Outsourcing I Europe Competitive Analysis

122 Pages·1995·7.8 MB·English

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Outsourcing Europe
in
Competitive Analysis, 1995
INPUT
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OUTSOURCING IN EUROPE COMPETITIVE ANALYSIS, 1995 INPUT
Abstract
Initially the principal criterion for success in the European IT outsourcing
market was the ability to offer cost-effective MIPS. At the same time, the
customer requirement was typically tactical, often related to the phasing
out ofmainframe-based applications. However, more recently vendors
such as EDS and CSC have achieved success with a value-based message
offering to share the rewards from improved business impact.
The criteria for success continue to evolve creating opportunities for
vendors in both strategic and tactical forms ofoutsourcing. Future success
criteria in the European outsourcing market are likely to include
reengineering capability, business operations capability, and the ability to
manage international client/server based infrastructures dominated not
by the mainframe but by LANs and WANs.
The purpose ofthis report is to analyse trends in vendor positioning in the
European information systems outsourcing market.
In particular, the report provides:
• A comparison ofthe market positioning and approaches ofthe
leading European outsourcing vendors
• An analysis ofthe market leaders by outsourcing service type
• An analysis ofcurrent user perceptions ofthe relative capability of
a number ofleading outsourcing vendors
• League tables ofoutsourcing vendors by country.
OSCA © 1995byINPUT. ReproductionProhibited.
Published by
INPUT
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Outsourcing Programme Europe
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Outsourcing in Europe Competitive
Analysis, 1995
Copyright © 1995 by INPUT. All rights reserved.
Printed in the United Kingdom. No part of the
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that may result from incompleteness or inaccuracy of
the information provided.
OSCA' 566- 1995
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OUTSOURCING IN EUROPE COMPETITIVEANALYSIS, 1995 INPUT
Table of Contents
T
L Introduction 11
A. Scope and Objectives 1
B. Methodology 6
C. Report Structure 8
D. Related Reports 9
n
Executive Overview 11
A. Vendors Must Reposition To Adapt To Market Evolution 11
B. Vendors Must Choose Between Value-Based and Selective
Outsourcing Approaches 13
c. Convergence ofNetwork Management and Desktop Services
Poses a Challenge to Vendors 17
D. Is There a Choice Between Industry Knowledge and Process
Skills? 19
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III Service Positioning Europe 21
A. Market Shares ofLeading Outsourcing Vendors 21
B. EDS, IBM and CSC Lead the Way in Major AppHcations
Operations Activity 24
C. Hewlett-Packard and Olivetti Lead the Way in Client/Server
Systems Management 26
1. Scope ofServices 27
2. Automation ofService Delivery 30
3. Improved End User Productivity 33
4. Appropriate Geographic Coverage 35
D. tds and Hewlett-Packard are Winning SAP R/3 Outsourcing
Contracts 36
1. Implementation Clients Need to be Converted to Outsourcing 37
2. R/2 to R/3 Migration Now the Major Source ofBusiness 37
3. Emerging Market Leaders 38
E. MCI and the PTTs Make Progress in Network Management 41
F. Cap Gemini, debis Systemhaus and FI Group Set the Pace in
Application Management 42
G. Andersen Consulting and EDS are Poised for Business Operations
Opportunities 43
OSCA ©1995byINPUT. ReproductionProhibited. i
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OUTSOURCING IN EUROPE COMPETITIVE ANALYSIS, 1995 INPUT
IV Perceptions ofVendor Capability 45
A. Vendors Still Perceived to Lack Industry Knowledge 45
1. IT Departments Perceived to Have Greater Industry
Knowledge Than Outsourcing Vendors 46
2. Vendors Perceived to Have Greater IT Application Skills 47
3. Systems Vendors are Perceived to Have Most Up-to-date
Technical Skills 49
