2009 Top Infrastructure Management Outsourcing Vendors, Black Book Survey 2009 Results
In 2009, the Black Book IT Infrastructure Management Outsourcing client/user survey investigates over 700 contracts held by 3100 of the top ITO spending corporations and organizations globally.
INFRASTRUCTURE OUTSOURCING: A RAPIDLY EVOLVING SERVICE
Traditional Infrastructure Outsourcing - versus -Remote Infrastructure Management Outsourcing – versus - IAAS
Outsourcing suppliers face the strategic dilemma in Infrastructure Outsourcing (IO) services, caused by the convergence of 'traditional' (multinational) and offshore suppliers' value propositions, a maturing remote infrastructure management delivery model, and adoption of labor arbitrage by traditional suppliers.
During the last decade, the emergence and rapid growth of new models of infrastructure services delivery, such as Remote Infrastructure Management (RIMO) and Information Management Services are showing signs of convergence with more traditional ways of delivering infrastructure service.
Offshore RIMO suppliers still hold a minor share of the IO market; nonetheless, there are increasing signs of the sophistication of RIMO leading to a growing convergence of the models of infrastructure delivery. The trend poses a challenge for buyers who need to understand the complexities of the offerings and suppliers who must refine their strategies. The convergence of IO models is driving offshore suppliers to one of three choices:
- Continue to adopt key elements of the traditional infrastructure management outsourcing model,
- Build added value to their remote offering or
- Simply continue to focus on classical RIMO services that rely on labor savings as a key driver.
On the other hand, traditional IO suppliers are confronted with a simpler, but not less challenging option:
- Focus on end-to-end infrastructure deals that avoid direct competition or develop variations of a converged RIMO/Traditional IO offering with an active role of labor arbitrage.
Evidence of convergence can be seen as offshore suppliers of remote management services are not limiting themselves anymore to targeting smaller companies with a basic labor arbitrage value proposition.
Large buyers (above US$10 billion in revenue) now account for 55 percent of the deals signed by offshore suppliers. Although the majority of offshore deals are still based on delivering remote services offshore, RIMO suppliers held 26 percent of more traditional deals in 2008 compared to only five percent in 2004.
KEY CLIENT EXPERIENCE FINDINGS
►► MOST IMPORTANT CUSTOMER SATISFACTION KPIs
Innovation, Trust, Reliability and Deployment are the most important attributes influencing Client Companies’ satisfaction with their infrastructure outsourcing providers.
►► ITO INFRASTRUCUTRE VENDOR SATISFACTION IS HIGHEST AMONG MIDMARKET VENDORS
Clients with annual revenues from $500M to $1B are significantly more satisfied with their Infrastructure Outsourcer than are Large Market Cap clients.
►► US VENDORS ARE SIGNIFICANTLY PREFERRED BY US CLIENTS
Latin American alternatives are challenging Indian infrastructure vendors as they evolve, although two vendors, HCL and TCS are commanding market growth share and commanding global user respect.
INFRASTRUCTURE OUTSOURCING: A RAPIDLY EVOLVING SERVICE
Traditional Infrastructure Outsourcing - versus -Remote Infrastructure Management Outsourcing – versus - IAAS
Outsourcing suppliers face the strategic dilemma in Infrastructure Outsourcing (IO) services, caused by the convergence of 'traditional' (multinational) and offshore suppliers' value propositions, a maturing remote infrastructure management delivery model, and adoption of labor arbitrage by traditional suppliers.
During the last decade, the emergence and rapid growth of new models of infrastructure services delivery, such as Remote Infrastructure Management (RIMO) and Information Management Services are showing signs of convergence with more traditional ways of delivering infrastructure service.
Offshore RIMO suppliers still hold a minor share of the IO market; nonetheless, there are increasing signs of the sophistication of RIMO leading to a growing convergence of the models of infrastructure delivery. The trend poses a challenge for buyers who need to understand the complexities of the offerings and suppliers who must refine their strategies. The convergence of IO models is driving offshore suppliers to one of three choices:
- Continue to adopt key elements of the traditional infrastructure management outsourcing model,
- Build added value to their remote offering or
- Simply continue to focus on classical RIMO services that rely on labor savings as a key driver.
On the other hand, traditional IO suppliers are confronted with a simpler, but not less challenging option:
- Focus on end-to-end infrastructure deals that avoid direct competition or develop variations of a converged RIMO/Traditional IO offering with an active role of labor arbitrage.
Evidence of convergence can be seen as offshore suppliers of remote management services are not limiting themselves anymore to targeting smaller companies with a basic labor arbitrage value proposition.
