2021 French IT Sourcing Study Results Published
The 2021 French IT Sourcing Study, conducted by Whitelane Research, investigates more than 480 unique IT sourcing relationships as well as more than 350 cloud sourcing relationships held by more than 160 participants of the top IT spending organisations in France.
IT/Cloud Service Providers
Cloud sourcing relationships
IT sourcing relationships
Key findings from the 2021 French study:
73% of all respondents in the study confirm they will outsource at the same rate or more, with one third citing that they are planning to outsource more in the next two years. France predicts one of the lowest levels of outsourcing in Europe following the Nordics (27%). Plans to outsource less (insource) have seen a significant decrease in comparison with last year, down from 17% in 2020 to just 7% while the majority of organisations (40%) are not looking to make any changes to their current outsourcing plans.
By industry, most outsourcing is predicted for the transportation and logistics sector with 50% of organisations planning to outsource more in the next two years (17% above the overall average for France). The financial services sector also predicts more outsourcing than average (43%), while only a small minority plan to outsource less (4%).
Improvement of service quality is the main driver for organisations in France planning to outsource more (cited by 63%). Cost reduction, ranked number one in 2020 and 2019, drops to second place with 58%, jointly followed by access to resources/talent and focus on core business (48%).
Overall, respondents are satisfied with their IT service provider(s), with 90% of all 486 IT sourcing relationships being rated as satisfactory. HCL and TCS are the joint highest ranked providers with a score of 84%, followed by Wipro (78%), Capgemini (76%) and LTI and SCC (both at 75%).
The average satisfaction of 71% remains stable in comparison with last year and is one of the lowest compared to the rest of Europe where Whitelane also conducts this study.
TCS is ranked number one for applications while HCL tops the rankings for data centre and end-user services.
Top 5 only (France 2021)
Amazon Web Services (AWS) remains on top of the infrastructure cloud platforms ranking with a score of 73%. A large proportion of clients (45%) are only ‘Somewhat satisfied’ with their infrastructure cloud providers and the majority of providers have experienced significant decreases to their satisfaction scores in comparison with last year. The average satisfaction has dropped by 6% to 65% and is the lowest average satisfaction of the five IT domains. For software cloud platforms, Google Suite achieves first place with a score of 82%.
Across the nine Key Performance Indicators (KPIs), account management has the highest average score (78%) with TCS topping the ranking. Despite the majority of service providers making improvements to their scores since last year, innovation and proactivity remain the lowest performing KPIs with average scores of 63% and 67%, respectively.
Almost half of clients (47%) predict that 50% or more of new applications will be cloud based (of which one third indicated more than 70%). The main challenge when transitioning successfully to the public cloud is security and privacy issues (cited by 77% of respondents and up 17% in importance since last year). In addition, almost half of providers suggest that very significant improvements are necessary for client cloud management and integration skills (compared to the client self-assessment of 26%).
security & privacy issues