Magic Quadrant for IT Services for Communications Service Providers

1. Magic Quadrant for IT Services for Communications Service Providers

2. Magic Quadrant

3. Market Definition/Description Gartner's definition for IT services for communications service providers (ITS CSPs) includes project-based and multiyear annuity-based agreements between CSPs and vendors that deliver IT services to enhance or transform customer, revenue and service management capabilities and enable connected digital services (CDS) for CSPs. The IT services covered in this Magic Quadrant include consulting, application development, implementation, ongoing support and outsourcing. The focus of this Magic Quadrant is on vendors that largely provide professional services in a multivendor CSP operational IT environment. The definition excludes network-centric services to plan, build and/or operate CSP networks or enterprise networks. It also excludes services around enterprise IT associated with functions such as finance, HR, sales and procurement. Note: CDS is an evolution of traditional voice and data-based communications services. CDS leverages the power of Internet Protocol (IP)-based networks and provides rich communication features that may include voice (voice over IP [VoIP]), video and messaging over an integrated platform. More broadly, as the services economy moves to a digital world, CDS can also include payments and commerce and other industry solutions, such as machine to machine (M2M). These may involve specialist capabilities in hosting, analytics, content and partner management, and managed services. This part of the market is still emerging and mostly impacts the "vision" side of the evaluation for this Magic Quadrant. CSPs include wireless, wireline, cable/multiservice operator and satellite companies.

4. Vendor Strengths and Cautions

5. Accenture Accenture is a global provider of consulting, system integration, outsourcing and software. Accenture's communications practice, which contains its ITS CSP capabilities, is part of the Communications, Media and Technology (CMT) operating group. Accenture is differentiating based on consulting-led templated solutions: Network Services tied to business strategy components, Customer Operations Services for customer experience, Accenture Digital Services covering the digital value chain, and Product Lifecycle Services for innovation and product development. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, Accenture should be considered as a service provider for strategy consulting projects, and for large to midsize managed transformation and outsourcing engagements, particularly in Europe, Americas and the Middle East. • Strengths • Accenture is perceived as a premium player in this market. Accenture's effective leverage of industry consulting capabilities to bridge strategy and technology domains enhances its relative positioning among peers. • Accenture has long-standing relationships with Tier 1 CSP clients in mature markets, with access to C-level decision makers. This often translates into involvement in large-scale transformation programs in which Accenture can demonstrate the breadth of its strong management and process skills and cross-industry expertise. • Accenture is investing to build deeper network capabilities that allow it to offer integrated solutions that now cut across CSPs' business strategy, IT and network initiatives and address horizontal themes around customer experience and digital convergence (for example, IPTV and advertising). • Cautions • Accenture's emphasis on formalizing client relationships often results in the company being perceived as relatively inflexible by CSPs. This is a concern for clients that expect some suppleness beyond the terms of the contract or as it relates to choice of software products/solutions. • Accenture's image of being premium-priced for services is still a concern, especially for smaller CSPs that continue to grapple with ROI on IT for traditional services and seek low-cost options to support new digital services. This may often result in Accenture not making it to the shortlist of providers, despite having a competitive proposition around application outsourcing and support services. • Accenture's presence in emerging markets, particularly in large IT outsourcing (ITO) deals, is relatively thin. This may translate into a lack of local presence and a dependence on a global workforce when engaging with clients in these markets.

