TABLE OF CONTENTS
Overview 1
Introduction 1
Summary 1
Methodology 2
Executive Summary 4
Outsourcing works: 83% of respondents are satisfied or very satisfied 4
Customers attach the greatest importance to providers' awareness of their requirements 4
KPO providers lead in terms of overall satisfaction 4
Big is not best for satisfaction 5
Public sector dominates spending 5
The US dominates the global outsourcing market 5
Annual spend on outsourcing will exceed $700 billion globally by 2013 5
2010 Survey Findings: Overall Satisfaction 19
Outsourcing works: 83% of respondents are satisfied or very satisfied 22
KPO firms feature strongly among the top 10 24
Larger service providers rate lower for satisfaction 25
The survey successfully captures the views of service users 26
2010 Survey Findings: Performance Criteria 31
Requirements awareness is the most important of the nine performance criteria assessed 31
Global Outsourcing Contract Activity 61
The number of deals declined in H1 2010, but TCV and average contract value increased compared to H2 2009 61
Defense and the public sector dominate contract signings 63
Outside of the public sector, telecommunications is the largest sector for contracts by TCV 66
The financial services sector accounted for only 5% of TCV signed in H1 2010 66
Defense and telecoms continue to dominate signings by annual contract value 67
Almost half of all outsourcing contracts are signed in the US 69
11 European countries were among the most active in H1 2010 70
BRIC countries, with only 8% of contracts in H1 2010, do not reflect their hype 71
Despite a surge in the UK during H2 2009, the US still dominates outsourcing in terms of TCV 73
The US and the UK accounted for 76% of all global outsourcing by TCV in H1 2010 74
The vendor landscape in the global outsourcing market is diverse 77
US providers consistently rank highest in terms of aggregate TCV of contracts signed 79
The highest annual contract value was awarded to Nokia Siemens Networks in H1 2010 82
Global Outsourcing Market Size and Growth 84
The IT and BPO market will exceed $700 billion by 2013 84
Infrastructure-led outsourcing will grow to $305 billion by 2013 84
Application-led outsourcing will grow to $329 billion by 2013 86
BPO is the fastest growing market, and will reach $89.7 billion by 2013 87
Global Outsourcing Vendor Shares 89
The three largest outsourcers globally are diversified IT companies: IBM, HP and Fujitsu 89
IBM, HP and Fujitsu hold more than 25% of the market in ILO 92
Market leadership in ALO is remarkably stable among the leading vendors 93
Xerox is the largest global BPO service provider 94
Vendor Profiles 96
Acxiom Corporation 96
Adecco 98
ADP 100
Alpine Access 103
Amba Research 105
American Discovery 108
Amnet 110
Auriga 113
BNY Mellon 116
BT Global Services 118
Capgemini 121
CIBER 123
Cognizant 125
Copal Partners 127
Critigen 128
Dell 130
eClerx Services 132
Fujitsu 135
GENPACT 137
Google 138
HCL Technologies 141
Headstrong Corporation 144
ICG Commerce 146
iGATE 148
Infosys 150
Logica 153
Microsoft Corporation 155
Mu Sigma 158
NIIT Technologies 160
Nokia Siemens Networks 163
OCE NV 165
OneNeck IT Services 167
Oracle 169
Orange Business Services 171
Pangea3 173
Patni Computer Systems 174
Rose Financial Services 176
SAP 178
SDD Global 180
SG Analytics 181
SITEL 183
Stream Global Services 185
TechTeam Global 187
Teleperformance 189
The Smart Cube 191
UnitedLex 193
vCustomer 195
Vertex 196
Xerox 198
APPENDIX 201
Methodology 201
Further reading 201
Ask the analyst 201
Disclaimer 201
TABLE OF FIGURES
Figure 1: Overall satisfaction with vendors meeting minimum response requirements (2,618 respondents) 23
Figure 2: Overall satisfaction with services provided, all respondents (5,937 respondents) 24
Figure 3: Role of respondents in their organization's outsourcing decisions (2,904 respondents; multiple responses allowed) 26
Figure 4: Word cloud of respondents' job titles 27
Figure 5: Respondents' place of work (n=6,539) 28
Figure 6: Respondents by location of their companies' headquarters (n=6,539) 28
Figure 7: Which sector does your organization primarily operate in? (n=6,540) 29
Figure 8: How many employees are there in your organization? (n=6,538) 30
Figure 9: Importance of performance criteria assessed (2,664 respondents) 32
Figure 10: Total contract value and number of deals, H1 2008–H1 2010 62
Figure 11: Annual contract value (£m), H1 2008–H1 2010 63
Figure 12: Number of contracts globally, by industry, H1 2010 65
Figure 13: Total global contract value, by industry, H1 2010 67
Figure 14: Annual global contract value ($m), by industry, H1 2010 69
Figure 15: Number of contracts, by signing region, H1 2010 72
Figure 16: Total contract value ($m), by signing region, H1 2010 75
Figure 17: Annual contract value ($m), by signing region, H1 2010 77
Figure 18: Number of contracts, by primary vendor, H1 2010 79
Figure 19: TCV ($m), by primary vendor, H1 2010 81
Figure 20: Annual contract value of contracts signed ($m), H1 2010 83
Figure 21: Global ILO and support services market size and growth to 2013 85
Figure 22: Global project services and ALO market size and growth to 2013 86
Figure 23: Global BPO market size and growth to 2013 87