Large buyers (above US$10 billion in revenue) now account for 55 percent of the deals signed by offshore suppliers. Although the majority of offshore deals are still based on delivering remote services offshore, RIMO suppliers held 26 percent of more traditional deals in 2008 compared to only five percent in 2004.
KEY CLIENT EXPERIENCE FINDINGS
►► MOST IMPORTANT CUSTOMER SATISFACTION KPIs
Innovation, Trust, Reliability and Deployment are the most important attributes influencing Client Companies’ satisfaction with their infrastructure outsourcing providers.
►► ITO INFRASTRUCUTRE VENDOR SATISFACTION IS HIGHEST AMONG MIDMARKET VENDORS
Clients with annual revenues from $500M to $1B are significantly more satisfied with their Infrastructure Outsourcer than are Large Market Cap clients.
►► US VENDORS ARE SIGNIFICANTLY PREFERRED BY US CLIENTS
Latin American alternatives are challenging Indian infrastructure vendors as they evolve, although two vendors, HCL and TCS are commanding market growth share and commanding global user respect.
TABLE OF CONTENTS
INTRODUCTION
Remote Infrastructure Management Outsourcing
Offshoring Infrastructures
Infrastructure-As-A-Service/Virtualization/Cloud Computing
SUMMARY
Infrastructure Outsourcing: A Rapidly Evolving Managed Service
Key Client Experience Findings
Overall Top Infrastructure Performers
BLACK BOOK METHODOLOGY
How the Data Is Collected
Understanding the Statistical Confidence of Black Book Data
Who Participates in the Black Book Ranking Process
2009 INSURANCE INDUSTRY OUTSOURCING VENDOR RANKINGS AND RESULTS
PART ONE: RANKING OF ITO INFRASTRUCTURE VENDORS BY SERVICE LINE
Applications Monitoring
Help Desk Services
Data Center Services
Desktop Support
Storage and Servers
LAN/WAN Network Management
Security and Disaster Services
Remote Infrastructure Management Outsourcing
The Top Comprehensive ITO Traditional Infrastructure Management Outsourcing Vendors 2009
PART TWO: RANKING OF ITO INFRASTRUCTURE TIER 1 VENDORS
PART THREE: RANKING OF ITO INFRASTRUCTURE MID TIER VENDORS
PART FOUR: RANKING OF REMOTE INFRASTRUCTURE MANAGEMENT OUTSOURCING VENDORS
APPENDIX
Orbys Consulting
Disclaimer
INTRODUCTION
Remote Infrastructure Management Outsourcing
Offshoring Infrastructures
Infrastructure-As-A-Service/Virtualization/Cloud Computing
SUMMARY
Infrastructure Outsourcing: A Rapidly Evolving Managed Service
Key Client Experience Findings
Overall Top Infrastructure Performers
BLACK BOOK METHODOLOGY
How the Data Is Collected
Understanding the Statistical Confidence of Black Book Data
Who Participates in the Black Book Ranking Process
2009 INSURANCE INDUSTRY OUTSOURCING VENDOR RANKINGS AND RESULTS
PART ONE: RANKING OF ITO INFRASTRUCTURE VENDORS BY SERVICE LINE
Applications Monitoring
Help Desk Services
Data Center Services
Desktop Support
Storage and Servers
LAN/WAN Network Management
Security and Disaster Services
Remote Infrastructure Management Outsourcing
The Top Comprehensive ITO Traditional Infrastructure Management Outsourcing Vendors 2009
PART TWO: RANKING OF ITO INFRASTRUCTURE TIER 1 VENDORS
PART THREE: RANKING OF ITO INFRASTRUCTURE MID TIER VENDORS
PART FOUR: RANKING OF REMOTE INFRASTRUCTURE MANAGEMENT OUTSOURCING VENDORS
APPENDIX
Orbys Consulting
Disclaimer
TABLE OF FIGURES
Figure 1: Outsourcing IT Infrastructure Business Benefits and Drivers
Figure 2: IT Infrastructure Outsourcing Risks
Figure 3: Evaluating Infrastructure IT Outsourcers by Black Book Criteria
Figure 4: Tier 1: Scoring Key
Figure 5: Mid Tier Scoring Key
Figure 6: RIMO Scoring Key
Figure 1: Outsourcing IT Infrastructure Business Benefits and Drivers
Figure 2: IT Infrastructure Outsourcing Risks
Figure 3: Evaluating Infrastructure IT Outsourcers by Black Book Criteria
Figure 4: Tier 1: Scoring Key
Figure 5: Mid Tier Scoring Key
Figure 6: RIMO Scoring Key
TABLE OF TABLES
Table 1: 2009 Race for Market Share
Table 2: Highly anticipated growth industries for ITO Infrastructure 2010
Table 3: Infrastructure Outsourcing by size of Market presence
Table 4: Preferred location for traditional Infrastructure Management Outsourcing Vendor by US Clients (select two)
