You are here:HomeOutsourcing HelpdeskOutsourcing Helpdesk Guide→Magic Quadrant for Help Desk Outsourcing
Magic Quadrant for Help Desk Outsourcing      
Written by zhangyuan  
January 25, 2008 10:51

What You Need to Know


Gartner's Magic Quadrant for North American help desk outsourcing services will help you identify and evaluate help desk outsourcing external service providers (ESPs). The ESPs in this Magic Quadrant can provide help desk services, but their competencies and offerings vary. Base your selection on a detailed evaluation of your outsourcing objectives and technical requirements, as well as on the ESP's capability to fulfill those expectations.

As we reported in 2005, the help desk outsourcing service market is mature, and the results in 2007 were minor shifts on the Magic Quadrant and a tighter grouping of the leaders. Since this is a mature market, the service providers continued to concentrate on processes, automated tools and geographic locations to reduce their costs. Many service providers used self-help tools and alternative contact methods (such as e-mail, instant messaging and Web access), and offered Web scoreboards to report their help desk service-level results.

Because providers support various contact methods, track the volume based on number of incidents. Many providers, however, still refer to the number of calls handled. This measurement may be quoted in the Vendors Strengths and Cautions section of this report.

Many of the service providers have or are adopting the use of Information Technology Infrastructure Library (ITIL) practices to help standardize practices and reduce costs. More providers are also using alternative geographic locations to host help desk agents. These locations may be onshore, nearshore or offshore.

Help desk outsourcing capabilities vary among ESPs, and some concentrate on specific vertical markets or end-user roles.

The help desk outsourcing market continues to expand, and ESP capabilities continue to mature. More ESPs are providing a greater range of remote diagnostic tools and self-help services. During their time in the market, many ESPs have gained experience and knowledge, leading to better methodologies, processes and services. As a result, a heavy concentration of service providers falls into the Challengers and Leaders quadrants (see Figure 1).

 

Return to Top




Magic Quadrant


Figure 1. Magic Quadrant for Help Desk Outsourcing, North America, 2007

Figure 1.Magic Quadrant for Help Desk Outsourcing, North America, 2007
Source: Gartner (March 2007)
 
 

Return to Top


Market Overview

Through 2008, the North American help desk management service market will grow at a 4.9% compound annual growth rate (CAGR), from $6 billion in 2005 to $7.7 billion in 2010.

 

Return to Top


Market Definition/Description

Gartner defines help desk services as "the provision of end-user support for all IT services for North American markets." Services include:

  • Help desk
    • First-level support
    • Second-level support
  • Problem management
    • Problem categorization and logging
    • Problem tracking and escalation
    • Problem resolution

Methodology

For this Magic Quadrant, each participating ESP delivered a formal presentation and was asked to provide a list of six North American references. We used the presentations and references, along with other Gartner analysts' industry knowledge, to determine the final assessments of each ESP. Each component of our analysis was weighted:

  • References counted for 70% of the score. We contacted references to gather information about their experiences with their ESPs.
  • Vendor presentations counted for 20% of the score. Vendors described their capabilities and provided strategic directions for their help desk service businesses.
  • Gartner analysts' assessments counted for 10% of the score.

We also interviewed end users in more than 120 organizations:

  • Organizations ranged in size from slightly less than 1,000 users to more than 100,000 users.
  • More than 80% of the organizations used the same provider for desktop and help desk support. Fewer than 20% only used that provider for help desk services.
  • Fewer than 15% of the organizations relied on the same provider not only for desktop and help desk services, but also for other types of services.
  • The organizations represented many government (federal, state and local) agencies and industries, including financial services, manufacturing, pharmaceuticals and educational institutions.
  • More than 90% of the end users had formal service-level agreements (SLAs).
  • More than 95% of the SLAs included penalties for underperformance.
  • Approximately 25% of the SLAs offered providers incentives for overperformance.

The compilation of the results from the presentations and the reference checks led to the final placement of the ESPs in the Magic Quadrant. The positioning reflects their completeness of vision and ability to execute.

 

Return to Top


Inclusion and Exclusion Criteria

This Magic Quadrant relied heavily on checking ESP-supplied customer references. Participating ESPs were required to have at least $15 million in help desk service revenue and supply six references. If qualified service providers would not actively participate in the study, then we elected to include these service providers based on Gartner's belief that the ESPs were well-known. They were evaluated based on analysts' knowledge of the market and feedback from previous buyers.

