The Black Book of Outsourcing: State of the Outsourcing Industry 2010
Introduction
The global outsourcing market is worth in excess of $600 billion annually. This report combines primary research on customer satisfaction with assessments of market activity to present a multi-faceted view of the outsourcing industry today.
Scope of this research
This report finds a high level of satisfaction among outsourced services users. The providers that received the highest rankings in the 2010 Black Book of Outsourcing survey tend to be smaller companies in the wider context of the global outsourcing market. Defense and the public sector are shown to be the largest client segments for the outsourcin
Key reasons to purchase this research
The global outsourcing market is worth in excess of $600 billion annually. This report combines primary research on customer satisfaction with assessments of market activity to present a multi-faceted view of the outsourcing industry today.
Scope of this research
- Results of the world's largest primary research project on customer satisfaction with outsourced service provision.
- Analysis of activity by region, industry and service type in the global outsourcing market.
This report finds a high level of satisfaction among outsourced services users. The providers that received the highest rankings in the 2010 Black Book of Outsourcing survey tend to be smaller companies in the wider context of the global outsourcing market. Defense and the public sector are shown to be the largest client segments for the outsourcin
Key reasons to purchase this research
- Which outsourced service providers provide the highest levels of customer satisfaction?
- Which factors do clients consider most important when assessing satisfaction with outsourced service delivery?
Overview
Introduction
Summary
Methodology
Executive Summary
Outsourcing works: 83% of respondents are satisfied or very satisfied
Customers attach the greatest importance to providers' awareness of their requirements
KPO providers lead in terms of overall satisfaction
Big is not best for satisfaction
Public sector dominates spending
The US dominates the global outsourcing market
Annual spend on outsourcing will exceed $700 billion globally by 2013
2010 Survey Findings: Overall Satisfaction
Outsourcing works: 83% of respondents are satisfied or very satisfied
KPO firms feature strongly among the top
Larger service providers rate lower for satisfaction
The survey successfully captures the views of service users
2010 Survey Findings: Performance Criteria
Requirements awareness is the most important of the nine performance criteria assessed
Global Outsourcing Contract Activity
The number of deals declined in H1 2010, but TCV and average contract value increased compared to H2 2009
Defense and the public sector dominate contract signings
Outside of the public sector, telecommunications is the largest sector for contracts by TCV
The financial services sector accounted for only 5% of TCV signed in H1 2010
Defense and telecoms continue to dominate signings by annual contract value
Almost half of all outsourcing contracts are signed in the US
11 European countries were among the most active in H1 2010
BRIC countries, with only 8% of contracts in H1 2010, do not reflect their hype
Despite a surge in the UK during H2 2009, the US still dominates outsourcing in terms of TCV
The US and the UK accounted for 76% of all global outsourcing by TCV in H1 2010
The vendor landscape in the global outsourcing market is diverse
US providers consistently rank highest in terms of aggregate TCV of contracts signed
The highest annual contract value was awarded to Nokia Siemens Networks in H1 2010
Global Outsourcing Market Size and Growth
The IT and BPO market will exceed $700 billion by 2013
Infrastructure-led outsourcing will grow to $305 billion by 2013
Application-led outsourcing will grow to $329 billion by 2013
BPO is the fastest growing market, and will reach $89.7 billion by 2013
Global Outsourcing Vendor Shares
The three largest outsourcers globally are diversified IT companies: IBM, HP and Fujitsu
IBM, HP and Fujitsu hold more than 25% of the market in ILO
