applications & digital square
We have 10 service providers represented in our Applications & Digital Square. The services considered within this Square cover application management and development, systems integration and digital transformation.
In the Leaders category, we have 2 companies: Accenture and TCS. They have a broad portfolio of services across applications management and development, systems integration and digital transformation. They have deep skills in different technology domains – both locally and throughout their well established global delivery networks. They have the largest market presence in Belgium in terms of application revenues, number of customers, size of deals and number of local employees. Also, both of them have a broad client base across industry sectors. They have a strong managed services offering with mature capabilities; strong governance and service management; embedded continuous improvement; and established processes and tools.
Accenture stands out for its consulting mindset, business understanding and solution deployments capability (e.g. SAP, Saleforce). It has a good applications management capability and very strong local workforce. Clients praise it for its transformation mindset and ability to bring global best practice.
TCS stands out on its overall applications management capabilities and market share in this area. They have been the most successful company when it comes to winning large competitive application management deals. Clients praise their ‘customer first’ mindset and delivery track record. They have been present for long in Belgium and have long term relationships with several clients.
The next category of the Challengers, have almost similar capabilities in terms of managed services, technology skills and the portfolio of services. All of them also have a large global delivery network and some marquee clients in Belgium with long standing relationships. However, they are not at the same level as the Leaders - in terms of overall scale of business and presence across all the industry sectors.
We have 3 companies in this category: Cognizant, Capgemini and Infosys.
Cognizant has a strong presence in financial services, telecommunications and life- sciences. Compared to their Indian peers, they have a more balanced local workforce – both in delivery and account management. They also have a more consulting like approach. They are particularly successful at clients who are working Agile.
Infosys has been present since long in Belgium and have some huge clients in Manufacturing and Telco. They have very strong application management skills and also experience in systems integration. They tend to have deep strategic relationships with several clients where they are often present for more than 10 years. While historically strong, we see less of them in recent competitive wins.
CapGemini has a strong presence across both systems integration and applications management. With almost 1700 people in Belgium across Capgemini, Capgemini Advent, Sogeti and Altran – they have one of the largest local workforce in Belgium. Clients praise them for their knowledge and delivery, client focus and cultural fit.
Unlike the Leaders or the Challengers, the Niche players either, do not offer the complete portfolio of application services; or, focus on a limited number of industries or sectors.
We have 5 companies in this category: Deloitte, Delaware, DXC, Atos & Cegeka.
Deloitte scores lower on Scale and Capability primarily because they do not offer application management services. However, they are very strong on systems integration (particularly SAP and Salesforce) and digital transformation. Deloitte has the highest client satisfaction scores in the Applications category. Clients admire their consulting mindset and professional approach, cultural fit and very strong alignment with the business.
Delaware is a large player for application services in the Belgian market. They are focused on mid-market clients and are very strong in SAP and Microsoft. While they do have a managed services offering – most of their activity centers around application development / systems integration. They are very strong also on digital workplace (collaboration). They are praised by clients for their flexibility and client centricity.
DXC is traditionally known for their infrastructure business – however, 60% of their Belgian revenues come from applications. DXC has a strong focus on applications development and systems integration. They have a lot of good credentials around digital transformation, particularly within the Public sector. They have very high client satisfaction scores and are particularly strong in the public sector.
Atos has a relatively complete applications service offering – both project services and application support. They are however present primarily in the European institutions and public sector, where they have very good satisfaction scores. They have good nearshore and offshore capabilities and their Poland center comes in for particular praise.
Cegeka is focused on custom development (.Net and Java) and Microsoft Dynamics. They are active on mid-market clients, primarily within public-social and healthcare. They do not have offshore capabilities but focus on proximity and strong cultural fit.
Any provider who has an average satisfaction score of < 2.6 is placed within the category of Low Performers. Fortunately, we do not have any application service providers in this category for this year.
We see a high level of satisfaction with the service providers in the applications domain. All service providers profiled have average satisfaction scores between 3.2 to 3.9. We see a clear trend – the fragmented vendor landscape with a long tail is giving way to supplier consolidation with the larger players and a role for niche companies in specific domains under a multi-sourcing model.