Everest Group PEAK Matrix For Software Product Engineering . - TCS

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Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021Focus on TCSApril 2021Copyright 2021 Everest Global, Inc.This document has been licensed for exclusive use and distribution by TCSEGR-2021-40-E-4313

Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021Background and introduction of the researchThe proliferation of software into products, platforms, and processes across all domains has helped unlock new horizons of experience-centricity. Enterprises’ software products and platforms areexperiencing constant evolution that has led to a multitude of challenges, primarily: Developing robust and secure products that are resilient against vulnerabilities and uncertainties such as the COVID-19 pandemic Ensuring speed-to-market and differentiation, with user-experience-centered software products Keeping pace with ever-evolving software products and changing customer expectations and demand Leveraging data to generate new revenue streams and drive efficiency in software product engineeringThese challenges have fueled the need to establish a compelling ecosystem of partners, and engineering service providers are actively enhancing their capabilities and offerings to helpenterprises tackle these challenges in their software product engineering journey to create experience-centric, secured, and resilient next-generation software products.This research, the third edition of Everest Group’s Software Product Engineering PEAK Matrix Assessment, evaluates 31 engineering service providers, features them on the PEAK Matrix , andshares insights on enterprise sourcing considerations. The study is based on RFI responses from service providers, interactions with their software product engineering leadership, client referencechecks, and an ongoing analysis of the engineering services market.The report assesses the following 31 leading engineering service providers featured on the Software Product Engineering PEAK Matrix : Leaders: Accenture, Capgemini, Cognizant, HCL Technologies, Infosys, TCS, Tech Mahindra, and Wipro Major Contenders: Aspire Systems, Brillio, Cybage, EPAM, GlobalLogic, Globant, Happiest Minds, HARMAN Connected Services, Incedo, Infogain, Innominds, Itransition, Mindtree, Mphasis,Persistent Systems, Sonata Software, UST, and Virtusa Aspirants: Daffodil Software, Dextra Technologies, eInfochips, Intellias, and TO THE NEWScope of this report:GeographyGlobalProprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-4313Service providers31 leading broad-based and pureplay engineering service providersServicesSoftware productengineering services2

Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021Software Product Engineering Services PEAK Matrix characteristicsLeaders:Accenture, Capgemini, Cognizant, HCL Technologies, Infosys, TCS, Tech Mahindra, and Wipro The Leaders segment comprises broad-based IT-heritage engineering service providers who have developed dominant capabilities in offering premium and multi-disciplinary software productengineering services Leaders have made considerable investments and have effectively traversed both organic and inorganic growth trajectories to develop strong competence across all the elements of softwareproduct engineering value chain Their international delivery presence has helped them achieve the right balance of client proximity and cost advantages in servicing large-scale engagements These players are extensively focusing on putting their skin in the game and shifting beyond traditional outsourcing models toward emerging engagement constructs, primarily product carveouts and legacy product management, IP partnerships, and revenue sharing modelsMajor Contenders:Aspire Systems, Brillio, Cybage, EPAM, GlobalLogic, Globant, Happiest Minds, HARMAN Connected Services, Incedo, Infogain, Innominds, Itransition, Mindtree, Mphasis, Persistent Systems,Sonata Software, UST, and Virtusa Major Contenders comprise both IT-heritage firms as well as pure-play engineering service providers These players are actively enhancing expertise in cloud engineering, AI/ML, data & analytics, and agile & DevSecOps through talent enhancement initiatives to develop differentiated offeringsand compete with Leaders They are also focusing on expanding their delivery presence and leveraging partnerships with hyperscalers, technology firms, and academia to strengthen their presence in software productengineering servicesAspirants:Daffodil Software, Dextra Technologies, eInfochips, Intellias, and TO THE NEW Aspirants possess strong capabilities in specific technology areas and value chain elements, however, their global presence and ability to serve projects with wider scopes is limited They are making focused investments for enhancing their solutions portfolio, improving service enablement capabilities, and expanding their footprint and client-base to enter the MajorContenders segmentProprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-43133

Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021Everest Group PEAK Matrix Software Product Engineering Services PEAK Matrix Assessment 2021 TCS positioned as LeaderEverest Group Software Product Engineering Services PEAK Matrix Assessment 20211,2HighMarket impact(Measures impact created in the market)Major sGlobalLogicHARMAN Connected ServicesMindtreeVirtusaCybageHCLTCSLeadersMajor ContendersAspirantsStar PerformersEPAM WiproPersistentGlobant SystemsTech MahindraInfogainAspire SystemsUSTIncedoItransitionBrillioTO THE NEWHappiest MindseInfochips IntelliasMphasisSonata SoftwareInnomindsDaffodil SoftwareDextra TechnologiesLowAspirantsLowHighVision & capability(Measures ability to deliver services successfully)12Source:Assessments for Dextra Technologies, EPAM, Globant, and Virtusa exclude service provider inputs and are based on Everest Group’s proprietary Transaction Intelligence (TI) database, service provider public disclosures, and Everest Group’s interaction with buyersAssessment of Capgemini is inclusive of Altran (part of Capgemini) and reflects their joint capabilities and market impactEverest Group (2021)Proprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-43134

Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021TCS software product engineering services profile (page 1 of 4)Everest Group assessment – LeaderMeasure of capability:Market impactMarket AdoptionPortfolio mixValue deliveredHighLowVision & capabilityOverallVision andstrategyStrengthsScope of servicesInnovation &investmentsDelivery FootprintOverallLimitations Robust network of infrastructure establishments including innovation labs, CoEs, and jointR&D hubs with multiple technology majors While being price-competitive, TCS needs to be more proactive in adopting andrecommending emerging pricing models for appropriate engagements Recognized for deep competencies in software engineering, superior resource quality,and strong resource retention practices Needs to reduce rigidity during scope definition and improve on agility, flexibility, andopenness to increase pace and reduce the overall turnaround time Clients appreciate strong management attention and their focus on nurturing deepconstructive relationships Scope for being proactive in recommending innovative approaches to improvecustomers’ processes and workflows Perceived as a commercially competitive player in the marketProprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-43135

Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021TCS software product engineering services profile (page 2 of 4)OverviewVision & strategy: TCS envisions to enable customers accelerate innovation and drive growththrough purpose-led transformational products and innovative business models for realization ofan intelligent and connected world. TCS aims to be a strategic partner that continuously co-createsnext-generation products/platforms for customers by leveraging contextual knowledge, pioneeringin emerging technologies, and providing differentiated capabilities across the product/platform lifecycle.Adoption by value chain elementIdeation &designSoftware productdevelopmentAdoption by buyer sizeSoftware product engineering services revenue (Oct’19-Sept’20) US 100 millionUS 100-US 250 millionUS 250-US 500 million US 500 millionYoY growth rate in software product engineering services revenue (Oct’19-Sept’20) 10%10-20%20-30%High ( 30%)Testing &certificationHigh ( 30%)Small(Annual revenue US 1bn)Medium(Annual revenue US 1-5 bn)Very large(Annual revenue US 10-20 bn)Mega(Annual revenue US 20bn)Medium (15-30%)DeploymentMedium (15-30%)Low ( 15%)Software productmanagementLow ( 15%)Large(Annual revenue US 5-10 bn) 30%Adoption by geographyHigh ( 30%)Medium (10-30%)Low ( 10%)Revenue derived from cloud engineering initiatives (Oct’19-Sept’20) 20%20-35%Adoption by vertical35-50%High ( 25%) 50%Medium (10-25%)Low ( 10%)AutomotiveAerospace &defenseTelecomMedia &entertainmentBFSIISV & internetStorage &computeConsumerelectronicsMedical devicesEnergy & utilityRetailOthersProprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-43136

Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021TCS software product engineering services profile (page 3 of 4)Case studies and solutionsHelped an EU-based network technology company launch its next-generationunified network management productCase study 1Proprietary solutions (representative list)SolutionDetailsBusiness challengeAccessibility solutionsThe client was looking for a co-innovation partner to accelerate the development of its cross-domain networkmanagement solution to seamlessly manage complex and evolving hybrid networks.Accessibility accelerators spread across the product value chain, helping clientsmeet internationally mandated levels of complianceContinuous learning platformA solution to accelerate pervasive intelligence in products by enabling selectionof optimal AI models and HW platforms, and continuous improvement of AImodel qualityCloud-Native industrializationplatformA platform to efficiently accelerate blueprinting, development, assurance,deployment, and operations of SaaS products in a multi-cloud environmentINtelligent ASsuranceOptimizer (INASO)A solution to significantly optimize test cycles of complex products throughcomprehensive code analysis and corresponding test case assessmentSolution and impactTCS designed and developed a cloud-native management product with AI-based analytics for hybrid networksacross 5G/4G radio, transport, and core. With a flexible and scalable architecture, the product could bedeployed both on-premise and as-a-service. The solution is managing over two million nodes, with 20thousand nodes being added every week. TCS has been able to successfully reduce the product release cyclefrom six months to three weeks.JileHelped a software product company to reduce time-to-market and improvecustomer experience for a SaaS-based productCase study 2TMAn agile/DevOps product planning and management product for digitalenterprises to develop and deploy software productsTMNeurEDAA purpose-built platform to accelerate Electronic Design Automation (EDA)innovation by providing efficient and on-demand access to infrastructureresources through public cloudsMasterCraft A combination of three automation products, which helps automate differentstages of the product development life cycleSmartQEAn AI-based solution designed to engineer quality using intelligent assurance,release orchestration, test environment and test data management, and QualityEngineering (QE) botsSoftware ProductDevelopment MethodologyTM(SPDM )A methodology recognized by The Open Group as an architecture method thathelps TCS to engineer products by integrating IP and engineering processes inan agile wayTreXaaS A platform to accelerate and simplify product SaaSification and cloudtransformation journey by navigating through various decision-making processesBusiness challengeThe client was looking for a partner to revamp its flagship SaaS-based product by ensuring faster time-tomarket, enhancing customer experience, and accelerating product adoption through integration of apps andfaster customer onboarding.Solution and impactTCS, through its product partnership model and efforts in engineering across platforms, helped the clientachieve 20% faster time-to-market. The integration factory model employed by TCS to deliver open-sourceSaaS product plug-ins helped reduce the customer onboarding time by 15%.Proprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-43137

Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021TCS software product engineering services profile (page 4 of 4)Investments and partnershipsKey alliances and partnership (representative list)CompanyDetailsCloud partnersA strategic partnership with cloud service providers such as AWS, Azure, Oracle, Google, IBM, RedHat, Salesforce, and OpenStackEnterprise product companiesAn alliance with enterprise product companies such as IBM, Adobe, SAP, Tableau, Citrix, Oracle, Informatica, Salesforce, Splunk, and ServiceNow to provide clients with solutions andprofessional servicesIntelA collaboration to develop solutions around 5G, AI, High Performance Computing (HPC), High Performance Data Analytics (HPDA), and IoT for customers across industry verticalsMicrosoftA partnership to help clients leverage technologies such as AI, automation, and cloud to enhance customer experience and offer industry-specific cloud-based solutionsQualcommA strategic alliance for building domain-specific solutions that utilize a combination of technologies such as AI, IoT, and 5G to help clients in their digital transformation journeyRed HatAn association to enable clients’ digital transformation journey by building solutions in areas such as SDN/NFV, IoT, Telco cloud, and cloud-native architectureSAPA strategic partnership to enable clients achieve digital transformationRecent software product engineering services investments/acquisitions (representative list)Investment/targetCompany descriptionNext-generation technology solutionsCoEInvestment in research and innovation of futuristic technologies such as 5G, AI/ML, heterogeneous compute platforms, cloud-native architecture, SDN/NFV, and Intelligent EdgeDigital enterprise and transformationgroupInvestment in areas such as engineering excellence, product domains, and upcoming technologies including AI/ML, cloud engineering, DevOps, and security analytics to enable clientsaccelerate their product and platform launchDigital solutions CoEPartnership with Cisco to develop network transformation solutions leveraging Intent-based Networking (IBN)Product UI/UX and design thinkingInvestment to build a dedicated practice and design studios for design thinking and UI/UXSoftware Product Development(SPD) CoEInvestment in research and building product engineering processes, and developing standards and guidelines in product architecture and non-functional requirements for upcomingtechnologies such as AI/ML, blockchain, IoT, and 5GTCS innovation labsInvestments in labs that focus on research-based innovation to solve customer challenges and provide impactful solutions across areas such as Foundation of Computing, SoftwareSystems and Services, Computing Systems, Deep Learning & AI, and Data & Decision SciencesTCS Pace PortTMInvestments in exclusive hubs at New York, Tokyo, Pittsburgh, Amsterdam, and Toronto, with focus on innovation at speed, enabling scale, and clear business outcomes.Proprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-43138

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Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021Everest Group PEAK Matrix is a proprietary framework for assessment ofmarket impact and vision & capabilityEverest Group PEAK Matrix HighMarket impact(Measures impact created in the market)LeadersMajor ContendersAspirantsLowLowHighVision & capability(Measures ability to deliver services successfully)Proprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-431310

Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021Services PEAK Matrix evaluation dimensionsMeasures impact created in the market –captured through three subdimensionsMarket adoptionLeadersPortfolio mixDiversity of client/revenue base acrossgeographies, verticals and type of clientsMarket impactNumber of clients, revenue base,YOY growth, new client wins, prominentpricing models, and deal valueMajor ContendersAspirantsValue deliveredValue delivered to the client basedon customer feedback andtransformational impactVision & capabilityMeasures ability to deliver services successfully.This is captured through four subdimensionsVision and strategyScope of services offeredInnovation and investmentsDelivery footprintVision for the client and itself; futureroadmap and strategyDepth and breadth of services portfolioacross service subsegments/processesInnovation and investment in the enablingareas, e.g., technology IP, industry/domainknowledge, alliances, M&A, and serviceenablementDelivery footprint and global sourcing mixProprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-431311

Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021Everest Group confers the Star Performers title on providers that demonstratethe most improvement over time on the PEAK Matrix MethodologyEverest Group selects Star Performers based on the relative YOY improvement on the PEAK Matrix Market impactYear 1In order to assess advances on market impact,we evaluate each service provider’s performance acrossa number of parameters including: Yearly ACV/YOY revenue growth # of new contract signings and extensions Value of new contract signings Improvement in portfolio mix Improvement in value deliveredYear 0Vision & capabilityIn order to assess advances on vision and capability,we evaluate each service provider’s performance acrossa number of parameters including: Innovation Increase in scope of services offered Expansion of delivery footprint Technology/domain specific investmentsWe identify the service providers whose improvement ranksin the top quartile and award the Star Performer rating tothose service providers with: The maximum number of top-quartile performanceimprovements across all of the above parametersAND At least one area of top-quartile improvement performancein both market success and capability advancementThe Star Performers title relates to YOY performance for a given vendor and does not reflect the overall market leadership position, which is identified as Leader, Major Contender, or Aspirant.Proprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-431312

