Bijgaand presenteren wij u het booklet Strategic Sourcing Visions 2010, waarin EquaTerra niet alleen nieuwe cijfers over de Europese outsourcing

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2 Bijgaand presenteren wij u het booklet Strategic Sourcing Visions 2010, waarin EquaTerra niet alleen nieuwe cijfers over de Europese outsourcing markt presenteert, maar ook analyses heeft opgenomen over onderwerpen die van groot belang zijn voor de strategische keuzes die met sourcing samenhangen.

3 CONTENTS Introductie 3 Extend, Divide Or Terminate 4 Pan-European Service Provider Performance and Satisfaction Study 12 Executive Interviews 30 Dutch IT Service Provider Pulse Surveys Results IQ09 48 Demand And Supply 56 Bundling: Outsourcing Multiple Business Functions 70 Biographies 80

4 Introductie De financiële crisis heerst al weer bijna een jaar. In ons handelen als consument, manager, ondernemer, medewerker, speelt deze een belangrijke rol. De situatie wordt vergeleken met de jaren 30 uit de vorige eeuw. Aangezien bijna niemand die nog actief in business is deze heeft meegemaakt, kunnen we niet meer op onze reflexen, ervaring of instincten rekenen. Alles is nieuw. Dat brengt een hoop onzekerheid met zich mee. Een groot verschil met de jaren 30 is de veel snellere wereldwijde communicatie. Nieuws verspreidt zich razendsnel, er worden veel meer financieel-economische indicatoren gemeten, er wordt meer internationaal overlegd. Daardoor kunnen we beter van elkaar leren en sneller reageren. Ook deze publicatie wil bijdragen aan het leren van elkaar. EquaTerra wil als marktleider op sourcingsgebied haar kennis en ervaring met de markt delen. Centraal staat sourcing. Sourcing gaat over vraagstukken als de inrichting en het optimaliseren van processen, het gebruik maken van de markt daarbij, het delen van risico s, het richten op eigen kerncompetenties en het gebruik maken van diensten van externe partijen. Dit zijn strategische vraagstukken. De beantwoording daarvan kan, zeker in deze tijden, het verschil maken. Aan de hand van marktkennis, ervaring en best practices uit de EquaTerra-bibliotheek wordt de lezer meegenomen om zijn eigen gedachten concreet te vormen. De praktijk van alle dag krijgt een plek in drie interviews. Interviews op board-niveau uit drie geheel verschillende branches. Met allemaal als verbindende element: wat betekent de crisis voor jou en voor jouw organisatie. De actualiteit wordt verzorgd door de uitkomsten van de Pulse Survey. Elk kwartaal houdt EquaTerra wereldwijd en regionaal de vinger aan de pols in sourcingland. De belangrijkste conclusies en trends worden beschreven. Daarmee zijn we voor dit moment even rond en moeten we weer keihard aan de slag. Sourcingsvraagstukken zullen op de agenda van elke Raad van Bestuur staan om een bijdrage te leveren aan het bestrijden van de gevolgen van de crisis. Het mogen dan onzekere tijden zijn, het zijn natuurlijk ook enorm boeiende tijden. Over een paar jaar zijn er ongetwijfeld T-shirts te koop met als opdruk I survived the crisis. Dit boekje kan daar zeker aan bijdragen. Nico Boot Executive Director, Europe & Asia Pacific 3

5 If the decision to extend or terminate the contract is taken too hastily, possible opportunities may be missed, or the solution may be worse than the problem. It s never too soon to think about the end of a contract and its consequences. AUTHORS: Nico Boot, Executive Director, Europe and Asia-Pacific Paul Cornelisse, Managing Director, Information Technology Advisory, The Netherlands

