The Great Digital Divide: Is Customer Dissatisfaction the New Normal? A Blueprint to Rethink Your Digital Services Portfolio

9 Mar 2018
by Jimit Arora, Yugal Joshi, Nitish Mittal

Our recent digital services research reveals a sizable mismatch between digital demand and supply dynamics. Fifty seven percent of enterprise demand is digital-first in nature, but from a strategy perspective, 53% of enterprises choose to embark on the digital transformation journey alone (DIY) versus engaging external partners. Sixty-one percent of enterprises with a digital-first mandate are dissatisfied with their service providers, while traditional IT deals have a higher share of satisfaction (55%). Overall dissatisfaction levels increased to 54% in 2017 from 48% in 2016. Enterprises' internal organizational challenges have further reduced engagement opportunities for service providers.

Our research also details enterprises' technology investment priorities and opportunity areas for service providers across legacy modernization, security, cognitive systems, automation, cloud, IoT, blockchain, and other similar themes. The research indicates that enterprises' primary expectations from a service provider revolve around proactiveness, next-generation technology expertise, and strategic partnership-driven approach. Service providers need to align their offerings and capabilities to the future investment areas identified by enterprises.


This report is based on insights from structured interviews with 230+ enterprises that were shared as references by the service providers assessed in this report. The report gives a summary of the views of various enterprises regarding the capabilities of services providers they engage across applications, digital, cloud, and infrastructure services

The report also captures quantitative and qualitative insights across their technology priorities, digital agenda, outsourcing strategies, and perception of service providers.


Enterprises’ priorities and expectations

  • Digital investment priorities
  • Engagement expectations

Enterprises’ assessment of service provider capabilities

  • Experience of working with their service providers
  • Service providers’ performance assessment

Evolving demand-supply dynamics in the digital era


Application Services

Banking, Financial Services & Insurance (BFSI) - Information Technology Outsourcing (ITO)

Cloud & Infrastructure Services

Digital Services

Healthcare & Life Sciences IT Outsourcing


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