German enterprises are making a strategic shift toward industry-specific Salesforce products, according to a new research report published by Information Services Group (ISG), a leading global technology research and advisory firm.
The 2023 ISG Provider Lens Salesforce Ecosystem Partners report for Germany finds that strong growth in German Salesforce adoption is leading to growing demand on service providers for increased implementation capacity.
A primary bottleneck has been a lack of qualified people with Salesforce expertise who can carry out these implementations, the report finds. This has triggered a significant consolidation trend in the market for corresponding services, as the major system integrators acquire other providers to expand their capacities.
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“In addition to takeovers, Salesforce providers are bolstering their recruitment initiatives,” said Dr. Matthias Paletta, director, technology modernization, for ISG in Germany. “Some providers are hiring and training young experts to be Salesforce consultants, while others are retraining experienced consultants in other areas and making them Salesforce experts.”
Salesforce is evolving its CRM products toward supporting specific industries, a strategy highlighted by the introduction of such products such as Salesforce Financial Services Cloud and Health Cloud. In 2020, Salesforce strengthened its focus on industry clouds when it acquired Velocity, an independent software provider that has developed industry-specific products based on Salesforce.
Aside from these larger trends, the German market for Salesforce development hasn’t changed significantly over the past year. The trend toward consolidation has not been as pronounced in Germany as it has been in the U.S. That said, the pace of consolidation in Germany has increased.
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“For many German enterprises, the classic Salesforce tools aren’t sufficient,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The need for advanced functionality beyond the standardized feature set remains high.”
The 2023 ISG Provider Lens Salesforce Ecosystem Partners report for Germany evaluates the capabilities of 42 providers across six quadrants: Multicloud Implementation and Integration Services for Large Enterprises, Implementation Services for Core Clouds Midmarket, Implementation Services for Marketing Automation Midmarket, Managed Application Services for Large Enterprises, Managed Application Services for Midmarket and Implementation Services for Industry Clouds.
The report names adesso SE, Deutsche Telekom and Reply as Leaders in four quadrants each, while Accenture, Capgemini, Cognizant, DIGITALL, Factory42, IBM, Infosys, Persistent Systems and Salesfive are named Leaders in three quadrants each. Deloitte Digital, HCLTech and Wipro are named Leaders in two quadrants each, while Cloud Consulting Group, PwC and TCS are named Leaders in one quadrant each.
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