2022 German IT Sourcing Study Results Published

The 2022 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 310 cloud sourcing relationships held by over 180 participants of the top IT spending organisations in Germany.

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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 German study:

The German IT outsourcing market is expected to continue to grow, with 72% of organisations indicating they plan to outsource at the same rate or more in the next two years and 41% confirming they will outsource more. Insourcing plans have been stable since 2020, with 14% of organisations planning to outsource less.

41%

More scalability to business needs is the number one driver for organisations planning to outsource more in Germany (indicated by 61% of organisations). Especially during the pandemic and the associated lockdowns, organisations have experienced the need to scale up or down; and outsourcing can help bring that flexibility. The second reason organisations in Germany plan to outsource more is to focus on their core business (52%). Access to innovation remains one of the top three drivers with 44%, ranking notably higher in Germany than in the rest of Europe.

This year, respondents identify supplier selection and contracting as their strongest governance capability, followed by sourcing strategy. In contrast, transition and change management is rated as one of the weakest capabilities, with 26% indicating that very significant improvements are needed at client-side organisations. Service providers in Germany rate their clients’ transition and change management capabilities even lower, with 83% of them saying that clients need “(very) significant improvement” in these areas.

NTT DATA 82%
TCS 82%
Capgemini 81%
DATAGROUP 78%
DXC Technology 78%
PwC 78%

Overall, respondents are satisfied with their IT Service Provider/s, with 91% of all 458 IT sourcing relationships rated satisfactory.

NTT DATA and TCS are the highest-ranked providers, with a joint score of 82%, followed by Capgemini (81%) and DATAGROUP, DXC Technology, and PwC (all three at 78%). DXC Technology enters the top five for the first time, following an increase of 11% since last year.

Bechtle tops the new security KPI with 83% – the German provider’s highest score and ranking across the eight KPIs. Wipro achieves the top score for sustainability with 77%, while new entrant Tech Mahindra is perceived as the most transformative service provider with 73%. On average, providers have performed best on account management with 75%, while transformative innovation and sustainability share the lowest average with 63%.

Microsoft Azure is top of the infrastructure cloud platform ranking with a score of 80%, while Microsoft Office 365 remains top of the software cloud platforms ranking for a second consecutive year with 81%.

On cloud trends, 71% of respondents reveal that 30% or less of their application portfolio is currently running on a cloud platform, while 24% predict that 50% or more of their apps will be in the cloud in the next two years. Almost half of survey respondents (47%) said that it was somewhat difficult to very difficult to change infrastructure cloud providers, while this figure is 9% higher for software cloud providers (56%). 62% would also consider moving a significant percentage of their cloud load to a European solution.

Purchase the full German report

The 2022 German report ranks the IT service providers by three IT domains (applications, data centre and end-user services), as well as by eight different KPIs. The cloud providers are ranked by infrastructure and software cloud platforms and by four KPIs. The report also covers the latest IT and cloud sourcing trends (available in German and English).

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Read the key findings of the 2022 German IT Sourcing Study.

(Please note the management summary is only provided to end-user organisations and not to service providers, consultants, etc.).

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