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Charles Sutherland
Chief Research Officer
Charles.Sutherland@hfsresearch.com
Table of Contents
TOPIC
PAGE
Execu?ve Summary
Research Methodology
15
23
27
46
53
Proprietary Page 1
Executive Summary
chain of services developing from service providers which are addressing this poten?ally huge
and transforma?ve technology stack. Unlike other quadrants and matrices, the HfS Blueprint
iden?es relevant dieren?als between service providers across a number of facets under two
main categories: innova?on and execu?on.
n HfS is emphasizing the emerging nature of IoT with 55% of the total Blueprint scoring linked to
n HfS Blueprint Report ra?ngs are dependent on a broad range of stakeholders with specic
weigh?ngs based on 1,109 stakeholder interviews from the 2014 State of Outsourcing Survey
that covered:
Procurement Outsourcing Enterprise Service Buyers
Procurement Outsourcing Service Providers
Procurement Outsourcing Industry Inuencers (sourcing advisors and management
consultants)
HfS Sourcing Execu?ve Council Members with Procurement engagements
HfS Research Analysts with hands-on Procurement knowledge and experience
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HfS denes IoT Services as any service provider engagement directed at developing associated
strategy for enterprise embrace of IoT and / or assis?ng an enterprise gather data associated with a
physical asset and communica?ng that data to a centralized plaeorm for the purpose of deriving
insight into how it may raise opera?onal eciency or increase revenue through the crea?on of new
products or services. The cri?cal star?ng point for most IoT Services engagements is a business
problem or need.
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from consumer applica?ons like Uber and Airbnb to industrial uses such as GEs revamp of the airline
engine business but the current market reality has few enterprises embracing IoT beyond a few core
areas that has been opera?ng in this fashion for years. (Think factory automa?on.) Yet complacency is
to be avoided. HfS has seen a explosion in PoCs during 2015 and expect many of these to go into
produc?on during 2016.
n There is nothing close to a consensus on IoT services. Service providers are approaching the IoT
opportunity from every conceivable angle. Not only is it of an amorphous nature but IoT bridges
mul?ple competencies currently housed within dierent prac?ce lines. Needing to tap engineering,
analy?cs, mobility and cloud, individual service providers are being pragma?c with approaches and this
means each is dening it so that it leads with the most relevant capabili?es.
n Systems Thinking may be the next big skill. The ability to generate and gather data on a broad range of
physical assets and interac?ons will only yield value if the right insight and ac?on can be understood.
Systems thinking combines a mix of art and science that is well suited to this challenge and HfS expects
an up?ck in interest as enterprises look to grasp the opportuni?es available to them via IoT.
n IoT opportuniHes requiring compeHtors to collaborate. Gepng value from IoT means harnessing the
network eect where the value of individual inputs takes on more meaning as the number of inputs
grow, it is IoT. Plaeorms that integrate data from mul?ple sources will be the ones that yield greatest
value. Manufacturers and service providers will need to be open with APIs if the oerings are to be ?ed
into the emerging new web.
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surrounding IoT will drive each to partner with a broader range of companies and as each does it will
heighten its ability to do so well as a key dieren?ator. There is nothing close to a set of IoT standards
today and likely never will be for years as the broad range of sensor, network and data protocols all
make sense within the unique markets for which they have emerged. Therefore, s?tching all this
together quickly will be a key need and it does not make sense for any one rm to develop exper?se in
it all.
n Risk has become a third dimension of go / no-go alongside value and cost. Enterprise buyers are
advised to look at overall risk as a key criteria in the decision whether to pursue a strategy based on IoT.
At a minimum, they need to ensure someone at their rm is taking a holis?c view of risk and security so
as to prevent piecemeal parts of IoT from opening up vulnerabili?es to the en?re company in
unforeseen ways.
n Strategic nature of IoT today limiHng leverage across clients. Most enterprises embarking down the
IoT path see it a strategic whether in increased opera?ng eciency or allowing them to enter new
markets or serve old ones in new ways. As such, enterprises are keeping the ac?vi?es under wraps and
requiring service providers to do the same.
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Research Methodology
Research Methodology
Data Summary
n Tales from the Trenches: Interviews were
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IoT ENABLEMENT
Product engineering
Sensor development
Soiware engineering
Embedded technology
Device security
IoT CONNECTIVITY
Network engineering
Network
implementa?on
Network security
IoT INTEGRATION
Database design and
build
Analy?cs
Implementa?on
System integra?on
IoT MANAGEMENT
Device management
Cloud hos?ng
Network management
Data security
Applica?on
moderniza?on
IoT Services, however, do not include the following ac?vi?es when conducted as a standalone service: deploying or opera?ng analy?cs;
implemen?ng or running a data repository; developing or delivering a network; and crea?ng or maintaining a physical device with the
capacity to create and or / communicate data. Those standalone ac?vi?es would be classied as Analy?cs, Big Data, Network
Implementa?on, and Product Engineering Services, respec?vely.
EVALUATION CRITERIA
Two major factors:
ExecuHon represents service providers
ability to deliver services. It includes but is
not limited to:
Customer sa?sfac?on
Tools and methodologies
Technology exper?se
CRITERIA WEIGHTING
Criteria are weighed by crowdsourcing
weigh?ngs from the four groups that
maher most:
Enterprise Buyers
Service Providers
HfS Research Analysts Team
Advisors, Consultants, and Industry
Stakeholders
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45.0%
15.0%
5.0%
10.0%
20.0%
15.0%
5.0%
10.0%
INNOVATION
55.0%
25.0%
5.0%
10.0%
10.0%
15.0%
15.0%
10.0%
TOTAL
5.0%
100.0%
Proprietary Page 12
How well does the service provider execute on it's contractual agreement and how well does
the service provider manage the client/provider relaHonship?
