorient their service offerings, best practices, methodologies, and
expertise into tangible results.
Recommendations
To gain market share and align with market opportunities in the
solutions services market in the future, IDC recommends the
following:
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Strike a balance between specialization and being a full-service

provider. There is no doubt that clients expectations of service
providers have skyrocketed. Not only are service providers being
asked to fully understand their clients businesses, but they are
also required to have a wide range of service capabilities along
the services continuum. In order to strike and maintain this
balance, IDC recommends the following:
Implement vertically focused marketing initiatives. While

the overall brand identify of a firm is critical to its ability to
enhance it market position, it is also increasingly important
to tailor different messages to various audiences. By
targeting specific vertical industries in its marketing
campaign, service firms may be able to more effectively
demonstrate detailed business process knowledge and better
measure itself against the competition within a specific
vertical.
Build or partner for full-service capabilities. IDC

recommends demonstrating and emphasizing the companys
depth of service offerings to clients. IDC believes the trend
toward aggregated service delivery will continue in the
solutions services market and recommends that those
service providers without service capabilities across the
design, build, and operate phases aggressively pursue them
by acquisition or partnership. For some firms that have an
outsourcing background, this may mean developing
consulting capabilities while others with a consulting
background may do the reverse. Although these may be
competing business models, the former emphasizes
technology operations with less people while the latter is
dependent on a highly skilled labor pool. IDC believes those
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A IDC
firms that are able to diversify across these areas will be best
positioned in the future in the solutions services market.
A IDC
Develop skill sets of experts and generalists. IDC

recommends that firms pursue targeted recruiting
campaigns in order to complement those skill sets that may
be lacking. At the same time, IDC believes the role of the
generalist should not be overlooked. There may be a
significant role for these individuals who are able to look
across numerous areas to identify opportunities rather than
those who are so focused solely on their area of expertise.
Maintain a dynamic organizational structure. IDC recommends

adopting a more flexible organizational structure around
particular themes. This may be similar to some of the
structures already in place by Deloitte Consulting and IBM
Global Services, which have oriented their offerings around the
themes of buy, supply, and inside. While one could argue
this may be transparent to the client and thus irrelevant, the deemphasizing of such marketing-related terms as CRM and SCM
may assist in getting to the heart of the matter. Similarly, as
KPMG Consulting is attempting, a more integrated approach
may result in increased efficiencies, better utilization of
consultants, and, ultimately, an increase in revenue.
Put systems in place to accurately track joint opportunities.

While it may have been easier a few years ago to identify and
resource opportunities by discrete areas, it is now a challenge
given the nature of joint engagements. Thus, IDC recommends
that service providers further invest in or optimize their own IT
systems that can accurately measure the opportunities in a
particular area and monitor pipeline generation across service
areas and geographies. Without these mechanisms in place,
opportunities may be obscured and resources inefficiently
allocated.
De-emphasize solutions terminology. Although IDC

acknowledges that the quest for solutions is a noble one, IDC
recommends that service providers tone down the use of such
terminology. Its continual use and omnipresence have diluted its
exact intent (i.e., to be a competitive differentiator).
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Profiles
Each company listed in this report has a section covering the
following topics as they pertain to their solutions services portfolio:
Company overview
Solutions services portfolio
Service offerings
Revenue
Vertical industries
Strategy
Marketing and sales
Service delivery
Partnerships
The following 10 companies are profiled:
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Accenture
Andersen
CSC
Deloitte Consulting
EDS
IBM Global Services
KPMG Consulting
Unisys
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A IDC
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Accenture
Overview
Accenture is a management and technology consulting organization
that earned revenue of $11.44 billion in fiscal 2001 and employs
more than 75,000 people in 46 countries. The firm delivers a broad
range of services and solutions through its network of businesses,
including its consulting and outsourcing businesses, its operating
companies, and its alliances and investments in new ventures.
Accentures long-term quest for independence from its former
parent company, Andersen, culminated in the companys debut on
the New York Stock Exchange in July 2001.
Accenture goes to market through five global market units, which
together comprise 18 industry groups. More than half of Accentures
clients are Fortune Global 500 companies. Table 3 summarizes key
data for the company.
Table 3
Accenture Key Corporate Data
Category
Data
Founded
1989
Headquarters (key locations)
New York, London, Tokyo
Office locations
110 in 46 countries
Number of services employees
75,000
FY01 worldwide services revenue
$11.44 billion
Source: IDC, 2001
Solutions Services Portfolio

Accenture currently has eight major services lines through which it
delivers business and information technology solutions. These
services lines are as follows:
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Strategy & Business Architecture. This practice provides a

variety of strategic planning and design services.
Customer Relationship Management. The practice focuses on

helping companies increase the value of their customer
relationships.
Human Performance. This practice provides services to help

clients solve human performance issues, such as recruiting and
motivating employees. It also develops outsourced processes and
training.
Finance & Performance Management. These services provide

consulting regarding the design and structure of the finance
function.
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Supply Chain Management. This practice helps clients optimize

their supply chains and supplier and business partner networks.
Technology Research & Innovation. This group researches and

commercializes solutions using new and emerging technologies.
Solutions Engineering. This practice focuses on designing,

building, and deploying complex solutions that, in many cases,
integrate business processes and technology.
Solutions Operations. This practice provides a range of

outsourcing solutions for managing technology infrastructure,
applications, and business processes.
Accentures KM services capabilities are part of its Human

Performance service line, which focuses on workforce
transformation, such as elearning and collaboration and
communities. ERM services and ecommerce services fit within
Accentures Solutions Engineering group.
According to Accenture, the firm is currently experiencing strong
demand in a few areas: marketing services, ucommerce (i.e.,
ubiquitous commerce), and enterprise application integration (EAI)
services. The growth in EAI services can be attributed largely to the
need to tie together disparate legacy and packaged applications as
well as the demand to Web-enable legacy systems to support
ebusiness initiatives.
IDCs estimates for Accentures CY00 revenue in the five areas
tracked by IDC are depicted in Figure 3.
Figure 3
Accentures Revenue by Solution Service, 2000
Source: IDC, 2001
A IDC
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Accenture delivers its services through five global market units,

which further breakdown into 18 industry groups. Accentures five
global market units are as follows:
Communications and high technology
Financial services
Products
Resources
Government
Strategy
Accenture has witnessed several shifts in its clients demand over the
past few years. First, clients are focusing on deeper relationships
with service providers as they implement mission-critical business
processes and technologies. Clients are turning to service providers
as advisors while they undergo significant transformations to their
businesses. Furthermore, clients are looking to service providers for
capabilities throughout the services life cycle, from business strategy
and processes to operations.
Accenture acknowledges that the shift in clients demands now
requires joint service delivery across its service lines. For example, it
is quite common for any client engagement to now include
capabilities from three to five service lines. While the company sees
synergies between its CRM services and SCM services practices, it is
committed to managing these areas separately in order to properly
manage skill sets and distinct business process requirements.
Marketing and Sales