6. Alcatel-Lucent Alcatel-Lucent is a global supplier of telecommunications infrastructure, software and services. ITS CSP-related services are part of Alcatel-Lucent's carrier network organization. Alcatel-Lucent has been going through continuous reorganizations, and the latest organization will have the ITS CSP-related resources connected even tighter with Alcatel-Lucent's network product organizations. In ITS CSP, Alcatel-Lucent differentiates on its network-management-related capabilities that are being expanded to cloud management. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, Alcatel-Lucent should be considered as a service provider for services that are related to network and cloud management with a high level of Alcatel-Lucent solution content. Cautions Alcatel-Lucent offers limited ITS CSP service scope and breadth around implementation and services related to network management. The latest Alcatel-Lucent organizational and strategy changes — the so-called "Shift Plan" — center the company's investments even deeper into the network as opposed to IT and aim to eliminate more IT-related areas (such as application enablement and API-related assets and services) from the portfolio. Frequent ongoing changes in service strategy and the internal organization for the company overall and services in particular (from the earlier Software, Services and Solutions Group [S3G] to a part of the network organization, for example) force the company to focus on stabilizing the organization and external image. Some clients highlight the need for improved project management (time and scope) — especially in situations in which Alcatel-Lucent subcontracts part and/or all service components to partners • Strengths • Alcatel-Lucent has strong CSP relationships on the network side on which to build, particularly in the U.S. and Western Europe. Recent performance indicates growing traction in the Asia/Pacific region. • Alcatel-Lucent has a good understanding of end-user service quality management solutions that translate into service offerings in cloud-based application and environment management. • Alcatel-Lucent has good presence in the field of network management solutions and strong mind share in most geographies.

7. Amdocs Amdocs is a leading customer and revenue management solution company. ITS CSP capabilities are contained in the operations and service business units at Amdocs. The company has a regional sales structure, with shared delivery and operations units located across North America, EMEA and Asia/Pacific. The company has made strategic acquisitions that have added niche capabilities in the IT services and operations area. Amdocs differentiates based on its deep-rooted expertise in telecom IT and operations, with focus on revenue assurance, customer experience and service assurance. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, Amdocs should be considered as a service provider for large to midsize managed transformation and outsourcing engagements, especially involving a large share of legacy and/or Amdocs stack. The multivendor service segment is a growing focus internally. • Cautions • Amdocs is still the prime service partner in only a few multivendor projects. Its service expertise is closely tied to its own product portfolio — which helps "pull through" sales of products from its software stack. • Clients continue to point to inflexibility in relation to requirements outside the contract's original scope, a lack of price competitiveness, and insufficient transition and change management in multivendor situations as areas of concern when dealing with Amdocs. • A lack of vertical-market expertise outside the telecom industry limits Amdocs' innovation focus and its ability to position the company as a strategic advisor to CSPs in relation to best practices — for example, taking a holistic cross-industry look into M2M applications or innovating for projects aimed at enterprise needs and the industry expansion needs of CSPs. • Strengths • Amdocs has deep domain competence in telecom operations and management systems, especially for core billing, customer management, and supporting services, such as testing and business process outsourcing (BPO). • Amdocs is increasingly focused on ITO deals with a transformation element, especially for CSPs that have significant legacy environments or existing Amdocs solutions. • Clients often highlight Amdocs' good reputation for on-time delivery and understanding of the CSP business as reasons for choosing it over other vendors. • Amdocs is investing in deeper network capabilities (for example, in the area of network analytics for marketing and customer experience) to deepen its "telecom vertical only" capabilities

8. Capgemini Capgemini is a diversified IT services company. ITS CSP capability is part of the wider Telecom, Media and Entertainment (TME) business unit at Capgemini. The business unit has local in-country and regional presence in North America and EMEA, with the rest of world (ROW) being served from centralized facilities in India, which also hosts shared facilities for consulting, marketing, innovation and offshore development. Capgemini has done acquisitions that contribute to local in-country reach — especially in Latin America. The company differentiates on the basis of its people skills, strong domain knowledge and reusable intellectual-property-based assets. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, Capgemini should be considered as a service provider for discrete and midsize CSP transformation engagements. • Strengths • Capgemini is an effective implementation company, and most of its revenue comes from system integration and application development. It has made sustained investments in intellectual property creation over the years that allow it to excel in areas around application development and management (especially relating to Oracle products) and deep locally delivered technology skills. • Capgemini has a strong presence in Tier 1 CSPs in Western Europe and access to executive teams that make group-level decisions. This helps the company in establishing credible references when vying for new business. • Strong solution capabilities are embedded in Capgemini's telecom practice. These are complemented by the company's skills in gathering business requirements, managing projects and implementation, which together enable it to deliver full-service offerings • Cautions • Capgemini has little presence within clients outside of Western Europe and North America. This means it often misses out on opportunities outside these geographies because potential customers perceive it as having limited ability to deliver services in a global context. • Capgemini's clients indicate that it needs to be more proactive about sharing its knowledge and best practices. Capgemini's efforts in this regard should extend beyond Oracle-based applications into multivendor and legacy application environments. • Clients perceive Capgemini resources as relatively expensive for similar skills offered by other service vendors.

