Prospectus
OUTSOURCING PERFORMANCE 2013 Eleventh edition
The annual benchmark of client satisfaction in the Dutch market
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OUTSOURCING PERFORMANCE 2013
Detecting and exploiting opportunities in turbulent times The market for IT services is changing rapidly; economic factors and technical innovations are coming together to form the perfect storm for transformation of the outsourcing market. Outsourcing Performance is both the barometer and the compass for the outsourcing market in the Netherlands. In 2013, the satisfaction concerning existing outsourcing relationships will be mapped out for the eleventh consecutive year. We look for opportunities and how service providers can further improve the relationship with their clients. The stakes are high: Outsourcing Performance is increasingly a guiding principle and touchstone for decision-makers on the client side of the market. Catalyst for improving client relationships. The relationship is the key differentiator for service providers in a transparent market that is largely commoditised. Do you truly help a client? Do you solve the problem underlying the initial one? Together, are you able to exploit new opportunities? In recent years, the number of players on the Dutch market has steadily increased. In 2012, we provided a listing of 27 service providers in Outsourcing Performance; in 2013 this number will probably exceed 35. Clearly, the market is still constantly changing: CIOs and other decision-makers no longer only choose the usual suspects. In this changing market, with Outsourcing Performance we aim to provide guidance for improving outsourcing relationships. Under-promise, over-deliver. Service providers that insufficiently adapt their portfolio and delivery will lose market share. The provision of services must and can rise to a higher level. Clients want to feel that they are a partner and not the prey. Due to the increasing pressure, we see that client organisations start to look around more quickly if they feel that they are not being optimally served. This decreasing loyalty is also fuelled by the strong desire for change within the business. The shifting market panels, however, also provide opportunities for improving relationships and for growing with clients. With proper positioning and a competitive strategy, there is still much to achieve. At present, there is already a dichotomy: some service providers are growing in these difficult times, while other players are seeing their sales fall sharply. With Outsourcing Performance we closely follow all these developments. In the new edition of the study, we pay special attention to cloud sourcing. What are the initial experiences and where is the market going? Involvement of outsourcers in Outsourcing Performance. Another important topic on the part of outsourcers is the professionalisation of vendor management and control. More and more client organisations realise that complaining on the sidelines is not the best way of making a success of outsourcing. Forward-looking CIOs even already apply the rule that if a service provider fails, their own control has failed. Outsourcers are becoming increasingly self-confident and are eager to learn in order to improve the relationship with service providers. These organisations also participate in Outsourcing Performance in order to broaden their own view of service providers and learn from best practices. Because we at Giarte invest heavily in ties with clients, we can accentuate and refine analyses of challenges and opportunities for service providers. Because no matter which technological developments are still to come, the quality of the relationship to a great extent continues to determine success in outsourcing relationships. The study therefore continues to be relevant. This prospectus describes the possibilities for participating in Outsourcing Performance 2013.
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OUTSOURCING PERFORMANCE 2013
Structure of the benchmark
Application Management
Infrastructure Management
1.2
2.7
BILLION Euro PER YEAR
BILLION Euro PER YEAR
End User Management
530 Million Euro PER YEAR
Indicated contract volumes cover the estimated annual contract value in the benchmark
Research population Outsourcing Performance 2007
2008
2009
2010
2011
2012
Number of respondents
274
275
306
354
403
400
Number of companies
240
242
277
292
306
293
Number of unique relations
550
674
646
584
705
682
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What is Outsourcing Performance? Each year, Giarte, as a research firm, performs the Outsourcing Performance study among organisations that outsource all or part of their IT with responsibility for results. In 2013, the study has reached its eleventh edition and is thereby the longest running and largest study in the Netherlands. As an independent benchmark, the study records the client satisfaction of hundreds of client organisations. The results provide service providers with an overview of their position within their own client group, the market and commercial movements. Outsourcing Performance is more than a market research study: the ambition is to enable both outsourcers and service providers to increase the success of their client relationships. Convinced that operating on the basis of new insights works better than more control, Giarte offers specific feedback to both sides. During the past year, for example, Giarte started providing personalised feedback to the biggest outsourcers (the top 30) by means of dashboards. This feedback increases involvement in the study and prompts client organisations to get to work with the results. Dissatisfied clients see, for example, that there are also satisfied clients and ask for best practices. With the results, service providers gain insight into what clients think of the relationship, where services as well as commerce are concerned. These insights can be used for business development, portfolio development and refining relationship management. Giarte supports the improvement of performance at the most important client groups by giving presentations and workshops. Outsourcing Performance also provides a platform for reaching client organisations more easily. The spotlight can be shone on cases, events and the latest news via the outsourcingperformance.nl website (Only available in Dutch). Each service provider has their own profile and thus the space to convey a substantive message to decision makers and thought-leaders.
