Table of contents:

• Changing Shape of the Salesforce Services Market
• The Salesforce services market is enjoying high growth and will continue to do, fueled by Salesforce’s growth ambitions
• The service mix will move from Sales and Service Clouds to Customer Success Platforms and new products
• Delivery is more onsite-centric than SAP/ERP projects. It will become more offshore-centric in the coming years
• Customer Requirements: Salesforce Services
• Salesforce clients look to refresh and digitally enable their applications …
• … and will benefit from further functionality brought by Salesforce, or by Salesforce’s ISV ecosystem
• The majority of organizations aspire to be more digitally-enabled thanks to Salesforce
• Digitally-driven organizations want to modernize their CRM and contact center
• Market Size and Growth
• Foreword: all forecasts are based on Salesforce’s objectives to reach revenues of $20bn-$22bn by FY22
• The Salesforce services market opportunity will more than double during the 2017-2022 period
• North America is and will remain by far the largest Salesforce services market
• Customer Success Platform & new products will overtake Sales and Service Clouds by 2022
• Service growth by vertical will depend on Salesforce’s product investments. In all likelihood, financial services and U.S. healthcare are its priority
• Systems integration will remain the largest area of spending in all Salesforce services, fueled by new software product launches
• Vendor Market Shares
• Accenture, followed by Salesforce, Deloitte, IBM, and Capgemini lead the global Salesforce services market
• In North America, Accenture leads, along with Salesforce, Deloitte, and IBM
• In EMEA, Accenture leads along with Deloitte, Capgemini, Salesforce, and Cognizant
• Vendor Delivery Capabilities and Trends
• Salesforce projects require core skills that are similar to those needed for SAP and ERP projects, but in an agile context
• Currently, delivery is more onsite-centric than for SAP projects. This will change in the coming years once the clients’ confidence levels increase
• Indian vendors have plans to expand nearshore selectively. Onshore vendors look for nearshore or offshore locations to lower their costs
• Skills: Salesforce is currently fueling demand all over the place, around mature products, new products, minor products, and ISV partners
• Accelerators: Most vendors have developed consulting methodologies and project management tools….
• … in the coming years, they will develop technology accelerators to shorten implementation times and invest in Salesforce’s next-gen offerings
• M&As: Accenture most acquisitive. The largest Salesforce specialists are now gone
• M&As: target firms have become less common and are smaller in size
• Vendor Offerings and Targeting
• Service portfolio: Vendors are playing catch-up with Salesforce, with AI in mind
• Service portfolio: vendors have structured their consulting portfolio…
• … and are developing specialized offerings
• Industry Solutions: most vendors are creating vertical IP …
• … targeting their industries of strength….
• … focusing on solutions rather than software products….
• Industry Solutions: vendors will continue to develop industry solutions but remain cautious about products
• BPaaS: Vendors are starting to provide contact management BPaaS on Salesforce, and are expanding to claims processing and marketing services
• Vendor Challenges and Success Factors
• DDOs look for Salesforce expertise and industry knowledge
• SCS look for vendors with Salesforce expertise that can handle complex projects
• ITFOs needs vendors that can fund new functionality through cost savings
• NMs look for an outsourcing partner that will execute on its promises
• Appendix I – Vendors Researched for Analysis
• The following vendors were interviewed for this report:
• Appendix 2 – List of Salesforce Acquisitions since 2015