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American Business Confidently Shifting Tech Infrastructure to Outsourcers, Black Book Reports
Once Anxious to Outsource Technology Infrastructures, Buyers Are Assertively Casting off Fears and Praising Global Vendors, According to the Results of the 2008 Black Book of Outsourcing Client Surveys

Last update: 3:00 a.m. EDT Sept. 4, 2008
NEW YORK, Sep 04, 2008 (BUSINESS WIRE) -- Technology suppliers have tackled tough security, storage and asset management concerns triggering U.S. clients to shift systems to offsite, offshore and remote infrastructure outsourcers. Indian infrastructure suppliers unseated many American-based firms that have championed client satisfaction consistently over the past decade's Black Book ITO user surveys.

Even as technology services outsourcing wrestles with a slowdown in U.S. and dollar volatility, the global IT sector is still growing and the infrastructure services market is expected to nearly double in the next three years. This marked shift for India alone is translating from 8% market share into 15% market share by 2010.

Appreciably, U.S.-based outsourcing suppliers lagged behind this year's client satisfaction advances of Indian outsourcing giant Wipro, which recently completed the strategic acquisition of U.S. firm, Infocrossing (Leonia, NJ). Black Book surveys confirmed Wipro's much enhanced delivery capabilities and a choice of engagement models, thrusting the combined Wipro-Infocrossing organization into the #1 preferred large market client winner.

Still, the midmarket outsourcing sector (suppliers whose clients gross between $500M - $1B in annual revenues) cautiously retain reliance on U.S.-based vendors.

CIBER (Denver, CO) outpaced competitors in the midmarket, where traditional infrastructure outsourcing services expanded fastest. CIBER also ranked in the Top Ten IO Tier I Outsourcers. Driven by small & medium business enterprises, mid-tier infrastructure services are growing at a CAGR of 23.5%.

Tighter budgets, understaffing, and increased demands to help grow the business and to meet higher service level guarantees are forcing many IT departments to rethink their infrastructure strategy, and client satisfaction and experience have become the best indicators of client-vendor success.

"Customer experience and client satisfaction have overwhelmingly become the most important drivers for outsourcing vendor selection and service delivery success," stated Scott Wilson, partner of Brown-Wilson Group's annual "Black Book of Outsourcing" client surveys. "We're thrilled and privileged to have emerged as the industry's unbiased touchstone for identifying true leaders in outsourcing client experience."

Brown-Wilson Group predicts the IO industry will experience a series of mergers and acquisitions as companies seek niche companies to boost specific IT services, such as emerging technologies, storage, security and consulting.

Wilson states, "Customers are looking for better reactivity and responsiveness, a local front office and true transformation. This does not equate necessarily to U.S. or India mega-vendors. As outsourcing has evolved, the real winners are the companies that are focusing their efforts on their client's experience and satisfaction."

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