KPMG Sourcing Advisory 3Q12 Global Pulse Survey - KPMG Institutes

3Q12 Global Pulse Survey | Management Summary
The Pulse finds that service provider pipeline growth for outsourcing
services fell to its lowest level measured in the Pulse survey, though there
is guarded optimism for improvement over the balance of the year. There are
a variety of factors negatively impacting outsourcing demand, including more
focus on shared services, negative market conditions in the Eurozone, and
near saturation in certain account segments. The use of alternative options
(e.g., cloud) to traditional outsourcing is another gating factor for outsourcing
demand, especially among providers with immature cloud offerings. Buyer
tight rein over discretionary spending remains a barrier to growth. ITO,
more specialized BPO in the form of specific vertical industry services, and
multitower deals are the service areas that continue to exhibit the strongest
levels of demand, though even here, while strategic, deals are often smaller
than historical first-generation horizontal outsourcing efforts.
Service Providers: Pipeline Growth Last Quarter
55% 76% 61% 68%
61%
38%
Advisors: Top Approaches to Improve Service Delivery Capabilities
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
Shared Services and Outsourcing Advisory / KPMG Sourcing Advisory 3Q12 Global Pulse Survey / October 2012 9
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