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Accenture passes Cognizant as top IT outsourcer

Accenture passes Cognizant as top IT outsourcerThe top six outsourcers on Everest Group’s second annual ranking of the best IT service providers of the year remained unchanged since 2016. But Accenture rose to the top of the list in 2017, besting last year’s No. 1 Cognizant.

“Both are largely neck to neck,” said Abhishek Singh, IT services practice director at Everest Group. “However, this time, Accenture broke away from the pack because of what they achieved on IoT, SaaS implementation, and private cloud enablement.”

Everest Group has been ranking service providers individually based on their performance in 26 different categories, including key business lines, geographies, and technologies and categorizing them leaders, star performers, major contenders, or aspirants in each area. This is the second year the company consolidated that information for 73 providers to come up with overall rankings for the global outsourcing industry.

Top 10 IT outsourcing service providers of the year

1.   Accenture

2.   Cognizant

3.   IBM

4.   Tata Consultancy Services

5.   Wipro

6.   HCL

7.   Capgemini

8.   CSC

9.   Infosys

10. Atos

Credit: Everest Group 2017

Cognizant continues to differentiate itself with a rapidly improving infrastructure services portfolio and an expanding healthcare presence. “The banking, financial services, and insurance (BFSI) sector is still their strongest suit, but healthcare is a future-safe strategy for them from a growth perspective,” said Singh.

Big Blue remains in the No. 3 spot in large part because IBM is everywhere. “They continue to score strong on innovation and their ability to play across the services spectrum,” said Singh. “However, they are nowhere near as influential as they were 10 years back.”

Tata Consultancy Services (TCS) is the one to watch, according to Singh. “They manage to stay under the radar when it comes to the market buzz, but look at what they have achieved in infrastructure services and life sciences,” Singh said. “From a near negligible presence in these markets, they have silently grown to be amongst the leaders.”

Wipro has been forward thinking in its development of new capabilities designed to keep pace with the digital era. “However, market success has not been commensurate with the investments they have made so far,” Singh said. “It will be interesting to see what happens when that point of inflection comes for Wipro.”