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ISG Provider Lens™ report finds enterprise demand for Salesforce expertise outstrips supply, driving global system integrators to buy out smaller service providers
Fast-growing enterprise demand for Salesforce support services is accelerating consolidation among providers, especially in the U.S., according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2021 ISG Provider Lens™ Salesforce Ecosystem Partners report for the U.S. finds enterprises rapidly adopted Salesforce products over the last 12 months, significantly increasing the company’s licensing revenue. The world’s largest provider of cloud-based customer relationship management (CRM) solutions continued to expand its portfolio, especially with industry-specific offerings. This growth increased the need for the Salesforce implementation resources that enterprises lack, and demand for outside expertise outstripped supply.
In this hot market, global system integrators continued to acquire midsize Salesforce ecosystem partners, including several boutique providers in the U.S., the report says. Most recently, in December 2020, Salesforce itself acquired Acumen Solutions, a successful U.S. provider of implementation services. It remains to be seen whether this move means the company wants to expand its footprint in the services market, ISG says.
"The market has rapidly expanded in the year since our last report on Salesforce service providers was published," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "Both large, global enterprises and midsize companies need experienced partners to help them derive the most value from Salesforce implementations."
Salesforce products aimed at specific industries, such as Financial Services Cloud, Marketing Cloud and Health Cloud, are a growing part of Salesforce’s business and its services ecosystem, the report says. Vlocity, a former independent software vendor (ISV) acquired by Salesforce last year, is expected to become the core of the company’s various industry clouds. Third-party apps from ISVs, delivered through the Salesforce AppExchange store, remain an important part of the Salesforce ecosystem, and service providers large and small continued to depend on strong networks of partnerships with these ISVs.
For large-enterprise implementations of Salesforce products, the most common development approach is now the Hybrid Agile model, which combines Agile and phase-oriented approaches, ISG says. Most service providers offer this approach.
Pure Agile methodologies are still suitable but are applied primarily for midsize clients with lower integration requirements and no need for a global rollout. Meanwhile, the dominant tool for Salesforce integration is Mulesoft. Service providers need significant capabilities in this area, and many global system integrators have large, dedicated Mulesoft practices for integration activities around Salesforce.
The 2021 ISG Provider Lens™ Salesforce Ecosystem Partners report for the U.S. evaluates the capabilities of 40 providers across five quadrants: Implementation and Integration Services for Large Enterprises, Implementation Services for Core Clouds − Midmarket, Implementation Services for Marketing Cloud − Midmarket, Managed Application Services for Large Enterprises, and Managed Application Services for Midmarket.
The report names Persistent as a leader in three quadrants. It names Accenture, Acumen Solutions, Capgemini, Coastal Cloud, Cognizant, Hexaware, Infosys, Magnet360, Polsource, TCS, Traction on Demand and Wipro as leaders in two quadrants. The report names 7Summits, Birlasoft, Brillio, Deloitte, HCL, Isobar, LTI, PwC, and Slalom as leaders in one quadrant each.
In addition, Birlasoft, Brillio, Customertimes, HCL and Tech Mahindra are named as Rising Stars—companies with a "promising portfolio" and "high future potential" by ISG’s definition—in one quadrant each.
The 2021 ISG Provider Lens™ Salesforce Ecosystem Partners report for the U.S. is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
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Will Thoretz, ISG
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Cait Buckley, Matter Communications for ISG
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