One-third of organisations plan to outsource more in the next two years as war for talent intensifies and client satisfaction with service providers reaches its highest score to date

The findings reveal that for the first time in the UK study, cost reduction is no longer the number one driver for organisations planning to outsource more. Instead, they are outsourcing to focus on core business (57%) and gain access to resources/talent (56%). Research also found that 91% of participants rated their IT service provider(s) satisfactory and the average satisfaction has increased by one percentage point to 73%, the highest score to date.

Key findings from the 2022 study include:

Manish Khandelwal, IT Transformation expert at PA Consulting, says: "The pandemic years have accelerated the pace of digital transformation across sectors, and organisations have no choice but to be agile, innovative and ingenious. Businesses are aggressively using opportunities presented by digital transformation to drive growth which is resulting in significant demand for technology services. The market has matured, and clients are focused more on value rather than costs.

"The outsourcing industry has used the pandemic years as an opportunity to transform its operating model and has emerged stronger. The war for talent has reached unprecedented levels and will only intensify in the short term, however the industry has the unique opportunity to drive global workforce transformation. As the world economy enters a potentially turbulent period, winners will be those that are able to meaningfully co-create with clients, help them reduce time to market and contribute to both the top line and the bottom line"

The UK study is part of Whitelane's annual IT sourcing studies, which interviews sourcing executives (CIOs/CFOs or their direct reports) about their outsourcing plans and their opinions on service providers. The studies are conducted in 13 different European countries and provide a comprehensive overview of the IT outsourcing landscape in each country. The survey shows the main outsourcing trends, evaluates and ranks the main IT service providers based on a set of key performance indicators (KPIs), and analyses trends in outsourcing governance and the impact of new technologies.

For more information visit: www.paconsulting.com/insights/2022/uk-it-sourcing-study-2022/

About PA.

We believe in the power of ingenuity to build a positive human future.

As strategies, technologies and innovation collide, we create opportunity from complexity.

Our diverse teams of experts combine innovative thinking and breakthrough use of technologies to progress further, faster. Our clients adapt and transform, and together we achieve enduring results.

An innovation and transformation consultancy, we are over 4000 specialists in consumer and manufacturing, defence and security, energy and utilities, financial services, government and public services, health and life sciences, and transport. Our people are strategists, innovators, designers, consultants, digital experts, scientists, engineers and technologists.

We operate globally from offices across the UK, US, Netherlands and Nordics.

Discover more at paconsulting.com and connect with PA on LinkedIn and Twitter.

PA. Bringing Ingenuity to Life.

About Whitelane Research

An independent organisation uniquely focused on and dedicated to IT (out)sourcing research across Europe.

IT Sourcing Research Studies: Extensive IT outsourcing studies in different countries based on the opinion of CIOs of the largest IT spending organisations on their outsourcing plans and service providers.

End-User/Service Provider Events: The objective of our events is to exchange ideas between end-users and service providers about different outsourcing themes and how to achieve better (win-win) sourcing relationships.

Best Practices Groups for End-Users: A forum exclusively for corporate executives who use sourcing as a significant part of their business strategies, allowing them to confidentially share ideas and information about their sourcing relationships.

For more information please visit www.whitelane.com