CapGemini and Cognizant Top Customer Satisfaction Survey

Posted by Kevin Brady on Mon 21st December 2009 at 02:14 PM, Filed in Industry News

I recently picked up a survey by Equaterra (outsource advisors) which looked at the customer satisfaction levels of 160 organisations representing IT outsourcing contracts worth £10bn a year. The results put Capgemini and Cognizant at the top of the charts with 79% of IT decision makers surveyed, saying that they were happy with the services the two companies provided.

Other highly ranked suppliers which also figured in the survey were:-

• Computacenter (78%),
• Sterla (77%),
• Logica (74%)
• Siemens (73%).

So what are the characteristics of a winning IT Outsourcer in the quest for high satisfaction survey results.
Is the answer high quality output, delivering on time and to budget and the achievement of customer scope expectations?

The answer in my view is NO.

Having worked in a senior position for one of the above mentioned outsourcers I can categorically say that this is not the secret sauce for success. Yeap, that’s right, good planning, risk and issue management and exceptional hard nosed project and programme management is not the route to success.

Whilst clients like the idea of best practice project and programme management in the early stages of an outsourcing agreement, the reality is client organisations are dominated by ”spin line management” where the levels of transparency required to achieve these objectives are just culturally not tolerable.  The Jedi Project and Programme Managers don’t live long in these environments.
High customer satisfaction scores are in my experience all about “Free Work”. Yeap that old chestnut smile 

So how does this work?
Well most large scale IT Outsource Programmes invariably fail to live up to their Customers Expectations for the following reasons :-

(1) The management overhead required by the client organsition is bigger than expected.
(2) The client organisation fails to change their business processes to meet the needs of newly adopted IT systems.
(3) The quality of the outsource outcome often falls short of the customers original expectations – Please see Pros and Cons of IT Outsourcing
(4) The operational and financial benefits are not as big as first estimated due the issues detailed in (1) to (3).

Faced with all this, clients turn to the outsourcers and get angry. In fact very very angry.

The top performers in my view respond with “free work” until the mistakes detailed above are reversed however long it takes. It always surprises me how many of the IT outsourcers stay profitable with this approach. However, one thing is for sure, you get to the top of the satisfaction surveys. At the end of the day they are helping often poor client management to keep their jobs and such gifts can’t go unrewarded without a tick in the right box of a suppliers customer satisfaction survey.

I fully expect comments challenging the above above views. However, if you read the following blog posts IT Failure rates and the pros and cons of IT outsourcing you should be able to figure out the above for yourself.  It’s not that difficult smile

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READER COMMENTS:

Great to read a post that tells it as it is. Keep them coming.

Posted by John Peters  on Tue 22nd December 2009 at 07:10 PM | #

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