Post on 21-May-2020
2013 NordicsIT Outsourcing
Service ProviderPerformance and
Satisfaction SurveyFinal: September 13, 2013 Copyright KPMG
David G. Lewis,
Head of IT Sourcing Advisory, KPMG Norway david.glyn.lewis@kpmg.no
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
1
Who participated in this study?
More than 200 of the top IT spending organisations in the Nordics
- Size of IT spend estimated at more than €14 billion
Participants are CFO, CIO, CXO or their direct report
More than 350 unique client-provider relationships
- Amount of ACV evaluated estimated at more than €5 billion
20 service providers evaluated
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
2
Methodology
■ IT survey on trends and satisfaction
■ Survey reflects Perception from end-user clients only (i.e. not KPMG opinions)
■ Focus on top IT spending companies in all sectors
■ In order to be ranked in the report, service providers must have at least eight client evaluations with each a minimum annual contract value of €1 million
■ KPMG uses its own outsourcing deals database, but asks service providers to update the outsourcing deals overview of previous years so that we are certain that all major deals are included
■ Total confidentiality is guaranteed for participants
■ Data collection via web based survey (clients are first contacted to approve their participation)
■ Participants or CIO,CFO,CXO or direct reports
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
3
Assessment: General Satisfaction and Willingness to Recommend
■ Respondents rated each service provider on general satisfaction via a question (What is your general satisfaction level for these service providers?)
■ On the general satisfaction question, respondents could indicate if they were (very) unsatisfied, through to (very) satisfied with their selected service providers on a six-point scale (please see legend on the right)
■ Scores converted to percentages, where 100% represented the maximum score. 100% means that all the respondents involved in the survey were very satisfied with that service provider
■ Respondents rated each service provider on their willingness to recommend via a question (Based on your experiences with the service providers, to what extent would you recommend them as a partner for outsourcing?)
■ On the willingness to recommend question, respondents could indicate whether they would certainly not, through to certainly recommend their service provider on a six-point scale (please see legend on the right)
■ Scores converted to percentages, where 100% represented the maximum score. 100% means that all the respondents involved in the survey would certainly recommend their service provider
Process: General Satisfaction Process: Willingness to Recommend
Key to scores
Very unsatisfied 0%
Unsatisfied 20%
Somewhat unsatisfied 40%
Somewhat satisfied 60%
Satisfied 80%
Very satisfied 100%
Key to scores
Certainly not 0%
Almost certainly not 20%
Possibly not 40%
Possibly 60%
Almost certainly 80%
Certainly 100%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
4
Assessment: Key Performance Indicators (KPIs)
■ Respondents rated each service provider on ten KPIs via a series of statements (see the right call-out box). Against these they indicated if they (totally) disagreed, through to (totally) agreed with each statement on a six-point scale
■ Scores converted to percentages, where 100% represented the maximum score. 100% means that all the respondents involved in the survey totally agreed with the statement
■ Quality: In general, the service provider meets the service levels as set out in the Service Level Agreement
■ Price: The prices the service provider charges for its services are (still) in line with current market prices
■ Risk: The service provider shoulders reasonable commercial risk and makes necessary investments to reduce that risk
■ Operational Relationship: The service provider does a good job actively managing the relationship at the operational level
■ Strategic Relationship: The service provider does a good job actively managing the relationship and the long term objectives of the contract at the strategic level
■ Innovation: The service provider is active in bringing innovation or adapting their service offering when business or technological conditions change
■ Flexibility: The service provider is flexible in bringing changes to the contract
■ Service provider governance: The service provider has an efficient and effective governance model
■ Transition: The service provider has completed the transition successfully, on time and budget and with the required functionality
■ IT security: The service provider has a clear IT security policy and is successful in ensuring the quality of IT security
Process: Key Performance Indicators Key Performance Indicators
Key to scores
Totally disagree 0%
Disagree 20%
Somewhat disagree 40%
Somewhat agree 60%
Agree 80%
Totally agree 100%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
5
Screen shot of the actual survey tool
In most cases, providers will evaluate their service providers by comparing them relatively to each other
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
6
In which sector does your organisation operate?