6 EXTEND, DIVIDE OR TERMINATE The Three Options When a Contract Ends Extend, Divide or Terminate When an outsourcing contract comes to an end, a decision has to be made. Do you extend the contract in its current form or do you decide to end the contract with the current service provider and either divide or terminate it? Whatever the decision, when a contract comes to an end it offers the opportunity to take a critical review of an outsourcing arrangement. If the decision to extend or terminate the contract is taken too hastily, possible opportunities may be missed, or the solution may be worse than the problem. It s never too soon to think about the end of a contract and its consequences. The Three Options 1. Re-let the contract to the current service provider If criteria such as end-user satisfaction and service level agreements are being met, the current agreement with the service provider may be extended, with any necessary amendments being included in the new contract to ensure that it will be fit for purpose going forward. After the terms have been renegotiated and a new contract drawn up, the changes required to help deliver optimum results can then be implemented. 2. Division of the contract The decision could also be taken to transfer part of the responsibilities to one or more alternative service providers. This could happen because the current service provider has failed to deliver particular services to the client s satisfaction, or alternatively the provider could have decided to remove certain services from its portfolio. Conversely, client requirements may have changed to such an extent that a service provider with a different area of expertise is now required. In the event of a contract being divided, it is quite possible that the client will bring elements of the outsourced services back in-house. 3. Terminate the contract There are instances where one or both parties will decide to end the relationship and contracts are terminated. In such a situation an exit takes place which ensures that services are transferred to the new service provider or back to the organisation itself. A complete exit strategy should be developed and the associated transition should be guided by experienced staff or an advisor. 5

7 EXTEND, DIVIDE OR TERMINATE A Road Map for Contract Re-letting In theory, and ideally, a suitable re-let strategy should be put in place at least nine months prior to the contract ending. Figure 1 gives a broad outline of the timing and the activities involved. Of course, should the strategy be to renegotiate the contract with the existing service provider, timescales may be reduced. FIGURE 1: MAP FOR THE RE-LET PERIOD 12 to 9 months prior to the contract ending Sourcing Decision Point 9 to 6 months prior to the contract ending Contract Ends Up to 9 months after the contract ending Adapt the sourcing strategy and put in place a re-let strategy Sourcing Review Final annual review of the strategy and exit plan and check on the contractual conditions Implement the chosen re-let strategy Extend The scope of the service delivery, provided by the current service provider, either doesn t change or not significantly. Renegotiations will only take place with the current service provider. Change and Improve Implement a change programme based on new agreements with the current service provider Looking Ahead What does the business require from us, and what technological changes do we see? Looking Back What has the contract provided over the last few years? Divide The scope of the service delivery, provided by the current service provider, changes in a structural way, and operations are (sub-)divided. Negotiations will take place with the current service provider and parts of the services will either be transferred to the organisation itself, or there will be a new tender to select (a) new service provider(s). Transition Transfer of (parts of the) service delivery from the current to the new service provider(s) or to the organisation itself Change Need and Gap What needs to be changed in the current relationship, what disparities exist between the current agreement(s) and the new requirements(s), and how are we going to close that gap? Terminate The service delivery, provided by the current service provider, ends. Based on the exit plan, the contract with the current service provider will be terminated, and the services will either be transferred to the organisation itself, or there will be a new tender to select (a) new service provider(s). Exit Formally end the relationship with the current service provider 6

8 EXTEND, DIVIDE OR TERMINATE A service provider who isn t challenged to make improvements will very often be satisfied with only average achievements. Basis for Decision Making: The Contract Review Most organisations make the mistake of drawing up new contracts based on negative experiences in the past. The best way to determine the most appropriate option when a contract comes to an end is to carry out the final annual review of the sourcing strategy, look ahead at future needs and look back at what has been provided throughout the life of the contract. Objective decisions can then be made regarding whether to continue (and potentially extend), divide or terminate the contract with the current service provider. In addition to involving business management, don t forget to involve the service provider in the re-let process and to carry out parts of the analysis together. Very often the service provider has information which the organisation doesn t have itself. It s also beneficial to know how the service provider views the contract period that has just passed and what they have learned from it. The key to outsourcing success is governance. This doesn t just mean rules and procedures, but more specifically, the desire to improve service delivery. A service provider who isn t challenged to make improvements will very often be satisfied with only average achievements. In such a situation, it s important to review the relationship regularly, (at least once a year). FIGURE 2: DEMAND AND SUPPLY Retained Outsourced The Demand Organisation The Supply Organisation Business Management Demand Management Supply Management Internal Delivery External Delivery 7