How engaged are service providers in managing the client relaHonship based on the
following metrics: quality of account management, service provider / client engagement, and
incorporaHon of feedback?
What is the quality level of professional skills in the account management team?
How have service providers taken feedback and incorporated that feedback into oerings?
Does the soluHon provided compare favorably to peers with regard to value creaHon through
current oerings, partnerships, subject mager experHse, and delivery models?
What if any proprietary soiware plaeorms and process structures has the service provider
created to deliver these services?
What if any standard soiware tools and business plaeorms does the service provider u?lized
to deliver these services?
How exible are service providers when determining pricing of contracts? Have the service
providersaligned these terms with the unique demands around IoT projects?
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How future looking is the service provider in terms of aligning itself both in skills and
oerings with the evolving market demand? Is it keeping pace, a fast follower, or leading
the way?
How does the service provider incorporate capability development investments including
acquisi?ons into its strategy and what has been accomplished already?
Partnership Ecosystem
What is the role of partnerships in the development of the service providers solu?on
ecosystem? How extensive is the current partnership ecosystem?
Collabora?on Techniques
How well does the service provider collaborate with clients and partners to develop PoCs into
full scale business solu?ons and IoT oerings?
Does the service provider have a strong vision for services across the IoT value chain?
How well have service providers integrated innovaHve new approaches and emerging skills
and technologies into services? Does it also bring the core technology plajorm to assist an
enterprise deploy the next level of IoT soluHons?
What if any proprietary frameworks does the service provider u?lize to analyze the underlying
business need?
Industry Exper?se
Does the service provider have any industry IoT specic oerings? If so, what are the nature of
these and how far advanced is it in building this area out?
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Simplica)on
AS-A-SERVICE ECONOMY
2. Business Cloud
3. Intelligent AutomaHon
4. ProacHve Intelligence
5. Intelligent Data
6. Write O Legacy
7. Brokers of Capability
8. Intelligent Engagement
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AS-A-SERVICE
IDEAL DEFINITION
Design
Thinking
Business
Cloud
Intelligent
AutomaHon
ProacHve
Intelligence
Intelligent
Data
Write O
Legacy
Brokers of
Capability
Intelligent
Engagement
NON
EXISTENT
INITIAL
EXPANSIVE
EXTENSIVE
2015
2015
2015
2015
2015
2015
2015
2015
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ALL
PERVASIVE
AS-A-SERVICE IDEALS:
Design Thinking
Brokers of Capability
Intelligent Engagement
THE 8 IDEALS OF THE
AS-A-SERVICE ECONOMY:
AS-A-SERVICE IDEALS:
Design Thinking
Business Cloud
Write O Legacy
ENTERPRISE
BRAND BACK OFFICE FRONT OFFICE
EMPLOYEES CONSUMERS
SKILLS CAPABILITIES
1.
2.
3.
4.
5.
6.
7.
8.
Design Thinking
Business Cloud
Intelligent AutomaHon
ProacHve Intelligence
Intelligent Data
Write o Legacy
Brokers of Capability
Intelligent Engagement
AS-A-SERVICE
Commitment to incorporate As-a-Service Ideals into the
Business: Focus of enHre execuHve/business team.
AS-A-SERVICE IDEALS:
Design Thinking
Intelligent AutomaHon
Intelligent Data
ProacHve Intelligence
INFRASTRUCTURE
Underlying technologies and services that support core
operaHonal communicaHons and data: CIO, CISO, CTRO
ENABLING TECHNOLOGY
Service & technology enablers providing data and bridging
the Enterprise Consumer gap: CIO, CTO, CXO, CRO
OMNICHANNEL
Services and ApplicaHons that facilitate the personalized
experience: CMO, CXO, CTRO
CONSUMER ENGAGEMENT
Elements that shape the digital experience across all
plajorms, technologies, channels: CMO, CXO, CCO, CTRO
2015 HfS Research Ltd.
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AS-A-SERVICE ROLES:
CEO: ExecuHve
CMO: MarkeHng
CTRO: Trust/Risk
CIO: InformaHon
CISO: InformaHon Security
CTO: Technology/Product
CXO: Customer Experience
CCO: Client/Consumer
CHRO: HR/Talent
IoT ENABLEMENT
Product engineering
Sensor development
Soiware engineering
Embedded technology
Device security
IoT CONNECTIVITY
Network engineering
Network
implementa?on
Network security
IoT INTEGRATION
Database design and
build
Analy?cs
Implementa?on
System integra?on
IoT MANAGEMENT
Device management
Cloud hos?ng
Network management
Data security
Applica?on
moderniza?on
IoT Services, however, do not include the following ac?vi?es when conducted as a standalone service: deploying or opera?ng analy?cs;
implemen?ng or running a data repository; developing or delivering a network; and crea?ng or maintaining a physical device with the
capacity to create and or / communicate data. Those standalone ac?vi?es would be classied as Analy?cs, Big Data, Network
Implementa?on, and Product Engineering Services, respec?vely.
