2022 European IT Sourcing Study Results Published
The 2022 European IT Sourcing Study, conducted by Whitelane Research, investigates more than 4,500 unique IT sourcing relationships and more than 4,000 cloud sourcing relationships held by over 1,800 participants of the top IT spending organizations in Europe.
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Participants
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IT Service Providers
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IT sourcing relationships
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Cloud Providers
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Cloud sourcing relationships
Key findings from the 2022 study:
The European market for IT outsourcing remains strong: 36% of European organizations plan to outsource more in the next two years, while 13% report they will outsource less. Given these numbers, we expect the market to continue to grow in the next couple of years.
Most outsourcing is predicted for the public sector, with 41% of organizations responding that they plan to outsource more – 5% above average and an increase of 9% compared to 2021. In contrast, the transportation, logistics, and retail sector predict the highest amount of insourcing (17%), while the industry plans to outsource below average at 31%.
By country/region, most outsourcing growth is predicted for the Netherlands and the BeLux region, with 44% of organizations planning to outsource more in the next two years. Switzerland continues to have the highest percentage of companies planning to insource (19%), followed by the United Kingdom (18%).
Reasons for increased outsourcing differ per industry: most organizations in Financial Services (63%) see cost reduction as a primary driver, while 59% of Public Sector organizations are looking to access resources/talent.
Since Covid struck Europe in 2020, the ability to scale up and down has increased in importance. In 2022 we still see the consequences: all industry sectors indicate that scalability is a top three driver to increase outsourcing.
Overall, respondents are satisfied with their IT Service Provider/s, with 92% of all 4,573 IT sourcing relationships rated ‘somewhat satisfied’ to ‘very satisfied’.
TCS is number one for general satisfaction with 83%, followed by NTT DATA (80%), Hexaware and Accenture (both at 78%), and Capgemini (77%).
The average satisfaction among the 23 ranked service providers is 75%, while by country/region, client satisfaction is once again highest in Spain (79%) and lowest in France (71%).
Top 5 only (Europe 2022)
This year, service providers have been ranked by three new key performance indicators (KPIs). LTI tops the security KPI with 83%, TCS is first for sustainability (75%), and Accenture leads the transformative innovation ranking with 77%.
Account management and business understanding have the highest average scores with 78%, while transformative innovation is the lowest with 67%. None of the providers have seen significant decreases (5% or more) across the eight KPIs.
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Transformative innovation
Amazon Web Services (AWS) and Microsoft Azure top the infrastructure cloud platforms ranking with 80%, while Microsoft office 365 remains number one for software cloud platforms (82%). Across the four cloud KPIs, infrastructure and software cloud providers have performed best on security and compliance, with averages of 80% and 78%, respectively.
Purchase the full European report
If you would like to purchase a copy of the full European report which contains more detailed information, such as the main sourcing trends, ranking of the service providers by three different IT domains as well as by eight different KPIs, please email info@whitelane.com.
