2009 The Black Book Of Outsourcing: State Of The Outsourcing Industry Report-Aarkstore Enterprise

Introduction• What influences outsourcing client satisfaction
The Satyam scandal rocked the global businessbeyond "faster and cheaper"?
community and endangered the Indian outsourcing• Who best influences the outsourcing vendor
industry with precipitous losses. But as panic subsidesselection decision?
and dust settles, the forces driving outsourcing are as• How can prospective outsourcing buyers and
strong as ever. Buyer organizations that haveinvestors match their unique needs to client
struggled to "keep the lights on" are currently planningexperiences?
on a recovery that includes extensive expansions into• What are outsourcing buyers looking for and
both offshore and onshore outsourcing by year's end.value when choosing "better" as part of their business
The annual ""State of Outsourcing Industry Report""transformation strategy beyond faster and cheaper?
contains Black Book's Top 50 ""Best Managed"" Global• What's valued by outsourcing clients in their
Outsourcing Vendors, the unbiased, client experiencevendors?
rankings from 24,000 validated survey participants.• What are outsourcing clients and prospective
Measuring client experience and assessing industryoutsourcing buyers looking for next?
developments, The State of the Outsourcing Industry• How do outsourcing service suppliers stack up
Report annually aims to address what's important toagainst each other and which are the very best at
the savvy and the novice industry users alike. The pollmeeting the evolving and maturing client relationship
marks its seventh consecutive year of collecting datademands reflective in true satisfaction measures?
on the industry.Key questions we asked
Key FindingsSurvey respondents were validated via external audit
• Indian outsourcers have regained strong buyerwith double ID entry requirements and/or by email
confidence by demonstrating tangible transparency,verifications and telephone follow-up to ensure
accountability and ethical management practices tocorporate client responses and appropriateness of
eighty-one percent of US companies buying servicesresponse source.
offshore.Our data
• Technology budgets will be fully restored orIndependent and unbiased from vendor and advisor
expanded over the next twelve months, corroboratedinfluence, over 800,000 global outsourcing users are
by sixty-eight percent of outsourcing buyers. Buyersinvited to participate in Black Book surveys. In 2009,
predict fastest spending growth in progressiveAdvisors were not alerted or contacted directly in a
outsourcing organizations that consistentlydirect effort to validate past experience scores of the
demonstrated client empathy through the downturn. Asopening or close of the Black Book consulting firm
the economy improves, sixty percent of clientsevaluation process. In past survey years, consultants
anticipate shifting from less agile outsourcers thatand advisors were encouraged to contact their clients
were unmovable through recessionrelatedto participate. The 2009 data set produced current and
renegotiation issues.objective customer service data for buyers, analysts,
• Cloud Computing & Software-as-a-Serviceinvestors, consultants, competitive suppliers and the
explodes IT outsourcing growth guidance. Remotemedia, as well as validated the opinions of actual users
Infrastructure Management and bundled applicationswithout interference of influence from those firms
development / maintenance initiatives which have beenbeing studied
on hold by ninety-one percent of CIOs will receive the
most immediate funding.Table of Contents :
• BPO projects that deliver speedyExecutive Summary
return-oninvestments are highest in demand. 180-day• 2009's Chief Industry Developments
ROI's, typical in Procurement Outsourcing, Accounts- Indian Outsourcers
Receivable, Accounting and Financial transaction- Buyer technology budgets
processing, will be creating the greatest growth in new- Outsourcers and the economic downturn
contracting through 2010.- Return-on-Investments (ROIs) and new outsourcing
Reasons to purchasecontracts
• Examine client-vendor relationships and seek and- Plain Vanilla Outsourcing to be first to rebound before
compare outsourcing supplierscreativefinancing deals crop up
• Identify weaknesses and areas for competitive- Cloud Computing & Software-as-a-Service
growth- Multishoring
• Make buying decisions- Call Centers and customer demands
• Set organizational strategy- Outsourcing's cost Vs Political issues
• Fine-tune governance programs- CXO's Get More Adept in Managing Outsourcing
Key questions we askedthrough the
Survey respondents are queried about specific targetsDownturn
of high priority interest in order to answer, among- Emerging locations
others, the following questions:• Satisfaction and the Client Experience
• What are the measures of outsourcing client- Who's most satisfied with their outsourcing initiatives?
satisfaction beyond contractual success?