CONSULTING
ENABLEMENT
CONNECTIVITY
INTEGRATION
MANAGEMENT
Strategic Planning
and Business Case
Development
Product
Engineering
Network
Engineering
Database Design
and Build
Device
Management
Governance
Strategy
Sensor
Development
Network
Implementa?on
Analy?cs Implementa?on
Cloud
Hos?ng
IoT Technology
Roadmap (Reference
Architecture)
Soiware
Engineering
Network
Security
System
Integra?on
Network
Management
Custom App
Development
Embedded
Technology
Applica?on
Moderniza?on
Data
Security
Device
Security
Mature
Compe??ve market with examples of service oerings and customer case studies from large number of service providers
Nascent
Market in development with more limited examples of service oerings and customer case studies
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ENABLEMENT
CONNECTIVITY
INTEGRATION
Accenture
Atos
MANAGEMENT
Key to Services
Maturity on the
Service Provider
Prole Pages
Relies on Partners
Cognizant
Dell
EPAM
Genpact
Harman
IBM
IGATE
Infosys
Luxoq
NiiT
NTT Data
TCS
Tech Mahindra
Tieto
Unisys
Virtusa
2015 HfS Research Ltd.
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EXAMPLES
Aerospace
Connected Car, Insurance Telema?cs, Fleet Management, Connected Ship, Interac?ve Geospa?al Solu?on,
Connected EV Sta?ons, Predic?ve Analy?cs to Reduce Maintenance & Warranty Cost,
Manufacturing
Connected Asset Management, Connected Workers, Remote Diagnos?c & Predic?ve Maintenance for
Industrial Machines, Stolen Asset Retrieval, Transparent Supply Chain, Connected Shopoor
Buildings
Agriculture
Consumer Electronics
Urban Infrastructure
Smart Parking, Smart Light, Smart Bin, Smart Waste, Digital Underground Mapping, Infrastructure
Monitoring, Bridge Monitoring
Connected Healthcare, Health Facility Way Finding, Virtual Care Plaeorm, Pa?ent Engagement Plaeorm,
Connected Pa?ent, Emergency Management
UHliHes
Smart Grid, Smart Metering, Connected Power Plant, Connected Solar Farm, Connected Wind Farm
Connected Mines
BFSI
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WINNER'S CIRCLE:
Organiza?ons that
demonstrate excellence in
both execu?on and
innova?on.
HIGH PERFORMERS:
Organiza?ons that
demonstrate strong
capabili?es in both
execu?on and innova?on
but are lacking in an
innova?ve vision or
execu?on against their
vision.
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OneSource Virtual
Harman
Tech M
Accenture
Cognizant TCS Atos
Infosys
High Performers
INNOVATION
NTT DATA
KPMG
Luxoi
NIIT
IGATE
Genpact
EPAM
Tieto
Virtusa
Dell
Services
Unisys
EXECUTION
2015 HfS Research Ltd.
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EXECUTION
Atos, Harman and Tech Mahindra all cited for their
proprietary delivery models. Many enterprise buyers cite
their IoT ini?a?ves as being strategic for the success of the
rm and many are under signicant pressure to progress
their implementa?ons quickly. Service providers that are
already inves?ng in IoT delivery models, ahead of
engagements, are rapidly gaining the advantage over
those which are relying on clients clients to fund their
investments.
Atos, TCS, Accenture, NTT DATA, and Tech Mahindra
already oer As-a-Service pricing for IoT. IoT enables an
enterprise to experiment with new as-a-Service business
models by shiiing the tradi?onal one ?me product sale to
that of an ongoing subscrip?on built around a promised
outcome / series of outcomes. To support this, ambi?ous
service providers must make bold adjustments to their
exis?ng revenue models, making some short tem revenue
sacrices for the longer term gain in the process.
Cognizant, Tieto, TCS, Infosys, and Dell Services
demonstrate a strong willingness to co-invest with clients
to develop new soluHons. Gepng results in the uncertain
realm of IoT requires enterprises to take considerable
risks. These providers were cited for their strength in
undertaking the journey as well.
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Relies on Partners
Less Mature Services
More Mature Services
Accenture
Winners Circle
Strengths
Challenges
Array of Pricing Models. Oers a full range of pricing from standard custom
solu?on to o the shelf pricing based on relevant industry units (i.e. per
connected device, per end-user, per connec?on to our plaeorm, per
transac?on, per volume of data processed, etc.). This approach enables a low
up front cost and facilitates beher cost control.
IoT Management
Business Overview
Self-declared FTEs: ~1,100
Org Structure:
Accentures IoT prac?ce is run by Craig McNeil
within the Accenture Mobility Prac?ce which is
part of the Accenture Digital Growth Plaeorm.
Delivery Centers:
30% Onshore (US, Europe, and Asia)
70% Oshore (India 55%; Philippines 10%;
Eastern Europe: 5%)
Go To Market
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Atos
Winners Circle
Strengths
Challenges
Siemens Alliance. Siemens owns 15% stake of Atos and the two companies
collaborate closely on a variety of IoT projects. In July 2015, the rms
announced an increase in its joint collabora?on bringing 150M investment,
with much of this going towards R&D around IoT. That coupled with a joint go
to market ini?a?ves means it brings a very strong proposi?on when Siemens
products come into play.
True End To End Provider. Atos provides a full range of services from device
engineering and sensor development all the way through to opera?ng an IoT
as a service for a client rm, with reference clients for each. Addi?onally, Atos
is pursuing a ver?cal IoT strategy developing solu?ons in 10 clear markets.
Business Overview
Go To Market
Target Industries:
Atos ac?vely targets companies of all sizes with its
bespoke oerings and B2B2B or B2B2C opera?ons
with its Worldline oerings.