 

Return to Top


Added

None

 

Return to Top


Dropped

DecisionOne and Zavata

 

Return to Top


Evaluation Criteria
Ability to Execute

Each ESP's ability to execute was analyzed based on the following criteria:

  • Product or service
    • Effective resourcing
    • Transition management
  • Sales execution/pricing
    • Contract/deal structure
    • Pricing acceptance
  • Marketing execution
    • Clarity of services, roles and responsibilities
    • Client delivery model/relationship management
  • Customer experience
  • Operations
    • SLAs, metrics and measurement programs
    • Expertise with technical support/operations/tools
  • Market Responsiveness and track record
  • Client innovation
  • Overall viability (business unit, financial, strategy and organization)

The Ability to Execute axis positions each ESP based on its success in delivering results, as well as its preparation to deliver results in the future. Gartner verifies an ESP's capability to deliver help desk services through extensive interviews with the ESP's clients and references.

ESPs were evaluated on their quality and efficacy of the processes, systems, methods or procedures that enable them to perform competitively, efficiently and effectively. They were also evaluated on their ability to have a positive effect on revenue, retention and reputation. Ultimately, ESPs were judged on their capability and success in capitalizing on their vision.

Each criterion is ranked high, standard or low in importance and scored accordingly.

Criteria Ranked "High"

Product or Service: We look at each ESP's core services that compete in or serve the defined market. The analysis includes service capabilities, quality, feature sets and skills, whether offered natively or through agreements or partnerships with OEMs, according to the market definition and detailed in the subcriteria. Two considerations are:

  • Effective resourcing: We focus on the ESP's ability to provide the relevant resources effectively to the customer. We ask, "How do you decide on the resources required to support a customer? Do you have tools and procedures to assist with resource allocation? What are your current capabilities in terms of staff availability and facilities?"
  • Transition management: We evaluate the ESP's investments in its people, focusing on what practices are in place to recruit, train and retain qualified staff. We ask, "What are the key skill sets and competencies of the resources? What changes in the skill set mix do you anticipate during the next two years?" ESPs are also judged on their capability to integrate staff from client organizations by offering a competitive job opportunity - for example, addressing (in different countries) salary and benefits packages, retraining, career progression opportunities and minimized disruption due to the employee's job location. We ask, "Do you have a quality process and project plan for transition? What are your procedures for transitioning the workload to your facility? How do you handle the hiring of your customers' employees?"

Sales Execution/Pricing: We examine each ESP's capabilities in all pre-sales activities and the structure that supports them. This includes deal management, pricing and negotiation. The areas we review are:

  • Contract/deal structure: We ask each ESP to explain the management of various contracts and how the relationship is structured to meet the needs of both parties. We also ask, "How do your deals support the service recipient's and service provider's strategic goals? Is there a shared vision? Do you have a process to ensure that the visions remain aligned over the life of the contract? From a contractual point of view, how can you provide flexibility and agility in the provision of help desk services?"
  • Pricing acceptance: We evaluate each ESP's capability to manage price and reduce costs (through new service offerings, improved productivity, management tools, quality, resource allocation or staff reductions). This information is key in outsourcing deals where the prime objective is gaining economies of scale. We also examine each ESP's pricing schemes and their clarity. We ask, "How are the various services priced? Are there add-on costs? Do you provide price justification based on business value to your customers?"

Marketing Execution: We explore the clarity, quality, creativity and efficacy of programs designed to deliver each ESP's message to influence the market, promote the brand and business, increase awareness of the service solutions, and establish a positive identification with the service solutions/brand and organization among buyers. This "mind share" can be driven by a combination of publicity, promotions, thought leadership, word of mouth and sales activities. We evaluate two primary areas:

  • Clarity of services, roles and responsibilities: As part of a comprehensive governance effort, ESPs must be willing to establish clear roles and responsibility matrixes. This will avoid confusion among the parties, reduce duplication of roles, eliminate unclear responsibilities, and optimize decision making and project management processes. We ask, "What statement-of-work (SOW) structures describe the services offered? Do you have a standard format? If so, what is included? Is there a formal communication process to interact with the client?" We also ask each ESP to explain its relationship management role and how it supports what needs to be done for various service recipients.
  • Client delivery model/relationship management: We examine each ESP's delivery capabilities and practices for help desk services, CRM and knowledge transfer, as well as quality control and quality assurance. The ESPs are evaluated on their overall client delivery model and their capability to apply repeatable practices consistently to successfully manage long-term relationships with customers, thus supporting emerging business and IT challenges. We ask ESPs to explain the organizational structure and procedures they use to manage their accounts and resolve differences, escalate problems and generally maintain a successful relationship with their customers. We also ask, "What is your style and approach to working in the client's cultural and political environment? How would you describe the roles of relationship management, contract management and service delivery management in an engagement?"

Customer Experience: We evaluate the relationships, products and services/programs that enable organizations to be successful with the service solutions evaluated. Specifically, this includes the ways organizations receive technical support or account support from their ESP. This can also include ancillary tools, customer support programs (and the quality thereof), the availability of user groups and SLAs. ESPs are asked to provide 10 references for which they provide help desk services.

