Study Data · Part 5 · Indicator Deep-Dive Analysis

My management team fully understands these laws, regulations, and similar, and how they affect the engagement

Indicator C058 · By Phil Hatch · Akholi · October 9, 2026

Indicator Specification

Table 1. Indicator specificationTable
FieldValue
Indicator codeC058
Question as askedMy management team fully understands these laws, regulations, and similar, and how they affect the engagement.
Failure categoryNot one of the 100 rated indicators
Place in the surveyEngagement Details > 2.6 Regulatory Context > Understanding
Indicator classRespondent level
Indicator typeRated, POS
Response scale1 to 10, higher is the better outcome
Answering base516 of 850 respondents, across 150 of 150 engagements
Non-answersI do not know 265, I prefer to not answer 0, blank 69

Summary of Findings

Table 2. Key results: association of the indicator with the four study measuresTable
MeasureFormnr95% CIp
Cancellation rateDescriptive contrast150 engagements−0.53−0.64 to −0.41< 0.001
Customer satisfactionClean estimate94 engagements0.620.48 to 0.73< 0.001
Engagement indicator meanFull150 engagements0.710.62 to 0.78< 0.001
Intent to leaveRespondent level, clustered492 respondents−0.63−0.71 to −0.55< 0.001

The mean rating was 4.9 and the median 5.0 (n = 516 respondents). Ratings of 3 or below, the distressed range, made up 28.88% of the answers. The rating was associated with all four study measures. Higher ratings came with less cancellation (r = −0.53, 95% CI −0.64 to −0.41, p < 0.001, n = 150 engagements), higher customer satisfaction among active engagements (r = 0.62, 95% CI 0.48 to 0.73, p < 0.001, n = 94 engagements), a higher engagement indicator mean (r = 0.71, 95% CI 0.62 to 0.78, p < 0.001, n = 150 engagements) and lower intent to leave (r = −0.63, cluster bootstrap 95% CI −0.71 to −0.55, p < 0.001 with standard errors clustered by engagement, n = 492 respondents). After Holm correction, ratings differed by engagement status and lifecycle stage (Welch F 21.82, Holm p < 0.001, omega squared 0.280), respondent role (Welch F 9.24, Holm p = 0.002, omega squared 0.024) and vendor type (Welch F 5.53, Holm p < 0.001, omega squared 0.045).

No written response addressed the indicator.

Distribution of Ratings

Table 3. Distribution of ratings, respondent levelTable
AnswerRespondentsShare of answered (base 516)Cumulative shareEngagements with at least oneShare of 150 engagementsDistressed
1407.75%7.75%2114.00%Yes
2397.56%15.31%3020.00%Yes
37013.57%28.88%5436.00%Yes
46512.60%41.47%5134.00%No
59117.64%59.11%6342.00%No
68115.70%74.81%6644.00%No
76011.63%86.43%4530.00%No
8428.14%94.57%3020.00%No
9214.07%98.64%1812.00%No
1071.36%100.00%53.33%No
I do not know265Not in baseNot in base13590.00%Not applicable
I prefer to not answer0Not in baseNot in base00.00%Not applicable
Answered, total516100.00%150100.00%
Table 4. Distribution of ratings, engagement levelTable
Engagement level summaryEngagementsMean of engagement meansSDMinMedianMaxEngagements with a distressed meanShare of engagements distressed
Engagement means, goodness view1504.91.91.05.09.53120.67%

Ratings of 3 or below the distressed range, accounted for 149 of the 516 answers (28.88%). The engagement mean fell in the distressed range in 31 of 150 engagements.