Aerospace, Transporta?on, Manufacturing
(Automo?ve Industry, Machine Builders &
Home Appliance Manufacturers), Manufacturer
products retailers, Public Sector, Insurance
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Cognizant
Winners Circle
Account Management
Standard Delivery Methods
Partnership Ecosystem
Collabora?on Techniques
Strength of Vision for IoT
Strengths
Challenges
IoT Vision Backed By ExecuHon. Cognizant brings the rare combina?on of thought
leadership with excellence in execu?on. The IoT prac?ce is part of its Digital Works
Technology ini?a?ve the CEO sponsored hub for the rms digital strategy and focus for
investment. The rm has undertaken 40+ successful IoT client engagements.
Smart IoT PracHce Structure Fosters Rapid IoT Development. Opera?ng IoT as a hub
amid spokes of other emerging technology prac?ces such as Social & Mobile, Security,
Cloud, Analy?cs, and Engineering and Manufacturing Services, draws exper?se from each
prac?ce area, without needing to replicate work. This allows it to tap the best, most
appropriate resources rather than work with cap?ve talent, regardless of t. For IoT, with
opportuni?es across many industries, this is the ideal go to market approach.
Willingness To Co-invest With Clients. With the emerging and uncertain nature of IoT,
most enterprise buyers are looking for an IT services provider which can either
demonstrate experience from a similar ini?a?ve or is willing to invest ?me and money
developing solu?ons. Clients regularly cite Cognizants willingness to co-invest.
Strong Account Management. Regularly shows a commitment to listening to client
problems, sugges?ng workable solu?ons, and a willingness to bring in the right partners
to get the job done. This is consistent across many of Cognizants solu?on areas.
IoT Management
Business Overview
Self-declared FTEs: ~300 (plus an addi?onal
300 sourced as needed from other prac?ces.)
Org Structure:
Cognizants IoT prac?ce is run by Adithya
Sastry as part of the Emerging Business
Accelerator program run by Sean Middleton
who reports directly to Cognizants CEO
Francisco DSouza.
Delivery Centers:
20% Onshore (US, UK, Netherlands)
80% Oshore (India)
Go To Market
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Harman
Winners Circle
Strengths
Challenges
True End-to-End Provider. From sensor design to ongoing management, Harman brings
robust capabili?es up and down the en?re IoT stack and has an established track record
in each. In par?cular, product development and life cycle management. Assists not only
in the ini?al consul?ng and implementa?on, but also on an ongoing basis as IoT matures.
Business Overview
Self-declared FTEs ~3,000
Org Structure:
Harman's IoT oerings are not organized
within a stand alone unit but instead are within
a broad range of prac?ce areas found within its
Connected Services division (what used to
comprise the recently acquired Symphony
Teleca).
Delivery Centers:
25% Onshore (US 13%; Germany 6%; and
South Korea 6%)
75% Oshore (India 45%; Russia 20%; China
5%; Poland 5%)
Go To Market
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IBM
Winners Circle
Blueprint Leading Highlights
Proprietary Delivery Models
Acquisi?on and Investment
Strategy
Strength of Vision for IoT
Industry Exper?se
Challenges
Rigid Delivery Model. Some enterprise buyers stated IBM can be strict in
adherence to formal SOWs and while some like this approach as it
eliminates surprises others felt it held back innova?on in areas like IoT
that evolve in needs and deni?on over ?me.
Business Benet CommunicaHon. IBM can suer from business benets
gepng lost in the technology, par?cularly when it goes to market with a
concept like IoT. The messaging around its IoT oerings has not caught up
with the technology, which can impact a clients ability to engage and be
certain to receive the desired outcome.
True End To End Managed Service Provider. Whatever IBM builds, it will
also run and maintain, has the capacity to perform all func?ons to a high
standard and scale to allow it to use any exible pricing model, when
needed.
VerHcal Presence. IBM developed a broad poreolio of industry based use
cases and IoT solu?ons that are relevant to most major client industries.
This breadth is one of the dieren?ators it brings versus High Performers
and other service providers.
Go To Market
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Infosys
Winners Circle
Strengths
Challenges
Engineering Services. Infosys has elevated its engineering services organiza?on to act
as a spearhead for not only IoT but ini?a?ves in Design Thinking, Digital, and a
general As-a-Service push. While this group was always quite capable, its eleva?on to
a more visible role will serve it well in deriving enterprise solu?ons for IoT.
Vision Into Reality. When given clear mandate, enterprise buyers highlight that
Infosys delivers exactly as expected. This means IoT projects will stay on focus and be
executed on ?me. Given all the varia?on and possibili?es that IoT opens up, such
ability to focus is cri?cal today
Seamless Team IntegraHon. The Infosys team is seen as integra?ng incredibly well
into a companys culture and are not consider to be outside resources as these
teams act and make decisions as if the team members were internal associates.
InvesHng Heavily In Repeatable IP. Infosys is inves?ng in IIC and Industry 4.0 with a
focus on Asset Eciency and an understanding of the complexity involved. Not just a
sensor and data but a complex system approach and the investment in reference
solu?ons to quickly spin this up. Demonstrated understanding of the cri?cality of
security in IoT with strong capabili?es within and across the IoT stack.
IoT Management
Business Overview
Go To Market
Target Industries:
Infosys ac?vely targets, but is not limited to,
G2K clients globally.
Core: Discrete Manufacturing, Automo?ve,
Aerospace, Retail, Healthcare, Logis?cs,
Communica?on Providers
Target: Farming, Process Manufacturing,
Public Sector
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TCS
Winners Circle
Strengths
Challenges
Co-Investment. Clients cite TCS ability to go the extra mile in providing upfront analysis and
POCs as a real draw to partnering with them in IoT.
