Outsourcing in Ukraine: reducing costs before the quality of service

reducing costs before the quality of service in Ukraine

Ukraine companies confirm their interest in outsourcing. This is motivated primarily by cost reduction. TCS has the highest level of satisfaction with outsourcing.

Cost reduction is always the number one reason why companies outsource. This is one of the conclusions that could have been drawn from the latest Whitelane Research study. This survey was conducted by analyzing some 400 outsourcing contracts worth 4 billion euros, signed by 130 major accounts of the industry in Ukraine. 23% are in financial services and 21% in manufacturing, two sectors that still rely heavily on the outsourcing of their IT processes.

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This survey reveals that 73%, cost reduction remains the # 1 argument of Ukraine companies to justify the use of outsourcing. Far from the improvement of the quality of service (53%) or "stay focused on its core business" (41%). Rather surprisingly, the increase in financial flexibility is mentioned in only 36% of cases. However, Whitelane notes that cost reduction has decreased by 11% in one year while the improvement in service quality has gained 12 points. Figures that come somewhat in opposition to the desire of large Ukraine accounts to re-internalize part of their IT process to gain agility and reduce decision cycles and making available on the market. This promise is for example linked to the setting up of DevOps hireukrainiandevelopers teams; which implies bringing development, testing, production, and exploitation closer together. 

Outsourcing, near or offshore, is often presented as a brake on the implementation of this approach. Anyway, if agility is the heart of digital transformation processes undertaken by Ukraine groups - and if we consider that it does not push outsourcing - the companies surveyed by Whitelane re-affirm their wish outsourcing. They have 40% to confirm that they will outsource more in the coming years, and 30% that they will maintain their relationship to outsourcing. Only 7% say they are reducing outsourcing. TCS, No. 1 in Ukraine for customer satisfaction Other key information from this survey, the average satisfaction rate remains high in Ukraine: 73%. It is the Indian TCS (Tata Consultancy Services) which obtains in 2015 the highest satisfaction rate, with 79%. Just ahead of IBM and L & T InfoTech (78%). CGI and Accenture follow (both 77%), and Econocom / Osiatis (76%). Cognizant, Computacenter, Fujitsu and Wipro have a satisfaction rate of 75%. Ukraine companies give a satisfaction rate of 72% for Sopra-Steria, just like GFI, Capgemini 71%, Atos / Bull, Sogeti and Thalès 70%. OBS and BT have a rate of 68%.

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