The 2015 German/Austrian IT Outsourcing Study, conducted by Whitelane Research in collaboration with Navisco AG – Sourcing Professionals, investigates more than 350 unique IT outsourcing contracts held by over 115 of the top IT spending organisations in Germany and Austria. The total combined annual value of the contracts included in this study is more than €4 billion. All industry sectors are represented.
Key findings from the German/Austrian study include:
1. The outsourcing market will continue to grow. Eighty-six percent of all respondents in the study confirm that they will continue to outsource at the same rate or more, with 54 percent saying they will outsource more indicating that the German/Austrian market still has significant growth potential (Figure 1).
2. Cost reduction (cited by 71 percent) is the main driver for companies planning to outsource more (Figure 2). However, the need to focus on their core business (up 27 percent compared to last year) as well as access to resources
(up 32 percent compared to last year) have become significantly more important.
3. Over 60 percent of all organisations use nearshoring or offshoring. This is expected to further increase in the coming years.
4. The service provider community shows a strong overall satisfaction performance with an impressive 85 percent of the clients being satisfied with their outsourcing contract (Figure 3). Still, there are significant differences between the performances of the 22 IT service providers ranked in this year’s study, and our full report contains more detailed information, such as the service providers ranking by IT domain as well as by 10 different KPIs across four dimensions.
5. TCS is ranked first in the overall service provider satisfaction ranking with a score of 83 percent, followed by Cognizant (82 percent), Data Group (80 percent) and Computacenter and NTT Data (Itelligence) (both at 78 percent) (Figure 4).
6. Sixty percent of all German/Austrian organisations are using or planning to use public cloud vendors. The full report includes the satisfaction ranking with these cloud vendors, such as Amazon, Microsoft, Salesforce.com and SAP.
The German/Austrian study is part of Whitelane’s annual extensive IT outsourcing studies. We interview sourcing executives (CIOs/CFOs) about their outsourcing plans and their opinions on service providers. The study is conducted in 13 different European countries and provides a comprehensive overview of the IT outsourcing landscape in each respective country. The survey also shows the main sourcing trends and positions of the main outsourcing service providers based on different key performance indicators (KPIs) in addition to cloud computing and governance trends.
For more information or if you are interested in receiving a free copy of the full German/Austrian report, please contact us!