Operations: We examine each ESP's capability to meet its goals and commitments. Factors include the quality of the organizational structure (such as skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis). We evaluated two primary areas:

  • SLAs: An effective performance measurement program is essential to determine whether the ESP is providing effective service delivery. We ask ESPs to explain their procedures for SLAs: How do you arrive at reasonable service levels for your service recipients? Do you have penalties or incentives tied to SLAs? Do you measure customer satisfaction? If so, how are the results of the survey used?
  • Expertise with technical support/operations/tools: We evaluate ESPs' depth and breadth in help desk service technology areas. Each ESP is evaluated on its skills and capabilities in help desk service environments, and on its capability to apply specific management toolsets and the associated personnel expertise to satisfy the needs of each deal. We ask, "What are the principal standards, solutions and systems that your company can manage in help desk service engagements? Exactly what help desk services do you provide? Do you have specialized operational processes or tools for help desk service management?"

Criteria Ranked "Standard"

Market Responsiveness and Track Record: We look at each ESP's capability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the provider's history of responsiveness.

Client Innovation: We ask, "Assuming your company pays attention to emerging trends and developments in the help desk service marketplace, how is that knowledge shared with your clients? Do you provide advice and recommendations regarding innovations and tools to customers? If so, how are these presented? How do both parties meet their strategic and operational goals, and respond to business and technology changes? What examples of innovation and thought leadership have been brought to bear in client engagements? What are examples of future investments to stay ahead of the pack?" We also ask ESPs to explain their procedures for continuous improvement. "Do you use results from service levels to feed the continuous improvement process? How do you measure customer satisfaction? In the past 12 to 18 months, what innovations have you brought to market that have not been available previously?"

Criteria Ranked "Low"

Overall Viability (Business Unit, Financial, Strategy and Organization): Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood of the business unit to continue to invest in the service solution and advance the state of the art in the organization's service portfolio.


Table 1. Ability to Execute Evaluation Criteria

Evaluation CriteriaWeighting
Product/Servicehigh
Overall Viability (Business Unit, Financial, Strategy, Organization)low
Sales Execution/Pricinghigh
Market Responsiveness and Track Recordstandard
Marketing Executionhigh
Customer Experiencehigh
Operationshigh

Source: Gartner
 

Return to Top



Completeness of Vision

Each ESP's completeness of vision was analyzed according to the following criteria:

  • Offering (product) strategy
    • Practice area
    • Operational/tools expertise
  • Business model
    • Methodologies
    • Management acumen
  • Market understanding
  • Innovation
  • Marketing strategy
  • Sales strategy
  • Vertical market/industry strategy
  • Geographic strategy
    • Regional capabilities
    • Alliances and partnerships

The vision axis reflects each ESP's prospects for success by analyzing its view of the market, its service operating model, and its strategic plans for growth and service improvements. Gartner verifies an ESP's vision regarding help desk services based on the ESP's presentation and on direct feedback from extensive interviews with the ESP's clients.

We ask each ESP many questions and evaluate each on its capability to articulate logical statements convincingly about market directions, innovations, customer needs and competitive forces. Ultimately, we rate ESPs on their understanding of how they can exploit market forces to create opportunities for themselves.

Each criterion is ranked high, standard or low in importance and scored accordingly.

Criteria Ranked "High"

Offering (product) strategy: We evaluate two areas:

  • Practice area: We evaluate the composition of practice areas serving clients that require help desk services, including relative size, revenue, number of seats supported, geographic reach, leadership of the management team and the team's position in the corporate structure.
  • Operational/tools expertise: We ask, "Do you have specialized operational process/tools? Are you using an ITIL or other process to manage your workload? What operational tools expertise do you offer to customers? Does your service provider utilize, as part of the help desk solution for your engagement, automated password resets? Does your service provider have other self-help, self-healing tools (such as knowledge management databases of problem resolution) that your end-user community can use for assistance? Are they effective? Does you provider use remote diagnostic tools to assist it in resolving issues remotely prior to dispatch? Does it seem to help resolve problems?"

Business Model: We evaluate two factors:

  • Methodologies: We ask each ESP for a high-level description of its help desk service delivery business model. Is the model embedded in a larger methodology? How does this methodology link technology implementation to business objectives? We review each ESP's procedures (operational, transitional, program management, relationship management and change management) that are provided to customers. We focus on the processes and best practices that the ESP implements for a smooth transition of systems, people and assets. We ask, "How do you ensure that the sourcing management processes are appropriate and effective for your various clients? How do you ensure that help desk services can deliver high-value services by supporting applications and business processes? Are processes to measure bottom-line business results (or value delivered via an optimized and agile IT infrastructure) embedded in the methodology? If so, what are the key features for measuring results? What practices are used to ensure and control quality?"
  • Management acumen: An ESP's success can be directly associated with its management structure and the experience of its managers. Having good plans and the people to carry them out is an essential ingredient. Good deals for both parties happen when managers focus on ensuring that the deals meet their clients' needs, and on satisfying the ESP's profit targets. We ask each ESP to explain the management teams it uses to support and manage customers. We also ask, "What is management's experience and skill levels? How are customer issues addressed? What are the experience and skill levels of executive management and the assigned key customer-facing managers? How are customer issues addressed? Does the customer have access to the appropriate level of management in the ESP?"