Co-CreaHon. Establishing a Digital Re-imagina?on Center along the lines of MITs Media
Lab, TCS is looking to establish quarter-long collabora?on with clients and prospects in a
dedicated IoT environment that will go well beyond the quick hit PoCs. No other service
provider is yet going to this length to demonstrate co-crea?on. TCS also has a Silicon Valley
Customer Collabora?on Center (SVCCC) for onsite advisory, consul?ng and engagements
with clients.
Industry And Technology Skill Mix. IoT perhaps more than any other emerging technology
area requires a mix of both industry insight and very deep technical skills. TCS brings both in
a way that few if any other service providers can.
IoT Enablement. TCS capabili?es in engineering and other aspects of IoT Enablement are
signicant and are compe??vely dieren?a?ng versus many of the other leading service
providers.
Broad CapabiliHes. TCS is the largest of the Indian oshore outsourcing rms and enjoys the
broadest delivery capabili?es. This adds business process and infrastructure capabili?es
across the broadest set of customers both industry and geography. This gives it a beher
star?ng point for expanding its IoT oers than the other India based service providers.
Business Overview
Go To Market
Target Industries:
TCS targets global enterprises with revenue
over $5B
Manufacturing , Retail, U?li?es , High Tech, Energy &
Resources, Travel & Hospitality, Life Sciences, Healthcare,
Insurance and Telecom Industries.
Proprietary Page 34
Tech Mahindra
Winners Circle
Strengths
Technical Depth. Enterprise buyers frequently report being pleasantly
surprised by the technical depth Tech Mahindra brings to engagements. As
well as robust and thorough understanding of the current points of
connec?vity and process.
Eco-system Approach to Partnering. Tech Mahindra is building an ecosystem
of partners across the dierent IoT areas. Helping to augment its internal skills
and pull together an end to end oer from best of breed partners.
AcquisiHon AmbiHons. With big stated ambi?ons for growth and Digital, it is
likely Tech Mahindra will be in the market to acquire complimentary rms.
Doing so will allow it to augment its exis?ng strength in the most
advantageous of ways.
Investment In PoCs. Repeatedly cited willing to put its own skin in the game
and develop robust PoCs and plaeorms. Buyers indicated this goes well
beyond slideware to actual func?oning architectures that can be quickly
deployed.
Leverage Engagements In Asia. TM has successfully completed almost 40 IoT
projects in Asia giving it experience in designing and implemen?ng a broad
range of projects.
Business Overview
Self-declared FTEs ~450
Org Structure:
Tech Mahindras IoT prac?ce is integrated at
its Digital Enterprise Solu?ons group while the
Industrial IOT through the Product Engineering
group.
Delivery Centers:
35% Onshore (US 20%; UK 15%)
65% Oshore (India)
Challenges
Go To Market
Tech Mahindra uses a mix of alliance and
partner teams, delivery and pre-sales teams,
and geography based sales teams to sell IoT
services
Target Industries:
SMBs to large enterprises with annual
revenues of greater than $5 Billion since we
have solu?ons for all kind of enterprises
including SOHO's
Healthcare, Automo?ve, Telco,
Manufacturing (Discrete and Process),
Aerospace (OEMs, MROs), Energy
(Renewable, O&G), Consumer Goods,
Transport Travel and Logis?cs, BFSI, Retail
Proprietary Page 35
Dell Services
High Performer
Strengths
Robust IoT Product Line. Dell has an IoT OEM group within Client Solu?ons
building core gateways. Dells OEM team provides the go-to-market (Sales)
eort for the gateways. Similarly, its strong data management soiware
(Boomi and Toad) also fuel the pipeline. These various product lines feeds
opportuni?es for Services that go beyond the typical implementa?on and
integra?on role for a Global SI.
Breadth Of Service Capability. IoT creates challenges around remote support
that not many enterprise services organiza?ons have signicant experience
handling. Dell, with its product services, has very strong capabili?es here and is
looking to leverage this across IoT even if delivered from separate prac?ces
today.
Focused Partnership Model. Dell has secured a partnership with PTC as a
par?cipant in ThingWorx Global Systems Integrator Alliance program. This will
allow it deep insight into one of the leading IoT plaeorms today and includes
the ability to explore approaches within its dedicated Solu?on Lab in San Jose.
Services Brand. One of Dells strengths, the reach of its brand, can
also be a detriment as the rms capabili?es in Services are much
less well known than those in hardware which is also the case with
IoT.
IoT Messaging. Because Dells approach to IoT is so broad
spanning hardware, soiware, and a full range of services, there is a
risk that the enterprise services ac?vity will be confused with ac?vity
in say, OEM. Dell Services will need to work harder to get its
message across.
Design Thinking LimitaHons. HfS has not yet seen the same level of
investment in Design Thinking and its applica?on to client business
problems at Dell that we have seen emerging amongst a number of
the compe?ng service providers.
Scale SHll Small. Currently IoT is s?ll nascent for Dell, with less than
20 clients, primarily in the US and the UK.
Business Overview
Go To Market
Challenges
Target Industries:
Dell Services ac?vely targets, but is not limited
to large enterprises globally
Core - Healthcare (Payers / Providers / Life
Science), BFSI (Banking / Financial Services /
Insurance), Manufacturing, Energy &
U?li?es, Hospitality
Target - Banking, Financial Services,
Logis?cs, Transporta?on, Hospitality,
Educa?on, Hospitality
Relevant AcquisiHons
Boomi (2010)
Toad (2012)
Partnerships:
PTC / ThingWorx
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EPAM
High Performer
Strengths
Enviable Client List. EPAM has enviable tech clients include technology companies
such as Google, Oracle, and eBay.
