2023 German IT Sourcing Study Results Published
The 2023 German IT Sourcing Study represents the largest survey to date. With over 245 participants from Germany’s leading IT-spending organisations, the study gathers insights on the top performing IT service providers and cloud providers, with over 700 unique IT sourcing relationships and more than 800 cloud sourcing relationships evaluated.
Automation dominates future IT investments.
Automation is the top investment area for clients in the next two years, with 68% of respondents planning to streamline business processes. Increased security/resilience follows closely at 66%, with cloud migration at 52%.
68%
Offshore and Nearshore expected to increase.
Organisations are showing a growing interest in adopting a globally distributed delivery model. Nearly half of the respondents (46%) plan to increase their use of nearshore outsourcing, while only 6% aim to reduce its use. Additionally, 29% intend to leverage offshore resources, as opposed to 19% who plan to maintain their operations onshore.
Primary reason for sourcing in Germany is focus on core business.
Organisations planning to outsource more cite a focus on their core business (63%) as the primary driver, a notable 11% increase from 2022. More scalability to business needs (55%) ranks as the second most important factor, followed by access to resources/talent (48%).
In the next two years, 30% of respondents plan to outsource more, marking a decrease from 41% in 2022. In addition, 19% of clients aim to decrease outsourcing activities, reflecting a rising trend toward insourcing, primarily driven by financial considerations.
By industry, the retail sector stands out with notably higher outsourcing intentions (67%). In contrast, the energy and utilities and manufacturing, chemicals, and consumer goods industries predict lower intentions at 20% and 23%, respectively.
General satisfaction: Exceptional Performers
Among the 715 IT sourcing relationships, two-thirds are rated satisfied or very satisfied, while 10% are somewhat dissatisfied to very dissatisfied. The general satisfaction ranking includes 28 IT service providers, featuring newcomers such as Adesso, EPAM, EY, Hexaware, and LTIMindtree. The average satisfaction remains stable at 74%.
NTT DATA maintains its lead for the fifth consecutive year with a satisfaction score of 81%. TCS, EPAM, and LTIMindtree follow closely with 80%. The top four providers have achieved ‘Exceptional Performer’ status.
Across the five IT service towers, the exceptional performers are:
Digital transformation: NTT DATA, CGI and Cognizant.
Application services: TCS, Capgemini and NTT DATA.
Cloud & infrastructure services: NTT DATA.
Workplace services: DATAGROUP and T-Systems.
Security services: NTT DATA.
The German report includes full rankings for the above IT service towers.
This year, more than 800 cloud-sourcing relationships have been evaluated. Amazon Web Services (AWS) and Google Cloud Platform (GCP) share the top spot in satisfaction for infrastructure cloud platforms, each scoring 76%. Meanwhile, Microsoft Office 365 maintains the lead in cloud software platforms with a satisfaction score of 80%.
Purchase the full German report
The 2023 German report ranks the IT service providers by five IT service towers and KPIs. The cloud providers are ranked by infrastructure and software cloud platforms. The report also covers the latest sourcing and governance trends. Please contact info@whitelane.com for more information (available in German and English).
