2021 Dutch IT Sourcing Study Results Published
The 2021 Dutch IT Sourcing Study, conducted by Whitelane Research in collaboration with Quint, investigates more than 400 unique IT sourcing relationships and more than 400 cloud sourcing relationships held by over 200 participants of the top IT spending organisations in the Netherlands.
IT/Cloud Service Providers
Cloud sourcing relationships
IT sourcing relationships
Key findings from the 2021 Dutch study:
80% of all respondents in the study confirm they will outsource at the same rate or more, with 48% citing that they are planning to outsource more in the next two years (currently the highest level in Europe). This is a strong indication that the Dutch IT outsourcing market will continue to grow. In comparison with 2020, plans to insource have decreased by half, from 16% to 8%.
By industry, the financial services sector predicts the most outsourcing growth with 64% of organisations planning to outsource more (16% higher than the overall average for the Netherlands) compared to 37% for public sector organisations.
More scalability to business needs is the most important outsourcing driver for organisations planning to outsource more (cited by 61%), up 14% since last year. Focus on core business is ranked second with 48% of respondents, followed by cost reduction with 47%. From a service provider perspective, clients are predominantly outsourcing to achieve cost savings (67%) while the number one client driver – ‘More scalability to business needs’ – is reported as second least important with only 19%.
Overall, respondents continue to be satisfied with their IT service provider(s) with 89% of all 408 IT sourcing relationships being rated as satisfactory.
On the overall ranking for general satisfaction, TCS is the top performing service provider with a score of 87%, followed by CGI (80%), Wipro and Conclusion (both at 78%) and Capgemini (77%). The average satisfaction score increases by two percentage points from 69% to 71% with two thirds of IT service providers seeing their scores improve.
Our comprehensive report contains more details and ranks the 21 IT service providers by process (applications, data centre and end-user services) as well as in nine different KPI’s.
Top 5 only (Netherlands 2021)
Satisfaction with cloud providers remains high with an average score of 78% for infrastructure cloud platforms (IaaS/PaaS) and 75% for software cloud platforms (SaaS). Microsoft 365 tops the software cloud ranking with 84% while Amazon Web Services (AWS) is number one for infrastructure cloud with 83%.
Use of public cloud has been accelerated by COVID-19 with 43% of respondents saying usage will increase in their organisation as a result of the pandemic. Two thirds of clients also predict that 50% or more of their new applications will be running on a public cloud platform in two years’ time while only 20% predict the same amount for legacy applications.
Planning to increase public cloud usage due to COVID-19
Predict 50% or more of new applications will run on a public cloud platform in 2 years
Predict 50% or more of legacy applications will run on a public cloud platform in 2 years
Almost one in two organisations are currently outsourcing their managed (cyber)security services. 65% of respondents are satisfied or very satisfied with their (cyber)security service providers while only 4% are unsatisfied or very unsatisfied.
27% of clients indicate no improvement is required for their own (cyber)security management skills in contrast to 50% of service providers who recommend very significant improvements.
Does your organisation outsource managed (cyber)security services?
“COVID-19 has not negatively impacted IT Outsourcing and Cloud in the Netherlands, on the contrary: client organisations indicate service providers have done a good job maintaining service quality throughout the crisis. In fact, COVID-19 has increased the adoption of public cloud, near/offshoring and outsourcing in general as a solution to provide more scalability to business needs.”
Alex van den Bergh, Managing Director – Enterprise Cloud, Sourcing and Governance Advisory, Quint