Table 5: Preferred location for traditional Infrastructure Management Outsourcing Vendor by Western European Clients (select two)
Table 6: Preferred location remote Infrastructure Management Outsourcing Vendor by US Clients (select two)
Table 7: Would consider offshore RMO firms in future as Industry matures
Table 8: Overall Top ITO Infrastructure Vendors by Client Market Size
Table 9: Top scored ITO Infrastructure Vendors by Industry/Vertical Served
Table 10: Top scored ITO Infrastructure Vendors by Geographic Location
Table 11: Ranked Sub-sets of ITO Infrastructure: Back-end Applications Integration & Monitoring
Table 12: Infrastructure: Helpdesk
Table 13: Infrastructure: Data Center Management
Table 14: Infrastructure: Data Warehouse Database Management
Table 15: Infrastructure: Desktop Management
Table 16: Infrastructure: Servers & Storage
Table 17: Infrastructure: LAN/WAN Network Management Services
Table 18: Infrastructure: System Security
Table 19: Remote Infrastructure Management Outsourcing
Table 20: Tier 1: Top score per individual criteria
Table 21: Tier 1: ITO Vendors with most #1 Individual Criteria Scores
Table 23: Tier 1: Vendor Overall Preference/Vertical Industry Recommendations
Table 24: Tier 1: Innovation
Table 25: Tier 1: Training
Table 26: Tier 1: Client Relationships
Table 27: Tier 1: Trust
Table 28: Tier 1: Breadth of Offerings, Client Types, Delivery Excellence
Table 29: Tier 1: Breadth of Offerings, Client Types, Delivery Excellence
Table 30: Tier 1: Customization
Table 31: Tier 1: Integration and Interfaces
Table 32: Tier 1: Scalability, Client Adaptability, Flexible Pricing
Table 33: Tier 1: Compensation and Employee Performance
Table 34: Tier 1: Reliability
Table 35: Tier 1: Reliability
Table 36: Tier 1: Marginal Value Adds
Table 37: Tier 1: Viability
Table 38: Tier 1: Data Security and Backup Services
Table 39: Tier 1: Support and Customer Care
Table 40: Tier 1: Best of Breed Technology and Process Improvement
Table 41: Mid Tier Infrastructure Vendors with most #1 Individual Criteria Scores
Table 42: Mid Tier Top score per individual criteria
Table 44: Mid Tier: Vendor Overall Preference/Vertical Industry Recommendations
Table 45: Mid Tier: Innovation
Table 46: Mid Tier: Training
Table 47: Mid Tier: Client Relationships
Table 48: Mid Tier: Trust
Table 49: Mid Tier: Breadth of Offerings, Client Types, Delivery Excellence
Table 50: Mid Tier: Deployment and Outsourcing Implementation
Table 51: Mid Tier: Customization
Table 52: Mid Tier: Integration and Interfaces
Table 53: Mid Tier: Scalability, Client Adaptability, Flexible Pricing
Table 54: Mid Tier: Compensation and Employee Performance
Table 55: Mid Tier: Reliability
Table 56: Mid Tier: Brand Image and Marketing Communications
Table 57: Mid Tier: Marginal Value Adds
Table 58: Mid Tier: Viability
Table 59: Mid Tier: Data Security and Backup Services
Table 60: Mid Tier: Support and Customer Care
Table 61: Mid Tier: Best of Breed Technology and Process Improvement
Table 62: RIM Outsourcing Vendors with most #1 Individual Criteria Scores
Table 63: RIM Top score per individual criteria
Table 65: RIMO: Vendor Overall Preference/Vertical Industry Recommendations
Table 66: RIMO: Innovation
Table 67: RIMO: Training
Table 68: RIMO: Client Relationships
Table 69: RIMO: Trust
Table 70: RIMO: Breadth of Offerings, Client Types, Delivery Excellence
Table 71: RIMO: Deployment and Outsourcing Implementation
Table 72: RIMO: Customization
Table 73: RIMO: Integration and Interfaces
Table 74: RIMO: Scalability, Client Adaptability, Flexible Pricing
Table 75: RIMO: Compensation and Employee Performance
Table 76: RIMO: Reliability
Table 77: RIMO: Brand Image and Marketing Communications
Table 78: RIMO: Marginal Value Adds
Table 79: RIMO: Viability
Table 80: RIMO: Data Security and Backup Services
Table 81: RIMO: Support and Customer Care
Table 82: RIMO: Best of Breed Technology and Process Improvement
Table 1: 2009 Race for Market Share
Table 2: Highly anticipated growth industries for ITO Infrastructure 2010
