Salesforce: integration drives the evolution of the services business

Our recently published report delivers insights into the market for Salesforce-related services. In it, we explain the growth drivers and how the expanded Salesforce portfolio, including the MuleSoft acquisition, is changing the services value chain. 

Salesforce recently published its results for the third quarter of FY 2019, and again the vendor managed to grow fast: subscription and support revenues went up 26%; however, the much smaller professional services business saw an increase of just 15% in the same period. 

The growth figures of Salesforce’s professional services do not reflect the dynamics we see in the market for Salesforce-related services provided by consulting firms and systems integrators. These providers are experiencing fast-growing demand from companies across the globe seeking external support to implement and rolling out customer experience solutions. For us, this is a clear indicator of the growing importance of partners for the Salesforce platform.

In one of our latest reports, Ioana Bucin and I provided our view on the global market for Salesforce-related consulting and systems integration. Here are a view key take-aways: 

  • The worldwide market for Salesforce-related consulting and systems integration services continues to grow at a double-digit rate, but at different speeds. APAC is the fastest-growing market, followed by EMEA and the Americas. 
  • Salesforce is investing a lot of money to better integrate the various solutions it has acquired and thus allow for a more comprehensive solution deployment to manage business processes end to end. 
  • Projects become larger as customers combine solutions by deploying e.g. Sales, Marketing and Commerce Cloud. Also, demand for solution integration and app development is rising. Some large corporations transform customer experience processes internationally with the help of Salesforce technology. 
  • As Salesforce is used as a platform to transform customer experience processes, companies are looking for advisory services for both IT architecture and business processes. With the size and complexity of the solution landscapes rising, application management is gaining in relevance. 
  • One challenge for service providers is finding enough resources to deliver projects. Their response is acquisitions, re-skilling of consultants and leveraging near/offshore centers.
  • The evolution of the Salesforce ecosystem is primarily driven by the delivery of industry- specific solutions on top of the Salesforce platform, support of custom-centric business processes end to end, leveraging Einstein to make Salesforce applications smarter and integrating non-Salesforce applications. 

For our valued SITSI® customers, the full report is accessible via our portal.