Accenture uses the terminology solution within its marketing
strategy in order to simply convey the message that Accenture is
dedicated to helping clients solve their business problems. Solutions
may cut across any of Accentures eight service lines. These
solutions also possess a number of services capabilities and consist
of an industry-specific context.
Accenture has client relationship partners dedicated to client
accounts. The role of these individuals is to bridge the clients needs
with Accentures range of services to develop a solution for the
client. While these individuals possess specific industry and
functional expertise, their primary responsibility is to shape a
holistic solution for the client.
Service Delivery
According to Accenture, the firms client-oriented culture has
contributed positively to its joint engagement delivery. In addition,
its single, consistent methodology across multiple disciplines, its
large knowledge base, and its strong technical capabilities combine
to create an effectively networked organization.
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Accentures newer employees receive broad foundation training so

that they may gain exposure to other areas before deciding where to
specialize. Thus, Accenture prefers its consultants to develop deep
expertise in a particular area rather than be a group of generalists.
Partnerships
Table 4 lists some of Accentures key partnerships and alliances.
Table 4
Accentures Key Partnerships and Alliances
Solutions Service
Partnerships
CRM services
Siebel Systems, Kana, AKQA, Blue Martini, Seisint
KM services
Docent, Corporate Yahoo!, Indelig, Workbrain, SAP Portals
eCommerce services
Broadvision, Calico, Vignette
SCM services
Commerce One, Ariba, i2, Yantra
ERM services
PeopleSoft, SAP, Oracle
Other
Microsoft, Hewlett-Packard, Sun Microsystems, Avanade,

Novient, SeeBeyond, Imagine Broadband Limited,
epeopleserve, ICG Commerce
Source: IDC, 2001
A IDC
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Andersen
Overview
Founded in 1913 as Arthur Andersen, the firm announced that as of
March 5, 2001, it would be known simply as Andersen. As a
consulting firm that aims to plan and develop solutions that create
organizational value, Andersen employs over 88,000 people in more
than 380 offices worldwide. While Andersens total revenue for FY01
was $9.3 billion, its Business Consulting practice contributed
approximately $1.7 billion of total revenue and has more than
11,000 employees.
Andersen is committed to keeping its consulting and tax and audit
businesses together, despite potential SEC resistance, and it has not
indicated that it plans to go public or separate its businesses like
several of its competitors did. Table 5 summarizes key data for the
company.
Table 5
Andersen Key Corporate Data
Category
Data
Founded
1913
Headquarters
Chicago, Illinois
Office locations
380 worldwide
Number of Business Consulting employees
11,000
FY01 worldwide Business Consulting revenue
$1.7 billion
Source: IDC, 2001

Andersens Business Consulting practice consists of the following
two major lines of business:
Enterprise Solutions
Market Solutions
According to Andersen, the primary focus of Enterprise Solutions is

inside the enterprise, such as HR, finance, and operations. The focus
of Market Solutions is outside, as in a clients relationship with its
partners, suppliers, and customers. Andersen is also investigating
the emerging area of mobile services, determining where it will fit
into its mix of service offerings.
A further description of these two lines of business is as follows:
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Enterprise Solutions
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A IDC
Enterprise Applications. Solutions related to information

technology strategies, selection, and implementation of
enterprise resource planning (ERP)
Finance and Operations. Solutions related to the innovation

and transformation of the finance function
Strategy, Organization, and People. Solutions related to the

executive suite and business unit management, in the fields
of strategy, organization, change, and people
Market Solutions
Customer & Channel. Solutions related to the evaluation,

design, and implementation of processes and technologies
for customer management activities
Supply Chain. Solutions related to the evaluation, design,

and implementation of supply chain strategies, processes,
and technologies
Technology Integration. Solutions that link the consulting

services by integrating the applications that support
individual client processes, such as CRM, supply chain, and
ERP
Until recently, the Business Consulting practices lines of business

also included Strategy and Value Solutions, which had four distinct
offerings: Strategy Development, Economic Consulting, Intellectual
Asset Management, and Claims & Disputes. Strategy development
was moved to the Enterprise Solutions line of business to be better
aligned with the Strategy, Organization, and People solution. The
remainder of this line was moved to Andersens Audit & Business
Advisory practice in order to fully leverage the complementary skill
sets that existed in that unit.
IDCs estimates for Andersens CY00 revenue in the five areas
tracked by IDC are depicted in Figure 4.
Andersens primary go-to-market vertical industries are:
A IDC
Products
Energy and utilities
Technology, media, and communications
Financial services
Pharmaceuticals, biomedicine, and health
Real estate and hospitality
Government services
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Figure 4
Andersens Revenue by Solution Service, 2000
Source: IDC, 2001
Strategy
Andersen acknowledges the thin walls that exist between its various
services offerings within and between Enterprise Solutions and
Market Solutions. Andersen has traditionally gotten its bread-andbutter from high-end, business process consulting, and it continues
to do so. As a result, Andersen has benefited from clients need to
realize the business value of IT investments.
Conversations with clients now extend across the enterprise and are
reflected in Andersens flexible solution service delivery, the
cornerstone of which is its market integration strategy. Andersen is
committed to its current organizational structure and will keep its
service offerings distinct in order to leverage the expertise of its
consultants.
Andersen believes it derives a competitive advantage from its
relationship with the other three practices that make up Andersen,
namely the following:
Audit & Business Advisory
Tax, Legal & Business Advisory
Global Corporate Finance
Contrary to many of its competitors that have spun off from their
auditing arms over the past few years either to merge with
another company, like Cap Gemini Ernst & Young, or to spin off and
go public, such as Accenture and KPMG Consulting Andersens
Business Consulting practice is committed to its relationship with
Andersen.
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By leveraging Andersens other practices, the Business Consulting

practice feels it is able to provide more valuable business insight to
its clients. For example, Andersen is working with a North American
led firm that has a supply chain issue in Brazil. Andersen is
providing supply chain expertise as well as advice on dealing with
taxation issues.
Marketing and Sales