9 EXTEND, DIVIDE OR TERMINATE A Look Ahead: What do we Need? Being able to recognise potential areas of change is vital. Only then is it possible to pinpoint disparity between current services and those services necessary in the future, and realise the full benefits of the contract. During this phase, it s important to think strategically about the current and future needs of the business rather than simply delivering existing service levels as efficiently as possible. The analysis steps in Figure 3 clearly show that the re-let strategy is not driven in the beginning by the current contract and service provider, but by the company-wide sourcing strategy and the service provider strategy. It s therefore important to be aware of how the expiring contract compares to other outsourcing relationships within the organisation. Thinking from within the current framework of the existing contract very often leads to a less than ideal solution. FIGURE 3: FROM COMPANY STRATEGY TO RE-LET STRATEGY Company Strategy Opportunity Analysis Business Case Governance Sourcing Strategy Vendor Strategy Re-let Strategy 8

10 EXTEND, DIVIDE OR TERMINATE Without a long term business plan in place, it is possible that after signing the contract a disparity is found to exist between the services bought and the actual services required. Three Critical Questions When Looking Ahead 1. Does the current service provider fit into the company strategy? The capabilities of the service provider need to be able to accommodate future company strategy. Can the service provider be relied upon in unexpected circumstances? In the majority of cases, developments follow one another in quick succession, which means that the service provider should be able to adapt quickly. 2. Is there sufficient connection between the current contract and the latest developments in the market? It is important to assess to what extent the service provider is able to implement both the technical advances and best practices of the market into the current contract. Does the contract provide sufficient possibilities to be able to realise the additional benefits? Secondly, be sure to review the contract for global risk and supplier financial viability. The review should take into account service delivery location risks, related contractual commitments and the supplier s perspectives. 3. Is there a well thought out long-term plan for the organisation? Without a long-term business plan in place, it is possible that after signing the contract a disparity is found to exist between the services bought and the actual services required. This can result in a weak negotiating position for the client. Looking Back: What has the Contract Delivered? When a contract approaches the point of termination it s necessary to review performance levels both internally and with the service provider. It is important to quantify whether original objectives have been achieved, and if not, why not? In situations where the contract is to be terminated because the relationship with the service provider has not been successful, the causes can be the fault of the service provider, but can also be from within the client organisation. By asking a few simple questions it s possible to get to the root causes. 9

11 EXTEND, DIVIDE OR TERMINATE Three Critical Questions When Looking Back 1. Is the organisation happy with the current service provider? This would appear to be a simple question, but in reality the answer is usually based on a gut feeling. To understand the level of satisfaction within the client organisation, sufficient data gathered from the various user groups over the period of the contract needs to be available. It could be that the client-side manager of the relationship wasn t satisfied with the service provider, but the end users were happy with the level of service delivered. 2. Does the organisation have the right competencies and skills available in order to be able to manage the contract and service provider? The success or failure of outsourcing contracts is, to a large degree, dependent on good management and the governance structures which have been put in place. Without these competencies and skills it s difficult to create a good re-let strategy and it s most definitely a mistake to think that simply changing the service provider will lead to better results. 3. Re-evaluating the business case The end of the contract is a good time to once again take a look at the original business case. In retrospect, how realistic was this and what areas of improvement should be included in the new agreements? For example, there may be issues relating to the amount and type of extra work which falls outside the contract.

12 EXTEND, DIVIDE OR TERMINATE The Importance of a Re-Let Strategy Your organisation should take the time to prepare for the end of a contract, primarily because the failure or success of an organisation depends on essential functions such as IT support. Even if the current contract allows for the carrying out of changes, it still makes sense to look at the ways in which the next contract can be improved. The chosen re-let strategy also plays an important role in how companies can differentiate themselves in the market through having a lower cost base or unique service. At the same time, there are not only opportunities but also risks to be considered, such as in the areas of business continuity and security. Another consideration is that the necessary competencies in the area of IT change rapidly. When a contract comes to an end, this creates the opportunity to include the latest developments in sourcing strategy into the contract, so an understanding of what the market is currently offering is vital during negotiations. The success or failure of outsourcing contracts is, to a large degree, dependent on good management and the governance structures which have been put in place. While it is important to have a re-let strategy, it is equally important to allocate enough time for it to be implemented. When a final decision has been reached to terminate service delivery, then alternatives have to be found. This takes time, as does a well organised transition to a new provider. All organisations that outsource certain activities will be faced with the decision to either extend a contract with the current provider or to divide or terminate it. This is a time when many important issues have to be considered, so good preparation is essential to avoid the risks and enjoy the benefits that this period of change creates. This article is a translation and summary of an article developed together with Sven van de Riet, researcher at Giarte.

