Each year, EquaTerra undertakes an investigation into UK organisations’ satisfaction with their outsourcing service providers. The research results are recognised as the most extensive and representative 'perception study' on the issues of information and communication technology sourcing in the marketplace today. This year’s UK study investigated over 650 outsourcing contracts with a value of over £14bn. As ever, the results were fascinating.
UK IT outsourcing buyer organisations ranked Wipro (80 per cent), Mahindra Satyam (78 per cent) and Cognizant (77 per cent) as the top three performing service providers for client satisfaction. The top quartile of all the key performance indicators (KPIs) is formed of service providers with mixed heritages; offshore providers (Wipro, Mahindra Satyam, Cognizant), broad-based onshore providers (Capgemini, Siemens) and best-of-breed providers (Computacenter).
Last year, many western-based service providers gained ground against Indian service providers, but this year, the Indians are back at the top again and are beginning to offer increasingly more infrastructure management outsourcing services that were previously seen as the last part of the retained portfolio of onshore providers.
Overall, general satisfaction levels with outsourcing increased again compared to last year. This is especially impressive given the strong focus buyers had on cost savings and low price. However, the average scores for most KPIs (except flexibility) have either been stable or declined; especially risk (down five per cent) and strategic relationship (down four per cent).
The risk KPI has decreased as we see more service providers robustly reviewing their positions towards existing accounts and sales pursuits as a result of both the recession and the desire to ensure the sustainability of their own businesses. The decrease of the strategic relationship KPI may be due to service providers being more tactical in how they manage their accounts. Meanwhile, the increase of the flexibility KPI is likely an indicator of many service providers’ proactive engagement with clients to renegotiate in 2009 at which point issues relating to flexibility will likely have been addressed.
If you would like to read more about the study findings and get a greater insight into the changing dynamics of the UK outsourcing market, the management summary report can be viewed for free here.
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A discussion of the "risk perception gap", its implications and how it can be closed