Additional information ≥ This prospectus can also be downloaded from www.giarte.com ≥ A Dutch version of this prospectus can be downloaded from www.giarte.com ≥ More information about the community and the Dutch outsourcing market can be found on the www.outsourcingperformance.nl website (Only available in Dutch)
≥ Follow the latest news on Twitter via @OPGiarte (Only available in Dutch) 5—
OUTSOURCING PERFORMANCE 2013
The independent mirror To provide service providers with detailed analyses, Outsourcing Performance combines quantitative and qualitative research methodologies. Respondents provide Giarte with input by means of online questionnaires. A large number of sourcing executives are subsequently interviewed, both face-to-face and by telephone. On the basis of all this input, Giarte is able to provide each participating service provider with insights into client concerns. Because the same methodology is used for all providers, it is possible to compare one’s own position with those of peers. Each service provider participating in the study receives the results in the following forms:
1. Own performance in relation to peers Giarte presents the individual findings for each service provider participating in the study. Based on the figures and interviews, Giarte examines, together with a participating service provider, the latest developments within its own client group, and provides an update on the trends. Giarte provides feedback that customers and prospects do not give easily to service providers. Unfiltered feedback might be harsh, but it is extremely valuable to better understand customers and to initiate improvements.
2. Goal-oriented workshops A workshop focuses on a specific challenge or opportunity: an industry, the extension of contracts or the portfolio and positioning. Giarte uses its contacts with CIOs and other decision makers to handover practical and useful insights for a service provider. Giarte uses the study’s findings to translate the challenges into starting points for practical solutions.
3. Appealing report The results are set out in a clear report. Each year Giarte considers which form is most suitable. In detail this analysis zooms in on, for a service provider, major breakdowns, e.g. between customer groups and different industries.
4. Included in Outsourcing Performance yearbook Participants in the study also support the Outsourcing Performance yearbook. Each year Giarte publishes the results in a handy format for the demand side of the market. Over the years this publication has grown into a much-consulted reference for IT sourcing executives. For service providers the yearbook is an excellent way to inform business and service managers of the latest trends in sourcing.
5. Editorial profile on outsourcingperformance.nl Each examined service provider has its own profile on the new website. The objective research data is supplemented with social media features like tweets. The site offers different opportunities to support marketing, such as the publication of white papers, client cases and announcements of events.
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What is reported to a service provider? Results of the study offer a solid reality check to the management and account management of service providers. In these days of rapidly changing circumstances, most opportunities lie within the existing client base. Growth is faster with satisfied clients and is less expensive than chasing large, new deals. Each year, Giarte receives feedback from many outsourcing organisations that their service providers overlook opportunities and do not derive the maximum from the relationship. Quotes of interviewees Outsourcing Performance Benchmark 2012: Our service provider had a privileged position because of the existing relationship. They have had every opportunity to benefit from this, but have ignored them. As a company we are growing rapidly and there are many opportunities for our service provider. They just let these go by, and now other parties have taken advantage of them. They shouldn’t just rake, but should sow as well.
With Outsourcing Performance, service providers get a chance to keep their finger on the pulse. Participating service providers obtain a unique overview of their own performance and the commercial opportunities following on from this. The study reflects the views of decision makers: the respondents are sourcing executives on the client side who have an impact on contract extension and/or increase in the share-ofwallet. Furthermore, respondents give Giarte their unfiltered opinions of their own sourcing strategies and their relationships with service providers. A service provider’s complete market profile is composed of the following elements:
Satisfaction and willingness to recommend Satisfaction in the domains Application Management (AM), Infrastructure Management (IM) and End User Management (EUM); we also ask to what extent a client will recommend their service provider;
Commercial opportunities in the market The likelihood that existing contracts will be extended (reletting), the likelihood that the service provider will expand its services within the client base (share-of-wallet), and general growth of outsourcing among all participating client organisations;
Market developments Trends in the area of sourcing which are important to a service provider’s go-to-market strategy. Modified representation of the results in 2013 In the new report, Giarte presents the results in a different manner than previously. Based on feedback from both service providers and outsourcers, Giarte looks for new ways to improve the comparability of results.