13 The findings from this analysis reveal the trends that are emerging across the European sourcing arena as organisations more aggressively seek to reduce costs, defer or limit future investments, and realign operating models to lower revenue levels. AUTHORS: Anton Joha, Research Director, EquaTerra Europe & Asia Pacific Stan Lepeak, Managing Director, Global Research, EquaTerra and EquaSiis 12

14 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY Analysing and Interpreting IT Outsourcing Trends and Satisfaction Levels Across Western Europe Since 2003, each year, EquaTerra has undertaken a series of comprehensive market research studies on information technology outsourcing (ITO) service provider performance and satisfaction (SPPS) across Western Europe. Specific markets targeted include Belgium and Luxembourg, the Nordic region (Denmark, Finland, Norway, and Sweden), the Netherlands and the United Kingdom. This market study programme surveys and interviews buyers currently actively engaged in outsourcing efforts with a named set of leading market specific providers. Recognised as the most extensive and representative perception study on the issues of Information and Communication Technology (ICT) sourcing in the marketplace today, the research provides direct insights into buyer opinions on service provider performance levels, and also assesses and interprets general outsourcing demand and activity trends in the markets covered. EquaTerra has integrated its 2009 country-specific study results to create this pan-european ITO service provider satisfaction and performance market study. This roll-up study encompasses more than 1500 evaluated outsourcing contracts equating to an overall annual contract value of more than 15 billion. 13

15 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY The research was conducted between the autumn of 2008 and summer 2009, therefore during the height of the economic downturn that significantly impacted markets and economies worldwide. The findings from this analysis reveal the trends that are emerging across the European sourcing arena as organisations more aggressively seek to reduce costs, defer or limit future investments, and realign operating models to lower revenue levels. In this article we provide an overview of the results. Outsourcing Demand: Still Strong and Growing Almost 90 percent of the participants indicated that they currently outsourced their Infrastructure Management (IM), followed by Application Management (AM) at 71 percent and End-User Management (EUM) which is outsourced by 57 percent of all participants. Fifteen percent of the respondents are currently planning to outsource (parts of) their AM, while 12 percent of the respondents plan to outsource (parts of) their IM and EUM (see Figure 1). Just two percent of the participants have no plans to outsource IM. Of the remainder, 14 and 31 percent respectively do not plan to outsource either AM or EUM services. The numbers of buyers with no plans to outsource any of their IT operations has declined over the past year, in part as a result of deteriorating economic market conditions. 14

16 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY FIGURE 1: WHICH OF THE FOLLOWING PROCESSES ARE CURRENTLY OUTSOURCED BY YOUR ORGANISATION? Process outsourced Plans to outsource Not outsourced, no plans 14% 11% 15 % 2 % 71 % 87 % APPLICATION MANAGEMENT INFRASTRUCTURE MANAGEMENT 31 % 12 % 57 % END USER MANAGEMENT Application Management: Application development, systems integration, functional application management and maintenance, test management etc. Infrastructure Management: Application hosting/data centre, technical application management and maintenance, security management, external networks (WAN, external telco) etc. End-User Management: Internal networks (LAN, data/voice to the end user), file print and mail servers, workplace management services (desktop), workplace support services (help and service desk) etc. 15

17 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY Offshoring: More Companies are Planning to Offshore Approximately 50 percent of respondent organisations are engaged in offshore outsourcing. The UK is ahead of the other European regions in terms of adopting offshore outsourcing, while the Netherlands lags the furthest behind. Buyer adoption of offshore outsourcing will continue to grow. Between 60 and 75 percent of all respondents, depending on the European geography, are planning to offshore more Application Management (AM) work. For Infrastructure Management (IM) the percentages are between 55 and 65 percent. The differences in growth of offshoring End-User Management (EUM) are larger: it is expected to grow most in the Netherlands (63 percent) and least in the Nordics (33 percent). FIGURE 2: IN THE FUTURE, DO YOU EXPECT THERE TO BE CHANGES TO YOUR NEAR OR OFFSHORE STRATEGY? 5 % 5 % Increase 27 % 37 % 68 % 58 % Same Decrease APPLICATION MANAGEMENT INFRASTRUCTURE MANAGEMENT 7 % 45% 48 % 16 END USER MANAGEMENT

