IBM Global Services is the CRM services leader in Europe

IDC European CRM Services Forecast Update, 2002-2007, and a Competitive Analysis of the Main Vendors

Erik Bruin, Marianne Kolding October 2003

IDC ranks IBM Global Services as the European CRM services leader, both in opportunity alignment and ability to gain share, with Accenture being the runner-up. While the companies are probably equally strong in consulting and system integration, IDC estimates IBM`s opportunity alignment above Accenture`s due to its breadth of services. A good example is the recently announced cooperation with Siebel on Siebel CRM OnDemand. IBM`s ability to gain share is also assessed as the best among the leading European CRM services players, due to IBM`s vast cross-selling opportunities, especially in the SME market.

CGE&Y and EDS are numbers three and four on the IDC Leadership Grid. EDS and CGE&Y also have comparable European CRM revenues, according to our IDC estimates. IDC assesses CGE&Y`s CRM position above EDS`s, mainly due to CGE&Y`s stronger heritage as a solution services player. This heritage leads to higher marks for innovativeness and vertical market knowledge and associated reference models for the implementation of CRM per vertical market. EDS is not far behind CGE&Y as a CRM services player, but outsourcing is core to the company and CRM services represent a smaller percentage of its business.

Deloitte and HP are the other companies in the Leadership quadrant, but for different reasons. Deloitte is one of the traditionally strong CRM consulting houses and deserves a place in the leadership quadrant, but IDC assesses Deloitte`s ability to gain share as quite limited, particularly following the confusion over Deloitte Consulting`s future over the past year or two. HP, on the other hand, is still in the process of moving up the value chain in CRM to offer end-to-end solutions.

However, IDC`s opinion is that if HP manages to do this right and to take advantage of the possibility for up-sell from its hardware products, which are platforms for a large proportion of SAP and Siebel implementations, for example, then HP`s ability to gain share should be good.