TCS, Schuberg Philis, HCLTech, EPAM, Wipro, and PwC are among the top performers
Amsterdam, the Netherlands – Today, Eraneos (formerly known as Quint) and Whitelane Research presented their annual IT Sourcing Study. The results show that 70% of the Dutch market is satisfied with their IT sourcing relationships, representing a 5% increase compared to the 2023 results. Satisfaction with cloud relationships, however, dropped to just 65% this year, a decrease of 13% from last year. The companies that stand out for customer satisfaction this year are TCS, Schuberg Philis, HCLTech, EPAM, Wipro, and PwC. In addition, the study provides insights into the expected growth of the IT services market, top investment priorities, the adoption of AI/GenAI, nearshoring and offshoring trends, and output-based contracting.
Projected Growth of the IT Services Market
The growth of the IT services market in the Netherlands is expected to continue in 2024. The majority of clients (74%) plan to either increase or maintain their IT budget allocation for external providers over the next two years. Thirteen percent indicate they will reduce the portion of their IT budget spent on external suppliers, mainly for financial reasons, while an additional 13% remain uncertain about their sourcing plans.
The main drivers of this growth are talent shortages, scalability, and a greater focus on core business activities in an increasingly uncertain economy. Access to skilled professionals and talent has become the primary reason for using external providers, cited by 56% of respondents, rising from third place in 2023. Scalability is now the second most important factor (51%), followed by a focus on core activities (49%). Notably, cost reduction has become significantly less important, dropping from 39% in 2023 to just 23% in 2024.
Top investments
Security and automation are the primary areas where CIOs are allocating this additional budget, with the greatest increase observed in AI investments. Data from Eraneos and Whitelane show that the main focus remains on security, with 55% of clients planning to increase investments in security measures and cyber defense capabilities over the next two years. Automation follows closely, with 54% planning to invest more in this area, while 51% intend to migrate core business applications to the cloud. Investments in AI and machine learning solutions have risen sharply by 21%, indicating a growing recognition among respondents of the competitive advantages that AI technologies can provide.
AI/GenAI-adoption
The survey presents a mixed picture regarding the adoption of AI/GenAI among organizations. Forty-one percent of organizations currently use AI, with 36% reporting a minor impact on their business and 5% noting a significant impact. Thirty-four percent are still in the experimental phase, while 18% report only limited use of AI. None of the organizations indicated that AI/GenAI has completely transformed their business.
Nearshoring and offshoring
According to the study, IT services clients are planning to increase their use of nearshoring to supplement their offshore and onshore capacities. Demand for nearshore delivery has risen significantly: 44% of organizations expect nearshoring to grow, compared to just 6% who anticipate a decline. This increased demand for nearshore delivery is also evident in other European countries. As a result, there are questions as to whether nearshore capacity will be sufficient to meet this significant rise in demand. Clients should be aware that increased pressure on rates and higher turnover may result—factors that could complicate or delay a major shift to nearshore models.
Output-based contracting
The study reveals varied approaches to output-based contracting for application development services. Traditionally, these services have been billed on an hourly rate basis. A significant number of respondents (36%) intend to shift towards contracting based on pre-agreed outcomes (output), while 28% foresee no changes, 6% plan to reduce its use, and 30% remain uncertain. The biggest challenge to output-based contracting, cited by 69% of respondents, is defining clear and measurable outputs within output-based contracts.
Toppresteerders en klanttevredenheid
Of the 604 IT sourcing relationships evaluated by clients, 70% reported being satisfied or very satisfied. This marks a five percent improvement compared to 2023, indicating a significant increase in client satisfaction.
Six providers have achieved exceptional performer status in one or more IT services, with satisfaction scores exceeding both the market average and the standard deviation. The exceptional performers are:
- Application Services: TCS, EPAM, HCLTech
- Cloud and Infrastructure Services: TCS, Schuberg Philis
- Workplace Services: TCS, Wipro
- Security Services: TCS
- Overall Satisfaction: TCS, Schuberg Philis, HCLTech, EPAM, Wipro, and PwC
“External IT service providers are important partners in achieving strategic objectives. Increasingly, clients are recognizing this as a reason to address these goals together,” says Peter Luijendijk, Practice Lead Sourcing & IT Advisory at Eraneos. “It is therefore a positive result that more than two-thirds of the Dutch market are satisfied with their IT service provider.”
Decrease in cloud platform relationship satisfaction
Of the 803 cloud platform relationships evaluated by clients, 65% reported being satisfied or very satisfied, marking a notable 13% decrease compared to the previous year. Microsoft Azure secured the top spot among infrastructure cloud platforms with a satisfaction rate of 78%, while Microsoft Dynamics 365 leads the software cloud platform rankings with a satisfaction score of 76%.
Quote from Alex van den Bergh, Head of Research, Europe at Whitelane:
“Innovation and organizational transformation are increasingly appearing on the agenda for CIOs when working with external providers. Generative AI is on the rise, as are nearshoring and output-based contracting. All in all, the IT services market in the Netherlands is undergoing significant change.”
About the research
The Dutch study is part of Whitelane’s annual IT sourcing studies. Whitelane conducts interviews with executives, such as CIOs, CFOs, or members of their management teams, to gather insights into their sourcing plans and perspectives on IT and cloud service providers. Conducted across Europe, these studies provide a comprehensive overview of the IT sourcing landscape within each country. Through the survey, Whitelane identifies and analyses key sourcing and cloud trends, and leading IT service providers are evaluated and ranked based on key performance indicators (KPIs) and IT services.
About Eraneos
Eraneos is an international management and technology consulting firm that helps organizations shape their digital future. Eraneos not only advises organizations on designing digital transformations and solutions but also supports them in the successful implementation of these initiatives. Together with our consultants and engineers, we help organizations change and improve, with the aim of achieving sustainable growth and lasting impact. With approximately 1,100 professionals, we serve a wide range of clients in healthcare, government, financial services, and industry—ensuring they get the most out of the digital world. Eraneos supports clients across three continents and has offices in the Netherlands, Germany, Spain, and Switzerland.
In the Netherlands, more than 250 professionals work at Eraneos (formerly Quint), which has been active for over 30 years. Eraneos Netherlands is recognized as a ‘Great Place to Work’ and is ranked by consultancy.nl as one of the top consulting firms in the Netherlands across a wide range of specializations—from agile and IT strategy, to sourcing and data science.
About Whitelane
Eraneos is an international management and technology consulting firm that helps organizations shape their digital future. Eraneos not only advises organizations on designing digital transformations and solutions but also supports them in the successful implementation of these initiatives. Together with our consultants and engineers, we help organizations change and improve, with the aim of achieving sustainable growth and lasting impact. With approximately 1,100 professionals, we serve a wide range of clients in healthcare, government, financial services, and industry—ensuring they get the most out of the digital world. Eraneos supports clients across three continents and has offices in the Netherlands, Germany, Spain, and Switzerland.
In the Netherlands, more than 250 professionals work at Eraneos (formerly Quint), which has been active for over 30 years. Eraneos Netherlands is recognized as a ‘Great Place to Work’ and is ranked by consultancy.nl as one of the top consulting firms in the Netherlands across a wide range of specializations—from agile and IT strategy, to sourcing and data science.