B. Perceived Capability is not Uniform Across Europe 50
V
Country Positioning 55
A. France 55
B. Central Europe 57
C. United Kingdom 60
D. Italy 62
E. Nordic Region 63
F. Benelux 67
G. Spain 69
Appendices
A
User Perceptions by Attribute 71
A. Europe 71
B
Perceived Attributes by Vendor 75
A. Europe 76
B. France 79
C. Germany 84
D. United Kingdom 89
C SAP Outsourcing 93
A. Offering Transition Outsourcing Services to Larger
Manufacturing Organisations 94
B. Developing Distributed Systems Outsourcing Capabilities 95
C. Targeting Small Outsourcing Contracts 96
D
User Questionnaire: Vendor Positioning 99
E
Economic Assumptions 107
©1995byINPUT.ReproductionProhibited. OSCA
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OUTSOURCING IN EUROPE COMPETITIVE ANALYSIS, 1995 INPUT
List of Exhibits
I
-1 Business Operations Outsourcing 4
-2 Information Systems (IS) Outsourcing Service Categories 4
-3 Outsourcing Service Components 5
-4 Interview Profile by Country 7
-5 Vendor Coverage by Country 7
II
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-1 Leading Vendors: Europe 1995 11
-2 Outsourcing Specialists by Service Category 12
-3 Perceived Capabilities: Cap Gemini Sogeti and EDS 14
-4 Service Capability and Bundling Philosophy:
Outsourcing Vendors 15
-5 Reengineering and Business Operations Capability:
Outsourcing Vendors 16
-6 Geographic and Service Scope: Client/Server Systems Management
18
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-1 Leading Vendors: Europe 1994 22
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-2 Leading Vendors: Service Category Emphasis Europe 23
-3 Applications Operations Capability by Country 26
-4 Overall Service Capability 28
-5 Capability by Principal Service Component 29
-6 Platforms/Protocols Supported Remotely 31
-7 Principal Tools Used 32
-8 Locations ofEuropean Network Management Centres 34
-9 Vendor Penetration ofR/3 Outsourcing Market 39
IV
-1 Relative IT Department Capability 47
-2 Perceived Supplier Capability: Europe 48
-3 Timing ofMarket Entry: Outsourcing 50
-4 Perceived Supplier Capability: France 51
-5 Perceived Supplier Capability: Germany 52
-6 Perceived Supplier Capability: United Kingdom 53
OSCA ©1995byINPUT. ReproductionProhibited. iii
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OUTSOURCING IN EUROPE COMPETITIVE ANALYSIS, 1995 INPUT
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-1 Leading Vendors: France 1994 55
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-2 Leading Vendors: Germany 1994 57
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-3 Leading Vendors: Austria 1994 58
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-4 Leading Vendors: Switzerland 1994 59
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-5 Leading Vendors: United Kingdom 1994 60
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-6 Leading Vendors: Italy 1994 62
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-7 Leading Vendors: Sweden 1994 63
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-8 Leading Vendors: Denmark 1994 64
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-9 Leading Vendors: Finland 1994 65
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-10 Leading Vendors: Norway 1994 66
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-11 Leading Vendors: Belgium 1994 67
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-12 Leading Vendors: Netherlands 1994 68
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-13 Leading Vendors: Spain 1994 69
A
-1 Perceived Reengineering Capability: Europe 72
-2 Perceived Level ofIndustry Sector Knowledge: Europe 73
-3 Perceived Ability to Apply IT: Europe 73
-4 Perceived Currency ofTechnical Skills: Europe 74
-5 Perceived Cost Reduction Capability: Europe 74
B
Europe
AT&T
-1 76
-2 Cap Gemini Sogeti 76
-3 Digital 77
-4 EDS 77
-5 Hewlett-Packard 78
-6 IBM 78
France
-7 AT&T 79
-8 Axone 79
-9 Bull (Integris) 80
-10 Cap Gemini Sogeti 80
-11 Digital 81
-12 EDS 81
-13 GSI 82
-14 Hewlett-Packard 82
-15 Telesystemes 83
iv ©1995byINPUT,ReproductionProhibited. OSCA