2019/2020 European IT Sourcing Study Results Published

The 2019/2020 European IT Sourcing Study, conducted by Whitelane Research, investigates more than 5000 unique IT sourcing relationships held by over 1600 of the top IT spending organisations in Europe. All industry sectors are represented.

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IT sourcing relationships

Key findings from the 2019/2020 European Study:

Over the next two years more outsourcing is predicted for Europe, with 74% of organisations planning to outsource at the same rate or more. Most outsourcing is expected in the financial services sector with 43% citing they are planning to outsource more, followed by the public sector with 39% (up 13% from last year). Financial services organisations are also most likely to insource with 15% of organisations planning to do so (an increase of 4% from last year).

74%

By country most outsourcing growth is expected in Spain, the Netherlands and the BeLux region, with (more than) 80% of organisations planning to outsource at the same rate or more. In France and Germany on the contrary, this figure is only 59% and 65% respectively. Insourcing is highest in Germany with one in five organisations planning to outsource less in the next two years.

Cost reduction is still the most important outsourcing driver for organisations in Europe (cited by 60%), followed by focus on core business (59%) and access to resources (54%). Service providers also agree that cost reduction is the biggest driver for their clients (73%) with business transformation occupying second place (52%). Clients on the other hand only rank business transformation 6th in importance, showing differences in perspectives continue to exist.

Overall, respondents are satisfied with their IT service provider(s), with 89% of the 5347 IT sourcing relationships being rated as satisfactory. The financial services and manufacturing sectors have the largest percentage of unsatisfied clients (13% and 14% respectively) as well as the lowest percentage of (very) satisfied clients compared to the other industries.

On the overall ranking for general satisfaction, TCS is the highest scoring provider with 77% satisfaction, jointly followed by LTI, Hexaware and Deloitte (all three at 75%) and Accenture (74%). Econocom, Getronics and Gfi enter the ranking for the first time in 2019/2020. The full ranking of the providers by general satisfaction, IT domain, industry, country/region as well as by nine different KPIs is included in our European report.

TCS 77%
LTI 75%
Hexaware 75%
Deloitte 75%
Accenture 74%

Top 5 only (Europe)

58% of organisations are already using Agile as their preferred delivery model with another 28% planning to use it. Use of Agile is highest in the financial services sector with 66%, while the manufacturing sector is currently lagging behind but shows the largest percentage of organisations (34%) that are planning to implement the agile way of working.

More than half of organisations are using robotics and AI (up 6% from last year) with almost 70% considering the benefits to be (very) significant. The financial services and manufacturing sectors are significantly ahead of other sectors with around 60% of organisations already using these new technologies. In contrast, just over 30% of public sector organisations currently use robotics and/or artificial intelligence, although the sector is expected to experience the largest growth in the coming years (+40%).

Use of Robotics across Europe by industry

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Financial Services
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Public Sector
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Manufacturing
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Other Sectors

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