Andersens current iteration of its go-to-market strategy and its
support of internal organization is a reflection of the changing needs
of its clients. Specifically, during the 1980s, the focus of client
engagements revolved around a functional or process area. In the
1990s, the focus turned to business integration (i.e., integrating
separate functional areas to operate as a cohesive unit). In 2000, the
emphasis has been on enabling different organization to work
together, or what Andersen calls Market Integration, which is the
foundation of its strategy.
Service Delivery
In light of its practice of managing across different solution services
areas, Andersen believes in creating deep skill sets in certain areas in
order to maintain a competitive advantage. Although a consultants
primary focus is in his or her area of expertise, consultants have a
high-level understanding of Market Integration as well.
To facilitate collaboration across the service areas, Andersen has
both group- and individual-level measures. This ensures that
partners are motivated to meet their own revenue goals as well as
those of their counterparts in the other service practices.
Partnerships
Table 6 lists some of Andersens key partnerships.
Table 6
Andersens Key Partnerships
Solutions Service
Partnerships
CRM services
Siebel Systems, Blue Martini
KM services
Microsoft, Vignette
eCommerce services
Vignette, IBM
SCM services
Ariba, i2 Technologies
ERM services
SAP, Oracle, J.D. Edwards, PeopleSoft
Other services
IBM, Sun, Microsoft
Source: IDC, 2001
A IDC
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Overview
Cap Gemini Ernst & Young is a global IT services company that was
formed as a result of Cap Geminis acquisition of Ernst & Young
Consulting in May 2000. The two companies have combined FY00
revenue of $7.75 billion, or 8.45 billion euro (based on the 2000
average exchange rate of 1 euro = $1.09), and employ about 60,000
people. Its global reach includes offices in more than 30 countries.
Its client base contains two-thirds of global Fortune 500 companies.
Cap Gemini Ernst & Young is a publicly traded company. It is traded
on the Paris Bourse, and its symbol is CAP. Table 7 summarizes key
data for the company.
Table 7
Cap Gemini Ernst & Young Key Corporate Data
Category
Data
Founded
2000
Headquarters
Paris, France
Office locations
Over 30 worldwide
60,000
$7.75 billion
Source: IDC, 2001

CGE&Ys four major service lines are listed in Figure 5. These four
service lines are further segmented, as shown in Table 8.
The New Market Group focuses on incubating service offerings in new
markets that eventually become standalone offerings. Mobile
commerce is an example of a service that will eventually be embedded
into all of CGE&Ys service lines. The B2B Marketplaces service will
merge with its Supply Chain service, a trend validated by the
convergence of these two areas in the market. Lastly, its DareStep
practice is focused on usability and user experience and will be rolled
into its CRM services line, although it will maintain its brand name.
In 4Q01, the company will identify and formalize new areas of
development that will be incubated in the New Market Group.
IDCs estimates for CGE&Ys CY00 revenue in the five areas tracked
by IDC are depicted in Figure 6.
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Figure 5
Cap Gemini Ernst & Youngs Service Line and New Market Groups Revenue Share, 2001
Source: CGE&Y, 2001
Table 8
Cap Gemini Ernst & Youngs Service Line and New Market Groups, 2001
Business Consulting
and Systems
Technology
Outsourcing
Strategy and New Market Groups
Customer Relationship
Management
Technology Consulting
Application Management
Strategy and Transformation
Supply Chain
Advanced Development
and Integration
Infrastructure
Management/BPM
New Market Groups:
Support Services
Network Infrastructure Services
B2B Marketplaces
DareStep User Experience
EEA/ERP
Mobile Commerce
Source: CGE&Y, 2001
CGE&Ys primary vertical industries are as follows:
A IDC
Financial services
Telecom media networks
Consumer products, retail, and distribution
High technology and automotive
Healthcare, public sector, and other services
Life sciences and chemicals
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Figure 6
Cap Gemini Ernst & Youngs Revenue by Solution Service, 2000
Source: IDC, 2001
Strategy
A fundamental change in CGE&Ys approach over the past 18
months has been a shift from discrete service offerings to a more
holistic portfolio. The focus has turned toward the linkages across
its service lines for several reasons. The first is driven by an increase
in value to clients, who are now demanding services across the
portfolio and within it. As a result, CGE&Y has increased its internal
collaboration and cross-service line delivery, which ultimately allows
it to be more effective and to presents one face to the customer.
Although CGE&Y has witnessed a merging of supply chain services
and CRM services in the marketplace, it is committed to operating
these two services closely but not as one unit. CGE&Y sees more
blending at the technical level, such as common application
architectures, rather than at the business level. Therefore, it believes
a delineation between the two is necessary for staffing purposes in
order to ensure that the necessary specialist experience and content
is delivered on engagements.
Marketing and Sales

At Cap Gemini Ernst & Young, a solution addresses a business issue
by bringing together the appropriate service offering and industry
expertise. A solution does not end after the identification of a
problem, but rather it is tracked until a problem is solved.
CGE&Y believes it differentiates itself by starting at the strategic
level with its clients and intertwining the technology and strategy
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A IDC
together in a continually iterative approach to implement a

successful business transformation. Furthermore, CGE&Y also has
strong internal knowledge management and elearning capabilities
that allow it to effectively disseminate information and best practices
on a global basis.
Service Delivery
CGE&Y currently has discrete worldwide practice leaders in each of
its major services, such as a global director of CRM services and
supply chain services. In addition, the company has lines of business
that are integrated across the major areas. These executives are
chartered with business development for the practice and focus not
only on identifying discrete opportunities but also on those that
foster the linkage to other areas as well.
CGE&Y has designed its service portfolio to highlight the linkages
between the service offerings; engagement teams are challenged to
look more broadly across the portfolio and identify areas to increase
value in how they are addressing the client business issue. However,
according to CGE&Y, one of the challenges in this approach is
ensuring that consultants are aware of the breadth of offerings
available in a rapidly changing environment. Although hard
measures are difficult to track in this area, engagement teams are
encouraged to continually review their projects to identify areas of
additional client value.
CGE&Y has common global standards and project management
methods for delivery in a platform called DELIVER. Within these
standards each consultant is trained to suit their level of expertise
and skill focus, for example, ERP implementation or architecture
design. In addition to specific skills, consultants receive awareness
training for other key skills pertaining to their particular
engagement or service offer to ensure they can link effectively across
the project teams. Webcast awareness and training sessions are
widely used by the service line teams to share lessons learned from
successful engagements.
Partnerships
Table 9 lists some of Cap Gemini Ernst & Youngs key partnerships.
A IDC
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Table 9
Cap Gemini Ernst & Youngs Key Partnerships
Solutions Service
Partnerships
CRM services
Siebel Systems
KM services
Microsoft
eCommerce services
Broadvision, ATG, iPlanet, BEA, SAP Markets, IBM
SCM services
Commerce One, i2, Manugistics
ERM services
Oracle, mySAP.com, PeopleSoft, J.D. Edwards
Other
Cisco, Sun, Microsoft, IBM
Source: IDC, 2001
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A IDC
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Computer Sciences Corporation

Overview
Founded in 1959 and headquartered in El Segundo, California,
Computer Sciences Corp. (CSC) offers a broad array of professional
services to clients in the global commercial and government
markets. Its service offerings include outsourcing, systems
integration, and IT and management consulting, among others. CSC
has a long heritage in the public sector, especially within
outsourcing.
CSC is publicly traded on the NYSE under the ticker symbol CSC.
The company had $10.5 billion in revenue in FY01, with about 70%
of it derived from North America and Europe. Table 10 summarizes
key data for the company.
Table 10
CSC Key Corporate Data
Category
Data
Founded
1959
Headquarters
El Segundo, California
Office locations
Over 600 worldwide
68,000
$10.5 billion
Source: IDC, 2001
Solution Services Portfolio
CSC Consultings service offerings are organized around the

Plan, Build, Manage IT life cycle.
This is reflected in Table 11.