17%
14%
13%
7%6%
6%
5%
4%
4%
4%
4%
3%
3%
3%2%
2% 1% 1% 1% Banking, Financial services, Insurance
Retail, Wholesale
Manufacturing
Government (central / local)
Energy / Utilities, Oil & Gas
Telecommunication
Consumer Packaged Goods, Food/Beverages
High Tech Products&Services
Transportation & Logistics
Pharma/Biotech/Life
Other
Business Services&Consulting, Construction
Chemicals, Minerals, Natural Resources
Entertainment / Media
Real Estate
Engineering
Automotive
Healthcare Providers
Education
N=183
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
7
What are your organisation's outsourcing plans for the foreseeable future ALL NORDICS?
16%
26%
33%
11%
14%
We are certain to outsource more
We will probably outsource more
There will be no change in the existing situation
We will outsource less
We cannot say at this point
N=176
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
8
For what reasons are you considering increasing your existing levels of outsourcing? (Note, across all Nordic Region)
71%
44%
39%
37%
27%
7%
Cost savings
Access to skills
Quality improvement
Financial flexibility
Time to market
Change agent
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
9
For what reasons are you considering increasing your existing levels of outsourcing in 2013 ? Note, main driver for Norway is dramatically different to other Nordic Countries
45%
36%
36%
27%
18%
9%
FINLAND
67%
56%
44%
22%
22%
NORWAY
77%
42%
39%
35%
23%
3%
SWEDEN
77%
46%
35%
35%
23%
4%
DENMARK
Cost SavingsAccess to SkillsQuality ImprovementFinancial FlexibilityTime to MarketChange Agent
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
10
Service Providers in terms of number of evaluated contracts
120
39
27
27
2525
24
22
19
18
18
15
13
13
129
99
9 8 8Other
CGI (Logica)
IBM
TeliaSonera
ATEA
Evry
Tieto
HP Enterprise Services
TCS
Accenture
Capgemini
Fujitsu
CSC
Verizon Business
Telenor
HCL
TDC Dotcom
T-Systems
Volvo IT
Atos
Cognizant
N=469
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
11
What is your general satisfaction level for these service providers?
Key to scores %
Very unsatisfied 0
Unsatisfied 20
Somewhat unsatisfied 40
Somewhat satisfied 60
Satisfied 80
Very satisfied 100
Average 2013:
83%
80%
80%
75%
72%
72%
69%
68%
67%
63%
61%
61%
60%
59%
58%
58%
57%
54%
47%
38%
TCS
HCL
Volvo IT
Cognizant
Accenture
Telenor
T-Systems
TeliaSonera
Capgemini
Tieto
Fujitsu
HP Enterprise Services
CSC
IBM
ATEA
CGI (Logica)
Verizon Business
Evry
TDC Dotcom
Atos
64%Average (2012): 67%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
12
General Sat by contract value (deals less than €10 million ACV)
Only vendors with at least six contract evaluations associated with an annual contract value lower than €10 million have been included
83%
80%
77%
76%
73%
73%
73%
73%
71%
70%
69%
68%
62%
60%
59%
58%
57%
52%
47%
37%
TCS
Volvo IT
HCL
Capgemini
CSC
Fujitsu
HP Enterprise Services
Telenor
Accenture
Cognizant
T-Systems
TeliaSonera
Tieto
IBM
CGI (Logica)
ATEA
Verizon Business
Evry
TDC Dotcom
Atos
TCS 83%Volvo IT 80%HCL 80%Capgemini 67%CSC 60%Fujitsu 61%HP Enterprise Services 61%Telenor 72%Accenture 72%Cognizant 75%T-Systems 69%TeliaSonera 68%Tieto 63%IBM 59%CGI (Logica) 58%ATEA 58%Verizon Business 57%Evry 54%TDC Dotcom 47%Atos 38%
All Contracts %
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
13
Based on your experiences with the service providers, to what extent would you recommend them as a partner for outsourcing?
