Introduction
Welcome to Partnership Benchmark 2023, the fourth successful edition of our annual study for Belgium. This year we reached a significant milestone: more than 100 client organizations participated in the study. This includes most of the large private sector firms across all industries and a significant participation from both government organizations and European institutions. These 100 clients contribute to more than 80% of the total IT spend across the country. We conducted more than 130 interviews and assessed over 350 contracts. In 2023 we also extended the study across the border to the Netherlands where we interviewed 60 Dutch clients and assessed 120 contracts.
The Belgian study covers three additional service providers: CGI, Hexaware and NTT. The Applications and Digital Square now features 17 players, up from 14 last year. CGI, Fujitsu and Hexaware mark their debut in this Square. The Infrastructure and Cloud Square sees a significant expansion with 12 service providers, up from 8 last year. Accenture, Delaware, NTT and TCS join the Square this year. This is also the first year that Atos and Eviden appear as separate companies.
This year we slightly modify the Square by indicating a median satisfaction index across all service providers for each Square. This provides a clear demarcation between above- median and below-median client satisfaction. We also notice a difference between the two Squares with the Applications & Digital Square at a higher median satisfaction of 3.70 while the Infrastructure & Cloud Square is at 3.48.
The Results
Accenture, Capgemini and TCS reconfirm their position as Leaders for the Applications & Digital Square. TCS has moved up in Market Impact owing to a strong revenue growth and higher maturity assessment on projects. PWC, CGI and Hexaware emerge as the Top#3 performers on CSAT for the Applications & Digital service Square.
Kyndryl remains again as the sole Leader for the Infrastructure & Cloud Square with a very high CSAT. Atos and NTT have the requisite Market Impact score to qualify as a Leader, and they could achieve this with an improvement on the CSAT scores. Stefanini, TCS and Kyndryl emerge as the Top#3 performers on CSAT for the Infrastructure & Cloud services Square.
Cegeka has made a significant jump on Market Impact for both the Applications and Infrastructure Squares. Also, IBM made quite a jump in CSAT to end up in the Satisfied category.
The age of AI
2023 was the year of AI. The launch of ChatGPT triggered businesses and tech providers all over the world. The question of whether AI will elevate humanity or destroy it, seems to be thrown out of the window as everybody is in the race to capitalize on it. Elon Musk’s X.AI is raising a billion dollars in capital. Intel wants to create a separate company to provide a platform for AI solutions. OpenAI and Jony Ive are reportedly working on “iphone of AI”. Microsoft is even giving Co-Pilot its own button on all future keyboards.
Across the world CEOs and board members are looking to devise their organizations’ AI strategy. It is imperative that CIOs play a proactive role in this, else the business will drive forward on their own, once again accentuating the problem of shadow IT. What’s your plan for AI?
Sourcing Strategies
The rapid evolution of technology does not make the CIO’s life easier. The need for talent and bandwidth to support both the current landscape and deliver technology innovation is a challenge for all. And this with a flat IT budget. The mix of internal and external capabilities need to be well designed: internal core competencies, strategic service providers, niche service providers, and the growing role of the hyperscalers. Read more in our vision on the IT sourcing strategy.
Vikrant & Geert