9. CGI CGI is an IT and business process service company with an Americas and Europe client focus. CGI is organized by geographic strategic business units that own profit and loss (P&L), and it further organizes itself mostly by service lines (for example, consulting, system integration and OS). Telecom is a regional industry sector overlay with dedicated resources and business development. CGI differentiates based on its geographic focus, local delivery and end-to-end multivendor telecom IT services, combined with intellectual property development in cross-industry platforms for areas such as customer management and M2M. CGI acquired Logica in 2012. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, CGI should be considered as a service provider for managed transformation and outsourcing engagements for clients in Europe and North America with a strong focus on on-site delivery. • Cautions • Most of the former Logica engagements, except those with key clients, are short-term deals that provide little "stickiness" and limited opportunity to scale relationships, due to a comparative lack of strategic visibility, a relatively large number of changes of personnel and the fluid nature of these deals. • The combined entity still faces strong competition from large offshore-based service vendors that are making inroads into North America and Western Europe, leveraging their global delivery capabilities and flexible cost models. This puts pressure on CGI to define its unique value proposition beyond local presence and client intimacy. • Harnessing the synergies of Logica and CGI is not yet evident in areas of marketing, solution development, delivery and operations, based on client feedback. The company appears to be in a state of transition internally, which may lead to potential delays in decision making, loss of operating flexibility and delayed realization of economies of scale. • Strengths • CGI, now combined with Logica, is an organization with significant offshore scale and well-defined geographical client focus on North America and Europe. • CGI has engagements with clients in fields — notably, M2M connectivity platforms and billing as a service — that present new revenue and cost optimization opportunities for CSPs. CGI takes a platform-combined-with-services approach to these areas. • CGI (both the original CGI and former Logica) is frequently seen as a "real partner" by customers in terms of willingness to take risk, invest the right resources and be flexible — particularly in the context of long-standing relations with incumbent clients in a time and materials (T&M) or fixed-price engagement.

10. Cognizant Cognizant is a diversified IT services company headquartered in the U.S. with significant offshore presence in India. Cognizant's ITS CSP is part of the Communications vertical business unit, with its own regional delivery and sales structure. This structure is supported by global teams for presales, solution architects and consulting. Cognizant has largely grown organically, with some broader acquisitions contributing to specific ITS CSP skills, especially in consulting and program management. Cognizant differentiates on the basis of its client focus, internal intellectual property and consulting-led service focus. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, Cognizant should be considered as a service provider for CSP engagements with elements of IT architecture and process transformation, especially in North America and Western Europe. • Strengths • Cognizant offers a technology-consulting-led approach to CSPs seeking to transform their current operating environments. This often translates into the best of both worlds for CSPs that are looking for "Western" process orientation and "Eastern" flexibility. • Cognizant exhibits a strong internal culture of managing and exceeding customer expectations. Cognizant clients praise its professionalism without an opportunistic attitude focused only on increasing revenue. • Investments in internal intellectual property touch on CSP pain points around customer interaction management, fulfillment and product life cycle management. This has resulted in platforms and managed offerings in these areas. • Cautions • Cognizant has a strong North American and Western European (mostly Germany and the U.K.) focus for its communications business. This limits opportunities in and with CSPs having multicountry operations in emerging markets, such as Asia/Pacific, the Middle East and Africa (MEA) and Latin America. • Cognizant has a relatively small bench strength of ITS CSP resources compared with other offshore-based vendors, which may stretch/limit its ability to target large ITO deals. • Clients highlight the need for more thought leadership from Cognizant in ongoing engagements. This includes sharing industry best practices and learning with a view toward continuous improvement.