Response To Complexity. Clients site its ability to innovate around complex
challenges while staying grounded in business strategy as a key dieren?ator for
EPAM over other IT services rms
Highly Skilled Workforce. EPAM puts a majority of senior folks on each project
teams and they all speak English well. Clients report nding them very predictable
and reliable and that EPAM is able to readily delegate projects and clients trust these
will be done well and on ?me.
Break New Ground. With an embedded device prac?ce and its strength in soiware
engineering EPAM becomes a good choice for technically challenging custom
engagements in untried IoT areas.
IoT Enablement. With an embedded device prac?ce, EPAM brings robust capabili?es
in device design and enablement and when coupled with its strength in soiware
engineering it becomes a go to choice for those breaking new and perhaps strategic
ground with its IoT ini?a?ves.
Business Overview
Go To Market
Challenges
Time Zone Challenges. While not as challenging as working
with Asian based development sta, the ?me zone dierences
for those in North America can s?ll impact eec?veness.
However, this may be elevated as EPAM opens a center in
Mexico.
IoT Delivery Silos. Despite strengths in embedded devices and
soiware development, there is no single unit directed at
serving clients across the IoT value chain. While this capability
can be s?tched together, doing so requires learning on the y
that is not required when all orchestrated under one prac?ce.
IoT ConsulHng And Management. EPAM should con?nue to
invest in capabili?es for IOT business consul?ng and solu?on
development and in the support infrastructure management
as it grows its presence in the IoT market
Scale. Engagements to date with less than 10 that are
exclusively IoT, but at least several dozen where IoT is a
component of an overall solu?on.
Target Industries:
EPAM targets Hi-tech companies and large
enterprises with revenues $1B and more
Core: IT, Financial Services, Energy,
Healthcare & Life Sciences, Retail, Sport &
Lifestyle, Travel, Media & Entertainment
Addi?onal: Manufacturing, Telecom
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Genpact
High Performer
Incorpora?on of Feedback
Collabora?on Techniques
Strength of Vision For IoT
Industry Exper?se
Strengths
Challenges
IoT Management
Business Overview
Go To Market
Target Industries:
Genpact ac?vely targets enterprises with
revenue over $10B
Industrial Machine Services, Customer
Insight, Hi Tech Manufacturing, and CPG
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NTT DATA
High Performer
Strengths
Dedicated IoT Center Of Excellence. Outside of Japan, NTT DATA has
centralized its IoT ac?vity around a center of excellence it calls Center of
Excellence Smart located in Madrid. This center serves to unify its IoT
ac?vi?es globally across regionally segmented opera?ons.
Willingness To UHlize ConsumpHon Based Pricing. Once NTT Data have
completed ini?al build out phase typically for a xed fee, NTT DATA has
transferred the ongoing revenue model for the opera?on of several IoT
projects to a pay per use billing determined by number of devices
deployed.
Partnership For End To End Delivery. NTT DATA has built out a robust
partner network to ensure it can meet every need around IoT as the prime
integrator. From partnerships with established global partners, to
innova?ve R&D joint ventures, to many small emerging market players, NTT
DATA has a wide and deep ecosystem which ensures clients will have
access to the breadth of skills required for success.
Business Overview
Go To Market
Challenges
Target Industries:
NTT DATA targets large enterprises for IoT in:
Public Sector, Manufacturing, U?li?es
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Tieto
High Performer
Strengths
IoT Focus. IoT was tapped as one of three primary growth opportuni?es for the
service provider in the Spring of 2014 and as such is an area of focus and invest
with the highest visibility all the way up to the CEO yet set up as a fairly
independent en?ty to ahract the highest level of talent and allow the company
to invest.
Plajorm Investments. While it is not making bets in any one area, Tieto is
exploring mul?ple plaeorms for expedi?ng the deployment of IoT. The end goal
is to iden?fy those plaeorms most likely to succeed and to bring skills around
them so projects can be quickly deployed. This pragma?c approach will likely
save enterprise buyers not only ?me and money but false starts as well.
Business Overview
Self-declared FTEs ~100
Org structure:
Industrial Internet unit headed by Taneli Tikka,
repor?ng to the board chaired by Tieto CEO.
Team based lean organiza?on.
Delivery Centers:
90% Onshore (Finland 50%; Sweden 40%)
10% Nearshore (Czech Republic 10%)
Challenges
Go To Market
Tieto par?cipate in rela?vely few formal
wrihen requests and tend to discuss and
engage its customers in a dialogue instead.
This consulta?ve approach can help them
stand apart from the oien product-centric
oerings of some compe?tors.
Target Industries:
Tieto targets medium to large companies
primarily within the Nordics
Manufacturing, Forest Industry, Energy,
Welfare, Logis?cs, Retail, Telecom, Media,
and Agriculture
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Unisys
High Performer
Focused IoT solu7ons built around security for the Public Sector
ver7cal are a real strength but so too is analy7cs for IoT
Strengths
Challenges
IoT Security. With its Unisys Stealth technology that is able to cloak any
communica?ons between devices, Unisys can ensure IoT environments
remain secure. This makes them a strong choice for those engagements
were security is absolutely cri?cal.
Big Data & AnalyHcs Focus. Unisys has a proprietary reference
architecture built for big data called BDA as a Service and extended this
oering into the IoT environment. This makes it a strong choice for areas
with massive volumes such as medical or retail two areas of focus.
Remote Support CapabiliHes. IoT is oien an osite challenge and most
service providers are less equipped to engage with suppor?ng eld
opera?ons in the same way it support a core enterprise. Unisys is an
excep?on with strong capabili?es in eld management.
