UK IT Service Provider Performance and Satisfaction Study Findings – the Financial Services Sector Perspective
Tony Rawlinson, Managing Director, Financial Services Advisory, Europe & Asia
Demand for outsourcing remains strong in the UK Financial Services (FS) sector with almost 70 percent of FS organisations in this year’s study planning to increase their use of outsourcing.
There is also evidence that outsourcing is increasingly being used as a strategic tool to develop new operating models, as well as being a tactical response to current economic conditions. The main driver of outsourcing continues to be cost saving (cited by 95 percent of respondents), with secondary, but important drivers including access to skills (48 percent), quality improvement (40 percent), financial flexibility (38 percent) and time to market (30 percent).
The study shows all IT service areas are being considered for additional outsourcing with most initiatives expected in Application Management, followed by Infrastructure Management and End-User Management. There is also a trend towards the adoption of multi-sourcing models and end-to-end approaches to integrating ‘tower’ services to make the IT function more accountable to its end-users.
More than one third of all 230 FS contracts that are evaluated in this study are up for renewal in the coming two years. Most of these organisations are still deciding whether to re-let with the same service provider and are currently reviewing their options, so expect activity in the market from the FS sector in 2011 and 2012.
The UK IT Service Provider Performance and Satisfaction Study management summary is now available to download.
About the UK IT Service Provider Performance and Satisfaction Study: Each year, EquaTerra undertakes an investigation into organisations’ satisfaction with their outsourcing service providers. This year’s UK study is the most extensive to date, both in terms of the level of participation and the insights gained. More than 220 different organisations participated and evaluated over 660 IT outsourcing contracts with an annual value of £14bn.
Leave a Reply