11. Ericsson Ericsson is a global supplier of telecommunications infrastructure, software and services. Within the Global Services unit, Ericsson has a dedicated unit for IT services called the Consulting and Systems Integration (CSI) that Ericsson has strengthened through related acquisitions. Ericsson differentiates in aiming to bridge the areas of business, IT and networks through integrated end-to-end business processes and supporting solutions from back office to access networks. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, Ericsson should be considered as a service provider for IT transformation consulting and system integration services globally in cases with high Ericsson solution relevance. • Cautions • Ericsson is investing in multivendor capabilities. However, the company has to demonstrate effective leverage of its capabilities for putting together repeatable solutions in multivendor IT environments using best-of-breed technology. • Ericsson's internal organization for IT services is just coming together as the company acquires talent from the industry and through acquisitions. As a result, a cohesive picture of Ericsson's capabilities in this area (beyond just the size of the consulting and service organization) is still to emerge. • Most of Ericsson's capabilities in the field of IT services for CSPs relate to its own products, rather than to multivendor services. Ericsson still has limited applicability to large IT (as opposed to network) transformation and ITO deals. • Ericsson also has to decide the balance it wants to strike between the large managed service organization that has aspirations on externalizing CSP operations beyond the network and the CSI organization division that is there to help plan and build the same capabilities. • Strengths • Ericsson has strong global presence through its network service business. This positions the company well from a global delivery perspective with a mix of local nearshore and offshore capabilities that the company is partially refocusing toward IT as opposed to network services. • Ericsson has built a solid offering for enabling content services and also video following recent acquisitions. The offering allows Ericsson to demonstrate the full breath of its services and transformation capabilities when integrating these platforms with CSPs' existing IT stack. • Ericsson has an advantage in engagements that link IT with ongoing network transformation, especially around mobile, IP and also certain content delivery (for example, IPTV). Engagements in IT services build on this strength, addressing service enablement, customer experience, information and infrastructure management, thus cutting across CSP organization silos.

12. HCL Technologies HCL Technologies is a diversified IT services company. HCL's ITS CSP capability is contained in the Consumer Services and Manufacturing business unit. The company differentiates through a business-process-led approach to outsourcing. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, HCL Technologies should be considered as a service provider for discrete engagements in the areas of application and infrastructure support services and BPO. • Cautions • HCL does not reach into IT strategy and consultative discussions around new services and transformation. • HCL must demonstrate a strong innovation framework to highlight how different services can contribute to new revenue generation or improved customer experience for CSPs beyond just cost containment. • Clients highlight the need for more assertiveness in account management to drive change for the better in client relationships. • Strengths • In telecom, HCL focuses almost exclusively on IT and BPO services for CSPs — especially in the areas of billing and service management. The focus results in positive client feedback on delivery and availability of resources. • The company leverages its global sales and delivery presence to gain traction with CSPs. This often leads to cost-effective service solutions from HCL in comparison with similar offerings from other suppliers. • HCL is investing to build technical capabilities that cohesively address network and IT — from design, to development and testing.

13. HP HP is a global IT infrastructure, software and services provider. ITS CSP services are part of HP Enterprise Services business unit, within the Communications, Media and Entertainment vertical in Applications and Business solutions. HP differentiates on services built on HP product capability related particularly to network and service management and, with the new strategy, also related to customer intelligence and cloud enablement, in which the company aims to offer complete services. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, HP should be considered as a service provider for managed transformation and outsourcing engagements that are centered on network management with a high level of HP solution content. HP's business is concentrated in North America and Western Europe. • Strengths • HP is in a strong position in relation to network-management-related IT services for CSPs, particularly in terms of its presence within Tier 1 customers in Western Europe, North America and Japan. • HP's deep skills in networking and IT position it well to meet the emerging IT and IP requirements of CSPs. For example, the company is investing in big data and network analytics, and it has launched a dedicated consulting offering for CSPs in this area. • HP has reoriented its service delivery platform (SDP) to help CSPs capture revenue from enterprise end users. • Cautions • ITS CSP outside of HP's own solutions has not been a strong focus area for HP, and the company does not have a clear strategy for ITS CSP as it relates to the breadth of services across multivendor products. • HP's ITS CSP sales approach is complex, particularly from a sales organization perspective, making HP's offering difficult to understand for customers. • HP's approach in the area of new revenue generation needs to be better articulated. HP needs to demonstrate the ITS CSP value-add on top of its cloud and information management assets.

