Germany, U.S., and U.K. rank highest in enterprise outsourcing, according to Information Services Group report
A new report from research firm Information Services Group shows that digital transformation is spurring strong demand for outsourcing around the world.
The Lowdown: ISG’s Momentum Geography Report reveals that Germany, the United States, and the United Kingdom are the top three countries in outsourcing spending. The main driver behind the outsourcing splurge? IT modernization through cloud computing and digital transformation.
The Details: The three highest-ranked countries in outsourcing spending are the same three with the greatest outsourcing market opportunity, according to ISG, whose report also shows that Germany took the No. 1 spot from the U.S. after placing second for the two years prior. Canada, at No. 7, was the only new arrival to the top 10.
The Impact: As per the ISG report, the outsourcing penetration rate among Forbes Global 2000 companies was the highest it’s ever been, at 55 percent. That’s up 6 percent from 2017, three times the typical rate of increase.
The largest 100 companies on the Forbes list demonstrate the highest outsourcing penetration (92 percent), but midmarket companies ranking between 501 and 1,000 have shown the biggest growth since 2015. Nearly three-quarters (72 percent) of the outsourcing adoption growth since 2015 has been demonstrated by companies ranking between 501 and 1,500.
The Buzz: “There is a tremendous amount of effort and investment underway to support digital reinvention all over the world,” said Reynolds. “Companies are pursuing digital transformation and are investing in outsourcing to support software development, infrastructure modernization, cloud enablement and organizational change management to accomplish their digitization goals.”