2023 Swiss IT Sourcing Study Results Published
The 2023 Swiss IT Sourcing Study analyses over 340 unique IT sourcing relationships and 580 cloud sourcing relationships from more than 140 participants of the top IT spending organisations in Switzerland across diverse sectors.
Automation dominates future IT investments.
Automation is the leading IT investment area for clients in the next two years, with 58% of respondents planning to invest in automating business processes to improve efficiency and streamline operations. Security and resilience follow at 55%, with cost savings at 50%.
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Offshore and Nearshore expected to increase, especially in Pharmaceuticals and Financial Services.
Survey respondents plan to increase their use of offshore and nearshore (40% and 39%, respectively), compared to 13% who intend to keep work onshore. In the pharmaceuticals sector, offshore intentions are notably higher (70%), indicating a shift in the talent supply chain, followed by financial services (55%), which has always been a leading sector in utilising global delivery.
Primary reason for sourcing in Switzerland is cost reduction.
Cost reduction remains the primary driver for organisations planning to outsource more in Switzerland (69%). Focus on core business ranks second at 60%, while more scalability to business needs is third at 58%, showing an 11% increase from 2022.
35% of organisations in Switzerland are planning to increase their outsourcing activities over the next two years, while a majority of 37% intend to maintain their current outsourcing levels. An additional 17% of respondents intend to outsource less and bring tasks in-house, down from 19% in 2022. The primary drivers for insourcing are the development and retention of Intellectual Property (IP) (63%) and the anticipation of greater team stability, cited by 54%.
By industry, the pharmaceuticals industry indicates significant growth prospects, with 62% of respondents planning to outsource more. In the financial services sector, outsourcing plans align with the overall average of 35%; however, 23% of participants are looking to outsource less. The manufacturing, chemicals and consumer goods industry shows a relatively lower intention to increase outsourcing (19%), with a majority of 57% planning to make no changes.
General satisfaction (Top 6 only)
The overall average satisfaction is 75%, up one percentage point from 2022 and the second highest in Europe, following Spain. 71% of the 343 IT sourcing relationships are rated as satisfied or very satisfied by clients, while 10% are rated somewhat to very unsatisfied.
EPAM ranks first in general satisfaction with a score of 84% and stands out as the only exceptional performer. TCS is second with 80%, followed by DXC Technology, Capgemini, Wipro and Cognizant, all four at 79% and considered strong performers.
Across the five IT service towers, the top providers are:
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Digital transformation: EPAM, TCS and DXC Technology
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Application services: EPAM, TCS and Capgemini
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Cloud and infrastructure services: TCS, Wipro and DXC Technology
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Workplace services: TCS, DXC Technology and Wipro
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Security services: TCS, DXC Technology and Wipro
The Swiss report includes full rankings for the above IT service towers.
In terms of cloud services, 584 cloud-sourcing relationships have been evaluated by respondents, with 77% rated as satisfied or very satisfied (6% higher than IT service providers). Only 6% of respondents are unsatisfied with the performance of their cloud provider, compared to 10% for IT service providers.
Amazon Web Services (AWS) and Microsoft Azure top the infrastructure cloud platforms ranking with an 82% satisfaction rating, with the average satisfaction seeing a significant increase from 74% to 80%. Microsoft Office 365 maintains its position as the top-performing software cloud provider with an 86% satisfaction rating.
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Amazon Web Services (AWS) & Microsoft Azure
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Microsoft Office 365
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The 2023 Swiss report ranks the IT service providers by five IT service towers and four key performance indicators. 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.
