4Q11 KPMG Sourcing Advisory Global Pulse Survey
Includes insights into top trends and predictions for 2012
from KPMG leadership across its Advisory, Audit, and Tax
service groups |
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Introduction
KPMG is pleased to release the findings from its KPMG 4Q11 Sourcing Advisory Pulse surveys. The Pulse surveys provide insights into trends and projections in end-user organizations’ usage of shared services, outsourcing, and third-party business and IT services. The learnings are gleaned from KPMG firms’ advisors, who work closely with end-user organizations that are actively exploring or undertaking shared services, outsourcing, offshore, and other service delivery initiatives, as well as from leading global business and IT service providers.
The advisor and service provider Pulse surveys were originally developed by EquaTerra, a leading sourcing advisory consultancy that KPMG* acquired in February of 2011. They are now part of a broader family of KPMG Pulse surveys that include similar surveys focused on specific geographies such as China, functional areas such as real estate and facilities management (REFM), related key topics such as cloud computing and HR transformation, and broader business market trending via KPMG's Business Outlook Pulse survey. This quarter’s Sourcing Advisory Pulse includes insights into top trends and predictions for 2012 based on polling in the quarterly Pulse, as well as a broader global poll of KPMG partners and leadership across its Advisory, Audit, and Tax service groups.
Since their inception in 2004, the advisor and service provider Pulse surveys have yielded insightful analyses of current and ongoing market trends in the use, deployment, and delivery of business and IT services. They capture changes in demand, usage levels, future adoption plans, and related key market indicators. They highlight the changes, and the direction of change, in the business and IT service markets as a whole. The surveys focus on where the market is going and how that direction is changing—or not—compared to prior quarters and years.
This edition of the advisor and service provider Pulse surveys reflects business and IT service market activity during 4Q11 as well as projections and predictions for 2012.
Topics explored include:
- Demand and adoption trends for shared services and third-party business and IT services
- Drivers for service delivery improvement efforts
- Update on global sourcing
- Top business and sourcing trendsand predictions for 2012
- Outsourcing deal pricing, service provider profitability, and scope
The Pulse surveys focus on end-user organizations’ global use of shared services, outsourcing, and other third-party services across the following functional areas: customer care/call center, finance & accounting (F&A), human resources (HR), information technology (IT), knowledge process outsourcing (KPO), procurement/ source-to-pay, real estate and facilities management (REFM), and vertical industry business services. |
The following leading global business and IT service providers participated in the quarter’s survey:
- Accenture
- ACS, a Xerox company
- Atos
- BT Global Services
- Caliber Point
- Capgemini
- CGI
- Cognizant
- CSC
- Dell
- EXL Services
- Getronics
- HCL Technologies
- HP
- IBM
- Infosys
- Intelenet
- Logica
- NorthgateArinso
- Syntel
- T-Systems
- TCS
- Wipro
- WNS
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Key Findings
It's the (Weak) Economy (Again)
A Top market trends for 2012 include ongoing global economic uncertainty and weak consumer and customer demand, at least in western markets.
Spend Less, Invest More
Market conditions are reinforcing a continued focus on driving down operating costs, though organizations will focus more in 2012 on making investments in new and innovative technologies such as analytics, cloud, social media, and virtualization.
Can We Outsource Management?
Beyond dealing with global economic uncertainty, other key identified impediments that will hamper efforts to successfully achieve 2012 initiatives are weak or dysfunctional management and operating models, and antiquated IT systems and infrastructure.
Global Services: Improve First, Expand Second
End-user organizations continue to more frequently look inward to improve their global business services delivery capabilities. This is being done by improving their capabilities to manage and govern existing shared services and outsourcing efforts, and by redesigning and optimizing business processes.
Putting the Global in Business Services
When it comes to expanding global business services efforts, emphasis is being placed on greater use of shared services, typically outside of local markets in near or offshore locations.
Keeping the Squeeze on Service Providers
Strong pricing pressure is being exerted by buyers on outsourcing and other third-party service providers, though leading providers are typically able to hold their own and avoid unprofitable deals. |
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Return to top for links to the full report and derivative materials >> |
Questions or comments regarding the advisor Pulse surveys should be directed to Stan Lepeak, Director, Global Research, KPMG Management Consulting, at slepeak@kpmg.com or +1 203-458-0677.
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