As competition for qualified experts heats up amid strong, pandemic-related demand, German market is not yet consolidating, ISG Provider Lens™ report says
Salesforce service providers in Germany are under pressure to add qualified staff to meet rising demand, but this has not yet caused the kind of industry consolidation seen in the U.S., according to a new research report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
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“Salesforce prefers to work with partners that engage in enhanced recruiting, which adds Salesforce support capacity to the market as a whole”
The 2022 ISG Provider Lens™ Salesforce Ecosystem Partners report for Germany finds the COVID-19 pandemic at first had a minor, manageable effect on demand, then accelerated adoption of Salesforce solutions. Salesforce demand rose partly because enterprises needed to introduce or improve online client-related processes. More than two years after the pandemic began, optimizing customer experience and supporting remote work remain high priorities for German enterprises.
Growing Salesforce adoption, in turn, is driving up demand for implementation services, leaving service providers scrambling to recruit more skilled resources, ISG says. While a tight market for Salesforce professionals in the U.S. has led large system integrators to acquire many smaller providers, that trend has not yet gained traction in Germany. Many providers there, however, have stepped up staffing, both by hiring and training young employees and by requalifying experienced consultants from other fields.
“Salesforce prefers to work with partners that engage in enhanced recruiting, which adds Salesforce support capacity to the market as a whole,” said Yadu Singh, EMEA lead, Digital Platforms and Solutions, at ISG.
While Salesforce has also been expanding its own implementation services, especially with its acquisition of U.S.-based provider Acumen Solutions in 2020, this initiative is only just beginning in Germany, the report says.
Large enterprises in Germany can still choose from among many midsize providers that offer implementation services only in Germany, ISG says. By concentrating on their home country, these boutique firms have an advantage in providing resources conversant in the local language and in complying with local regulations.
As in other countries, large German companies with global operations prefer to implement Salesforce solutions using the hybrid-agile model, which includes phase-oriented elements related to design and rollout, the report says. Midsize companies with a single implementation of Salesforce mainly choose a pure agile methodology.
The report features other insights on the many Salesforce services available in Germany for a broad range of enterprise needs, including implementation of data analytics tools, a new addition to the report.
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The 2022 ISG Provider Lens™ Salesforce Ecosystem Partners report for Germany evaluates the capabilities of 35 providers across six quadrants: Multi-Cloud Implementation & Integration Services for Large Enterprises, Implementation Services for Core Clouds – Midmarket, Implementation Services for Marketing Cloud – Midmarket, Managed Application Services for Large Enterprises, Managed Application Services for Midmarket, and Implementation Services for Analytics Solutions on Salesforce.
The report names Reply as a Leader in four quadrants. It names adesso SE, Deutsche Telekom, DIGITALL, Factory42, Infosys, Persistent Systems and Wipro as Leaders in three quadrants each. Accenture, BearingPoint, Capgemini, Cognizant, HCL and TCS are named as Leaders in two quadrants each. Deloitte Digital, Mindtree and Tech Mahindra are named as Leaders in one quadrant each.
In addition, DIA is named as a Rising Star – a company with a “promising portfolio” and “high future potential” by ISG’s definition – in two quadrants. The report names acquilliance and HCL as Rising Stars in one quadrant each.
Customized versions of the report are available from adesso SE, DIGITALL and Tech Mahindra.