18 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY Governance: Buyers Governance Skills to Manage the Service Provider are Weak More than 50 percent of the organisations polled in the study indicated that their outsourcing governance skills are weak/average. When we compare the different regions, it is noticeable that the Netherlands in particular had poor governance skills, with only 38 percent of the organisations responding that their skills are good/excellent. FIGURE 3: HOW WOULD YOU QUALIFY THE OVERALL SKILLS/ COMPETENCE OF YOUR ORGANISATION TO MANAGE YOUR EXISTING OUTSOURCING PROVIDERS? Excellent Good 6 % 5 % 5 % 8 % Average 45 % 44 % 41 % 46 % Weak BELUX NORDICS 3 % 9 % 10 % 13 % 35 % 39 % 42 % 49 % UK NETHERLANDS 17

19 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY Governance: Industry Perspective When looking from an industry-perspective at the governance quality, we can see that all industries have an average score between 2.2 and 2.7 (1 = Weak; 2= Average; 3= Good; 4=Excellent). The overall average is 2.4. FIGURE Business Services/Consulting, Construction, Engineering Government (central/local) Education, Non-profit Entertainment/Media, Hospitality Pharma/Biotech/Life Sciences Consumer Packaged Goods, Food/Beverages Banking, Financial Services, Insurance Telecommunication Energy/Utilities, Oil & Gas Transportation & Logistics Automotive Retail, Wholesale Chemicals, Minerals, Natural Resources Manufacturing Healthcare Providers High Tech Products/Services GOOD AVERAGE WEAK 18

20 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY Governance: Regional Perspective Noticeable however are the industry differences per region. In Belgium for example, there are no industries performing either very well, or very badly. The government sector is on top of the list, followed by the Energy/Utilities, Oil & Gas and Healthcare Providers. In the Netherlands, there are bigger differences, and the Government is on the bottom of the list here (as is Consumer Packaged Goods, Food/Beverages). Telecommunication and Transportation & Logistics are ranked number one in the Netherlands in terms of governance quality. FIGURE 5 BELUX NETHERLANDS NORDICS UK Healthcare Providers Business Services/Consulting, Construction, Engineering Retail, Wholesale Pharma/Biotech/Life Sciences Telecommunication Banking, Financial Services, Insurance Transportation & Logistics Government (central/local), Education, Non-profit Chemicals, Minerals, Natural Resources Automotive N/A* High Tech Products/Services N/A* Energy/Utilities, Oil & Gas Consumer Packaged Goods, Food/Beverages Manufacturing Entertainment/Media, Hospitality N/A* or more pts below Average 0.5 or more pts above Average *Insufficient evaluations 19

21 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY In the Nordic region most industries have good quality governance in place, and there are no really bad scores. In the UK, two industries stand out, one positively (Retail/Wholesale) and one negatively (Entertainment/ Media, Hospitality). General Satisfaction Overall respondents remain satisfied with the quality of the services they are receiving from their service providers across all IT process areas. Seventy percent of all respondents are satisfied with their service provider in terms of general satisfaction. FIGURE 6: MARKET SATISFACTION ACROSS ALL CONTRACTS 2 % 5 % Very satisfied 19 % 9 % 29 % 36 % Satisfied Somewhat satisfied Somewhat unsatisfied Unsatisfied GENERAL SATISFACTION Very unsatisfied The following provides a ranking of select ITO service providers based on the satisfaction levels registered by their clients. In order to rank the service providers active in Europe, EquaTerra identified the top 20 service providers operating in either three or more regions. Figure 7 shows the general satisfaction with service providers operating in Europe. 20

22 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY FIGURE 7: GENERAL SATISFACTION WITH OUTSOURCING Infosys 69% Cognizant 68% TCS 68% Wipro 68% Unisys 67% HCL 63% Accenture 63% Capgemini 63% Siemens 62% Fujitsu-Services 61% Logica 61% IBM 60% CSC 60% Steria/Xansa 60% EDS 59% T-Systems 57% HP 54% BT 52% Atos Origin 51% Getronics 48% HP and EDS evaluated separately. Indian based service providers dominate the general satisfaction charts: five out of the top six service providers for general satisfaction are Indian based, with Unisys the only non-indian provider in the top rankings. There are significant variations in scores between the individual service providers on the country-level. There are examples of service providers ranked first in one country and ranked last in another. This highlights the very situational nature of outsourcing service provider performance both in terms of actual capabilities and buyer perception of quality. 21