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OUTSOURCING PERFORMANCE 2013
Service providers in the benchmark In 2012 the following service providers were included in the study:
Accenture ASP4all Atos AT&T BT Global Services Bull Capgemini Cegeka Centric Ciber Cognizant Colt CSC Ctac Dell Detron Fujitsu HCL HP Enterprise Services IBM Imtech ICT Infosys
IPSoft ISDC KPN Levi9 Logica, now part of CGI Mahindra Satyam Mindtree Nobel OGD Orange Business Services Ordina Schuberg Philis Simac Sogeti Tata Consultancy Services (TCS) Triodor Triple P T-Systems Valid Verizon Vodafone Wipro
Service provider with a score in the Outsourcing Recommendation Index 2012 Service provider included in the study 2012 (less than 15 evaluations) Service provider with insufficient evaluations in 2012
Fanbase
Percentage of fans who would "almost certainly" or "certainly" recommend their service provider(s).
40%
41%
2010
2011
44%
32% 28%
28%
2007
2008
2009
2012
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Participation in the study In principle every service provider can participate in Outsourcing Performance. Giarte translates expectations, opinions, satisfaction and the willingness to recommend of individual organisations within their own client group into a clear overall picture. For each service provider, participation in Outsourcing Performance represents an investment in the building and development of client relationships. Depending upon the level of ambition of a service provider and their market position, there are several ways of participating in Outsourcing Performance. The various possibilities are explained on the following pages. Every service provider can obtain the results of the study, but minimum requirements do apply for inclusion in the findings. Giarte also reserves the right to exclude parties in the results. A service provider with more than seven evaluations in at least one of the three investigated domains (AM, IM, EUM) is awarded a score in the results. For the Outsourcing Recommendation Index, Giarte employs a minimum of fifteen evaluations. Only service providers achieving this lower limit are included in this index and have a comprehensive profile in the yearbook. What has changed compared to last year?
≥ The listings are more specific for the domains IM, AM and EUM. For Infrastructure
Management, for example, a distinction has been made between network-centric and data centre-centric subdomains. Furthermore, the large and medium players in IM are ranked separately on the basis of contract value. For AM and EUM, the listings are also differentiated to produce a more specific comparison.
≥ In 2013, the study examines the adoption of cloud services by existing service providers and emerging parties.
≥ Like last year, it is possible to include BPO contracts in the evaluation. Limited use was made of this option last year. Without sufficient evaluations, Giarte only gives feedback to the party that contributes the BPO relationships.
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OUTSOURCING PERFORMANCE 2013
Purchase possibilities The study has four variants: Basic, Insight, Excellence and Ultimate. Each variant differs in the reporting and presentation of the results. A custom program can be developed if these options are not sufficient.
Basic The basic version of the study, suitable for service providers that do not (yet) have extensive clientele for outsourcing (a maximum of 10 clients), but do have the ambition to grow rapidly. The study provides insight into their performance, but for this group the growth opportunities in the market are more important. Where is the market growing the fastest, where do the opportunities lie and how do you convert these into deals? This version is for smaller and medium-sized service providers that have not had a listing in Outsourcing Performance during the past two years.
Insight For service providers with more than 10 clients in the market that want support to convert the results of the study into practical insights. This variant provides access to Giarte's analysts in order to gain new insights with the aim of enlarging the 'fanbase'. With this version, a maximum of two presentations are held.
Excellence By means of this version, Giarte offers greater depth in order to assist the service provider with the creation of a marketing strategy. Additional interviews with CIOs and other executives at clients provide unfiltered feedback about position and growth opportunities. Giarte works intensively together with the service provider in order to provide relevant insights to the right people (account, delivery, business development) by means of presentations and workshops. Giarte also assists with matters such as competitive analysis and market research. There are a maximum of three presentations and workshops.
Ultimate This new version in Outsourcing Performance is based on intensive contact between Giarte and the (various) parts of a larger service provider during the year. Especially in the case of service providers that participate in the study with several divisions, this version is a logical step in view of the need for separate analyses and presentations. This version also provides the space to accentuate their own vision, strategy and offerings with Giarte’s experience or to brainstorm about the course taken. In this version, the number of sessions (workshops, presentations, brainstorming sessions) is limited to six.
