KPMG Sourcing Advisory 3Q12 Global Pulse Survey - KPMG Institutes

3Q12 Global Pulse Survey | Trends
There were also differences of opinion, not surprisingly,
between service providers and KPMGI member firms’
advisors on how often outsourcing transition efforts
are completed on time, within budget, and with the
required functionality, finding a difference of opinion
between advisors and service providers (see Figure
24).
• Service providers were much more positive on
projections of how often transitions are successfully
delivered. Thirty-two percent of providers, compared
to just two percent of advisors, indicated that almost
all (>90%) of transitions are completed on time
and budget with the required functionality, though
the service provider number was down 18 percent
year over year. Forty-one percent of advisors said
that many (40%–70%) and 37 percent said that
few (10%–40%) of transitions are delivered to
specification.
• Advisors in EMEA were even more skeptical
than those in the Americas on the frequency of
successful outsourcing transitions.
There is a subjective element to defining a successful
outsourcing transition, and it is important to factor
in that buyers “get what they pay for” in terms of
investing adequate time, effort, and skills into a
transition. The broad differences between advisors
and service providers are both a function of the size
and complexity of deals being considered as well as
different interpretations of “required functionality.”
Finally, KPMG polled service providers as well as
KPMGI member firms’ advisors about how often
they feel transitions negatively affect the start of the
relationship between the client and the service provider
(see Figure 25).
Figure 24 | % of Transitions Completed On Time/Budget and to Requirements
Figure 25 | How Often Transitions Negatively Affect Start of Buyer/SP Relationship
• On this point there is some, but not much more,
consensus. Advisors clearly feel that a problematic
transition can negatively impact the ongoing
outsourcing effort. Fourteen percent of advisors and
service providers indicated that transitions almost
always (>90%) negatively affect the start of the start
of a buyer/service provider relationship. Fifty percent
of advisors said that they frequently (70%–90%)
negatively affect efforts, compared to just nine
percent of service providers. No advisors but five
percent of service providers felt transitions rarely
(