2010 Outsourcing by Large Enterprises

Report Summary

The outsourcing of information and communication technology (ICT) and business process outsourcing (BPO) services by large enterprises picked up in the second half of 2010, making H2 2010 the most successful period for outsourcing activity since H1 2008.Results of the world's largest primary research project on customer satisfaction with outsourced services provided to large enterprises.Analysis of activity by region, industry and service type in the global outsourcing market.The list of the best-rated ICT providers compiled using the 2010 Black Book of Outsourcing customer satisfaction survey is dominated by large-scale vendors with annual revenues more than $4bn. The top two ICT vendors are comparatively small players with annual revenues of around $200m.In the case of BPO services, large enterprise customers ranked niche knowledge process outsourcing service providers, which also provide BPO services, on top.Which outsourced service providers provide the highest levels of customer satisfaction?Which factors do large enterprises consider most important when assessing satisfaction with outsourced service delivery?

Table Of Contents

Executive Summary
Large clients prefer large providers for ICT services
Small vendors outperform large providers for BPO services
Large enterprises accounted for more than 50% of global outsourcing
Number of contracts signed still low in spite of a rise in TCV
Megadeals are back in trend for large enterprises
Short- and mid-term contracts are preferred by large enterprises
Large enterprises outsourced large BPO contracts during 2008–10

OVERVIEW
Introduction
Summary
Methodology
Satisfaction criteria
Questionnaire design
Five-step quality assurance procedure

SURVEY FINDINGS 2010: OVERALL SATISFACTION
Overall satisfaction ranking of large service providers
Overall satisfaction ranking by large organization respondents
Population composition of respondents who ranked ICT service providers
Service users represented 65% of the total respondents
60% of the respondents indicated EMEA as their working region
About half the responses were from the financial services, manufacturing, and telecommunications and high-tech industries
Population composition of respondents who ranked BPO services providers
64% of respondents identified themselves as service users
The surveyed population was global
The survey responses were divided across multiple industry sectors

SURVEY FINDINGS 2010: PERFORMANCE CRITERIA
Overview
Requirements awareness
Shared goals
Financial benefits
Risk mitigation
Partnership approach
Problem resolution
Corporate reputation
Skills and resources
Future orientation

LARGE ENTERPRISE OUTSOURCING CONTRACT ACTIVITY
Introduction
Large enterprises accounted for more than 50% of global outsourcing by TCV in H2 2010
ACV of contracts signed by large enterprises recovering
Overview of contracting activity by large firms
Aggregate TCV of contracts was highest in H2 2010
Number of contracts was still lower than in the pre-recessionary period
ACV was highest in H2 2010
Number of megadeals signed in H2 2010 was the highest since H1 2008
The share of small deals in terms of TCV declined during H2 2010
Almost 70% of deals signed by large enterprise were less than $100m in value
Large enterprises prefer short- to mid-term contracts with one to six years' duration
TCV of large enterprise BPO contracts ranged between $576m to $4.8bn during 2008–10
Around 47% of all contracts in 2010 were awarded by telecommunications and manufacturing firms
Outsourcing by technology and media firms increased significantly during 2008–10
Outsourcing by large healthcare providers declined by 99% during 2008–10
Most of the megadeals come from the telecoms, insurance, and energy sectors
The US and Germany lead large enterprise outsourcing activity in terms of TCV
US showed marginal increase in its share of global large enterprise TCV
Germany emerged as the fastest growing outsourcer in Europe
Outsourcing by large UK and China based firms drops in 2010
Sweden: adoption of outsourcing among large enterprises grows significantly in 2008–10
Large enterprises outsourcing to established large vendors
Top vendors focused more on large deals in 2010
The top three vendors captured around 60% of the TCV in H2 2010
Atos Origin and Alcatel-Lucent among the highest gainers in 2010
No single vendor dominates the market in terms of number of contracts awarded

MARKET TRENDS
Improving data security and privacy has become a priority for large enterprises
Providers are expanding their portfolios to increase revenues from the large enterprise segment
Vendors collaborating to build cloud-based applications for large enterprises
Cloud computing expected to pick up in 2011, but will take time to establish itself
Consolidation in the IT market, creating diversified and large vendors with a multitude of capabilities
BPO players are building their IT capabilities to better serve their enterprise clients

VENDOR PROFILES
Introduction

ACCENTURE
Business description
Revenue analysis
Clients
Major services and solutions
Key facts
Recent developments

AMBA RESEARCH
Business description
Clients
Major services and solutions
Key facts
Recent developments

ATOS ORIGIN
Business description
Revenue analysis
Clients
Major solutions and services
Key facts
Recent developments

CAPGEMINI
Business description
Revenue analysis
Clients
Major services and solutions
Key facts
Recent developments

COPAL PARTNERS
Business description
Clients
Major services and solutions
Key facts
Recent developments

CSC
Business description
Revenue analysis
Clients
Major solutions and services
Key facts
Recent developments

DELL
Business description
Revenue analysis
Clients
Major services and solutions
Key facts
Recent developments

ECLERX SERVICES
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

GENPACT
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

HCL TECHNOLOGIES
Business description
Revenue breakdown
Clients
Major solutions and services
Key facts
Recent developments

HP
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

IBM
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

ICG COMMERCE
Business description
Clients
Major services and solutions
Key facts

IGATE
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

INFOSYS
Business description
Revenue breakdown
Major services and solutions
Key facts
Recent developments

MANPOWER
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

NIIT TECHNOLOGIES
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

OCÉ
Business description
Revenue breakdown
Clients
Major products and services
Key facts
Recent developments

PANGEA3
Business description
Clients
Major services and solutions
Key facts
Recent developments

SITEL
Business description
Clients
Major services and solutions
Key facts
Recent developments

T-SYSTEMS
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

TCS
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

THE SMART CUBE
Business description
Clients
Major services and solutions
Key facts
Recent developments

UNITEDLEX
Business description
Clients
Major services and solutions
Key facts
Recent developments

WIPRO
Business description
Revenue breakdown
Clients
Major products and services
Key facts
Recent developments

XCHANGING
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

XEROX
Business description
Revenue breakdown
Clients
Major services and solutions
Key facts
Recent developments

APPENDIX