Market leadership in ALO is remarkably stable among the leading vendors
Xerox is the largest global BPO service provider
Vendor Profiles
Acxiom Corporation
Adecco
ADP
Alpine Access
Amba Research
American Discovery
Amnet
Auriga
BNY Mellon
BT Global Services
Capgemini
CIBER
Cognizant
Copal Partners
Critigen
Dell
eClerx Services
Fujitsu
GENPACT
Google
HCL Technologies
Headstrong Corporation
ICG Commerce
iGATE
Infosys
Logica
Microsoft Corporation
Mu Sigma
NIIT Technologies
Nokia Siemens Networks
OCE NV
OneNeck IT Services
Oracle
Orange Business Services
Pangea3
Patni Computer Systems
Rose Financial Services
SAP
SDD Global
SG Analytics
SITEL
Stream Global Services
TechTeam Global
Teleperformance
The Smart Cube
UnitedLex
vCustomer
Vertex
Xerox
APPENDIX
Methodology
Further reading
Ask the analyst
Disclaimer
Introduction
Summary
Methodology
Executive Summary
Outsourcing works: 83% of respondents are satisfied or very satisfied
Customers attach the greatest importance to providers' awareness of their requirements
KPO providers lead in terms of overall satisfaction
Big is not best for satisfaction
Public sector dominates spending
The US dominates the global outsourcing market
Annual spend on outsourcing will exceed $700 billion globally by 2013
2010 Survey Findings: Overall Satisfaction
Outsourcing works: 83% of respondents are satisfied or very satisfied
KPO firms feature strongly among the top
Larger service providers rate lower for satisfaction
The survey successfully captures the views of service users
2010 Survey Findings: Performance Criteria
Requirements awareness is the most important of the nine performance criteria assessed
Global Outsourcing Contract Activity
The number of deals declined in H1 2010, but TCV and average contract value increased compared to H2 2009
Defense and the public sector dominate contract signings
Outside of the public sector, telecommunications is the largest sector for contracts by TCV
The financial services sector accounted for only 5% of TCV signed in H1 2010
Defense and telecoms continue to dominate signings by annual contract value
Almost half of all outsourcing contracts are signed in the US
11 European countries were among the most active in H1 2010
BRIC countries, with only 8% of contracts in H1 2010, do not reflect their hype
Despite a surge in the UK during H2 2009, the US still dominates outsourcing in terms of TCV
The US and the UK accounted for 76% of all global outsourcing by TCV in H1 2010
The vendor landscape in the global outsourcing market is diverse
US providers consistently rank highest in terms of aggregate TCV of contracts signed
The highest annual contract value was awarded to Nokia Siemens Networks in H1 2010
Global Outsourcing Market Size and Growth
The IT and BPO market will exceed $700 billion by 2013
Infrastructure-led outsourcing will grow to $305 billion by 2013
Application-led outsourcing will grow to $329 billion by 2013
BPO is the fastest growing market, and will reach $89.7 billion by 2013
Global Outsourcing Vendor Shares
The three largest outsourcers globally are diversified IT companies: IBM, HP and Fujitsu
IBM, HP and Fujitsu hold more than 25% of the market in ILO
Market leadership in ALO is remarkably stable among the leading vendors
Xerox is the largest global BPO service provider
Vendor Profiles
Acxiom Corporation
Adecco
ADP
Alpine Access
Amba Research
American Discovery
Amnet
Auriga
BNY Mellon
BT Global Services
Capgemini
CIBER
Cognizant
Copal Partners
Critigen
Dell
eClerx Services
Fujitsu
GENPACT
HCL Technologies
Headstrong Corporation
ICG Commerce
iGATE
Infosys
Logica
Microsoft Corporation
Mu Sigma
NIIT Technologies
Nokia Siemens Networks
OCE NV
OneNeck IT Services
Oracle
Orange Business Services
Pangea3
Patni Computer Systems
Rose Financial Services
SAP
SDD Global
SG Analytics
SITEL
Stream Global Services
TechTeam Global
Teleperformance
The Smart Cube
UnitedLex
vCustomer
Vertex
Xerox
APPENDIX
Methodology
Further reading
Ask the analyst
Disclaimer
TABLE OF FIGURES
Figure 1: Overall satisfaction with vendors meeting minimum response requirements (2,618 respondents)
Figure 2: Overall satisfaction with services provided, all respondents (5,937 respondents)