Criteria Ranked "Standard"

Market Understanding: We asked the ESPs to describe their strategic plan and vision as they relate to help desk services, as well as their commitment to aligning services with future market needs. We also ask, "How would you differentiate your strategic plan and vision from your competitors'? What is your company's heritage in this area? How long have help desk services been part of your service portfolio? How has it evolved and grown? How will it maintain a leading position in a challenging market?" ESPs also are evaluated on their ability to demonstrate a well-defined and articulated vision for assisting organizations in linking help desk services with enterprise technology and business strategy.

Innovation: We evaluate each ESP's position in the market as a "thought leader" and innovator. Each ESP is evaluated on its leadership and supporting investment to achieve its vision to develop innovative strategies in the help desk service market. We ask, "How does your company stay current with new technology and tools? Do you have alliances with other suppliers? Do you offer innovative services to your customers (for example, adaptability and agility of the services, quality of the services, ability in managing a long-term relationship)? How do you offer innovations to your customers? What investments is your company making to sustain and enhance its vision for innovative help desk services?"

Criteria Ranked "Low"

Marketing Strategy: We evaluate each ESP's strategy and approach to the market, and how they promote help desk services. We ask, "How many dedicated personnel do you have? How does your company measure the effectiveness of the business development model? What training do marketing people receive?" We evaluate ESPs' go-to-market strategy, including their capability to articulate their value proposition and differentiate their services. We also evaluate their penetration of industries and their capability to leverage vertical expertise in their sector and other sectors.

ESPs are also evaluated on their capability to demonstrate expertise in vertical markets and business processes, which are underpinned by help desk services. Each ESP is asked to supply a high-level sales organization chart to demonstrate its go-to-market strategy.

Sales Strategy: We evaluate each ESP's sales strategy and capability to sell help desk services. We ask, "How many dedicated personnel do you have? How does your company measure the effectiveness of the sales organization? What training do salespeople receive? What is your sales strategy for help desk services? Do you have standard sales processes and do you use sales productivity tools? How do you respond to requests for proposals?"

Vertical/Industry Strategy: We evaluate ESPs' strategy to direct resources, and their skills and offerings to meet the specific needs of individual market segments, including vertical industries. We evaluate each ESP's penetration of industries and their capability to leverage vertical expertise in their sector and other sectors. We also evaluate their ability to demonstrate expertise in vertical markets and business processes, which are underpinned by help desk services.

Geographic Strategy: We evaluate two categories:

  • Regional capabilities: We evaluate each ESP's strategy to direct resources, skills and offerings to meet the specific needs of regions outside its "home" or native geography (directly or through partners, channels and subsidiaries) as appropriate for that geography and market.
  • Alliances and partnerships: We evaluate ESPs' relationships with product providers or other service providers to add value, provide full-service solutions or bring innovation closer to their clients. ESPs are evaluated on their capability to demonstrate that they selected strategic relationships that are well-defined and successfully managed to operate in a client environment.

Table 2. Completeness of Vision Evaluation Criteria

Evaluation CriteriaWeighting
Market Understandingstandard
Marketing Strategylow
Sales Strategyhigh
Offering (Product) Strategyhigh
Business Modelhigh
Vertical/Industry Strategylow
Innovationstandard
Geographic Strategylow

Source: Gartner
 

Return to Top



Leaders

ESPs in the Leaders quadrant are performing well, have a clear vision of market direction and are actively building competencies to sustain their leadership positions in the market. From our analysis, the following ESPs (in alphabetical order) are leaders:

  • Affiliated Computer Services (ACS)
  • CompuCom
  • CSC
  • EDS
  • Getronics
  • HP
  • IBM
  • Northrop Grumman
  • Perot Systems
  • Siemens IT Solutions and Services
  • Unisys
  • Verizon Business

All these ESPs have demonstrated that they have significant help desk outsourcing experience and understand the dynamics needed to deliver help desk services successfully. Experience weighs heavily in the Leaders quadrant.