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Purchase possibilities Basic and Insight Basic This version of the research is suitable for service providers who would like to gain insight into their own performance but do not (yet) have ten clients in the Netherlands for result-oriented outsourcing. Purchasing this variant provides participants with insight into their own scores plus a general update of market developments, performances of individual service providers and commercial possibilities in the market. The reporting contains all the basics to obtain a good view of the Dutch market. Basic is also suitable for service providers who do not reach the lower limit of clients but who want to invest in an update of their market knowledge for their account management and to integrate the research results into their growth plans. In an active presentation Giarte looks at the best approach to achieve growth, based on the latest client and market insights. Price: ¤ 12.500,- exclude VAT
Insight The Insight variant is intended for service providers with a listing in the Outsourcing Recommendation Index. Insight meets the needs of service providers that are looking for concrete actions leading to a higher recommendation. Based on client interviews and the data from the study, this variant provides insight into exactly what is going on within their own client base. Feedback on the results is provided during regular presentations and additional information is also available digitally. Insight customers receive all deliverables that are part of the Basic variant, plus the additional in-depth analysis in order to improve the recommendation. In addition, this variant offers extra copies of the Outsourcing Performance booklet and there are additional options for substantive profiling by means of an individual profile on the study website. Price: ¤ 22.500,- exclude VAT
≥ The exact deliverables for each variant are outlined on page 13
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OUTSOURCING PERFORMANCE 2013
Purchase possibilities Excellence and Ultimate Excellence For service providers requiring greater insight into their own performance and client feedback, the Excellence variant of the study is available. Giarte works intensively together with service providers that opt for this package in order to determine what is happening within the client group. By means of interviews specifically tailored to the service provider's specific situation, Giarte examines where they are located on the client group's executive radar. The in-depth interviews with CIOs and board members give the service provider unique and unfiltered feedback about opportunities for growth and the development of relationships within their own client group. Within Excellence there is sufficient scope to go more deeply into the most important client-specific questions that we can only answer with sufficient qualitative research. In addition, this variant intensively delivers the results of the study to the right people. Service providers have the flexibility to set to work with the results within three sessions with Giarte. Finally, this variant offers access to a number of additional marketing support activities via the study website. Price: ¤ 32.500,- exclude VAT
Ultimate The new Ultimate version meets the needs of (large) service providers that give direction to a client strategy for the coming years. In order to improve their position among client organisations it is essential that all organisational entities work together as one team. Giarte supports the rollout of the strategy by contributing relevant and up-to-date information when consultations are held. In this variant, there is enough space to tackle issues in the field of portfolio development and business development. With the Ultimate version, the client and Giarte together outline a path to develop successful relationships with the aim of generating more business. Furthermore, Giarte uses Ultimate to present the figures before the summer in a data presentation that immediately determines the focus for the coming months. Giarte then also performs a round of qualitative research that is tailored to the issues discussed. This is followed by five further sessions to discuss and analyse the results, and to organise the follow-up. On request, Giarte also organises a strategic sales clinic, translating the results of the research into tools for generating new business. Price: ¤ 49.500,- exclude VAT
≥ The exact deliverables for each variant are outlined on page 13
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Deliverables and pricing Deliverables Research report Outsourcing Performance Participants of all variants receive an annual research report (for internal distribution only) Yearbook Outsourcing Performance 2014 Basic: 50 printed copies Insight: 150 printed copies Excellence: 200 printed copies Ultimate: 250 printed copies Presentations Basic: One internal presentation for a selected group Insight: Two internal presentations for a selected group Excellence: Three internal presentations/meetings for a selected group Ultimate: One presentation before the summer, maximum of six internal presentations/meetings for a selected group Marketing support All service providers that are included in the results are given their own profile on the study website. Besides the basic profile, there are additional possibilities to optimise the profile. The options for each study variant are presented in more detail on page 14.
Pricing The price per option is as follows: Basic: Insight: Excellence: Ultimate:
¤ 12.500,¤ 22.500,¤ 32.500,¤ 49.500,-
All prices exclude VAT. Billing With registration, the full amount will be invoiced upon commencement of the agreement. Unless agreed otherwise, this invoice has a payment term of a maximum of 30 days.
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OUTSOURCING PERFORMANCE 2013
The Outsourcing Performance website Last year, Outsourcing Performance launched a new website: www.outsourcingperformance.nl (only available in Dutch), which is increasingly found and used by the target group. For example, the profiles of all service providers receive a lot of attention. In the coming year, Giarte is planning to further optimise the use of the website, both in terms of content and technological possibilities. The website contains analyses, the digital versions of the Outsourcing Performance yearbooks, profiles of the service providers and a so-called performance browser. This enables visitors to create a data selection from different service providers and different years. Service providers can use the website as a platform for reaching client organisations. By regularly publishing news and cases, the information remains fresh. The website also has a calendar function, spotlighting events in the field of outsourcing. The exact possibilities depend upon the variant chosen and are elaborated on the next page.
