New Study Finds that Professional Services Firms Can Stand Apart in a Down Market by Delivering Fast Results and Reducing Client Costs

ITSMA’s Tenth Annual Brand Tracking Study for IT Professional Services finds that providers
have an opportunity for differentiation on speed and savings to clients. In overall favorability ratings HP, IBM, McKinsey, Bain, and Deloitte topped the list.

LEXINGTON, Massachusetts—January 29, 2009—New research from ITSMA shows that the ability to deliver results quickly and save clients money are where the real opportunities for differentiation lie today. None of the providers in ITSMA’s Annual Brand Tracking Study for IT Professional Services have distinguished themselves in these two areas, and most are falling short, according to the study respondents. Firms that can improve their standing in these areas have an opportunity to distance themselves from the crowd.

Meanwhile, buyers of IT professional services and solutions value dependability, collaboration, and open and honest communication most when selecting a provider. However, firms had similar rankings in these attributes, with no real standouts.

Customers are more familiar with, and more likely to call IBM than any other provider of IT professional services examined in the study. The research also reveals that, of the five predominantly offshore firms included in the study, only Cognizant and Infosys have migrated their brands from offshore outsourcers to global technology consulting and solutions firms.

ITSMA Identifies the Leaders in a Fragmented Market

ITSMA determines brand leadership by assigning each company a Brand Equity Index (BEI) score, which is calculated by weighting and summing individual firms’ ratings for unaided awareness, aided awareness, first firm to call, familiarity, and favorability.

With a BEI score of 50.4, IBM emerges with the highest brand equity for the examined IT professional services firms. Other top achievers include HP, Accenture, EDS, Deloitte, and KPMG. The next tier of BEI ranked companies included: Capgemini, CSC, BearingPoint, and McKinsey.

Of the five predominantly offshore firms included in the study—Cognizant, Infosys, Satyam, TCS, and Wipro—Infosys and Cognizant emerged with the top BEI scores.

There are a few market leaders and a bigger pack of followers that jockey for position, the results of which depend on market trends and buyer wants and needs. Yet the market leader firms do not control the market share. There is plenty of opportunity to succeed in this fragmented market.

Most Important Selection Criteria

ITSMA’s Senior Vice President of Research, Julie Schwartz, observes: “IBM leads the pack this year as it has for many years. And there are a few other market leaders that come close, but no one, not even IBM, controls market share in this very fragmented market. Right now, buyers are under pressure to reduce their budgets and maximize return on investment. There is a tremendous opportunity for firms to break free from the pack in two areas: saving client’s money and delivering results quickly. The research also shows that providers need to do more to provide proof points.”

Methodology

ITSMA interviewed 400 US-based senior IT and business decision makers. Study respondents all held director, vice president, or C-level positions and represented organizations with revenue or operating budgets ranging from $300 million to over $20 billion in eight major industries:

• Communications
• Energy/utilities
• Financial services
• Healthcare
• Life Sciences
• Manufacturing
• Public sector
• Retail trade

Respondents qualified for inclusion based on their involvement in purchasing IT professional services, defined as “technology and/or related business services (such as consulting, systems integration or implementation, or outsourcing) applied to address customer business objectives and valued at $100,000 or more.”

The report examined 17 professional services and solutions firms, including Accenture, Bain, BearingPoint, BT/British Telecom (incl. INS, Counterpane), Capgemini, Cognizant Technology Solutions/Cognizant, CSC/Computer Sciences Corporation, EDS, Hewlett-Packard/HP, IBM, Infosys, KPMG, McKinsey, Satyam, TCS/Tata Consulting Services, and Wipro.

For more information on the study, please see: http://www.itsma.com/research/abstracts/bps009.htm or contact Julie Schwartz at +1-781-862-8500, x112, or at jschwartz@itsma.com.

For general inquiries please contact:
Pamela O’Rourke at +1-781-862-8500, Ext. 136, or at porourke@itsma.com.

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ITSMA specializes in helping companies market and sell services and solutions more effectively. We work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA annual program clients include business leaders such as Avaya, BT, Cisco, Deloitte, Hewlett-Packard, IBM, Microsoft, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing℠, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.