14. Huawei Huawei is a global (excluding North America) supplier of telecommunications infrastructure and software with a growing focus on services. ITS CSP-related services are part of Huawei Global Services, delivering services for CSP IT Infrastructure and Carrier Software & Core Network (CSCN) that focuses on applications and IT subsystems. Huawei differentiates with flexible end-to-end Huawei solutions, particularly in the revenue management area, and is putting more focus on customer experience. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, Huawei should be considered as a service provider for managed transformation and outsourcing engagements that require a high level of flexibility and involve a high degree of Huawei products and solutions. • Cautions • The focus of Huawei's services is largely on the company's own portfolio in the customer and revenue management field and in adjunct areas. This limits Huawei's ability to serve as the prime supplier in multivendor projects, even though the company is now investing to build capabilities on products from external independent software vendors (ISVs), such as Oracle and SAP. • Huawei has limited consulting capabilities and track record, and clients cite a limited overall high-level business understanding (as opposed to technology knowledge) from Huawei. • Huawei's focus on "managed transformation" for CSPs is still a work in progress as the company builds competencies around consultative selling and best-practice implementation based on repeatable processes and industry models. • Strengths • Huawei's relative flexibility in pricing, deal making and delivery is often highlighted by clients as an added advantage — especially in engagements with many moving parts and variable skill requirements. • Huawei is gradually emerging as an option for CSPs, especially in Europe, where the company is making an aggressive sales push to gain market share. • Investment in global delivery capability in the form of competency centers located in Egypt, Romania, Bahrain, India and Malaysia help to address concerns around local and regional presence for service capability.

15. IBM IBM is a diversified global technology company with a broad global presence and capabilities across mature and emerging economies. The company's ITS CSP-related capabilities are mostly spread across its Global Business Services (GBS) and Global Technology Services (GTS) business units, with support from other lines of business and cross-vertical initiatives called "Industry Value Projects." The company has among the largest managed service engagements in the industry and emphasizes differentiation through investing in areas around analytics and cloud and enabling new digital services. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, IBM should be considered as a service provider for large to midsize managed transformation and outsourcing engagements, irrespective of region. • Cautions • IBM's sales and delivery "machine" is geared to dealing with infrastructure and transformation projects, whereas the increasingly cost- and time-conscious CSP market often requires small projects with shorter delivery times. Point projects with IBM may include third-party companies for delivery, complicating relationships and adding cost. • Smaller clients often highlight challenges in getting through to the right levels in the IBM organization to effect change in an ongoing relationship. The issue is most pronounced in multiyear deals with complex commercial models. • Some clients highlight conflict of interest in large ITO deals, wherein IBM is more inclined to propose its own software and hardware stack in place of a best-of-breed solution from competing providers • Strengths • IBM has the experience and scale to be the prime supplier in large ITO deals, with its end-to-end capabilities across CSP IT applications and infrastructure and networks. Its experience is complemented by strong global sales, delivery and program management capabilities. • IBM brings depth of domain competency, with strong business-level applicability that allows it to connect across IT and business constituencies in CSPs. This is often a key ingredient in large transformation programs with multiple stakeholder involvement. • Strong competencies in emerging areas, such as cloud and big data, weigh IBM favorably among peers in the ITS CSP market. IBM's consulting-led approach offers CSPs access to big-picture strategy, including global client references in these areas.