Comparing this hierarchy against IDCs tracking of major solutions
services, CSC includes ecommerce services within its Supply Chain
services practice. In addition, CSC recently launched a Knowledge
Management services practice that focuses on the energy industry.
One area in which CSC is investing in order to fill out its strategy is
in the aggregation and extraction of data, also referred to as business
intelligence. CSC believes the ability to clean, aggregate, and analyze
data to make strategic business decisions is becoming increasingly
important. Due to heightened expectations as a result of ebusiness,
clients demand data that is accurate and useful almost immediately.
It is also driving a significant demand for integration in order to
enable the aggregation.
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Table 11
CSC Consultings Services Offerings
Plan
Build
Operate
Fused IT-Business Strategy
Customer Solutions
Web Hosting
Business Strategy for Todays Economy
ERM: SAP, Oracle, PeopleSoft
Outsourcing
Shared Services and Process

Re-engineering
Supply Chain
AVM
IT Management for Mergers

and Acquisitions
Catalyst 4D
Business Intelligence
Enterprise Application Integration (EAI)
Customer Design
Package Implementation
Custom Development
Enterprise Architecture and Performance
Engineering
Organizational Transformation and
Change
Source: CSC, 2001
IDCs estimates for CSCs CY00 revenue in the five areas tracked by
IDC are depicted in Figure 7.
Figure 7
CSCs Revenue by Solution Service, 2000
Source: IDC, 2001
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Primary vertical industries for CSCs Consulting group are as

follows:
Financial services
Information, communications, and entertainment (ICE)
Energy
Products and emerging markets
Healthcare, including payer, provider, and life sciences
Strategy
CSC recently underwent a restructuring of its solutions offerings. In
order to more articulately streamline its message to clients as well
as make it easier for its sales force to sell these solutions by industry,
CSC dramatically reduced and simplified its packaging of solutions.
As a result, it now has less than 20 solutions and has trimmed down
its vendor alliances as well. Within these broad families, clients are
able to drill down by industry. CSC will be undertaking a solidified
marketing campaign by vertical industry.
According to CSC, the restructuring of CSCs service offerings was
intended to underscore CSCs value proposition in assisting clients
in the intelligent use of technology to support their business
agendas. As a result, CSC is positioned to support its clients through
the entire Plan, Build, Manage IT life cycle, as shown in Table 11.
The broad solution families continue to include CRM services, SCM
services, and ERM services. The synergies among these areas can be
leveraged, such as the sharing of assets, methodologies, and
architectures. The clients entry point is increasingly becoming
blurred, and CSCs internal organization is thus transparent to the
client as it should be.
Marketing and Sales

CSC goes to market by vertical industry but organizes around broad
solution families, such as SCM services or CRM services, and
combines this with distinct services offerings. The components of a
solution may include any of the following:
A four-step process to approach client engagements: Discover,

Design, Develop, and Deploy.
Particular skill sets
A specific set of problems
Industry expertise
Methodology
By CSCs definition, a solution is much larger in scope than only a

niche offering and may encompass various services across the
continuum.
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Service Delivery
A typical client engagement team at CSC may include a wide range
of consultants that possess diverse skill sets. For example, it could
include individuals that have strong business, technical, or change
management skills. The majority of skill sets tend to be those that
have deep knowledge of the application.
The leader of a service offering may be compensated by the quality of
service delivery, practice utilization, and relationships with vendors
as well as the solution mix. This is supported by the sales force,
which is compensated by cross-selling solutions.
Partnerships
Table 12 lists some of CSCs key partnerships.
Table 12
CSCs Key Partnerships
Solutions Service
Partnerships
CRM services
Siebel Systems, Kana
KM services
Plumtree
eCommerce services
Broadvision, iMany
SCM services
Commerce One, AtlasCommerce, Menerva,

iMany
ERM services
Oracle, SAP, PeopleSoft
Other
Sun/iPlanet, BEA, SeeBeyond, IBM,

WebMethods, Documentum
Source: IDC, 2001
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Deloitte Consulting
Overview
Deloitte Consulting is the consulting and IT services division of
Deloitte Touche Tomatsu (DTT), the professional services firm
delivering assurance, advisory, tax, and consulting services. Founded
in 1996 as a business unit of DTT, Deloitte Consulting offers
strategic consulting and systems integration services to Fortune
1000 clients, particularly in the areas of collaborative commerce,
CRM, supply chain, ERM, and etransformation.
Deloitte Consulting has not indicated any plans to separate from
DTT. DTT believes it is much stronger together than apart and
intends to leverage the synergies between its consulting and
auditing practices. Table 13 summarizes key data for the company.
Table 13
Deloitte Consulting Key Corporate Data
Category
Data
Founded
1996
Headquarters
New York
Office locations
700 worldwide in 130 countries
30,210
$5.9 billion
Source: IDC, 2001

Deloitte organizes its services offerings as follows:
Sell side
Inside
Buy side
Outside
Exchanges
These service groupings are further broken down, as shown in

Table 14.
IDCs estimates for Deloitte Consultings CY00 revenue in the five
areas tracked by IDC are depicted in Figure 8.
Deloittes primary verticals are as follows:
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Financial services and insurance
Discrete and process manufacturing

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Telecommunications, broadcast, and other communications
Healthcare
Government
Retail
Table 14
Deloitte Consultings Service Lines
Sell Side
Inside
Buy Side
Outside
Exchanges
eCRM
Core ERP
competencies
eProcurement
BPO and ITO

outsourcing
Collaborative commerce
Multichannel integration
Enterprise portal
eSupply chain
ASPs
Technology and process

infrastructure
Total customer experience
Employee self-services
Source: Deloitte Consulting, 2001
Figure 8
Deloitte Consultings Revenue by Solution Service, 2000
Source: IDC, 2001
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Strategy
About two years ago, Deloitte underwent some fundamental changes
to its business in order to compete more effectively, especially
among smaller, more nimble competitors. Some of the actions that
Deloitte undertook included the following:
Creating a mother ship pods structure. Deloitte broke itself up

into autonomous units, with the underlying belief that these
smaller, more flexible divisions would be able to move at the
speed of a start-up.
Developing a dynamic organizational structure. Rather than

keep its more narrowly focused service lines, such as strategy or
systems integration, Deloitte revamped its service lines to be
more dynamic, flexible, and customer-oriented.
Allowing more career opportunities for consultants. As a result

of the mother ship pods structure, consultants were not
confined to their specific area, but rather had more
opportunities to move throughout the various services lines as
well as rotate between the mother ship and the pods.
Motivating employees through reward and recognition. The

firm implemented an ecertification course that required all
employees to know and understand this initiative.
Marketing and Sales

