Outsourcing and Service Provider Landscape in Germany

15 Apr 2011
by Jimit Arora



The outsourcing landscape in Continental Europe is substantially different from mature markets such as U.S. and the UK. Even within Europe each country is unique with varying adoption patterns and service provider landscapes.

Germany is amongst the largest outsourcing services market in Europe, second only to the UK in terms of market size. While the recent European crisis led to increased outsourcing and offshoring adoption among German buyers (to reduce costs and improve efficiency), the service provider landscape in the German market is also evolving rapidly. In addition to domestic service providers, several regional and global players have achieved credible scale and capabilities in the country. Against this backdrop, an understanding of outsourcing market in Germany is critical for buyers and service providers alike. While buyers need a clear understanding of market trends and service provider capabilities, it is important for service providers to understand demand trends and the competitive landscape to compete effectively in the marketplace.

Market leaders in Everest’s assessment of scale and market coverage in Germany 


  • Services: IT applications outsourcing (AO), IT infrastructure outsourcing (IO), Business process outsourcing (BPO)
  • Geography: Germany; analysis of outsourcing transactions originating in Germany during 2008-2010
  • Service providers: Top-10 service providers in the German outsourcing market


This report provides an overview of outsourcing market in Germany and analyzes the capabilities of the leading service providers in the country. More specifically, German outsourcing market has been analyzed across five key dimensions:

  • German outsourcing market size and growth
  • Outsourcing adoption trends and transaction characteristics
  • Future industry outlook
  • Service provider landscape with a deep-dive on capabilities of the top-10 market leaders
  • Implications for buyers and service providers in Germany to capitalize on growth opportunities in the region

Some of the key findings in this report are:

  • Germany accounts for approximately a quarter of the European outsourcing market, second only to the UK in terms of market size
  • While outsourcing transaction volumes slowed down in 2009, the market witnessed a resurgence of growth in 2010 on the back of pent-up demand, revival in discretionary spending, and large deals
  • Going forward, the German outsourcing market has substantial headroom for growth. Economic pressures, demographic shifts, a large upcoming renewal event, and low outsourcing adoption versus mature markets are key factors contributing to this market growth
  • Overall, outsourcing adoption in Germany continues to be dominated by ITO in manufacturing and financial services
  • The service provider landscape is segmented into four categories: Global majors, European/regional providers, Indian-heritage providers, other service providers
  • The top-10 service providers in Germany are an equal mix across European/ regional majors and global majors
  • While Indian-heritage providers currently have only a small share of the market currently, they are investing in building sales and onshore delivery capabilities to drive growth

Analysis of outsourcing transactions in this report is based on Everest’s proprietary Transaction Intelligence (TI) database. TI is the largest and most comprehensive database of outsourcing transactions that contains over 650 IT-BPO transactions announced in Germany (226 announced during 2008 – 2010).

To purchase the data-set of outsourcing transactions originated in Germany, please CLICK HERE.


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