Figure 3: Role of respondents in their organization's outsourcing decisions (2,904 respondents; multiple responses allowed)
Figure 4: Word cloud of respondents' job titles
Figure 5: Respondents' place of work (n=6,539)
Figure 6: Respondents by location of their companies' headquarters (n=6,539)
Figure 7: Which sector does your organization primarily operate in? (n=6,540)
Figure 8: How many employees are there in your organization? (n=6,538)
Figure 9: Importance of performance criteria assessed (2,664 respondents)
Figure 10: Total contract value and number of deals, H1 2008–H1 2010
Figure 11: Annual contract value (?m), H1 2008–H1 2010
Figure 12: Number of contracts globally, by industry, H1 2010
Figure 13: Total global contract value, by industry, H1 2010
Figure 14: Annual global contract value ($m), by industry, H1 2010
Figure 15: Number of contracts, by signing region, H1 2010
Figure 16: Total contract value ($m), by signing region, H1 2010
Figure 17: Annual contract value ($m), by signing region, H1 2010
Figure 18: Number of contracts, by primary vendor, H1 2010
Figure 19: TCV ($m), by primary vendor, H1 2010
Figure 20: Annual contract value of contracts signed ($m), H1 2010
Figure 21: Global ILO and support services market size and growth to 2013
Figure 22: Global project services and ALO market size and growth to 2013
Figure 23: Global BPO market size and growth to 2013
COMPANIES MENTIONED
Acxiom Corporation
Adecco
ADP
Alpine Access
Amba Research
American Discovery
Amnet
Auriga
BNY Mellon
BT Global Services
Capgemini
CIBER
Cognizant
Copal Partners
Critigen
Dell
eClerx Services
Fujitsu
GENPACT
Google
HCL Technologies
Headstrong Corporation
ICG Commerce
iGATE
Infosys
Logica
Microsoft Corporation
Mu Sigma
NIIT Technologies
Nokia Siemens Networks
OCE NV
OneNeck IT Services
Oracle
Orange Business Services
Pangea
Patni Computer Systems
Rose Financial Services
SAP
SDD Global
SG Analytics
SITEL
Stream Global Services
TechTeam Global
Teleperformance
The Smart Cube
UnitedLex
vCustomer
Vertex
Xerox
Figure 1: Overall satisfaction with vendors meeting minimum response requirements (2,618 respondents)
Figure 2: Overall satisfaction with services provided, all respondents (5,937 respondents)
Figure 3: Role of respondents in their organization's outsourcing decisions (2,904 respondents; multiple responses allowed)
Figure 4: Word cloud of respondents' job titles
Figure 5: Respondents' place of work (n=6,539)
Figure 6: Respondents by location of their companies' headquarters (n=6,539)
Figure 7: Which sector does your organization primarily operate in? (n=6,540)
Figure 8: How many employees are there in your organization? (n=6,538)
Figure 9: Importance of performance criteria assessed (2,664 respondents)
Figure 10: Total contract value and number of deals, H1 2008–H1 2010
Figure 11: Annual contract value (?m), H1 2008–H1 2010
Figure 12: Number of contracts globally, by industry, H1 2010
Figure 13: Total global contract value, by industry, H1 2010
Figure 14: Annual global contract value ($m), by industry, H1 2010
Figure 15: Number of contracts, by signing region, H1 2010
Figure 16: Total contract value ($m), by signing region, H1 2010
Figure 17: Annual contract value ($m), by signing region, H1 2010
Figure 18: Number of contracts, by primary vendor, H1 2010
Figure 19: TCV ($m), by primary vendor, H1 2010
Figure 20: Annual contract value of contracts signed ($m), H1 2010
Figure 21: Global ILO and support services market size and growth to 2013
Figure 22: Global project services and ALO market size and growth to 2013
Figure 23: Global BPO market size and growth to 2013
COMPANIES MENTIONED
Acxiom Corporation
Adecco
ADP
Alpine Access
Amba Research
American Discovery
Amnet
Auriga
BNY Mellon
BT Global Services
Capgemini
CIBER
Cognizant
Copal Partners
Critigen
Dell
eClerx Services
Fujitsu
GENPACT
HCL Technologies
Headstrong Corporation
ICG Commerce
iGATE
Infosys
Logica
Microsoft Corporation
Mu Sigma
NIIT Technologies
Nokia Siemens Networks
OCE NV
OneNeck IT Services
Oracle
Orange Business Services
Pangea
Patni Computer Systems
Rose Financial Services
SAP
SDD Global
SG Analytics
SITEL
Stream Global Services
TechTeam Global
Teleperformance
The Smart Cube
UnitedLex
vCustomer
Vertex
Xerox
