Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

Focus on HCLTech
February 2023

Copyright © 2023 Everest Global, Inc.

This document has been licensed to HCLTech
Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

Introduction

Software, the largest segment of spending in the product engineering world, continues to grow in relevance as platform-based business models take center stage for enterprises in both product- and
services-centric verticals.
This shift toward platforms, with enterprises starting to compete in the market based on their platform offerings, is leading to the emergence of new dynamics:
 There is a change in the relationship and an increasing intimacy between business and technology/engineering functions
 The tolerance for technical debt is going down; the need to manage/retire platform-related legacy rapidly and effectively is more pronounced
 The approach toward software engineering is undergoing a visible shift – the build and maintain mindset is giving way to a journey of ongoing platform evolution

While the new dynamics are leading to an explosion in engineering talent demand, the geopolitical situation in Eastern Europe is worsening the already supply-constrained talent market. Engineering service
providers are playing a crucial role in this situation and are helping their clients with scaled, persistent, and diversified engineering teams.

This research, the fourth edition of Software Product Engineering Services PEAK Matrix® Assessment 2023, evaluates 33 engineering service providers, features them on the PEAK Matrix®, and shares
insights on enterprise sourcing considerations. The study is based on RFI responses from service providers, interactions with their software product engineering leadership, client reference checks, and
ongoing analysis of the engineering services market.
The full report includes detailed profiles of the following 33 leading engineering service providers featured on the Software Product Engineering PEAK Matrix®:
 Leaders: Accenture, Capgemini, Cognizant, EPAM, GlobalLogic, HCLTech, Infosys, Persistent Systems, TCS, and Wipro
 Major Contenders: Aspire Systems, Brillio, Cybage, DataArt, Encora, Globant, Happiest Minds, HARMAN DTS, Infogain, Innominds, Itransition, Mindtree, Mphasis, SoftServe, Sonata Software,
Tech Mahindra, UST, and Virtusa
 Aspirants: Daffodil Software, Experion Technologies, GS Lab | GAVS, Intellias, and Sacumen

Scope of this report

Geography Providers Services
Global 33 leading engineering service Software product
providers engineering services

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Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

Software Product Engineering Services PEAK Matrix® characteristics

Leaders:
Accenture, Capgemini, Cognizant, EPAM, GlobalLogic, HCLTech, Infosys, Persistent Systems, TCS, and Wipro
 The Leaders segment comprises broad-based IT-heritage engineering service providers that have developed dominant capabilities in offering premium and multi-disciplinary software
product engineering 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 the
software product 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
carve-outs and legacy product management, IP partnerships, and revenue-sharing models

Major Contenders:
Aspire Systems, Brillio, Cybage, DataArt, Encora, Globant, Happiest Minds, HARMAN DTS, Infogain, Innominds, Itransition, Mindtree, Mphasis, SoftServe, Sonata Software,
Tech Mahindra, 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
offerings and 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
product engineering services

Aspirants:
Daffodil Software, Experion Technologies, GS Lab | GAVS, Intellias, and Sacumen
 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
Major Contenders segment

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Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

Everest Group PEAK Matrix®

Software Product Engineering Services PEAK Matrix® Assessment 2022 | HCLTech
positioned as Leader
Everest Group Software Product Engineering Services PEAK Matrix® Assessment 20221,2

High Leaders
Capgemini Leaders
GlobalLogic HCLTech Major Contenders
Major Contenders Globant Wipro Accenture Aspirants
EPAM
Cognizant Infosys Star Performers
TCS
Measures impact created in the market Persistent Systems

Mindtree
Market impact

Tech Mahindra
Encora Infogain Mphasis
SoftServe Virtusa
DataArt Brillio
UST
Cybage
HARMAN DTS
Itransition Happiest Minds
Aspire Systems
Daffodil Software
Experion Innominds Sonata Software
Technologies
GS Lab | GAVS
Intellias
Sacumen
Aspirants
Low
Low High
Vision & capability
Measures ability to deliver services successfully

1 Assessments for Cybage, EPAM, SoftServe, 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 buyers
2 Analysis for Mindtree is based on its capabilities before its merger with LTI
Source: Everest Group (2022)

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Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

HCLTech | software product engineering services profile (page 1 of 4)

Overview

Vision and strategy Adoption by vertical

HCLTech aims to create a partner ecosystem for its customers to address modern-day consumer and
Low (<10%) Medium (10-20%) High (>20%)
economic demands by developing a differentiated growth strategy, backed by investments in products,
platforms, next-generation technologies, solution accelerators, lab infrastructure, and business models. It Automotive ISV Retail
envisions adopting an ecosystem-driven approach to unlock innovation and business value for its customers,
thus enabling HCLTech to align to changing consumer demands and infrastructure and agile business needs. BFSI Energy & utility Media & entertainment

Software product engineering services revenue (CY 2021) Medical devices Telecom Consumer electronics