Key to scores %
Certainly not 0
Almost certainly not 20
Possibly not 40
Possibly 60
Almost certainly 80
Certainly 100
Average 2013:
91%
86%
80%
80%
78%
77%
73%
71%
67%
63%
63%
62%
60%
59%
57%
55%
55%
54%
49%
34%
HCL
TCS
T-Systems
Volvo IT
Cognizant
Telenor
Accenture
Capgemini
TeliaSonera
Tieto
Verizon Business
ATEA
CGI (Logica)
HP Enterprise Services
IBM
CSC
Fujitsu
Evry
TDC Dotcom
Atos66%
Average (2012): 67%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
14
Quality ‘In general, the service provider meets the service levels as set out in the Service Level Agreement’
Key to scores %
Totally disagree 0
Disagree 20
Somewhat disagree 40
Somewhat agree 60
Agree 80
Totally agree 100
Average 2013:
84%
82%
80%
78%
75%
75%
73%
71%
69%
68%
68%
67%
67%
65%
65%
64%
63%
60%
57%
53%
Volvo IT
HCL
TCS
Cognizant
Telenor
TeliaSonera
Accenture
T-Systems
Capgemini
CSC
HP Enterprise Services
IBM
Tieto
ATEA
Verizon Business
Fujitsu
CGI (Logica)
TDC Dotcom
Evry
Atos
69%Average (2012): 73%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
15
Price ‘The prices the service provider charges for its services are (still) in line with current market price’
Key to scores %
Totally disagree 0
Disagree 20
Somewhat disagree 40
Somewhat agree 60
Agree 80
Totally agree 100
Average 2013:
83%
82%
80%
78%
77%
72%
69%
67%
65%
64%
63%
62%
62%
60%
60%
59%
58%
58%
56%
55%
Cognizant
HCL
Volvo IT
Telenor
TCS
TeliaSonera
Fujitsu
Capgemini
HP Enterprise Services
CGI (Logica)
ATEA
Evry
TDC Dotcom
Atos
T-Systems
Accenture
Tieto
Verizon Business
IBM
CSC
67%Average (2012): 68%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
16
Risk ‘The service provider shoulders reasonable commercial risk and makes necessary investments to reduce that risk’
Key to scores %
Totally disagree 0
Disagree 20
Somewhat disagree 40
Somewhat agree 60
Agree 80
Totally agree 100
Average 2013:
80%
77%
75%
69%
67%
64%
62%
60%
56%
55%
55%
55%
53%
52%
52%
51%
51%
49%
45%
36%
HCL
TCS
Cognizant
Volvo IT
Telenor
T-Systems
Accenture
TeliaSonera
HP Enterprise Services
ATEA
CGI (Logica)
Tieto
Fujitsu
Capgemini
Evry
IBM
Verizon Business
Atos
CSC
TDC Dotcom
58%Average (2012): 58%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
17
Relationship management (Operational) ‘The service provider does a good job actively managing the relationship at the operational level …’
Key to scores %
Totally disagree 0
Disagree 20
Somewhat disagree 40
Somewhat agree 60
Agree 80
Totally agree 100
Average 2013:
87%
82%
78%
73%
73%
71%
70%
68%
67%
66%
65%
65%
65%
63%
60%
59%
58%
58%
54%
40%
HCL
TCS
Volvo IT
Cognizant
Telenor
Accenture
HP Enterprise Services
Capgemini
T-Systems
Tieto
CGI (Logica)
Fujitsu
IBM
Evry
Verizon Business
TeliaSonera
ATEA
CSC
Atos
TDC Dotcom
66%Average (2012): 70%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
18
Relationship management (Strategic) ‘The service provider does a good job actively managing the relationship and the long term objectives of the contract at the strategic level’
Key to scores %
Totally disagree 0
Disagree 20
Somewhat disagree 40
Somewhat agree 60
Agree 80
Totally agree 100
Average 2013:
82%
78%
78%
73%
71%
71%
70%
69%
64%
60%
60%
59%
58%
58%
58%
54%
54%
54%
37%
36%
HCL