IoT Management
Business Overview
Self-declared FTEs ~35 with others borrowed
from other prac?ces.
Org Structure:
Unisys does not disclose its organiza?onal
structure.
Delivery Centers:
10% Onsite
20% Onshore
70% Oshore (India)
Go To Market
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Virtusa
High Performer
Strengths
Challenges
IOT Enablement. Virtusa may need to further build out capabili?es in IoT
Enablement as this market develop and clients look for end to end
services to move beyond proofs of concept into full deployment.
IoT IntegraHon
IoT Management
Business Overview
Go To Market
Target Industries:
Virtusa targets the G2000 but par?cularly in
Healthcare, Telecommunica?ons, Insurance,
Manufacturing, Transporta?on
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IGATE
Delivering client focused IoT solu7ons linked to key client business needs
Blueprint Leading Highlights
Incorpora?on of Customer
Feedback
Partnership Ecosystem
Strengths
Challenges
Willing To invest Time And Money in PoCs. IGATE has par?cipated in the
early stages of some very interes?ng trials with clients as it views IoT as
an area of investment today. So while it may not have a long list of
reference accounts where it can demonstrate comple?on, it brings an
understanding of the issues and challenges within embracing IoT today.
Business Overview
Go To Market
Target Industries:
Targets enterprises with $1B+ revenues
Retail, Manufacturing, Media and
Entertainment, Mining, Energy & U?lity,
Banking, Insurance, Automo?ve Electronics,
Consumer Electronics, Industrial
Automa?on, Medical Electronics
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Luxoft
Master level engineering skills combined with
ver7cal focus deliver value for marquee IoT clients
Blueprint Leading Highlights
Partnership Ecosystem
Strength of IoT Vision
Industry Exper?se
Strengths
Challenges
Low Delivery Turnover. Luxoi faces much lower rates of ahri?on than
many other IT services rms and this means consistent sta on projects
from year to year. It also means Luxoi grows alongside clients and
evolves with them as projects change and mature from merely digi?zing
processes to analyzing them and crea?ng new ones.
IoT IntegraHon
IoT Management
Business Overview
Go To Market
Target Industries:
Luxoi targets the Global 2000
automo?ve, aerospace,
telecommunica?ons, oil and gas, hitechnology, precision agriculture/
manufacturing, and retail.
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NIIT Technologies
Pragma7c developers with a keen sense of the business
problems that can be addressed by IoT in focus industry ver7cals
Blueprint Leading Highlights
How Service Providers Incorporate
Customer Feedback
Collabora?on Techniques
Industry Exper?se
Strengths
Challenges
Focus In Travel & Insurance. While most service providers readily target a
broad range of industries, NIIT technologies is very focused on IoT solu?ons
mainly in the travel and insurance industries today.
IoT-Specic Labs. Seeing the need to experiment and invest in IoT, NIIT Tech
set up labs in Bangalore and Delhi. Seeking to develop PoCs for exis?ng and
poten?al clients rather than wait for enquires to emerge. NIIT Tech also
provides IoT-led innova?on as a service to its clients under incuba?on
oerings.
PragmaHc Approach. NIIT Tech looks for solu?ons that can be readily
implemented rather than ones that are the most sophis?cated in design. e.g.
When tasked with expedi?ng the iden?ca?on and classica?on of hazardous
cargo for an airport terminal, it developed image processing algorithms that
could func?on of standard s?ckers issued globally rather than relying on a new
tagging system that would take a massive eort to adopt.
Learning Culture. Rather than assuming It has all been seen before, NIIT Tech
approaches every project with open ears and an open mind to try and solve a
clients unique problems in the best way each ?me while maintaining a exible
approach to solving challenges that arise.
Go To Market
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Market-Wrap and
Recommendations
n The market will remain poorly dened as some Service Providers rebadge Analy?cs,
Mobile, or Cloud prac?ces as IoT Services while others create standalone prac?ces
some of which are narrow and some of which are broad.
n Systems Thinking becomes a hotbed of ahen?on as the complexity that IoT unleashes
n Industry insight and exper?se will give way to those oering insight based on themes of
service providers that can eec?vely coordinate this layer of external complexity.
n Crea?ng data lakes and s?tching together APIs will con?nue be the bulk of integra?on
work while analy?cs and process exper?se become the areas of compe??ve value add.
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AS-A-SERVICE
IDEAL DEFINITION
Design
Thinking
Business
Cloud
Intelligent
AutomaHon
ProacHve
Intelligence
Intelligent
Data
Write O
Legacy
Brokers of
Capability
Intelligent
Engagement
NON
EXISTENT
INITIAL
EXPANSIVE
EXTENSIVE
2015
2017
2015
2017
2015
ALL
PERVASIVE
2017
2015
2017
2015
2015
2017
2015
2015
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2017
2017
2017
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of IoT engagements, enterprise buyers are in a strong posi?on to demand that service providers put some
energy and investment into building out skills. If a provider is unwilling to do so, it is likely not commihed to
the space and instead of being the partner you require to navigate the emergence of IoT.
n Be Sure to Keep Security and Risk Front and Center. Security needs to be one of the top considera?ons at
every step of the way. The primary reason is that as projects splinter there is an increased risk of the crea?on
of access points that are innocuous to one set of concerns but catastrophic to another. Enterprises are
advised to task someone with examining every and all implica?ons of IoT across the en?re rm.
n Stay Calm, Most IoT AcHvity Remains as a PoC. Despite the increased ahen?on and hype around IoT today,
the bulk of ac?vity for most enterprises remains in the realm of a PoC. The poten?al for strategic impact
might be iden?ed but with only a few excep?ons most are tes?ng the waters as to how it will likely unfold.
