FOR MORE INFORMATION CONTACT:

Brussels – An increase in IT outsourcing is the reaction of the BeLux business sector to a ‘skills crunch’ according to the findings of the ‘Outsourcing Service Provider Study 2008’ being launched today. Thestudy, undertaken by leading independent sourcing advisory firm, EquaTerra incorporating Morgan Chambers, reveals that just over a third (33 per cent) of study participants cite access to IT skills as their overall primary motivation for outsourcing.

Furthermore, just over half (54 per cent) of those organisations who are planning to increase their outsourcing activity have said that they are doing so to get better access to skills.

The findings also clearly indicate that the utilisation of outsourcing by BeLux businesses is set to continue with a total of 55 per cent planning to outsource more and 32 per cent planning to maintain their current level. Only 8 per cent of study participants plan to outsource less.

In line with the increase in sourcing activity, and the subsequent need to manage Service Providers and contracts effectively, three quarters of study participants are looking to improve their sourcing governance processes. However, whether this intention will receive adequate budgetary support is still up for debate with almost half (45 per cent) of participants spending less than 3 per cent of their recommended budget on the improvement of sourcing governance processes.

‘’These results, coupled with the fact that 84 per cent of clients are satisfied with the work that their service providers are doing, show that outsourcing alive and well, but the results also showed a clear lack of governance on the part of the client and that is deeply concerning’’ explained Jef Loos, Director, BeLux ‘’If clients don’t start taking their governance seriously then they will simply not get the best value out of their sourcing contracts’’ he continued.

Of those planning to maintain or increase sourcing activity, over half (52 per cent) are using, or considering the use of global sourcing in regions as diverse as India, Eastern Europe and Spain. However, study participants are clear that they are currently twice as likely to use Eastern Europe as a sourcing destination for Infrastructure Management, than they are to use India for the same type of work. Despite this, India still remains the global sourcing location of choice for Applications Management activities.

The study, undertaken annually, evaluates BeLux IT sourcing contracts and covers more than 400 unique client-service provider relationships and twenty service providers. The ‘Outsourcing Service Provider Performance Study 2008’,researched 140 of the top IT spending organisations in Belgium and Luxembourg and explored their perceptions of their outsourcing providers, their satisfaction with performance and their plans for future contracts. Study participants are senior level representatives (CFO, CIO or their direct report) within client companies, who outsource all or part of their IT functions and processes.

For a full copy of ‘Outsourcing Service Provider Performance 2008’ or to arrange a media interview please contact:

Our sourcing advisors help clients achieve sustainable value in their IT and business processes. Our advisors average more than 20 years of industry experience and have supported over 2000 transformation and outsourcing projects across more than 60 countries. Supporting clients throughout the Americas, Europe, Middle East, Africa and Asia Pacific, we have deep functional knowledge in Finance and Accounting, HR, IT, Procurement and other critical business processes. EquaTerra helps clients achieve significant cost savings and process improvement with internal transformation, shared services and outsourcing solutions. Since its inception in 2003 our BeLux team have advised over 100 companies in the region with a wide range of sourcing issues including sourcing strategy, service provider selection, ongoing management of outsourcing contracts, benchmarking, workplace governance and benefits realisation.