 

Return to Top


Challengers

ESPs in the Challengers quadrant execute well, but they have a less-defined view of market direction, so they may not be aggressive in preparing for the future. ESPs that emerged as challengers are:

  • Ciber
  • C3i
  • Dell
  • CGI
  • Lockheed Martin
  • Pomeroy IT Solutions
  • SAIC
  • Spherion
  • TechTeam

These ESPs demonstrated that they have a solid base of satisfied help desk outsourcing clients. Overall, each ESP in the Challengers quadrant has great potential to become a market leader by raising its strategic vision and broadening its service offerings to meet organizations' future needs.

 

Return to Top


Visionaries

ESPs in the Visionaries quadrant have a clear vision of market direction and are focused on preparing for that, but they can improve in terms of optimizing service delivery. After reviewing each ESP's completeness of vision, no service provider was placed in the Visionaries quadrant. This is a further indication of the market's maturity.

 

Return to Top


Niche Players

ESPs in the Niche Players quadrant focus on a particular segment of the client base, as defined by characteristics such as size, vertical focus or selective help desk service offerings. Their capability to outperform or be innovative may be affected by this narrow focus. GlobalServe was the only vendor that provided specialized services (for example, break/fix support) and/or concentrated on the delivery of these services.

GlobalServe primarily concentrates on the global delivery of procurement of PCs, the related global PC support and associated help desk services. It focuses primarily on providing these services for international clients.

ESPs that appear in the Niche Players quadrant are viable options for organizations to consider for help desk outsourcing. In this Magic Quadrant, ESPs identified as niche players may have limited experience in the general or commercial North American markets, or they may only provide specific service offerings.

 

Return to Top


Vendor Strengths and Cautions
Affiliated Computer Services
Strengths
  • ACS has a strong financial position. Its fiscal 2006 revenue was $5.4 billion.
  • At the help desk, ACS supports approximately 2.1 million contacts (including instant messages and e-mails).
  • ACS is well-positioned for PC support, and this service often works well with help desk support. In 2006, ACS raised the number of PCs it supported from 100,000 to 165,000.
 

Return to Top


Cautions
  • ACS has a heavy emphasis on growth of business process outsourcing services, and IT services only account for 25% of its revenue. So far, this strategy has not been a factor, but it could lead to a decrease in service levels for IT services.
  • Innovation is one of the areas that ACS does not actively promote. Organizations should address this early and include it in the contract.
  • References also had some issues with the management teams assigned. Ensure you interview the assigned managers and are comfortable with the selection.
 

Return to Top


C3i
Strengths
  • C3i provides CRM services and outsourcing, including help desk Level 1, Level 2 and Level 3 support. It concentrates on supporting mobile field sales and support personnel, as well as Siebel software and proprietary CRM applications.
  • C3i has a strong presence in the pharmaceutical market; half of the top 20 pharmaceutical companies are its customers.
  • In 2006, C3i's position in the Challengers quadrant remained the same, but it now supports more than 38,000 end users.
  • C3i continues to expand its European support. It indicated that one-third of its calls are handled in its offshore sites in Bulgaria and India.
 

Return to Top


Cautions
  • C3i concentrates on commercial life sciences and clinical operation services. For organizations outside this vertical market, C3i may not be the best candidate.
  • References indicated that C3i follows some standard processes, but does not use ITIL practices. Since ITIL is becoming a "norm" with many companies, this may be an issue for some clients selecting C3i.
 

Return to Top


CGI
Strengths
  • CGI is one of the major IT outsourcing providers in Canada.
  • It supports more than 150,000 desktops and handles more than 3 million help desk calls annually.
  • Clients believe that CGI is very good at working with them to prepare a good and clear SOW.
 

Return to Top


Cautions
  • CGI's market focus is on full-service IT outsourcing, where it takes over the entire IT operation. Because CGI does not routinely offer desktop or help desk services as stand-alone offerings, it is in the Challengers quadrant.
  • Although CGI is very strong in Canada, its help desk market penetration in the U.S. has been minimal. U.S. clients need to evaluate the risk involved.
  • There is some concern around innovation and the fact that this is not readily provided by CGI. Organizations signing deals with CGI should address innovation as a requirement in the contract to ensure that it is covered.
 

Return to Top


Ciber
Strengths
  • Ciber's IT outsourcing practice leverages vertical expertise in financial services, manufacturing, distribution and government to provide higher-level functional support, which carries over to distributed services and help desk services.
  • In 2006, Ciber had more than 475 seats providing help desk support
  • Ciber earned $24 million in help desk revenue in 2006.
 

Return to Top


Cautions
  • Ciber's primary focus is on application- and business-oriented practices; PC and help desk services are secondary offerings.
  • Ciber has not always allowed clients to interview the assigned managers. In these cases, some organizations felt that the management was only adequate. Clients should have a say in which key managers are assigned to their accounts.
  • Ciber is not aggressive at pushing its toolsets, although organizations might gain value by adopting Ciber's tools instead of using their own tools.
 