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Digital marketing support for each variant The study website focuses on sourcing executives: the decision-makers and influencers in the field of outsourcing. This makes the site an important source of information for anyone finding their bearings in the field of outsourcing. Any service provider that is included in the results of the study has its own profile. The profile can include the following elements:
≥ ≥ ≥ ≥ ≥ ≥ ≥ ≥ ≥
General data (number of employees and financial data) The names and LinkedIn profiles of the outsourcing leadership team The most important Twitter and RSS feeds Data on Outsourcing Performance results A description of performance in the Outsourcing Performance study News announcements concerning outsourcing Links to external client cases and publications/white papers Link to events Including events in the agenda and monthly newsletter
The options depend on the chosen package. The table below shows the options per variant.
Basic
Insight
Excellence & Ultimate
General data
Results study
Description performance in Outsourcing Performance study
Names and LinkedIn-profiles
max 2
max 2
max 5
Twitter feeds
max 1
max 2
max 4
Selection of news on service provider
RSS feeds
max 1
max 2
max 4
Links to external client cases
1
2
5
Links to external white papers and or publications
2
3
5
Outsourcing events in agenda
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OUTSOURCING PERFORMANCE 2013
Yearbook and market communication The book Outsourcing Performance 2013 includes the most specific information available about the Dutch market, described in clear language. Each year, the book is a must-read for all CIOs, sourcing executives and consultants. Giarte is aware of the impact that such a publication can have on the conduct of organisations that are negotiating for contract extensions or are involved in a vendor selection. Therefore each service provider with a minimum of 15 evaluations is given a profile in the booklet. Service providers who have fewer contracts, but who are included in the vendor reporting are given a brief mention in the booklet, based on general characteristics such as size and turnover. Giarte informs service providers, but uses absolute objectivity in the texts they publish. Each service provider receives its own edition of the yearbook. Besides general results, some aspects of individual service providers will be communicated in public articles, research notes and possible press articles: Respondents receive feedback about their own service provider(s) to a limited extent, depending on the level to which the organisation contributes data. As well as general results, five aspects from individual service providers are communicated in public articles, research notes and possible articles from the press:
≥ The Outsourcing Recommendation Index, including qualitative explanation and the ≥ ≥ ≥ ≥
size of the three recommendation groups for the service providers with more than 15 contracts in the study Satisfaction scores in the areas of Application Management, Infrastructure Management and End User Management The market penetration of various service providers The market perception of the position of service providers Chances of extending current and gaining new orders for service providers.
Full disclosure of all results to clients is presented at a closed meeting (Outsourcing Performance Day), exclusively for the researched organisations. For end users there is also the possibility to gain an insight into the detailed results, by means of an exclusive paid workshop. The press will only receive the information as indicated above, and the generally available respondents' booklet and information about the general market developments if they have asked for it specifically. Giarte does not have any influence on journalistic freedom and how the provided information is used.
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Planning and contract review Planning The schedule is as follows:
December 2012 Preparation and invitation of research group in collaboration with and January 2013 service providers by means of the contract review February / March / April Perform online research April / May / June Data-processing, analysis and production reporting End of June First presentation of data to service providers with Ultimate version August / September In-depth interviews and presentations at service providers October Publication of results to respondents via yearbook and website
The report will be delivered in the first week of July 2013. The yearbook Outsourcing Performance 2014 will be released at the Outsourcing Performance Day – exclusively organised for respondents of the study – in October.
Contract review In preparation of the study, Giarte performs a contract review with service providers to gain an accurate image of the client group. Giarte provides an overview of contracts to the service provider for completion and correction. Cooperation is completely voluntary and is separate from participation in the study. Service providers who do not participate in the contract review, do not obtain accountability for participating organisations afterwards. Experience has shown that a thorough contract review generally provides an advantage for the service provider: with a complete list Giarte can help to ensure that satisfied clients, in particular, are also involved in the study. Furthermore, an accurate review prevents that contracts which are (just) ended will be included. Participation in the contract review is independent of the acquisition of research results.
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OUTSOURCING PERFORMANCE 2013
About Giarte Giarte is an IT research company specialising in strategic issues (IT transformation, performance management) and satisfaction (outsourcing, projects and end users). Within our community, decision-makers and experts are involved in the framing of strategic issues such as governance and global sourcing. A closed community, with representation from almost every large company and government body, serves as the basis for the Outsourcing Performance 2013 study. For more information about Giarte’s services and Outsourcing Performance visit: ≥ www.giarte.com ≥ www.outsourcingperformance.nl (Dutch only)
Giarte Jacob Bontiusplaats 9 1018 LL Amsterdam PO Box 890 1000 AW Amsterdam Telephone +31 20 622 3444 Fax +31 20 638 4039
© Copyright Giarte Media Group BV, Amsterdam, December 2012 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the copyright holder. 18 —