Healthcare Storage & compute Others

<US$100 million US$100-250 million US$250-500 million >=US$500 million
Adoption by value chain element
YoY growth rate in software product engineering services revenue (CY 2021) Low (<15%) Medium (15-30%) High (>30%)

<10% 10-20% 20-30% >30% Ideation & design Testing & certification Deployment

Software product Software product

Revenue derived from cloud engineering initiatives (CY 2021) development management

<20% 20-35% 35-50% >=50% Adoption by geography

Low (<10%) Medium (10-30%) High (>30%)

Projects by buyer size

Low (<15%) Medium (15-30%) High (>30%)

Small Medium Large

(annual revenue <US$1 billion) (annual revenue US$1-5 billion) (annual revenue US$5-10 billion)

Very large Mega

(annual revenue US$10-20 billion) (annual revenue >US$20 billion)

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Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

HCLTech | software product engineering services profile (page 2 of 4)

Case studies and solutions

Proprietary solutions (representative list)

Case study 1 Helped a money transfer enterprise in transforming to a digital FinTech firm
Solution Details
Business challenge
The client wanted to transform into a financial services and communications company by verticalizing into AION™ An ML-based platform that provides customers with the capacity to build prototypes
digital business and creating a consumer-facing ecosystem. to help solve business problems

Solution and Impact Connected Assets in A platform for medical devices, containing the necessary building blocks to accelerate
Regulated Environment the development of next-generation software and services
HCLTech helped the client by creating and upscaling the customer journey from retail to digital and
(CARE)
establishing 25% of total revenue through digital while focusing on cloud, analytics, automation, and digital
transformation. Cloud Bridge Suite A suite of independent solution accelerators built on agile, DevOps, and low-code and
no-code principles to drive end-to-end cloud transformation
Helped an e-commerce client to enable an immersive consumer experience eDAT™ A customizable framework for the automated testing of electronic devices that
Case study 2
across international markets reduces testing costs, time-to-market, and defect leakage
Business challenge
NIPPON A contactless and automated solution that accurately captures effort and output data,
The client wanted to grow its e-commerce business by 25% through direct-to-consumer sales via various keeping employee privacy at its core in a remote working environment
customer journeys and channels. It was looking for a technology partner that could develop responsive pages
with standard accessibility functions and solutions, thus enabling a simplified user experience and ensuring a PICASSO™ A platform to build and implement digital service platforms on top of a connected
consistent brand design. ecosystem of assets
Solution and Impact PLATFORM – X A digital engagement platform that enables brands to improve consumer loyalty and
HCLTech performed a detailed assessment to select the best fit commerce platform and implemented a single drive conversions through personalized omnichannel marketing
platform supporting different consumer journeys and experiences. The platform was initially deployed for two
markets, followed by a global rollout across all 40 international markets. This enabled the client to deliver a Xtern An XR Service Delivery Platform (SDP) to develop, publish, and deliver Extended
visual and immersive digital experience to its customers, thus driving growth through personalization and Reality (XR) use cases / applications at scale
operational excellence.

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Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

HCLTech | software product engineering services profile (page 3 of 4)

Investments and partnerships

Key alliances and partnership (representative list)

Company Details
AWS A dedicated AWS business unit to help enterprises accelerate their cloud transformation journey
IBM An alliance to deliver digital application modernization, integrated application-infrastructure autonomics and orchestration, mainframe transformation, and advanced cognitive capabilities to customers
Google Cloud A partnership with Google Cloud Ecosystem unit to accelerate enterprise cloud adoption by helping them plan and execute large-scale migrations
Microsoft A partnership focused on enabling enterprise customers embrace innovation by migrating to and building cloud native services
SAP A strategic services partnership to enable complex SAP transformation programs
VMware A partnership to drive innovation, enable cloud infrastructure and business mobility, and accelerate customers’ digital transformation journey
Tableau A partnership to enable actionable data-driven business insights for enterprises across verticals and geographies

Recent software product engineering services investments/acquisitions (representative list)

Investment/target Company description
Labs & CoEs Investment over US$60 million in setting up 100+ engineering labs and 20+ CoEs, globally enabling HCLTech to innovate and deliver value to customers across the software product engineering
services space

Quest Informatics Acquisition to enhance capabilities around cloud-enabled aftermarket ERP, field service management, and digital parts catalog product suites and to expand presence in the digital aftermarket space

Starschema Acquisition to enhance the capability in data engineering and increase its presence in Europe

Talent Development Investment in developing digital talent to support the growing demand from enterprise customers in the ever-evolving software engineering space

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Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

HCLTech | software product engineering services profile (page 4 of 4)

Everest Group assessment – Leader

Measure of capability: Low High

Market impact Vision & capability

Vision and Scope of Innovation and
Market adoption Portfolio mix Value delivered Overall strategy services offered investments Delivery footprint Overall

