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Nordic IT Outsourcing 2006 - Measuring Outsourcing Performance
Waagstein Research AB, Sep 2006
How is the performance of the outsourcing suppliers’ measured by Nordic organisations?
Which are the most successful methods used by Nordic organisations for measuring and governing an outsourcing relationship?
How are Nordic organisations avoiding the pitfalls of IT outsourcing?
Outsourcing companies claim that by outsourcing, an organisation can reduce costs and enhance flexibility with maintained or improved quality of service. The satisfaction with reaching these benefits is however varying. Some clients claim to have experienced higher costs and/or reduced satisfaction among its end-users and business/organisation management while others feel outsourcing has exceeded their expectations. However, many companies and organisations, both those that claim to be satisfied and those who claim to be disappointed, base their view on often subjective impressions instead of objective data.
Methods for measuring cost and quality
In order to truly evaluate the degree of success or failure of outsourcing one must implement a process for monitoring and measuring the quality and costs of the work the outsourcing supplier is performing for the organisation.
“Nordic Outsourcing 2006 – Measuring Outsourcing Performance” maps out Nordic companies and organisations’ measurement of their outsourcing suppliers’ performance. This entails looking at what they measure, how they measure and how successful various methods have been in helping the organisation to achieve its IT goals. Furthermore, the report looks at the current extent of Nordic companies and organisations use of outsourcing and their plans for the near future. This includes looking at how large share of organisations are outsourcing and how much of the IT operations that is outsourced.
The Nordic Outsourcing 2006 report is designed to:
- Enable a better understanding of how Nordic companies and organisations measure the performance of their outsourcing suppliers.
- Show how outsourcing is currently used by Nordic companies and organisations and what their plans for the near future are.
- Give an overview of how satisfied Nordic companies and organisations are with their outsourcing supplier.
- Provide comparison figures for the size of outsourcing in Nordic companies and organisations.
- Show to what extent the measurement of outsourcing performance are contributing to reaching key IT goals.
Method
The survey, which is quantitative, has been carried out by means of a survey of leading decision makers such as CIO, outsourcing managers, CFOs and CEOs in Nordic companies and organisations in the private and public sector. The interviews were made in April 2006. The results from the survey is presented and analysed broken down by sector and size:
Sectors: Trade, Services, Manufacturing, Public sector
Size: Medium-sized (25 – 100 MEUR), Large (>100 MEUR)
Target Group
The report is written based on mainly the needs and requirements of the IT management of medium-sized and large companies and organisations in the Nordic countries. The target group of the report is primarily: CIO/IT managers, Outsourcing managers, CFOs, Purchase managers, Controllers, IT strategists, Consultants and CEOs. The report will however also be interesting for outsourcing suppliers in order to better understand their customers.
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