The 2016 German/Austrian IT Outsourcing Study, conducted by Whitelane Research in collaboration with Navisco AG – Sourcing Professionals
, examined over 400 unique IT outsourcing contracts held by more than 130 of the top IT spending organisations in Germany and Austria.
Key findings from the German/Austrian study include:
- There is still an appetite for outsourcing among German/Austrian companies. 72% of all respondents in the study confirm that they will continue to outsource at the same rate or more, with 46% citing that they are planning to outsource more. This is a good indication that the German/Austrian market still has significant growth potential.
- Since last year there has been a significant increase in the importance of focus on core business (+15%) while cost reduction has increased by 4%. Outsourcing as a way to get access to skills and resources also remains an important driver in the German/Austrian market.
- The service provider community continued to show a strong overall performance, with clients remaining satisfied with 88% of contracts.
- TCS retained its position as the supplier with the highest level of satisfaction, followed by Data Group, Cognizant and NTT Data (Itelligence).
- The continued rise of public cloud usage is marked, with 54% of all German/Austrian organisations currently using these services and another 17% is planning to use public cloud vendors. Satisfaction with cloud vendors such as Amazon, Microsoft, Salesforce.com and SAP is generally high.
- We also asked the clients how satisfied they are with their own sourcing capabilities in the following four areas:1) Sourcing strategy 2) Supplier selection and contracting 3) Transition management and 4) Governance and supplier management.
Clients are most critical of their own sourcing strategy skills (1 out of 5 are unsatisfied in some way) while 1 out of 6 clients are unsatisfied with their transition and governance skills. It should be noted though that the service provider’s assessment of their client’s maturity in these areas is lower than what the clients rated. Our vendor survey, which interviews executives of the top IT service providers in Germany and Austria about the sourcing maturity of their clients, revealed that 4 out of 5 clients have significant improvement opportunities in their own transition skills and governance and supplier management capabilities.
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If you would like to purchase a copy of the full report containing more detailed information, such as the main sourcing trends, ranking of the service providers by IT domain as well as by 11 different KPIs, please email firstname.lastname@example.org.
(available in German and English)