16. Infosys Infosys is a global IT services company. The ITS CSP capability is part of the Communications, Media and Entertainment (CME) business unit. The unit has a dedicated subunit emphasis on CSPs with its own regional sales focus. Infosys has largely grown organically in this area, with some recent acquisitions contributing to horizontal expertise. The company differentiates based on internal intellectual property in the form of platforms and associated services. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, Infosys should be considered as a service provider for midsize to large IT transformation and outsourcing engagements — especially in areas around digital service enablement and customer experience management. Strengths Infosys's spending on R&D as a percentage of CSP-related IT services revenue is higher than most vendors included in this research. The recent acquisition of Lodestone will enhance Infosys's capabilities in the area of strategy consulting, especially in the digital convergence realm. Infosys has made sustained investments in building scalable platforms that allow CSPs to launch new digital services and bring in economies of scale through shared service. These platforms and associated services have been gaining traction as accelerators with clients in specific areas such as multichannel integration, customer service, mobile commerce and digital app stores. Infosys's targeted approach has paid off in the cable segment in North America, and the company is building on cable in Europe now. Wireless operators are the other focus. Infosys draws on cross-industry expertise in the retail and financial services sectors — often in a co-creation model with clients, and we hear increasingly positive notes of this innovation from CSP clients. • Cautions • The company is undergoing significant changes at the leadership level that may translate to a change in operating strategy in the near term to medium term. This may have a potential impact in terms of the big-picture (Infosys 3.0) vision. • Infosys has fewer ITO engagements (compared with market leaders) that enable it to demonstrate its full range of professional services capabilities. Most new engagements cater to specific functional areas of the CSP business. • Some clients highlight higher-than-normal churn in on-site resources as an area of concern. Infosys is also perceived as slightly more expensive than other offshore-based players in the market.

17. Nokia Siemens Networks Nokia Siemens Networks (NSN) is a global supplier of mobile telecommunications infrastructure, software and services. ITS CSP-related services are part of NSN's Global Services and mainly provided by NSN's Professional Services line of business, with a strong focus on system integration. NSN differentiates through its purely mobile CSP focus and specialization in network management and customer experience monitoring. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, NSN should be considered as a service provider for mobile managed transformation and outsourcing engagements that are related to network management and customer experience transformation with a high level of NSN solution content. • Cautions • NSN is not a full-scale ITS CSP provider. Its consulting is related to NSN solutions, and the same goes for the most part for NSN implementation services. ITO is limited to network and service management, and NSN does not offer BPO. • NSN is a company to consider for efficiency improvement, but there is little evidence that NSN is investing in helping CSPs increase revenue with service-enabled solutions. • NSN is not visible in CSPs in ITS CSP-related discussions outside of network and service management and customer experience management with elements of NSN software/hardware included. • Strengths • NSN focuses on helping CSPs with mobile network operational efficiency, including delivering customer-experience-enabled networks. • NSN has developed remote management processes and tools that it now aims to use for IT services for CSPs, and it has developed a "Service Operations Center" concept (it claims to manage 750 million end-user customers). • NSN has strong relationships with CSPs on the network side, particularly in Asia and Western Europe.

18. Tata Consultancy Services Tata Consultancy Services (TCS) is a diversified IT services company. ITS CSP capability is part of the telecom vertical that, along with nine other business units, makes up the vertical focus for TCS. The company differentiates based on the breadth of its domain and service portfolio, scalability of resources and global reach. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, TCS should be considered as a service provider for large to midsize managed transformation and outsourcing engagements, especially in North America, Western Europe, the Middle East and India. • Cautions • Clients would like to see more assertiveness in engagements that involve multiple vendors and complex technical environments. This lack of assertiveness can in some situations lead to increased overhead on the part of clients in the areas of program management and vendor governance. • Clients highlight the need for a more business-centric approach for TCS offerings in areas such as customer experience, process transformation and new revenue generation. This should extend beyond point solutions aimed largely at cost optimization. • TCS's focus is to maintain its margins in large deals. This distracts it from smaller nontransformational business that forms a growing segment of the market, as huge transformational deals are increasingly less frequent. • Strengths • TCS offers a strong combination of domain expertise, cross-functional skills and global presence among the offshore-based vendors. TCS also provides companywide experience of managing relatively large ITO deals. • TCS's brand is familiar to IT decision makers in CSPs — and is gaining strength from association with the Tata Group — and its penetration is strong in mature markets. • Clients often cite relative flexibility on the part of TCS in ongoing engagements. This includes adjusting to changes in scope and resourcing levels, often without impacting agreed-upon costs and project timelines.