Deloitte launched a major global marketing campaign in July 2001.
Deloittes strategy is twofold. First, it will aim to showcase its
capabilities around strategy and implementation, with an emphasis
on how it will help its clients as opposed to what the firm does.
Second, Deloitte is hoping to portray its personality as a nononsense consultancy by giving an edge and attitude to its message.
Deloittes branding initiative comes at a time of rebranding in the
professional services industry.
Service Delivery
Deloitte Consulting strongly emphasizes collaboration among its
consultants and between consultants and clients, emphasizing that
Deloitte consultants deliver collaboratively with clients rather than
for clients. In this vein, Deloitte Consultings Sell Side practice notes
a shift toward engaging in more risk/reward pricing models with
clients as a means of demonstrating an investment in the client
relationship.
Partnerships
Table 15 lists some of Deloittes key partnerships.
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Table 15
Deloitte Consultings Key Partnerships
Solutions Service
Partnerships
CRM services
Broadvision, Siebel Systems, SAP CRM, PeopleSoft,

E.piphany
KM services
Interwoven
eCommerce services
Vignette
SCM services
Ariba, i2, SAP
ERM services
Oracle, SAP, PeopleSoft, J.D. Edwards
Other
AOL, Hewlett-Packard, IBM, iPlanet, Microsoft, Sun

Microsystems, Sprint, Intira, Navistar, webMethods
Source: IDC, 2001
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EDS
Overview
Plano, Texas-based EDS is a global professional services firm that
provides consulting, systems integration, and outsourcing services
to multinational corporations and governments. In 1995, EDS
acquired A.T. Kearney, a management consulting firm, in order to
complement its full-scale service offerings. EDS currently has four
lines of business: A.T. Kearney, Business Process Management,
Information Solutions, and E.solutions.
Founded in 1962, EDS earned $19.2 in revenue in 2000 and is a
publicly traded company. Table 16 summarizes key data for the
company.
Table 16
EDS Key Corporate Data
Category
Data
Founded
1962
Headquarters
Plano, Texas
Office locations
45 countries worldwide
120,000
$19.2 billion
Source: IDC, 2001

E.solutions, one of EDS four major lines of business, emerged after
the company restructured its business from 40 business units to
four practices in 1999. E.solutions employs over 6,500 consultants
and generated approximately $1 billion in revenue last year.
E.solutions houses IT consulting, integration, and Web-design work
and includes the following practices:
Enterprise consulting
Bluesphere
Digital value chain
These three major areas are further broken down into additional
services, as shown in Table 17.
IDCs estimates for EDS CY00 revenue in the five areas tracked by
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Table 17
EDS E.Solutions Service Lines
Enterprise Consulting
Bluesphere
Digital Value Chain
Industry Consulting
eLearning
Net Applications
Security and Privacy
Services
Messaging and
Collaboration
Supply Chain Management

CRM Services
Program Management
Consulting
ERP Services
Integration Services
Procurement Services
Source: EDS, 2001
Figure 9
EDS Revenue by Solution Service, 2000
Source: IDC, 2001
EDS primary vertical industry groups are as follows:
A IDC
Communications
Energy
Transportation
Financial services
Government
Healthcare
Manufacturing
Retail
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Strategy
EDS is evolving its overall E.solutions portfolio to be organized
along a buy side, sell side, and inside type of model. Whereas buy
side would focus on supply chain services, sell side would focus on
CRM services. Lastly, the inside refers to ERP services to reflect its
focus on internal systems such as finance, accounting, and human
resources. According to EDS, its E.solutions portfolio is a fluid mix
of service offerings that is updated every 9 to 12 months to reflect
the markets needs.
EDS has made significant progress in more fully leveraging the
relationship between A.T. Kearney and E.solutions over the past few
years. Increasingly, these two business units have worked jointly on
engagements, with A.T. Kearney usually focusing on the design phase
and then turning it over to E.solutions for implementation. EDS has
stated that it will go to market both together and separately from A.T.
Kearney, and the sales force is given incentives to reflect this.
Marketing and Sales

At EDS, a solution brings together multiple competencies and
expertise by drawing on any of EDS service lines in order to solve
specific business issues. The most fundamental shift EDS has
witnessed has been the increase in demand for a more holistic
approach to the enterprise. As a result, EDS believes its full-scale
capabilities combined with its strong heritage in outsourcing
provide it with competitive differentiation.
EDS strategy is to enhance one mega-brand for the company on a
global basis through a variety of marketing channels, such as direct
marketing, public relations, advertising, and sales support.
Service Delivery
EDS has what it calls a Client Executive Network that assigns a
client executive to every account. Client executives use a scorecard
to accurately measure the selling across and within service lines.
This scorecard, which was first rolled out in 2000, is standardized
and used on a global basis. The scorecards have been instrumental in
facilitating the cross-selling of services and focus on the portfolio at
the same time.
EDS has also started using principals, or highly skilled business
experts, earlier within the sales cycle. This is a direct response to the
increasing interrelationship between business and technology needs.
In fact, EDS plans to grow its base of principals both organically and
through its recruiting efforts. Part of the function of the principal is
to identify opportunities in other services and ensure their
involvement throughout the sales cycle.
Partnerships
Table 18 lists some of EDS key partnerships.
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Table 18
EDS Key Partnerships
Solutions Service
Partnerships
CRM services
Avaya, Siebel Systems, E.piphany, Chordiant,

NCR
eCommerce services
ATG, Sun, Microsoft
SCM services
i2, Ariba, Commerce One
ERM services
Oracle, SAP, Peoplesoft
Other
Microsoft, Dell, Sun Microsystems, EMC, Cisco

Systems, Akamai, SeeBeyond, webMethods
Source: IDC, 2001
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IBM Global Services

Overview
IBM Global Services offers end-to-end ebusiness services from
strategy, design, and implementation to systems integration and
hosting. IBM Global Services, based in Somers, New York, positions
itself as an integrator of IBMs broad range of capabilities across
services, hardware, and software to help companies of all sizes
realize the full value of information technology.
IBM Global Services generated more than $33 billion in revenue in
2000, which represents more than 37% of IBMs total revenue for
that year. IBM has offices in 160 countries worldwide and is a
publicly traded company. Table 19 summarizes key data for the
company.
Table 19
IBM Global Services Key Corporate Data
Category
Data
Founded
1996
Headquarters
Somers, New York
Office locations
Present in 160 countries
Nearly 150,000
$33 billion
Source: IDC, 2001