Strengths Limitations
 HCLTech has invested in IP solutions, partnerships, and infrastructure to enhance skills  Clients expect HCLTech to increase focus on domain knowledge and provide better
around cloud engineering, automation, user experience, and modernization business recommendations and insights
 The company makes significant use of emerging pricing models such as revenue sharing,  Clients want HCLTech to manage attrition and improve its talent retention practices that
risk-reward, and outcome-based pricing help ensure continuity in engagement delivery
 HCLTech has expanded its nearshore capabilities via acquisitions (Starschema in
Eastern Europe) and partnerships (joint GTM with NEORIS in LATAM)
 It has a balanced mix of clients spread across small, midsize, and large enterprises and a
delivery footprint spread across onshore, nearshore, and offshore regions

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Appendix

9
Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

Everest Group PEAK Matrix® is a proprietary framework for assessment of

market impact and vision & capability

Everest Group PEAK Matrix

High

Leaders

Measures impact created in the market

Major Contenders
Market impact

Aspirants

Low
Low High
Vision & capability
Measures ability to deliver services successfully

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Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

Services PEAK Matrix® evaluation dimensions

Measures impact created in the market –

captured through three subdimensions

Market adoption Leaders

Number of clients, revenue base,
YoY growth, and deal value/volume Major Contenders

Market impact
Portfolio mix
Diversity of client/revenue base across
geographies and type of engagements

Aspirants
Value delivered
Value delivered to the client based
on customer feedback and
transformational impact
Vision & capability

Measures ability to deliver services successfully.

This is captured through four subdimensions

Vision and strategy Scope of services offered Innovation and investments Delivery footprint
Vision for the client and itself; future Depth and breadth of services portfolio Innovation and investment in the enabling Delivery footprint and global sourcing mix
roadmap and strategy across service subsegments/processes areas, e.g., technology IP, industry/domain
knowledge, innovative commercial
constructs, alliances, M&A, etc.

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Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

Everest Group confers the Star Performers title on providers that demonstrate
the most improvement over time on the PEAK Matrix®

Methodology
Everest Group selects Star Performers based on the relative YoY improvement on the PEAK Matrix

Year 1
In order to assess advances on market impact,
Market impact

we evaluate each provider’s performance across

a number of parameters including:
Year 0  Yearly ACV/YoY revenue growth
 # of new contract signings and extensions
 Value of new contract signings
 Improvement in portfolio mix
 Improvement in value delivered

Vision & capability

In order to assess advances on vision and capability, We identify the providers whose improvement ranks in the
we evaluate each provider’s performance across top quartile and award the Star Performer rating to those
a number of parameters including: providers with:
 Innovation  The maximum number of top-quartile performance
 Increase in scope of services offered improvements across all of the above parameters
 Expansion of delivery footprint AND
 Technology/domain specific investments  At least one area of top-quartile improvement performance
in both market success and capability advancement

The 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.

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FAQs

Does the PEAK Matrix® assessment incorporate any subjective criteria?

Everest Group’s PEAK Matrix assessment takes an unbiased and fact-based approach that leverages provider / technology vendor RFIs and Everest Group’s proprietary databases containing providers’ deals
and operational capability information. In addition, we validate/fine-tune these results based on our market experience, buyer interaction, and provider/vendor briefings.
Is 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 providers / technology vendors in a particular space. There are a number of providers from the broader universe that are assessed and do
not make it to the PEAK Matrix at all. Therefore, being represented on the PEAK Matrix is itself a favorable recognition.
What other aspects of the PEAK Matrix assessment are relevant to buyers and providers other than the PEAK Matrix positioning?
A PEAK Matrix positioning is only one aspect of Everest Group’s overall assessment. In addition to assigning a Leader, Major Contender, or Aspirant label, Everest Group highlights the distinctive capabilities
and unique attributes of all the providers assessed on the PEAK Matrix. The detailed metric-level assessment and associated commentary are helpful for buyers in selecting providers/vendors for their specific
requirements. They also help providers/vendors demonstrate their strengths in specific areas.
What are the incentives for buyers and providers to participate/provide input to PEAK Matrix research?
 Enterprise participants receive summary of key findings from the PEAK Matrix assessment
 For providers
– The RFI process is a vital way to help us keep current on capabilities; it forms the basis for our database – without participation, it is difficult to effectively match capabilities to buyer inquiries
– In addition, it helps the provider/vendor organization gain brand visibility through being in included in our research reports
What is the process for a provider / technology vendor to leverage its PEAK Matrix positioning?
 Providers/vendors can use their PEAK Matrix positioning or Star Performer rating in multiple ways including:
– Issue a press release declaring positioning; see our citation policies
– Purchase a customized PEAK Matrix profile for circulation with clients, prospects, etc. The package includes the profile as well as quotes from Everest Group analysts, which can be used in PR
– Use PEAK Matrix badges for 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 Everest Group; please contact your CD or contact us

Does the PEAK Matrix evaluation criteria change over a period of time?
PEAK Matrix assessments are designed to serve enterprises’ current and future needs. Given the dynamic nature of the global services market and rampant disruption, the assessment criteria
are realigned as and when needed to reflect the current market reality and to serve enterprises’ future expectations.

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Everest Group PEAK Matrix® for Software Product Engineering Service Provider 2023

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