Return to Top


CompuCom
Strengths
  • CompuCom continues to grow and improve its desktop outsourcing and help desk service offerings.
  • In 2006, CompuCom supported 1.2 million users with help desk services, and more than 750,000 outsourced desktop seats in North America.
  • CompuCom's clients continue to be satisfied with its high-quality services at competitive prices. CompuCom's growth and commitment to the business has progressively elevated it within the Leader's quadrant for the 2007 help desk Magic Quadrant.
  • CompuCom continues to invest in relationship management methodologies and personnel. These investments were apparent during reference checks.
 

Return to Top


Cautions
  • CompuCom's service revenue grew 18% during the past year - more than the marketplace of 4.5% in North America. Although CompuCom generally performed well, review its resource capabilities to ensure that it can staff to meet demand.
  • Although CompuCom has a strong presence in North America, it is beginning to expand into Europe, Asia and beyond. Organizations seeking global delivery must verify that CompuCom offers offshore service capabilities that will meet their requirements.
 

Return to Top


CSC
Strengths
  • CSC continues to be a leader in help desk services, and it has a very strong vision for the future.
  • It is one of the largest service providers in North America and has a strong base of clients worldwide.
  • Overall, CSC in the Americas supported 425,928 PCs and handled approximately 6.6 million help desk contacts in 2006.
 

Return to Top


Cautions
  • CSC is very selective about which deals it bids for, based on the probability of winning. Therefore, organizations may find that CSC is reluctant to bid on small, cost-driven deals.
  • CSC has been reorganizing and shifting its resources. Ensure that your resource requirements are addressed in any deal.
  • CSC offers global delivery of services; therefore, ensure that you are comfortable with the location, resources and subcontractors provided.
 

Return to Top


Dell
Strengths
  • Although Dell is still a fairly new entrant to the desktop outsourcing and help desk outsourcing service Magic Quadrants, clients are positive about the quality and services provided.
  • Dell has been steadily growing these services and expanding its market presence by focusing on a blended sourcing model.
  • Dell provides desktop outsourcing services to more than 1.33 million seats, and it handles more than 228,000 help desk calls per month.
 

Return to Top


Cautions
  • Although Dell has a lot of experience with customer call centers, it is still developing help desk services that handle its clients' end users. Review Dell's methodologies for help desk services.
  • Dell's focus is on supporting x86 environments; its capabilities are limited beyond that.
  • Dell's overarching strategy is to drive down support costs through process improvement and automation. Organizations need to ensure that service options and service levels are chosen to match user needs.
 

Return to Top


EDS
Strengths
  • In North America, EDS supports nearly 1.7 million distributed PCs, and handles more than 10 million help desk calls annually.
  • EDS has been making positive strides with its service offerings by focusing on agility and flexibility.
 

Return to Top


Cautions
  • EDS has a high cost of delivery, due to total package bundling of services (but this is getting better). Determine whether you require EDS's bundled services.
  • Its sales channel remains challenged to properly address the midmarket; therefore, midmarket organizations need to evaluate EDS's pricing based on its quality of service.
  • EDS is not very proactive with introducing innovation; plan and include innovation as a requirement for EDS and it will respond.
 

Return to Top


Getronics
Strengths
  • Getronics stresses the importance of clearly addressing a desktop-managed help desk and infrastructure under one umbrella.
  • Getronics has a strong quality initiative surrounding ITIL and Six Sigma, which is reflected in its service delivery.
  • In 2006, Getronics handled 2.5 million help desk calls and supported 815,000 outsourced desktop seats in North America.
 

Return to Top


Cautions
  • Getronics has been restructuring its various European, Middle Eastern and African operations into partnerships and joint ventures in places such as France, Italy, Israel, Austria, the Czech Republic, Poland and Slovakia. North American organizations looking for additional global support should apply due diligence to understand these relationships.
  • Getronics has not done enough to market its help desk outsourcing capabilities in North America; therefore, many organizations do not think of Getronics when sending out RFPs. Include Getronics in the appropriate situations.
  • There are some instances of issues with the management teams assigned. Interview assigned managers and ensure that you are comfortable with the selection.
 

Return to Top


GlobalServe
Strengths
  • GlobalServe is a unique enterprise that focuses on supporting global companies. Although it serves North American companies, it also offers support to companies globally by enlisting and managing multiple subcontractors from countries worldwide.
  • GlobalServe provides an alternative approach to service with its distributed international businesses. Because its focus continues to be primarily international, GlobalServe falls into the Niche Players quadrant.
  • GlobalServe offers help desk support, as well as the entire desktop life cycle from procurement, to management, to the disposal of PCs.
 