IBM Global Services is divided along four main business units:
Business Innovation Services (BIS), Strategic Outsourcing Services,
Integrated Technology Services, and Learning Services. IDC focuses
on Business Innovation Services for the purposes of this report.
The BIS unit consists of the following major practice areas:
Sell & Support
Buy & Supply
Enterprise Resources
eStrategy
eBusiness Integration
These major areas are further broken into additional areas, as shown
in Table 20.
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Table 20
IBM Global Services Business Innovation Services
Sell & Support
Buy & Supply
Enterprise Resources
eStrategy
eBusiness Integration
Solutions Consulting
eMarkets
Package Integration
eBusiness Strategy
and Design
Security and Privacy
Business Intelligence
Supply Chain
Management
Application
Management Services
Business Architecture
Pervasive Computing
Web Selling
eProcurement
Operational
Effectiveness
Knowledge and Content

Management
Mobile Wireless
Orgranizational
Change Management
Microsoft Technologies
Marketing and Interactive

Design
Value Management
Enterprise Application
Integration
Customer Relationship
Management
Mergers and
Acquisitions
Enterprise Application
Development
Infrastructure Performance
and Services
Source: IBM Global Services, 2001
IBM GS has several emerging areas where it is experiencing strong

demand. These areas include Product Life Cycle Management,
eGovernment, eSourcing, Digital Media, and Life Sciences. Once
these areas surpass a certain threshold, they will be formalized as a
standalone service offering and integrated with industry offerings.
IDCs estimates for IBM Global Services CY00 revenue in the five
IBMs primary verticals are as follows:
Finance
Industrial
Distribution
Communication
Public sector
Strategy
A little over a year ago, IBM Global Services consolidated its BIS
service into the five major categories that it uses today. Previously,
its services were standalone and not organized into any categories.
However, the shift in market demand for integrated solutions was
the impetus for IBMs reorganization.
Given customers increasing sophistication, IBMs move was an
attempt to predict the synergistic ways in which its clients would be
asking for solutions. IBM attributes part of its strong growth over
the past year to its more fluid and responsive organizational
structure.
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Figure 10
IBM Global Services Revenue by Solution Service, 2000
Source: IDC, 2001
While Sell & Support, Buy & Supply, and Enterprise Resources
reflect functional areas of an organization, the eStrategy and
eBusiness integration groups consist of distinct consultative and
technical skill sets, respectively. These two groups are most
collaborative by nature and complement the skills sets in the other
areas of BIS.
Marketing and Sales

At the same time that IBM reorganized BIS last year, it also put in
place the role of the client principal. These individuals are
responsible for overall CRM and provide one focal point for IBM
Global Services.
The primary charter of the client principal is to define a clients
needs across IBMs services to orchestrate the necessary functional
and technical skills to bring a clients solution to fruition. The client
principal is primarily measured by customer satisfaction.
According to IBM, the role of the client principal has been
instrumental in increasing responsiveness, IBMs brand image, and
an overall awareness of its capabilities by industry. For IBMs largest
accounts, a managing director is assigned to fulfill a similar role as
the client principal except that the managing directors scope
transcends all of IBMs capabilities, including services, software, and
hardware.
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To IBM, a solution has several components, including the following:
Thought leadership to solve a clients problem
Independent software vendor (ISV) applications
Custom-built software assets
Training and education
Application management services
Industry expertise throughout all solutions
Service Delivery
Where IBM has a critical mass of business, such as with Siebel
Systems, the company trains its consultants to specialize in that
area. Conversely, in emerging and niche areas, consultants tend to
be trained primarily as generalists since it may be harder to dedicate
a large number of staff at that time. Nonetheless, IBM strives to
achieve a balance between depth and breadth of expertise
throughout its service lines.
Partnerships
Table 21 lists some of IBMGS key partnerships.
Table 21
IBM Global Services Key Partnerships
Solutions Service
Partnerships
CRM services
Siebel Systems, Kana
KM services
Tacit Knowledge Systems, Participate.com, Vignette,

Documentum, Microsoft
eCommerce services
Broadvision, Vignette, Interwoven
SCM services
i2, Ariba, EXE, Industri-Matematik (IMI)
ERM services
SAP, J.D. Edwards, Lawson, PeopleSoft, Oracle, Baan, HR

Access, Retek
Source: IDC, 2001
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KPMG Consulting
Overview
KPMG Consulting Inc., the former consulting and systems
integration arm of KPMG International LLP, separated from its
parent in January 2000 and subsequently went public in February
2001. The new company was 80.1% owned by KPMG LLP and 19.9%
owned by Cisco Systems. After going public, KPMG Consulting
bought back shares from Cisco, whose ownership is now at 9.9%.
Headquartered in McLean, Virginia, KPMG Consulting (KPMG) has
more than 9,100 billable consultants located in 18 countries. The
firm offers business advisory and systems integration services along
with the firms industry-specific knowledge to improve business
performance for Fortune 1000 and government clients. Table 22
summarizes KPMGs key corporate and financial data.
Table 22
KPMG Consulting Key Corporate Data
Category
Data
Incorporated
January 31, 2000
Headquarters
McLean, Virginia
Office locations
United States, Argentina, Brazil, Canada,

Columbia, Costa Rica, Guatemala, Ireland, Israel,
Japan, Mexico, the Netherlands, New Zealand,
Nicaragua, Peru, South Korea, and Venezuela
More than 10,000
$2.86 billion
Source: IDC, 2001

KPMG has the following service lines:
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Strategy and business process
CRM
Supply chain solutions
Enterprise solutions
Integration services
Infrastructure solutions
Emerging technologies (such as wireless)
Managed services
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IDCs estimates for KPMG Consultings CY00 revenue in the five

Figure 11
KPMG Consultings Revenue by Solution Service, 2000
Source: IDC, 2001
Numerous changes have been made to KPMGs solutions services

portfolio since 1998, both by vertical industry and horizontal
practices. The highlights of these changes are as follows:
In 1998 and 1999: Integrated the formerly standalone solutions

services of KM and ecommerce into all solutions services.
In 2000: Created a standalone wireless practice to incubate

developing technologies and solutions before integrating them
into all solutions services.
In July 2001: From the external go-to-market perspective,

consolidated the vertical industry lines of business from six to
five, and, in addition, consolidated these verticals into three
internal groupings to leverage resources better.
In July 2001: Began an initiative to integrate the CRM and SCM

services practices to reflect market demands around ERP
extensions.
Strategy
KPMG goes to market in five vertical industries. In July 2001, the
company restructured its solutions model to drive higher impact
and scale from complementary resources into industries and to
achieve tighter alignment between the industry and solution teams.
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The result was to consolidate solution resources into three solution

teams that support the five vertical industries.
The five primary verticals can be further broken down into 22
industry segments, where solutions are driven around segmentspecific issues and market needs. In fact, any given client
engagement may bring together an industry expert as well as
consultants who possess the technical and business process skills
necessary. For example, a solution may originate from CRM
services and the retail industry group. There is a partner-level
sponsor for each industry segment and solution.
Table 23 outlines these vertical groupings.
Table 23
KPMG Consulting Vertical Industries
Vertical Industry Line of Business
Internal Supporting Solutions Teams
Financial services
Service Industry Solutions
Communications and content
Service Industry Solutions
High technology
Product Industry Solutions
Consumer and industrial markets
Product Industry Solutions
Public services
Public Services Solutions
Source: IDC, 2001
In addition to the changes across the vertical industries, KPMG took

