PAC INNOVATION RADAR ServiceNow-Related Services in Europe 2023: Pan-workflow strategies key to success

Pan-workflow strategies key to success

London, March 15th, 2023 – Market research and strategic consulting firm PAC presents its PAC INNOVATION RADAR “ServiceNow-related Services in Europe 2023”, which provides IT user enterprise organisations with guidance in their choice of a service provider.

PAC evaluates and compares the leading ServiceNow service providers in the European market today in seven segments focusing on ServiceNow’s core horizontal workflows. The reports focus on the market’s largest and most mature service providers, including global IT Services, consulting firms, and regional specialists. The assessment evaluates their overall ServiceNow delivery capabilities and separate assessments for their horizontal workflow capabilities in IT, HR, CSM (i.e., customer service management), GRC (i.e., governance, risk, and compliance), Security, and Creator. The following 22 service providers were evaluated: Accenture, Aspire, ATOS, Capgemini, Cognizant, Deloitte, Devoteam, DXC, EY, Fujitsu, IBM, Infosys, KPMG, NTT Data, Plat4Mation, TCS, Tech Mahindra, Tietoevry, T-Systems, Unisys, and Wipro.

ServiceNow was founded in 2004; next year will be its twentieth anniversary. In that time, enterprise organisations have been impacted by various challenging global circumstances, step-changes in consumer/client/citizen expectations, and the need to reorientate how they operate as they digitally transform. For enterprise organisations, at the heart of all those changes has continued to be the need to optimise process workflows that interact within and across business functions—spanning areas from IT to HR, security and governance, and customer service.

This ever-evolving demand to optimise business workflows has been the catalyst that has driven the prolific growth of ServiceNow through its adoption by enterprise organisations. ServiceNow expects to grow to $11 billion in revenue by the end of the 2024 financial year (FY), with a further expectation of becoming a $16 billion company by FY 2026. Since Bill McDermott has been CEO, the company has grown from an annual revenue of $4.5 billion in 2019 to $7.3 billion in 2022. Given its year-over-year annual revenue performance, PAC considers the goal of $10 billion and beyond to be an achievable target.

ServiceNow has continued to innovate by building a large portfolio of new products and capabilities atop its Now Platform that reduces workflow complexity across IT and business processes over the past nineteen years. However, PAC considers the partner ecosystem that ServiceNow developed and continues investing in a defining strategy that has continued to drive growth through a highly skilled talent network across service provider partners. Optimising their business workflows and operating models is highly complex for many organisations. This is where the European partner eco-system has become critical for enterprise organisations in transitioning to new or improved workflows through ServiceNow.

“European enterprise organisations are transitioning their workflows to digital-centric ways of operating. These transitions are multi-faceted and complex in nature spanning many workflows across the breadth and depth of business processes internal and external to an organisation. The scale, complexity, and expertise required to re-engineer existing and adopt new workflows is a challenge benefitted by the assistance of a ServiceNow service provider. This study aims to provide enterprise buyers across Europe with the insights needed to shortlist the right ecosystem partners for their ServiceNow investments.” says Spencer Izard, Research Director at PAC and Lead Analyst of this PAC INNOVATION RADAR.

Pan-workflow strategies key to success

As ServiceNow has evolved further and further out of its core IT workflow solutions into adjacent non-IT workflows, it has gradually reshaped enterprise organisations’ demands when engaging the European ServiceNow service provider ecosystem. As European businesses transition to multi-cloud operating models, they gain many cost and efficiency benefits. However, many organisations have highly complicated and diverse workflow processes. They are challenged by driving business operating efficiencies, reducing operating model complexity, deriving greater insights from data, and ensuring greater regulatory transparency.

To this end, whilst PAC considers the European ServiceNow services provider market as mature, it provides a great opportunity for the partner ecosystem, which is very experienced and capable. ServiceNow engagements in Europe are becoming more nuanced as enterprise organisations must combine several workflows spanning IT, CSM, HR, GRC, and security to support the burgeoning onset of environmental, social, and governance (ESG) regulations, as an example. The efficiencies of cloud strategies also require a greater focus on combining IT, security, and GRC workflows which are also needed as an organisation’s operation technology (OT) strategy increases in importance.

The region’s most successful ServiceNow services partners are also refocusing their skills, propositions and approaches around their clients’ and prospects’ specific industry needs. Some are building dedicated industry practice areas for their ServiceNow teams, others are building industry-specific assets and accelerators, and some are developing their partner ecosystems to add extra layers of industry functionality around the ServiceNow platform.

To highlight some examples of service providers that encapsulate these market dynamics, Accenture continues to demonstrate its impressive growth strategy in their ServiceNow practice with acquisitions, expansion of industry solutions, and ongoing development of its ServiceNow talent pool – holding the highest number of certifications of any partner globally. As ServiceNow’s largest ecosystem partner with numerous ServiceNow partner awards, including EMEA Partner of the Year 2023, Accenture is currently the standout service provider within Europe. However, PAC can attest that many of their peers understand their success and are reorientating to compete harder over the coming years.

DXC Technology is a strategic ServiceNow global elite partner and stood out to PAC as having the highest acceleration and growth across all the workflows assessed. DXC has strengthened its leadership and operating model globally and specifically within EMEA. In conjunction, it has refined and integrated its ServiceNow capabilities with adjacent DXC capabilities to provide richer and deeper client engagements. PAC considers that DXC has a compelling go-to-market strategy based on co-innovations that provides a foundation for more vertical and ESG-related demands in addition to existing horizontal workflows like IT, HR, CSM, GRC, and security.

More information on the PAC INNOVATION RADAR “ServiceNow-Related Services in Europe 2023”:
About PAC

Pierre Audoin Consultants (PAC) is your partner of choice for European focused IT market data, insights and advice. PAC brings together the expertise, research and advisory services, with a strong history and local presence in the fragmented markets of Europe. We are a content-based company with strong consulting DNA. We are the preferred partner for European user companies to define IT strategy, govern teams and projects, and de-risk technology choices that drive successful business transf

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