The results of the Swiss IT Sourcing Study 2022 have been published and offer a comprehensive overview of the IT outsourcing landscape in Switzerland. The study, conducted in collaboration with Navisco AG – Sourcing Professionals by Whitelane Research, examines over 350 IT sourcing and more than 365 cloud sourcing relationships held by over 140 top IT spend organizations in Switzerland.
A key finding of the study is that 70% of organizations in Switzerland plan to outsource as much or more in the next two years, with 37% saying they will outsource more. Most companies cite their desire for faster time-to-market and improved quality outcomes as the top reason for insourcing. The pharmaceutical sector is the only sector that does not come to this conclusion: here only 5% of the respondents plan to outsource less. Compared to the rest of Europe, cost reduction remains the key driver for companies planning to outsource more to Switzerland.
Key findings from the 2022 study include:
70% of organizations in Switzerland plan to outsource the same amount or more in the next two years, with 37% saying they will outsource more. Insourcing has remained relatively high since 2020, the start of the Covid pandemic. Since then, one in five companies say they want to outsource less (19% this year) – one of the highest values in Europe alongside the UK and the Nordic countries. Most companies (79%) cite their desire for faster time-to-market and improved quality outcomes as the top reason for insourcing.
Compared to the rest of Europe, cost reduction is still the top driver for companies planning to outsource more (cited by 67%). Concentrating on the core business is the second most important outsourcing driver at 64%, followed by access to resources and the search for qualified workers and motivated young people (“war for talent”). The sectors most focused on this issue are financial services and pharmaceuticals, where 80% and 50% respectively cite access to resources and skilled labor as reasons for more outsourcing.
Overall, respondents are satisfied with their IT service provider(s), with 92% of all 352 IT sourcing relationships rated as satisfactory. TCS and EPAM are the top ranked vendors with a combined score of 82%, followed by DXC Technology and Capgemini (both at 79%). Average satisfaction remains the same year-over-year at 74%, while across the five IT/cloud domains, application vendor satisfaction is highest at 78%.
This year’s study includes three new KPIs. Swisscom and IBM lead the ranking for security with a value of 83%, while Swisscom also takes first place for sustainability with 78%. Customers view EPAM as the most transformative service provider at 76%. The transformative innovation KPI has the lowest average at 67%, while safety has the highest at 78%.
Microsoft Azure, Amazon Web Services (AWS) and Google Cloud Platform share the top spot in the infrastructure cloud platform rankings at 80%, while Microsoft Office 365 remains at the top of the software cloud platform rankings at 82%.
Almost a third of respondents (29%) predict that 70% or more of their application portfolio will run on a public cloud platform in the next two years. Switching from one cloud provider to another remains a challenge for most companies; only 8% said it was easy, while none of the participants said it was very easy.
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