Return to Top


Cautions
  • GlobalServe uses a network of subcontractors; therefore, organizations must have SLAs in place to ensure consistent quality.
  • There is some criticism of the flexibility of contracts. If you need flexibility, build it into your contacts before you sign.
 

Return to Top


HP
Strengths
  • In 2006, HP managed 2.1 million help desk seats and 1.5 million desktops globally.
  • HP is known for its flexibility in structuring outsourcing deals.
  • HP is very good at structuring solutions that will best meet its clients' needs, including shared management responsibilities, full and partial outsourcing agreements, and a wide range of financing, HR, telecommunications infrastructure and facilities management arrangements.
 

Return to Top


Cautions
  • Corporate restructuring has caused some confusion; ensure that you know the key HP managers and executives that are assigned to your accounts.
  • With HP's growth, staff resourcing could be a problem; therefore, ensure that the HP resources are available and have the skills you need to meet your business requirements.
  • Although HP has a good set of management tools that are consistently used, review the toolset HP will be using for your deal to ensure that it can interface to your systems.
 

Return to Top


IBM
Strengths
  • IBM is the largest ESP and retained its position as a leader in the help desk outsourcing services Magic Quadrant for 2007.
  • Worldwide, IBM received more than 3.2 million help desk calls a month, and it manages and maintains more than 2.3 million desktops.
  • As the market leader, IBM continues to leverage best-of-breed tools, processes, skills and leadership for its clients.
 

Return to Top


Cautions
  • Although the IBM name is associated with high quality, organizations still need to implement SLAs and monitor IBM's performance to ensure that it provides high-quality service.
  • IBM is considered less agile and slower to change and adapt; therefore, dynamic organizations should build flexibility into the deal.
 

Return to Top


Lockheed Martin
Strengths
  • Lockheed Martin's IT business unit focuses on government accounts. It provides a high level of service and, therefore, is in the Challengers quadrant.
  • Lockheed manages more than 440,000 desktop users and handles more than 435,000 help desk calls per month. It continues to grow its business by 20% annually.
  • For government organizations, Lockheed is a good choice to include in desktop or help desk outsourcing bids.
 

Return to Top


Cautions
  • Lockheed is not an option for commercial clients.
  • There have been some instances of issues with the management teams assigned, so interview the assigned managers and ensure that you are comfortable with the selection.
  • Innovation is one of the areas that can be an issue if it is not included in the deal. Address this early and include it in your contracts.
 

Return to Top


Northrop Grumman
Strengths
  • Northrop Grumman continues to maintain a leadership position in the government sector while it grows its commercial business. This is reflected in its position in the Leaders quadrant.
  • Northrop Grumman supports more than 650,000 desktop users and handles more than 2.5 million help desk calls annually.
  • Northrop Grumman is leveraging industry standard frameworks (such as ITIL, CMMI, ISO9000, ISO20000) and best practices under its quality initiatives.
 

Return to Top


Cautions
  • There have been some instances of dissatisfaction with the SOW and clarity around roles and responsibilities. Ensure that the SOW is very clear and that all the roles and responsibilities for the client and the service provider are documented.
  • There have been some minor issues with tools and technical expertise. Define what your technical requirements are and ensure that the service provider has the necessary resources.
  • Although Northrop Grumman is committed to automation and the integration of knowledge management, interactive voice response and automated service alerts for lower-cost total ticket ownership capabilities, organizations need to verify when these enhancements will be available.
 

Return to Top


Perot Systems
Strengths
  • Perot Systems, with more than 180,000 monthly help desk calls and more than 225,000 desktop users supported annually, continues to perform as a leader in desktop and help desk support.
  • References are satisfied with Perot's core competencies in desktop outsourcing and help desk services.
  • Perot has expanded its help desk services from two to four centralized service desks. This was accomplished by establishing operations in Romania and Mexico to handle nearshore alternatives for Europe and the U.S.
 

Return to Top


Cautions
  • References reported some issues with resources allocated to the account and tools and technical skills. Because these were random comments, ensure that you address Perot's available resources and the technical capabilities that will enable you to meet your unique requirements.
 

Return to Top


Pomeroy IT Solutions
Strengths
  • Pomeroy has implemented ITIL processes and other quality processes to improve its ability to execute significantly. It continues to progress toward a more comprehensive vision.
  • Pomeroy annually supports more than 3 million help desk calls and more than 1.25 million desktop events.
  • As a reseller, Pomeroy delivers a fully integrated end-to-end solution that includes technology sourcing, deployment and all support services (such as maintenance, application support, service desk and installations, moves, adds and changes) required throughout the life of the IT asset, as well as disposition (end of life) services.
 

Return to Top


Cautions
  • References reported some issues with procedures and methodologies used; SOW and clarity around roles and responsibilities; and tools and technical skills.
  • Because these were random comments, ensure that you address the procedures and methodologies Pomeroy uses and that the roles and responsibilities in the SOW are clear. Review Pomeroy's technical skills and its experience with any tools you need.
 