steps in July 2001 to integrate its CRM and SCM practices. KPMGs
initiative to merge these previously distinct areas acknowledges the
artificial boundaries that exist between these areas. Clients are
continually asking for an integrated view of the customer, be it an
end user, supplier, or partner, that warrants a joint approach.
KPMGs commitment to combining these practices addresses its
clients business issues and de-emphasizes the industrys marketing
terms, again reflecting emerging market needs. The burden of
integrating two previously distinct practices is alleviated by the
common methodologies, processes, and approaches used in each
practice. The decision was originally made on July 1 and is currently
being rolled out, with the necessary processes, programs, and
delivery frameworks to support it. Furthermore, these two practices
have been operating as a combined entity on numerous client
engagements, which may also ease the integration.
Marketing and Sales

KPMG defines a solution as a set of services wrapped around a
business function or vendor product that results in measurable
business value. Specifically, the solution addresses a clients
industry-specific business needs from business strategy through
implementation. A solution may encompass technology as well as
intellectual capital, templates, people, processes, and software. These
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elements, coupled with industry expertise, culminate in solutions to

its clients.
Service Delivery
KPMGs solution teams work jointly with its industry segment
teams. Consultants receive an overview of the companys solutions
services during orientation, but once consultants are assigned to a
practice they focus on developing expertise in that area. Joint
solutions services delivery is facilitated through blended client
delivery teams and repeatable frameworks and tools that may bring
together skill sets from many service lines.
Partnerships
Table 24 lists some of KPMGs key partnerships.
Table 24
KPMG Consultings Key Partnerships
Solutions Service
Partnerships
CRM services
Siebel Systems, E.piphany, Kana, Comergent, Oracle CRM,

PeopleSoft, Aspect, Portal
KM services
Filenet, Documentum, Miscrostrategy, Intraspect, Interwoven,

Vignette, Informatica, Cognos
SCM services
i2, Ariba, Manugistics, Celarix, MatrixOne, Parametric

Technology, DataSweep, Oracle SCM
ERM services
Oracle, PeopleSoft, SAP, J.D. Edwards, Hyperion
Other
Cisco, Microsoft, HP, Sun, Compaq, IBM, Vitria, Tibco,

webMethods, BEA, Digital Think
Source: IDC, 2001
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Overview
PricewaterhouseCoopers LLP (PwC) was created in 1998 by the
merger of two firms: Price Waterhouse LLP and Cooper & Lybrand
LLP. Headquartered in New York City and London, there are more
than 155,000 partners and staff working in locations in more than
150 countries across six integrated lines of service and 22 industryspecific practices.
PwC provides a full range of business advisory and implementation
services to global, national, and local companies and public
institutions. These services are provided across the six integrated
lines of business: Audit, Assurance and Business Advisory; Business
Process Outsourcing; Global HR Solutions; Management Consulting
Services (MCS); Tax and Legal; and Financial Advisory. In the
Management Consulting service line, PwC delivers its services
through three areas: technology, process, and strategy.
Table 25 summarizes key data for the company.
Table 25
PwCs MCS Key Corporate Data
Category
Data
Founded
1998
Headquarters
New York City and London
Office locations
Present in 150 countries
40,000
$7 billion
Source: IDC, 2001

PwC MCS services can be broken down as follows:
Strategy
Emerging and integrating technologies
CRM
Financial management
Human capital solutions
Supply chain/operational solutions
Applications outsourcing
IDCs estimates for PwCs CY00 revenue in the five areas tracked by
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Figure 12
PwC MCS Revenue by Solution Service, 2000
Source: IDC, 2001
PwCs primary vertical industries are as follows:
Consumer and industrial products
Financial services
Information, communications, and entertainment
Services
Strategy
PwC MCS brings its services to market along functional areas,
geography, and industry. The firm has particularly strong
capabilities and thought leadership within the SCM services and
mobile services arenas. PwC has forged numerous partnerships with
leading vendors over the past few months, such as Hewlett-Packard
and Palm, in order to provide more vertically focused and full-scale
solutions to its clients.
PwC is one of the remaining Big 5 firms that is still part of its
auditing parent. It remains to be seen what PwC MCS next move
will be, and this uncertainty may cause it to lose some momentum
going forward.
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Marketing and Sales

PwC perceives the following to be its key areas of differentiation in
the solutions services market:
Global reach
Breadth of experience and capabilities
Depth of services
Strong partnerships
Proven track record
Service Delivery
A PwC partner is assigned to each client account to manage the
client relationship across PwC service lines. In addition, dedicated
business development and account managers are aligned by both
geographic and industry segmentations.
Partnerships
Table 26 lists some of PwCs key partnerships.
Table 26
PwCs Key Partnerships
Solutions Service
Partnerships
CRM services
Siebel Systems, Broadvision, ATG, E.piphany
KM services
Documentum
SCM services
Ariba, Commerce One, i2, SAP, Manugistics
ERM services
Oracle, PeopleSoft
Other
BEA
Source: IDC, 2001
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Unisys
Overview
Based in Blue Bell, Pennsylvania, Unisys was created in 1986 as the
result of a merger between Burroughs Corp. and Sperry Corp.
Although once predominantly focused on hardware, the company
now positions itself as a provider of ebusiness services, technologies,
and solutions that help customers apply information technology to
seize the opportunities and overcome the challenges of the Internet
economy. This is reflected in its 2000 revenue: a total of $6.9 billion,
with about 70% derived from its services business and 30% from
hardware.
Table 27 summarizes key corporate and financial data for the
company.
Table 27
Unisys Overview
Category
Date
Founded
1986 (formerly from Sperry and Burroughs merger)
Headquarters
Blue Bell, Pennsylvania
Office locations
Over 100 worldwide
37,000
FY00 worldwide
services revenue
$4.7 billion
Source: IDC, 2001
Solution Services Portfolio

Unisys services line, what it calls its horizontal practices, includes
the following:
eCRM
eSCM
Digital strategy and development
These major areas are further broken down, as shown in Table 28.
IDCs estimates for Unisys CY00 revenue in the five areas tracked by
A key investment area for Unisys is in collaborative commerce, and
the company believes this will be at the heart of its future strategy.
Unisys goes to market by the following five primary verticals:
25777
Financial services
Public sector
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A IDC
Communications
Transportation
Commercial/media
Table 28
Unisys Services Offerings
eCRM
eSCM
Digital Strategy and Development
CRM Strategy
eSCM Strategy
Collaboration Strategies
Contact Center Development and

