German IT Outsourcing Projects:
2009 was a terrible year for vendors selling offshoring
projects to Germany: Less
projects (2009: -1%), declining prices (2009: -8%) and offshoring
vendors are suffering more than local German outsourcing providers. In
2010 the offshoring market will grow again but due to the fact that
there are too many providers competing with each other, the price
deterioration will continue in 2010. Another 7% are expected for 2010
but the market grows by 2%.
German companies ar more open for
outsourcing than ever before and this inludes also offshoring. More
decision makers than ever before said, that they see the necessity to
But they also mention other significant reasons for
- increase of service quality
also want to increase their flexibility, reduce their risks resulting
on fixed cost and concentrat more on their core business.
company decided for outsourcing they keep doing so. Less than 10% find
a way back to make it instead of buying it. And when a contract comes
to its end, more than 2 of 3 decide for the same provider again - but
usually with a lower price than before.
Average contract durations also changed:
Based on interviews with 240 outsourcing decision makers in
|more than 5 years