Return to Top


SAIC
Strengths
  • SAIC focuses on government organizations and companies in energy, life sciences and utility industries, as well as the U.K. public sector.
  • SAIC supports more than 900,000 desktop users and handles more than 1.3 million help desk calls per year worldwide.
  • SAIC attempts to improve enterprise integration and agility through a strategic focus on all major layers of enterprise performance, from business processes through infrastructure operations.
 

Return to Top


Cautions
  • SAIC has recently reorganized and is in the final stages of repackaging its current IT outsourcing solutions in the infrastructure area to expand across any number of vertical markets. Organizations in vertical markets other then the ones mentioned above may want to consider SAIC as an alternative.
  • References reported some issues with procedures and methodologies used, and SOW clarity around roles and responsibilities. Because these were random comments, address the procedures and methodologies SAIC uses, and ensure that its roles and responsibilities in the SOW are clear.
 

Return to Top


Siemens IT Solutions and Services
Strengths
  • Siemens in North America has strong revenue growth of 11% CAGR during the past three years.
  • Of the 28 million calls that Siemens handles on a worldwide basis, 5.1 million originate in the U.S. Siemens supports more than 1.6 million desktop users in the U.S. annually.
  • Siemens has created virtual centers for cost-effective call management that enable better resource utilization through global skill-based routing and the intelligent use of established skills in all centers for global delivery.
 

Return to Top


Cautions
  • References reported some issues with resources allocated to the account, SOW clarity around roles and responsibilities, and tools and technical skills. Because these were random comments, address Siemens' available resources, ensure that the roles and responsibilities in the SOW are clear, and review Siemens' technical skills and its experience with the various tools you need.
 

Return to Top


Spherion
Strengths
  • Spherion supports 150,000 end users and handles more than 1 million help desk calls per year.
  • Spherion has strong emphasis on ITIL alignment and Help Desk Institute certification.
  • Spherion's model enables more than 90% of its solutions to be delivered from client sites, allowing clients to leverage its established infrastructure while obtaining greater cooperation and flexibility.
 

Return to Top


Cautions
  • Innovation is one of the areas that can be an issue if it is not included in the deal. We suggest that organizations address this early and include it in the contract.
  • Spherion's on-site model requires that it integrates its core methodologies with the client's processes as a framework for an on-site help desk solution. This may cause some issues if the support enterprise does not adopt Spherion's methodologies.
  • Resource turnover may be an issue.
  • Because these were random comments, address the procedures and methodologies Spherion uses and ensure that the proper resources are available for your engagements.
 

Return to Top


TechTeam
Strengths
  • TechTeam continues to enjoy solid growth; its 2006 help desk revenue grew by 9.3%.
  • TechTeam supports more than 441,000 desktop users and takes more than 2 million help desk calls annually.
  • TechTeam has a strong focus on ITIL practices and is seeking ISO 20000 certification in 2007.
 

Return to Top


Cautions
  • TechTeam has new executive management; therefore, ensure that the company's strategy does not shift any focus from help desk services.
  • References reported some issues with resources allocated to the account and tools and technical skills. Because these were random comments, address TechTeam's available resources, review the resources' technical skills and ensure that the company has experience with the various tools you need.
 

Return to Top


Unisys
Strengths
  • Unisys supports more than 1.2 million seats and handles more than 7.1 million help desk calls annually, worldwide.
  • In 2006, Unisys made significant investments in delivery and implemented software and hardware solutions from BMC Software, Intel, Avaya/AT&T and Cisco Systems.
  • To meet the global needs of organizations, Unisys centralized its global leadership for networking data, managed services and network operation centers.
 

Return to Top


Cautions
  • Innovation is one of the areas that can be an issue if it is not included in the deal. Address innovation early and include it in your contracts.
  • Some clients reported issues with resources provided and workload transitions. Because these were random comments, ensure that the proper resources are available for your engagements, that a good transition plan is prepared and that Unisys commits to the established timeline.
 

Return to Top


Verizon Business
Strengths
  • Verizon handles more than 2.2 million help desk calls annually, supporting more than 340,000 users.
  • Verizon uses ITIL practices as the basis for its delivery processes and is pursuing ISO 20000.
  • Verizon has strong relationship management processes. Its assigned representatives are focused on delivering to customers' needs.
 

Return to Top


Cautions
  • With the purchase of MCI, Verizon has recently reorganized into Verizon Business. Review Verizon's strategy for help desk services and verify Verizon's commitment.
  • References reported some minor issues with resources allocated to their accounts and tools and technical skills. Because these were random comments, ensure that you address the resources available and review Verizon Business's technical skills and experience with the various tools you need.