Cognizant
TCS
Telenor
Accenture
T-Systems
HP Enterprise Services
Volvo IT
IBM
CSC
Fujitsu
Tieto
ATEA
Capgemini
CGI (Logica)
Evry
TeliaSonera
Verizon Business
Atos
TDC Dotcom
62%Average (2012): 64%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
19
Innovation ‘The service provider actively identifies innovation opportunities’
Key to scores %
Totally disagree 0
Disagree 20
Somewhat disagree 40
Somewhat agree 60
Agree 80
Totally agree 100
Average 2013:
76%
75%
70%
70%
68%
60%
58%
57%
56%
54%
53%
52%
50%
49%
49%
49%
48%
45%
37%
36%
HCL
Cognizant
Accenture
Telenor
TCS
Volvo IT
T-Systems
ATEA
HP Enterprise Services
TeliaSonera
Fujitsu
IBM
Tieto
Capgemini
Evry
Verizon Business
CGI (Logica)
CSC
Atos
TDC Dotcom
56%Average (2012): 56%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
20
Flexibility ‘The service provider is flexible in bringing changes to the contract’
Key to scores %
Totally disagree 0
Disagree 20
Somewhat disagree 40
Somewhat agree 60
Agree 80
Totally agree 100
Average 2013:
84%
77%
73%
73%
72%
67%
64%
62%
60%
60%
60%
58%
55%
55%
55%
52%
50%
49%
46%
36%
HCL
TCS
Cognizant
Volvo IT
Telenor
T-Systems
ATEA
CGI (Logica)
Accenture
Capgemini
Evry
Tieto
CSC
Fujitsu
TeliaSonera
Verizon Business
HP Enterprise Services
Atos
IBM
TDC Dotcom
60%Average (2012): 62%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
21
Transition ‘The service provider has completed the transition successfully on time and budget and with the required functionality.’
Key to scores %
Totally disagree 0
Disagree 20
Somewhat disagree 40
Somewhat agree 60
Agree 80
Totally agree 100
Average 2013:
84%
80%
80%
78%
73%
71%
66%
65%
63%
63%
62%
60%
60%
59%
55%
54%
52%
49%
48%
42%
HCL
T-Systems
Volvo IT
TCS
Cognizant
Accenture
Capgemini
TeliaSonera
HP Enterprise Services
Telenor
Tieto
ATEA
Verizon Business
Fujitsu
CGI (Logica)
Evry
IBM
Atos
CSC
TDC Dotcom
63%Average (2012): 66%
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
22
IT Security ‘The service provider has an efficient and effective governance model.’
Key to scores %
Totally disagree 0
Disagree 20
Somewhat disagree 40
Somewhat agree 60
Agree 80
Totally agree 100
Average 2013:
87%
81%
80%
79%
76%
75%
74%
74%
73%
73%
72%
70%
69%
67%
67%
65%
64%
62%
60%
47%
HCL
IBM
Cognizant
TCS
Volvo IT
Telenor
Accenture
Tieto
Fujitsu
T-Systems
HP Enterprise Services
CSC
Verizon Business
Capgemini
TeliaSonera
ATEA
CGI (Logica)
Evry
Atos
TDC Dotcom
71%Average (2012): n/a
© 2012 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
23
Governance ‘The service provider has an efficient and effective governance model.’
Key to scores %
Totally disagree 0
Disagree 20
Somewhat disagree 40
Somewhat agree 60
Agree 80
Totally agree 100
Average 2013:
82%
74%
73%
71%
68%
66%
64%
63%
62%
60%
59%
58%
58%
58%
56%
55%
53%
48%
43%
40%
HCL
TCS
Accenture
Volvo IT
Telenor
HP Enterprise Services
Fujitsu
Cognizant
Capgemini
Tieto
IBM
ATEA
CSC
T-Systems
CGI (Logica)
TeliaSonera
Evry
Verizon Business
Atos
TDC Dotcom
61%Average (2012): 64%
© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
The KPMG name, logo and ‘cutting through complexity’ are registered trademarks or trademarks of KPMG International Cooperative (KPMG International).