Management
Supply Chain Event Management
Digital Business Design
Partner Relationship Management
eProcurement
Enterprise Portals
Marketing Management
Supply Chain Collaboration
Inter-Enterprise Integration
Supply Chain Integration
J2EE and .Net Development
Supply Chain Planning/Execution
eSecurity
Source: IDC, 2001
Figure 13
Unisys Revenue by Solution Service, 2000
Source: IDC, 2001
Strategy
Unisys strategy is to create discrete practice areas that, once they
reach critical mass, will be embedded in the vertical industry
practices. An example of this is Unisys ERP capabilities, which as a
more mature area is embedded in industry solutions. In addition,
A IDC
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25777
some of Unisys existing horizontal practices are somewhat

embedded in the industry groups.
For example, Siebel, as part of eCRM, has been positioned as a
solution in the transportation vertical as part of a Frequent Flyer
program. Siebel has also been integrated into public sector solutions
for constituent case management.
Unisys has witnessed the growing convergence between supply chain
services and CRM services and is in the midst of transforming itself
to adapt to these changes. Although it currently labels its practices
the generic marketing terms SCM and CRM, Unisys is migrating to a
sell-side and buy-side model. It views its integration capabilities as
the glue that ties all the pieces together.
Marketing and Sales

Unisys has seen a shift from formerly technology-focused solutions
to more business-oriented solutions. This emanates from its clients
overarching operating vision, which is then supported by people,
processes, and technology. Increasingly, Unisys finds itself in
conversations at the C level, and, as a result, it is redefining its
definition of a solution in the clients mind.
Unisys solutions focus on creating value, which may be derived by
shifting away from proprietary solutions toward best-of-breed
solutions, deep vertical expertise, and the integration of these two.
Ultimately, however, the focus is on identifying, executing, and
attaining the bottom-line benefits of IT investments.
Furthermore, Unisys solutions include the capabilities to be a fullservice provider from strategy to implementation and operations. As
clients increasingly look to transfer the risk to service providers,
Unisys feels its full-scale capabilities will provide it with a
competitive edge.
The Unisys customer relationship executive (CRE) has the
responsibility to manage customer relationships and to lead the
team to sell and deliver the Unisys portfolio of solutions through
vertical industries. The CRE is responsible for engaging the
customer and for understanding their business issues, for presenting
the appropriate Unisys e-@ction Solutions and services, and then for
orchestrating and delivering the necessary Unisys resources in
support of the customer from anywhere in Unisys where resource
needs to come.
Service Delivery
Unisys will continue recruiting and training application consultants.
The company offers extensive training to its employees through the
Unisys University, which is supported by a robust infrastructure.
Unisys University includes 10 schools to support the various
business functions with Unisys.
Unisys cross trains entry-level consultants through the use of
Competency Centers that all practices draw upon for client
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A IDC
engagements. As these consultants become more experienced, they

are encouraged to become more specialized and move out of the
Competency Center into specific practices.
Partnerships
Table 29 list some of Unisys key partnerships.
Table 29
Unisys Key Partnerships
Solutions Service
Partnerships
CRM services
Siebel Systems, Avaya
eCommerce services
BEA, Microsoft
SCM services
Optum, Ariba
ERM services
SAP, J.D. Edwards, Lawson, Retek, PeopleSoft, Oracle,

Baan
Source: IDC, 2001
Document #: 25777
Publication Date: November 2001
Published Under Services: Solution Integration Strategies
A IDC
- 65 -
25777

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Table of Contents Continued

Table of Contents Continued

The Shift in Solution Services Market Dynamics ........................................................................ 7

Differences Across the Solutions Services ................................................................................. 13

Accenture Key Corporate Data ................................................................................................... 23

Accentures Key Partnerships and Alliances............................................................................... 26

Andersen Key Corporate Data..................................................................................................... 27

Andersens Key Partnerships ...................................................................................................... 30

Cap Gemini Ernst & Young Key Corporate Data ....................................................................... 31

Cap Gemini Ernst & Youngs Key Partnerships ......................................................................... 35

CSC Key Corporate Data............................................................................................................. 37

CSC Consultings Services Offerings.......................................................................................... 38

CSCs Key Partnerships............................................................................................................... 40

Deloitte Consulting Key Corporate Data.................................................................................... 41

Deloitte Consultings Service Lines............................................................................................ 42

Deloitte Consultings Key Partnerships ..................................................................................... 44

EDS Key Corporate Data............................................................................................................. 45

EDS E.Solutions Service Lines.................................................................................................. 46

EDS Key Partnerships................................................................................................................ 48

IBM Global Services Key Corporate Data................................................................................... 49

IBM Global Services Business Innovation Services .................................................................. 50

IBM Global Services Key Partnerships ...................................................................................... 52

KPMG Consulting Key Corporate Data ...................................................................................... 53

KPMG Consulting Vertical Industries ........................................................................................ 55

KPMG Consultings Key Partnerships........................................................................................ 56

PwCs MCS Key Corporate Data.................................................................................................. 57

List of Tables Continued

PwCs Key Partnerships............................................................................................................... 59

Unisys Overview .......................................................................................................................... 61

Unisys Services Offerings ........................................................................................................... 62

Unisys Key Partnerships............................................................................................................. 64

Solutions Services Portfolio Share by Company, 2000.............................................................. 14

IDCs Leadership Grid: Solutions Services Market .................................................................... 16

Accentures Revenue by Solution Service, 2000 ........................................................................ 24

Andersens Revenue by Solution Service, 2000.......................................................................... 29

Cap Gemini Ernst & Youngs Service Line and New

CSCs Revenue by Solution Service, 2000.................................................................................. 38

Deloitte Consultings Revenue by Solution Service, 2000......................................................... 42

EDS Revenue by Solution Service, 2000 ................................................................................... 46

IBM Global Services Revenue by Solution Service, 2000 ......................................................... 51

KPMG Consultings Revenue by Solution Service, 2000 ........................................................... 54

PwC MCS Revenue by Solution Service, 2000 .......................................................................... 58

Unisys Revenue by Solution Service, 2000................................................................................ 62

Cap Gemini Ernst & Young

IBM Global Services

Utilization of a holistic, integrated approach to the enterprise.

Inclusion of the business owner or C-level executive as a

Emphasis on creating business value through IT investments.

Focus on developing fewer relationships with service providers.

Specialization in vertical industries a must have. One way in

Maintaining transparency to the client. While maintaining

Merging CRM services and SCM services. Corporations are

Utilizing a loose marketing approach to solutions. While

Putting incentives in place to collaborate. Service firms are

Continuing to develop specialized skills. Many of the firms

KM services and ecommerce services tend to be interwoven with

ERM services can be integrated with other functional areas and

Several vendors have organized around broad areas, such as buy,

Almost all vendors go to market by vertical industry.

Strike a balance between specialization and being a full-service