Significant growth potential for BeLux IT outsourcing market

2017 BeLux IT Outsourcing study results published

The BeLux market for outsourcing still has significant growth potential as companies continue to outsource more. The main drivers for outsourcing are a stronger focus on the core business and cost reduction, while business transformation has increased by 8% from 2016. Almost 83% of organisations that currently use automation, robotics and AI have experienced moderate/significant benefits of these technologies, and client satisfaction remains high with an average satisfaction score of 74% across all providers assessed.

These are the key conclusions of the 2017 IT Outsourcing Study for Belgium and Luxembourg, which was conducted by Whitelane Research in collaboration with Vlerick Business School. The study investigates more than 550 unique IT outsourcing contracts held by over 200 of the top IT spending organisations in the BeLux region. The total combined annual value of the contracts covered by this study is more than €1.5 billion and all industry sectors are represented.

Key findings from the BeLux study include:

  • There is still an appetite for outsourcing among BeLux companies. 85% of all respondents in the study confirm that they will continue to outsource at the same rate or more, with 51% citing that they are planning to outsource more. This is a good indication that the BeLux market still has significant growth potential.

 2017 BeLux IT Outsourcing study

  • Focus on core business is the most important driver for organisations planning to increase the level of outsourcing within their organisation (64%), followed by cost reduction (56%) and access to resources (43%). There are two drivers that have increased in importance compared to last year, both Cost reduction (up 11% to 56%) and Business transformation (up 8% to 42%). Over the last 5 years, especially the increasing importance of business transformation as a driver for outsourcing is noteworthy.

2017 BeLux IT Outsourcing study

  • The service provider community continued to show a strong overall performance, with clients remaining satisfied with 91% of contracts.

2017 BeLux IT Outsourcing study

  • TCS, Econocom, Capgemini, Fujitsu and Sopra Steria share first place on the ranking as the suppliers with the highest level of satisfaction with a joint score of 80%, followed by, Getronics and Accenture (all three at 79%) and CSC, RealDolmen, Atos, Telenet and CGI (all five at 78%).

2017 BeLux IT Outsourcing study  

  • While clients are generally happy with their service providers, they expect more from the service providers in the areas of business transformation and innovation. As for the service providers, they indicate that clients should improve their internal capabilities with regards to transition and governance of an IT outsourcing service. The topic of integrating different parties at a given client also remains a key topic, where it seems that different parties have a role to play to make that integration happen.

Carine Peeters, Professor of Strategy at Vlerick Business School: “With digital technologies impacting companies in more and more industries, IT is expected to take on an increasingly central role as partner of the business to help their companies adapt and seize digital opportunities. Our results show this also means a new role for service providers to contribute to their clients’ business transformation. But the success of transformative outsourcing relations hinges on both service providers and their clients developing new capabilities. And we are not just talking about technology here. We are talking about business understanding and governance.

The BeLux study is part of Whitelane’s annual extensive IT outsourcing studies. We interview sourcing executives (CIOs/CFOs) about their outsourcing plans and their opinions on service providers. The study is conducted in 13 different European countries and provides a comprehensive overview of the IT outsourcing landscape in each respective country. The survey also shows the main sourcing trends and positions of the main outsourcing service providers based on different key performance indicators (KPIs) in addition to business and IT governance trends.

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