19. Tech Mahindra Tech Mahindra, part of the Mahindra Group, is a service company with a focus primarily on the telecom industry. The company has grown organically and through acquisitions since its incorporation in 1986. This includes the acquisition of Satyam Computer Services (renamed Mahindra Satyam) in 2009. Tech Mahindra differentiates on scale, partnerships with ISVs and skills across the telecom domain. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, Tech Mahindra should be considered as a service provider for large to midsize managed transformation and outsourcing engagements and "greenfield" deployments in Western Europe, North America, MEA and Asia/Pacific. Note: The company recently (June 2013) announced the merger of Tech Mahindra with Mahindra Satyam under the brand name Tech Mahindra. This Magic Quadrant evaluates only the former Tech Mahindra and not the combined entity. • Strengths • Tech Mahindra focuses solely on the telecom industry, and it is among the top vendors in terms of bench strength for telecom back-office applications and technologies across ISVs. Clients point to good scalability of resources (especially in engagements that need quick turnaround) and flexibility in delivery. • Tech Mahindra offers a good spread of service skills across the operating environment for CSPs. This is complemented with a well-established partner ecosystem and deep domain competency that cuts across the CSP network and IT domains in areas such as value-added services, content management, and security and service management. • Tech Mahindra has a good spread of clients in mature and emerging markets, for both wireline and wireless access, and in terms of maturity (both greenfield and "brownfield" clients) that allows it to leverage process and application experience and establish relevant references. • Cautions • Tech Mahindra must match its "value for money" proposition with enhanced consultative and program management skills aimed at providing best-practice insights, anticipating problems and continually improving service quality. • Clients highlight the need for more ownership of end-to-end delivery. This can, in some situations, lead to time overruns and an increase in overhead on vendor governance. • The synergies from recent acquisitions are yet to be fully realized, and it may be a while before the company can offer truly integrated solutions and services that cut across business units and functional teams.

20. Wipro Wipro is a diversified IT services company. ITS CSP services, part of the Global Media and Telecom unit that, along with five other vertical-specific units, form the strategic business units. The business units have a global mandate with dedicated sales and delivery focus. Wipro leverages it partnerships with ISVs with deep network domain and outsourcing capabilities to differentiate in this area. Based on competitive assessment, perceived expertise and delivery capabilities laid out in formal presentations and customer interactions, Wipro should be considered as a service provider for engagements with a high component of outsourcing and in areas around operations transformation. • Strengths • Wipro has growing presence in multicountry group operator accounts following the upsell from existing engagements. Clients interviewed for this research highlighted Wipro's flexible approach and its willingness to share commercial and operational risks. • The company has a strong proposition in providing implementation and outsourcing services in the area of service fulfillment and billing (especially on the Oracle stack). This, along with domain competency in CSP network technology, positions the company well to support network-centric IT services — for example, around M2M. • Wipro's focus on building CSPs' relationships in non-English-speaking countries is a differentiator against traditional offshore-based providers. Its recent engagements in such countries, often working alongside local vendors or in-house IT teams, have been relatively successful. • Cautions • Wipro needs to better articulate its core proposition to be perceived as an innovation partner for CSPs. This includes being able to link new revenue opportunities and cross-industry leverage with transformation needs of CSPs. • Rather uniformly, clients would like to see more assertive behavior from Wipro in ongoing engagements in the areas of program management, conflict resolution, and driving new ideas and solutions. • Some clients highlight the quality of delivery resources as an area of improvement — especially in ongoing operations in multiyear contracts.

21. Added Cognizant, HCL Technologies and Wipro were added to this Magic Quadrant. Dropped NEC/NetCracker Technology was dropped from this Magic Quadrant. Logica was acquired by CGI and is part of the CGI profile in this Magic Quadrant.

22. Thank You Sharmonix Research Firm- Sharmonix Group