Top Ranked Service Providers for the Nordic Market Revealed
Stockholm and London (18 August, 2011) – The growing importance of (and satisfaction with) outsourcing is underlined by findings on Nordic CIOs’ future outsourcing plans. Eighty-two percent of all respondents involved in this study confirmed that they will continue to outsource at the same rate or more. Service providers ranked most highly for ‘general satisfaction’ this year were TCS (79 percent), Cognizant (76 percent) and Infosys (75 percent). Firms showing positive improvement include Accenture (up seven percent) and Siemens (up ten percent).
This year’s Nordic study investigated over 710 outsourcing contracts held by over 300 of the top ICT spending organisations in the region. The total annual value of the contracts included in this study is over €4 billion, accounting for more than three quarters of the total Nordic IT outsourcing market in terms of annual contract value. All commercial sectors are represented in the study, as is the public sector, including both central and local government organisations.
Three Key Findings
- Cost reduction, access to skills and quality improvement goals dominate
Cost saving has perennially been a leading rationale behind organisations’ decisions to outsource. This year’s research showed this continuing to hold true with 78 percent of all organisations basing future outsourcing decisions around the desire to achieve further cost savings. The second most influential factor - access to skills - was cited by 49 percent of respondents, followed by quality improvement, cited by 44 percent. The view in the market in general, is that benefits are being realised and hence cost savings are being achieved.
- Global sourcing is a significant element in organisations’ sourcing strategies
Global or offshore sourcing is a significant element in Nordic organisations’ sourcing strategies with 60 percent of the organisations using offshoring. India remains by far the most dominant offshore IT outsourcing location.
- General satisfaction with outsourcing has increased compared to last year
General satisfaction levels with outsourcing again increased compared to last year. This is especially impressive given the strong focus buyers had on cost savings and low price, as well as the organisational stress that most buyers were under during the year. Last year 84 percent of all outsourcing contracts were rated as satisfactory, this year this number increased to 87 percent. Just five percent of respondents overall were either unsatisfied or very unsatisfied.
Carl-Henrik Hallstrom of EquaTerra, a subsidiary of KPMG said, “The mark of challenging economic conditions remains on this year’s results. The eight percent increase of the ‘flexibility’ key performance indicator is noteworthy and likely highlights that many service providers’ proactively engaged with clients to renegotiate in 2010. Similarly, the ‘risk’ key performance indicator has decreased as we see more service providers robustly reviewing the position of accounts and sales pursuits with a focus on business sustainability.”
For a copy of the 2011 Nordic Outsourcing Service Provider Performance and Satisfaction Study Management Summary, or to schedule an interview please contact:
Melissa Gardiner
P: +44 (0) 207 6945903
E: melissa.gardiner@kpmg.com
Carl-Henrik Hallstrom
M: +46 733 484 500
E: carl-henrik.hallstrom@equaterra.com
About the Service Provider Performance Study
Each year, EquaTerra undertakes an investigation into 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 (ICT) sourcing in the marketplace today. This comprehensive research study is conducted in a number of European countries using a common format to enable Europe-wide analysis and conclusions.
EquaTerra research as part of the KPMG Advisory research group will continue to conduct all of the Service Provider Performance and Satisfaction studies. For questions, please contact Stan Lepeak at slepeak@kpmg.com.
About EquaTerra
EquaTerra 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 more than 2,000 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. For further information visit: www.equaterra.com
On 18 February 2011, KPMG announced the acquisition of certain assets of EquaTerra Inc., including its subsidiaries in Europe. The acquisition has created one of the broadest global sourcing and shared services advisory offerings across the Americas, Europe and Asia Pacific.
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