The 6th annual German IT Outsourcing Study, conducted by Whitelane Research in cooperation with Navisco AG – Sourcing Professionals, investigates more than 600 unique IT outsourcing relationships held by over 150 of the top IT spending organisations in Germany. 
Key findings from the 2018 German study include:

  • Over the next two years more outsourcing is predicted for Germany, with 43% of all organisations citing that they are planning to outsource more. The percentage of companies that are planning to insource has also gone up from 14% to 20% since last year. On a European level, Germany (together with the United Kingdom) has one of the highest levels of insourcing.
  • We have asked the 20% of organisations that plan to outsource less what factors are driving more insourcing. The primary reason to insource is the need to drive business transformation (cited by 80%) followed by the need to increase the speed/quality of delivery (67%).
  • Service providers need to better understand why their clients outsource. From a client perspective, the main objectives are focus on core business, access to resources and cost reduction. Service providers in Germany however place more importance on cost reduction, business transformation and innovation while they undervalue the importance placed by their clients on focus on core business and improvement of service quality.
  • The service provider community shows a strong overall satisfaction performance with an impressive 84% of the clients being somewhat to very satisfied with the 602 IT outsourcing relationships evaluated.
  • TCS continues to be ranked as overall number 1 with a general satisfaction score of 77% and is followed by NTT Data (Itelligence) (76%), Data Group (75%), new entrant Google and HCL (both at 74%), Amazon (72%) and Cognizant and Wipro (both at 71%). The average satisfaction score drops by 2% with the majority of providers experiencing decreases in satisfaction in comparison with last year.
  • Robotics and Artificial Intelligence are increasingly more adopted in Germany with 54% of organisations citing that they are currently using these new technologies and 90% citing the benefits as significant or even very significant.

Management Summary

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MANAGEMENT SUMMARY

Purchase the German Report

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. (available in German and English)