Table 3: Infrastructure Outsourcing by size of Market presence
Table 4: Preferred location for traditional Infrastructure Management Outsourcing Vendor by US Clients (select two)
Table 5: Preferred location for traditional Infrastructure Management Outsourcing Vendor by Western European Clients (select two)
Table 6: Preferred location remote Infrastructure Management Outsourcing Vendor by US Clients (select two)
Table 7: Would consider offshore RMO firms in future as Industry matures
Table 8: Overall Top ITO Infrastructure Vendors by Client Market Size
Table 9: Top scored ITO Infrastructure Vendors by Industry/Vertical Served
Table 10: Top scored ITO Infrastructure Vendors by Geographic Location
Table 11: Ranked Sub-sets of ITO Infrastructure: Back-end Applications Integration & Monitoring
Table 12: Infrastructure: Helpdesk
Table 13: Infrastructure: Data Center Management
Table 14: Infrastructure: Data Warehouse Database Management
Table 15: Infrastructure: Desktop Management
Table 16: Infrastructure: Servers & Storage
Table 17: Infrastructure: LAN/WAN Network Management Services
Table 18: Infrastructure: System Security
Table 19: Remote Infrastructure Management Outsourcing
Table 20: Tier 1: Top score per individual criteria
Table 21: Tier 1: ITO Vendors with most #1 Individual Criteria Scores
Table 23: Tier 1: Vendor Overall Preference/Vertical Industry Recommendations
Table 24: Tier 1: Innovation
Table 25: Tier 1: Training
Table 26: Tier 1: Client Relationships
Table 27: Tier 1: Trust
Table 28: Tier 1: Breadth of Offerings, Client Types, Delivery Excellence
Table 29: Tier 1: Breadth of Offerings, Client Types, Delivery Excellence
Table 30: Tier 1: Customization
Table 31: Tier 1: Integration and Interfaces
Table 32: Tier 1: Scalability, Client Adaptability, Flexible Pricing
Table 33: Tier 1: Compensation and Employee Performance
Table 34: Tier 1: Reliability
Table 35: Tier 1: Reliability
Table 36: Tier 1: Marginal Value Adds
Table 37: Tier 1: Viability
Table 38: Tier 1: Data Security and Backup Services
Table 39: Tier 1: Support and Customer Care
Table 40: Tier 1: Best of Breed Technology and Process Improvement
Table 41: Mid Tier Infrastructure Vendors with most #1 Individual Criteria Scores
Table 42: Mid Tier Top score per individual criteria
Table 44: Mid Tier: Vendor Overall Preference/Vertical Industry Recommendations
Table 45: Mid Tier: Innovation
Table 46: Mid Tier: Training
Table 47: Mid Tier: Client Relationships
Table 48: Mid Tier: Trust
Table 49: Mid Tier: Breadth of Offerings, Client Types, Delivery Excellence
Table 50: Mid Tier: Deployment and Outsourcing Implementation
Table 51: Mid Tier: Customization
Table 52: Mid Tier: Integration and Interfaces
Table 53: Mid Tier: Scalability, Client Adaptability, Flexible Pricing
Table 54: Mid Tier: Compensation and Employee Performance
Table 55: Mid Tier: Reliability
Table 56: Mid Tier: Brand Image and Marketing Communications
Table 57: Mid Tier: Marginal Value Adds
Table 58: Mid Tier: Viability
Table 59: Mid Tier: Data Security and Backup Services
Table 60: Mid Tier: Support and Customer Care
Table 61: Mid Tier: Best of Breed Technology and Process Improvement
Table 62: RIM Outsourcing Vendors with most #1 Individual Criteria Scores
Table 63: RIM Top score per individual criteria
Table 65: RIMO: Vendor Overall Preference/Vertical Industry Recommendations
Table 66: RIMO: Innovation
Table 67: RIMO: Training
Table 68: RIMO: Client Relationships
Table 69: RIMO: Trust
Table 70: RIMO: Breadth of Offerings, Client Types, Delivery Excellence
Table 71: RIMO: Deployment and Outsourcing Implementation
Table 72: RIMO: Customization
Table 73: RIMO: Integration and Interfaces
Table 74: RIMO: Scalability, Client Adaptability, Flexible Pricing
Table 75: RIMO: Compensation and Employee Performance
Table 76: RIMO: Reliability
Table 77: RIMO: Brand Image and Marketing Communications
Table 78: RIMO: Marginal Value Adds
Table 79: RIMO: Viability
Table 80: RIMO: Data Security and Backup Services
Table 81: RIMO: Support and Customer Care
Table 82: RIMO: Best of Breed Technology and Process Improvement
