It's amazing how much better a vendor can get when new competitors turn up the heat. In previous vendor value surveys, outsourcers and telecom companies have been the lowest-scoring industries. Both industries are under attackthe U.S. outsourcing and consulting firms by Indian competitors, and telecom companies by cable and VoIP providers. Yet Accenture, Deloitte, Sprint Nextel and BellSouth have significantly improved their scores for business value and reliability.
That's just one of the key findings from our third annual vendor value survey. This year, nearly 900 executives rated their most important vendors on how well they delivered business value and reliability. We added two new categoriesbusiness intelligence systems and PDAsand ten new vendors, and compared Indian offshore outsourcers to their American competitors.
Red Hat, Apple, Cisco and Dell top the list once more, but readers who look closer will identify other winners. Security vendor VeriSign made the top-ten list in its first time in our survey, joining McAfee and Symantec. Research in Motion came in eighth for providing value, while Symbol Technologies placed third for customer loyalty. Those Indian outsourcers? En masse, they offer better value and reliability than their U.S. counterparts.
Our study also identifies who is losing ground. Three vendors that have recently digested high-profile acquisitionsSymantec (which acquired Veritas), Oracle (which absorbed PeopleSoft) and AT&T (the new name for the combined SBC and AT&T)saw their scores drop substantially. In total, thirteen companies saw their scores decline.
Compare your vendor's result to last year's: 2004: Are Your Vendors Providing More Value?
While this year's average score is 65.3 percent, two points higher than last year, that's hardly a rousing endorsement of the performance of the IT sector.
|CIO Insight Top 10|
|Vendor Value 2005|