2020 German IT Sourcing Study Results Published

The 2020 German IT Sourcing Study, conducted by Whitelane Research in collaboration with Navisco AG – Sourcing Professionals, investigates more than 450 unique IT sourcing relationships and more than 300 cloud sourcing relationships held by over 160 participants of the top IT spending organisations in Germany.

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Participants
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IT/Cloud Service Providers
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IT sourcing relationships
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Cloud sourcing relationships

Key findings from the 2020 German Study:

Over the next two years more outsourcing is predicted for Germany, with 73% of respondents planning to outsource at the same rate or more (an increase of 8% in comparison with last year). Insourcing plans, last year highest in Germany compared to the rest of Europe, have dropped significantly from 22% to 13%. For the financial services sector however, one in five organisations are still planning to outsource less, driven primarily by the need to achieve faster time-to-market and improved quality outcomes.

73%

More scalability to business needs is the main reason why organisations in Germany are planning to outsource more (66%). This is followed by focus on core business (60%) and access to innovation (48%). Service providers still believe that achieving cost savings is the main reason why their clients outsource more (75%) while clients rank this only 6th in importance (dropping from 2nd place in 2019).

Overall, respondents are satisfied with their IT service provider(s), with 91% of all 452 IT sourcing relationships being rated as satisfactory, 6% being somewhat unsatisfied, 2% unsatisfied and only 1% very unsatisfied.

NTT DATA and TCS achieve joint first place on the overall ranking for general satisfaction with a score of 84%. They are followed by Data Group and Deloitte (both at 82%) and Capgemini (77%). The average satisfaction score increases by five percentage points in comparison with last year to 72% with at least two thirds of service providers making significant improvements of 5% or more. Our full report also ranks the 21 IT Outsourcing providers by applications, data centre and end-user services in addition to nine Key Performance Indicators.

NTT DATA 84%
TCS 84%
Data Group 82%
Deloitte 82%
Capgemini 77%

Top 5 only (Germany)

The cloud providers are ranked separately this year with participants evaluating more than 300 unique cloud sourcing relationships. Average satisfaction is high for both infrastructure and software cloud providers (72% and 74% respectively). Google Cloud Platform, Microsoft Azure and Amazon Web Services (AWS) top the ranking for infrastructure cloud platforms while Microsoft 365, Salesforce.com and Google Suite top the ranking for software cloud platforms.

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Software Cloud Platforms (Average Satisfaction)
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Infrastructure Cloud Platforms (Average Satisfaction)

At least two thirds of service providers have made significant improvements of 5% or more on the service delivery, innovation and proactivity KPIs in comparison with last year. Price level and transformation quality have the lowest average satisfaction scores of the nine KPIs with 61%.

Almost 50% of organisations are using Intelligent Automation (IA) although one in five have no plans to adopt these new technologies (double the European average).

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of respondents have no plans to use IA.

Results presentation

The results of our 2020 IT Sourcing Study for Germany were presented to participants during a webinar on 26 November. The event also featured a vendor panel debate with representatives from: Capgemini, HCL, NTT DATA, TCS and Wipro.

Request the German management summary

Read the key findings of the 2020 German IT Sourcing Study.

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Purchase the full German report

If you would like to purchase a copy of the full German report which contains more detailed information, such as the main sourcing trends, ranking of the IT outsourcing service providers by three different IT domains (applications, data centre and end-user services) and the cloud providers by infrastructure and software cloud platforms, please email info@whitelane.com. (available in German or English)

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