The 6th annual UK IT Outsourcing Study, conducted by Whitelane Research in cooperation with PA Consulting Group, investigates more than 760 unique IT outsourcing relationships held by over 240 of the top IT spending organisations in the United Kingdom. All industry sectors are represented.
Key findings from the 2018 UK study include:

  • Technology is increasingly seen as a differentiator that is driving business transformation across sectors. IT service delivery function is not limited to driving operations and efficiencies, but driving the innovation, products and revenues.
  • Over the next two years less outsourcing is predicted for the UK. Although 73% of respondents plan to outsource at the same rate or more, the number of companies planning to outsource more has decreased from 35% to 27% in comparison with last year.
  • 22% of organisations are looking to outsource less (insource) in the coming two years. The main reasons cited for insourcing are innovation, IP ownership and the speed/quality of delivery. In comparison with the rest of Europe the UK has one of the highest levels of insourcing.
  • From a client perspective, the main objectives to outsource are cost reduction, access to resources and improvement of service quality. Service providers in the UK place more importance on innovation and more financial flexibility while they undervalue the importance of cost reduction and access to resources.
  • Overall, respondents are satisfied with their IT service provider(s), with 88% of the 764 IT sourcing relationships being evaluated as satisfactory.
  • TCS and Hexaware are the highest ranked providers with a joint general satisfaction score of 81%, followed by Getronics (79%), HCL and NIIT (both at 77%) and Amazon and Salesforce.com (both at 76%).

Manish Khandelwal, IT sourcing expert at PA Consulting Group, says: “As businesses are increasingly technology driven, the IT supply chain cannot remain back office centric. While overall satisfaction levels with IT service providers remain high and outsourcers are generally seen as doing a good job of delivery, they must now prove to their customers that they are an essential part of the IT supply chain of the future as an innovation partner. If they are seen as bereft of new ideas they are destined to be relegated to the role of suppliers of utility computing”.

Results Presentation

Above: Jef Loos, Head Sourcing Research at Whitelane presents the results of the 2018 UK IT Outsourcing Study in London.

Management Summary

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Management summary

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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 8 different KPIs, please email info@whitelane.com.