FAQsDoes the PEAK Matrix assessment incorporate any subjective criteria?Everest Group’s PEAK Matrix assessment adopts an unbiased and fact-based approach (leveraging service provider / technology vendor RFIs and Everest Group’s proprietary databases containingproviders’ deals and operational capability information). In addition, these results are validated / fine-tuned based on our market experience, buyer interaction, and provider/vendor briefingsIs being a “Major Contender” or “Aspirant” on the PEAK Matrix, an unfavorable outcome?No. The PEAK Matrix highlights and positions only the best-in-class service providers / technology vendors in a particular space. There are a number of providers from the broader universe that are assessedand do not make it to the PEAK Matrix at all. Therefore, being represented on the PEAK Matrix is itself a favorable recognitionWhat other aspects of PEAK Matrix assessment are relevant to buyers and providers besides the “PEAK Matrix position”?A PEAK Matrix position is only one aspect of Everest Group’s overall assessment. In addition to assigning a “Leader”, “Major Contender,” or “Aspirant” title, Everest Group highlights the distinctive capabilitiesand unique attributes of all the PEAK Matrix providers assessed in its report. The detailed metric-level assessment and associated commentary is helpful for buyers in selecting particular providers/vendorsfor their specific requirements. It also helps providers/vendors showcase their strengths in specific areasWhat are the incentives for buyers and providers to participate/provide input to PEAK Matrix research? Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment Participation incentives for providers/vendors include adequate representation and recognition of their capabilities/success in the market place, and a copy of their own “profile” that is published byEverest Group as part of the “compendium of PEAK Matrix providers” profilesWhat is the process for a service provider / technology vendor to leverage their PEAK Matrix positioning and/or “Star Performer” status ? Providers/vendors can use their PEAK Matrix positioning or “Star Performer” rating in multiple ways including:– Issue a press release declaring their positioning. See citation policies– Customized PEAK Matrix profile for circulation (with clients, prospects, etc.)– Quotes from Everest Group analysts could be disseminated to the media– Leverage PEAK Matrix branding across communications (e-mail signatures, marketing brochures, credential packs, client presentations, etc.) The provider must obtain the requisite licensing and distribution rights for the above activities through an agreement with the designated POC at Everest Group.Does the PEAK Matrix evaluation criteria change over a period of time?PEAK Matrix assessments are designed to serve present and future needs of the enterprises. Given the dynamic nature of the global services market and rampant disruption, the assessment criteriaare realigned as and when needed to reflect the current market reality as well as serve the future expectations of enterprisesProprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-431313

Everest Group PEAK Matrix for Software Product Engineering Service Providers 2021Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing.Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights anddeep experience, we guide clients in their journeys to achieve heightened operational and financial performance, acceleratedvalue delivery, and high-impact business outcomes. Details and in-depth content are available at everestgrp.com.Stay connectedWebsiteeverestgrp.comSocial Media@EverestGroup@Everest GroupDallas (Headquarters)info@everestgrp.com 1-214-451-3000Londonunitedkingdom@everestgrp.com 44-207-129-1318Bangaloreindia@everestgrp.com 91-80-61463500New Yorkinfo@everestgrp.com 1-646-805-4000Delhiindia@everestgrp.com 91-124-496-1000Torontocanada@everestgrp.com 1-647-557-3475@Everest Group@Everest his document is for informational purposes only, and it is being provided “as is” and “as available” without any warranty of any kind, including any warranties of completeness, adequacy, or fitnessfor a particular purpose. Everest Group is not a legal or investment adviser; the contents of this document should not be construed as legal, tax, or investment advice. This document should not beused as a substitute for consultation with professional advisors, and Everest Group disclaims liability for any actions or decisions not to act that are taken as a result of any material in this publication.Proprietary & Confidential. 2021, Everest Global, Inc. EGR-2021-40-E-431314

TCS software product engineering services profile (page 1 of 4) Everest Group assessment -Leader Strengths Limitations Robust network of infrastructure establishments including innovation labs, CoEs, and joint R&D hubs with multiple technology majors Recognized for deep competencies in software engineering, superior resource quality,