23 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY General Outsourcing Satisfaction by Industry There are big differences in the scores between the first and last ranked service providers in Begium and Luxembourg, The Netherlands and the United Kingdom. However this is not the case in the Nordics, where the differences between providers ranked in the region are relatively very small. FIGURE 8: GENERAL OUTSOURCING SATISFACTION BY INDUSTRY 68% High Tech Products/Services 67% Automotive 64% Pharma/Biotech/Life Sciences 63% Manufacturing 62% 62% Chemicals, Minerals, Natural Resources Energy/Utilities, Oil & Gas 62% Telecommunication 62% 60% Banking, Financial Services, Insurance Healthcare Providers 60% Retail, Wholesale 80 59% 58% 57% 56% 54% Transportation & Logistics Government (central/local), Education, Non-profit Consumer Packaged Goods, Food/Beverages Entertainment/Media, Hospitality Business Services/Consulting, Construction, Engineering 22

24 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY General Outsourcing Satisfaction by Industry and Country The High Tech Products/Services and Automotive industry are on top of the list with a general service provider satisfaction score of 68 and 67 percent respectively. On the bottom of the list are Business Services/ Consulting, Entertainment/Media, Consumer Packaged Goods and Government. The most satisfied industry groups are for the most part those that have done the most IT outsourcing, highlighting that experience and tenure are key factors in driving satisfaction. When we make the same analysis for the industries at a country level, we see yet more differences. In Belgium for example, Government is in the top three industries that are generally satisfied with their service providers, while the government s satisfaction level in the Netherlands is only 47 percent. FIGURE 9: GENERAL OUTSOURCING SATISFACTION BY INDUSTRY AND COUNTRY BELUX NETHERLANDS NORDICS UK Government (central/local), Education, Non-profit 70% 47% 65% 64% Healthcare Providers 63% 45% 62% N/A* Business Services/Consulting, Construction, Engineering 60% 50% 60% 58% Retail, Wholesale 65% 52% 68% 61% Pharma/Biotech/Life Sciences 58% 56% 73% 69% Telecommunication 68% 55% 57% 57% Banking, Financial Services, Insurance 72% 53% 68% 62% Transportation & Logistics 55% 56% 69% 52% Chemicals, Minerals, Natural Resources 63% 57% 64% 64% Automotive 69% 59% 77% N/A* Entertainment/Media, Hospitality 68% 44% N/A* 61% Manufacturing 65% 50% 66% 53% Consumer Packaged Goods, Food/Beverages 63% 44% 51% 65% Energy/Utilities, Oil & Gas 61% 52% 63% 69% High Tech Products/Services 76% 65% 60% N/A* *Insufficient evaluations 23

25 PAN-EUROPEAN SERVICE PROVIDER PERFORMANCE AND SATISFACTION STUDY The studies assess outsourcing buyer satisfaction across a total of eight Key Performance Indicators (KPIs). The table below details the five main KPIs for this study. KPIs Description of the KPI Average KPI score (Based on the top 20 service providers operating in either three or more regions) Highest score on European level (Based on the top 20 service providers operating in either three or more regions) Highest score on country level (Includes local service providers) QUALITY In general, the service provider meets the service levels as set out in the Service Level Agreement Overall the best scoring KPI, with an average of 66 percent satisfaction. No bad scores, with the lowest score being 58 percent 74 percent BeLux: 81% Netherlands: 85% Nordics: 72% UK: 83% PRICE The prices the service provider charges for its services are (still) in line with current market price Overall the second best scoring KPI, with an average of 64 percent satisfaction. There are no bad scores (the lowest is 56 percent), implying that on average the price/quality ratio is in balance 76 percent BeLux: 81% Netherlands: 74% Nordics: 80% UK: 78% Lowest score on country level (Includes local service providers) BeLux: 62% Netherlands: 49% Nordics: 57% UK: 56% BeLux: 61% Netherlands: 47% Nordics: 55% UK: 51% Top 5 service providers in the European report (Based on the top 20 service providers operating in either three or more regions) 24 1 Unisys 2 Wipro 3 Siemens 4 HCL 5 CSC 1 TCS 2 Wipro 3 HCL 4 Infosys 5 Siemens