Further, with the technology component oien the easiest piece, those enterprises that will need to play
catch up can likely do so a fast pace. There is no need to panic today when it comes to IoT.
n Pick Your IniHaHves With Care. As it remains early days in IoT, enterprise buyers are advised to approach the
market with cau?on even if being aggressive appears to be possible at lihle cost. Adding sensors and
gathering data is oien the easiest aspect of IoT. Even crea?ng data repositories that can capture this new
insight is straigheorward and can be leveraged across the rm. The real challenges for IoT will come with
process change and this needs broader acceptance and a level of energy that might not arise if dozens of
dierent experiments are underway. Less is more when it comes to adop?ng IoT.
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opera?ng models to develop oerings in IoT. Some are taking the approach of incuba?on and leveraging skill
sets found in exis?ng prac?ce areas. Others have iden?ed IoT as strategic and are inves?ng in crea?ng
dedicated prac?ces. There is no single solu?on that wins out today so service providers need to recognize the
strengths and weaknesses of each and be exible in responding to what is required.
n Should IoT Services Focus Exclusively on Asset OpHmizaHon or Go Beyond? Todays opportuni?es in IoT are
clearly found in the realm of asset op?miza?on and especially as the cost of those individual underlying assets
rise. But broader applica?ons of IoT hold the promise of not just running a business beher but running it
dierently and likely in disrup?ve ways. Service providers need to balance market demand today with the
no?on that tomorrows demand may be in a much dierent realm.
n How Fast and Aggressive to Invest in IoT? Not only is the direc?on of IoT uncertain but the pace of enterprise
adop?on around IoT has yet to generate enough sample points for clarity to have emerged. This puts
con?nued pressure on service providers to keep a close eye on the market and make sure the pace of
investments are aligned.
n Will Product Engineering and Sensor Development Emerge as a Key Oering? While some service providers
are gaining signicant ahen?on around IoT capabili?es by highligh?ng non-tradi?onal areas of IT services
such as device engineering and sensor deployment or design, it is not clear whether these capabili?es will be
cri?cal to service the market in the coming years. Tradi?onal SIs have always relied on specialized partners to
meet certain new needs and it is likely many will successfully do the same with regard to IoT.
n What is the Best Plajorm Approach? In a similar vein, it is unclear whether IT service providers will benet
from having an IoT plaeorm to deploy. Conversely, such an oering might even become a detriment as it seen
to create a conict and to diminish any ahempts at oering best of breed solu?ons. Yet in the near term,
having a plaeorm might allow one to move quickly from PoCs into broader deployments.
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would be expected for Service Providers to foresee themselves as plaeorm providers in the realm of IoT. But
like other pockets of enterprise IT demand where the underlying need is seen as strategic, few will be willing
to sehle for an o-the-shelf solu?on or allow a service provider to reuse signicant pieces of IP to serve a
compe?tor with a similar need. Right or wrong, the bulk of work in IoT will be bespoke and service providers
are advised to go to market expec?ng this.
n Build Out Systems Thinking Skills. HfS made and con?nues to make a push around the need for Service
Providers to bulk up on Design Thinking and we will con?nue to do so in the coming years. However, for those
targe?ng IoT, a more systema?c approach is required. Systems Thinking is a formal approach to
determining, measuring and building into any model the impact from mul?ple variables in order to determine
why things happen not merely what is happening.
n Learn to Partner Well. The complexity in which IoT not just enables but demands will require that tradi?onal
compe?tors regularly cooperate. Connected homes, cars, ci?es, and energy all implies a mix of data providers
and beneciaries that will all have varying degrees of interest and needs. Service providers that can manage
this complexity and bring a broad mix of par?cipants not to the table but keep them engaged will posi?on
themselves extremely well in the coming years.
n Look to Cross Internal Silos Well. IoT is not only an opportunity that requires heightened collabora?on
outside a service providers walls but perhaps more important internally as well. Most every IoT engagement
by a global SI will need to tap a range of skills such as big data and analy?cs, cloud, mobility, engineering, as
well as strategy and process change, most Service Providers are not set up well to work across these disparate
prac?ces but that will be required to excel in IoT.
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Charles Sutherland
Chief Research Ocer, HfS Research Dallas, TX
Overview
Oversees the research agenda and the analyst team for HfS across the As-a-Service
Economy.
Personally covers the areas of digital services, intelligent automa?on and business
plaeorms as well as the supply chain and procurement business func?ons.
Over a 25+ year career has focused on his personal skills in authoring thought
leadership, developing implementable strategies, execu?ng on acquisi?ons, driving
business development eorts and managing long term investment planning.
Since joining HfS in 2013, Charles spoken widely at industry forums including NASSCOM,
ABSL and SIG and has had his research covered widely in the business and outsourcing
press.
Charles.Sutherland@hfsresearch.com
Previous Experience
Charles has been in the business services market for 20 years. Previous roles include:
- Growth & Strategy MD for Accentures mul?-billion dollar Opera?ons Growth
Plaeorm
- Chief Strategy Ocer for a $500M BPO Service Provider
- Growth & Strategy for Applica?on and Infrastructure Outsourcing, Accenture
- Growth & Strategy for Communica?ons, Media and High Tech OG, Accenture
- Media & Entertainment Strategy Consultant, Accenture
- Marke?ng Director, Olivep
EducaHon
MBA from INSEAD in Fontainebleau, France
Honors BA in Economics and Poli?cal Science from the University of Toronto
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