Interest in outsourcing has risen by nine percent amongst participants in EquaTerra’s ‘Outsourcing Service Provider Performance and Satisfaction Study 2008-09’. 63 percent of participants – all UK organizations – indicated they would be looking to outsource more in 08-09 over 54 percent in 2007.

The main reason indicated for choosing to outsource more was to leverage further cost savings due to pressures of the downturn. 80 percent of participants had this aim, up 11 percent from 2007.

Phil Morris, Chief Operating Officer of EquaTerra EU and Asia Pacific, interpreted the growing interest as a warning for vendors, “These study results clearly demonstrate that service providers with existing IT outsourcing contracts are unable to rest on their laurels. As price becomes a more immediately pressing attribute than satisfaction, clients will seek opportunities to consolidate their IT service provider portfolio in an effort to gain economies of scale and drastically reduce spend levels.”

Following Springboard’s report on the growth of the Indian IT market, the EquaTerra results offered a further boost to the country. ICT services as delivered from India were being used by 89 per cent of respondents. Service levels in the country also appear to be improving, with the gap in client satisfaction between India and ‘traditional’ service providers such as CapGemini, HP and Logica closing.

The study focused on over 400 UK outsourcing contracts held by over 125 of the top IT spending organisations in the country. The total annual value of the contracts included in this study is over £8 billion, accounting for approximately two-thirds of the total UK outsourcing market in terms of annual contract value.

Readers can get a copy of the report by contacting:

Melissa Gardiner

Director of Marketing EU/Asia Pacific

E:melissa.gardiner@equaterra.com