Descriptive Statistics by Segment

Table 5a. Descriptive statistics by segment, part 1 of 2Table
SegmentBaseAnsweredAnswer rateEngagementsMean95% CISD
Study set85051660.71% of 8501504.94.7 to 5.12.2
Outsourcing model
CXM23214361.64% of 232425.45.0 to 5.82.3
ITO24414057.38% of 244405.14.8 to 5.42.0
BPO20913464.11% of 209374.44.0 to 4.82.2
KPO1659960.00% of 165314.74.2 to 5.22.3
Institution type
Asset management1327456.06% of 132244.94.4 to 5.52.3
Wealth management and private banking1408560.71% of 140235.04.5 to 5.42.2
Investment banking (advisory and capital-markets origination)1055754.29% of 105194.74.1 to 5.32.2
Insurance (life, property and casualty, health)785064.10% of 78145.14.5 to 5.61.9
Commercial and business banking825162.20% of 82135.24.7 to 5.71.7
Payments and merchant acquiring (networks, acquiring, processing)714563.38% of 71135.24.6 to 5.81.9
Credit card and payments issuing734460.27% of 73124.43.5 to 5.22.8
Retail and consumer banking735271.23% of 73125.14.4 to 5.92.7
Markets and trading (sales and trading, global markets)573357.89% of 57115.24.5 to 6.02.0
Private equity and private capital392564.10% of 3994.2†2.2
Process family
Corporate and back-office functions24815361.69% of 248474.94.5 to 5.22.3
Technology engineering and operations20412058.82% of 204355.65.2 to 5.92.0
Client servicing and communications945558.51% of 94165.04.5 to 5.62.1
Trade, settlement and reconciliation804860.00% of 80154.53.8 to 5.12.1
Payments, cards and disputes734460.27% of 73124.94.2 to 5.72.5
Credit, underwriting and suitability573561.40% of 5794.94.0 to 5.72.4
Regulatory, audit, tax and legal513262.75% of 5194.23.3 to 5.02.3
Financial crime and client onboarding432967.44% of 4374.0†1.8
Class of work
LOB Operational45126859.42% of 451764.74.4 to 5.02.2
Corporate Functional39924862.16% of 399745.24.9 to 5.52.2
Engagement status and lifecycle stage
Active, Build-Out17511264.00% of 175316.15.7 to 6.52.0
Active, Transition/Cut-Over25015562.00% of 250435.45.1 to 5.71.9
Active, Production1035654.37% of 103206.05.5 to 6.62.1
Canceled32219359.94% of 322563.53.3 to 3.81.8
Respondent role
Individual Contributor66734351.42% of 6671424.74.5 to 5.02.2
Engagement Manager150150100.00% of 1501505.24.8 to 5.52.2
Portfolio Director312374.19% of 31236.3†1.8
Customer Management Executive200 of 20‡
Vendor type
IT services major31619160.44% of 316595.25.0 to 5.52.0
BPO specialist19812563.13% of 198374.13.7 to 4.52.4
Consulting firm1176353.85% of 117234.94.3 to 5.52.2
Boutique or specialist provider875462.07% of 87175.75.2 to 6.32.0
Pure-play agentic AI firm755066.67% of 75145.14.4 to 5.82.4
Not reported, recovered by engagement573357.89% of 57294.74.0 to 5.42.0
Note: † Base under 30. No interval is reported. ‡ Base under 10. No statistic is reported.
Table 5b. Descriptive statistics by segment, part 2 of 2Table
SegmentMinQ1MedianQ3MaxDistressed nDistressed %
Study set1.03.05.07.010.014928.88%
Outsourcing model
CXM1.04.06.07.010.03222.38%
ITO1.04.05.06.010.03424.29%
BPO1.03.04.06.010.04735.07%
KPO1.03.05.06.09.03636.36%
Institution type
Asset management1.03.05.06.010.02331.08%
Wealth management and private banking1.03.05.07.010.02327.06%
Investment banking (advisory and capital-markets origination)1.03.05.06.09.01933.33%
Insurance (life, property and casualty, health)1.04.05.06.09.01224.00%
Commercial and business banking2.04.05.06.59.0917.65%
Payments and merchant acquiring (networks, acquiring, processing)1.04.05.06.09.0920.00%
Credit card and payments issuing1.02.04.06.310.02147.73%
Retail and consumer banking1.03.05.57.310.01630.77%
Markets and trading (sales and trading, global markets)1.04.05.07.09.0721.21%
Private equity and private capital1.03.04.06.08.01040.00%
Process family
Corporate and back-office functions1.03.05.06.010.04730.72%
Technology engineering and operations1.04.05.07.010.02117.50%
Client servicing and communications1.04.05.06.09.01323.64%
Trade, settlement and reconciliation1.03.04.06.08.01939.58%
Payments, cards and disputes1.03.05.07.09.01534.09%
Credit, underwriting and suitability1.02.55.07.09.01028.57%
Regulatory, audit, tax and legal1.02.84.56.09.01340.63%
Financial crime and client onboarding1.03.05.05.07.01137.93%
Class of work
LOB Operational1.03.05.06.09.08732.46%
Corporate Functional1.03.85.07.010.06225.00%
Engagement status and lifecycle stage
Active, Build-Out2.05.06.08.010.01210.71%
Active, Transition/Cut-Over1.04.05.07.010.02314.84%
Active, Production2.04.06.08.010.0712.50%
Canceled1.02.03.05.09.010755.44%
Respondent role
Individual Contributor1.03.05.06.010.011032.07%
Engagement Manager1.04.05.07.010.03724.67%
Portfolio Director3.05.06.08.010.028.70%
Customer Management Executive‡ n = 0
Vendor type
IT services major1.04.05.07.010.04221.99%
BPO specialist1.02.04.06.010.05745.60%
Consulting firm1.03.05.07.09.02234.92%
Boutique or specialist provider2.04.06.07.09.0814.81%
Pure-play agentic AI firm1.04.05.07.010.01122.00%
Not reported, recovered by engagement1.03.05.06.09.0927.27%
Note: ‡ Base under 10. No statistic is reported.

Every figure in the segment tables is at respondent level. Segments with fewer than 30 respondents carry no interval. Segments with fewer than 10 report counts only.

Tests of Difference Between Segments

Table 6a. Tests of difference between segments, part 1 of 2Table
Segment familyWelch FdfpHolm pOmega squared90% CI
Outsourcing model0.993, 78.60.4041.0000.0000.000 to 0.055
Institution type0.398, 49.40.9191.000−0.0370.000 to 0.005
Process family1.154, 38.40.3471.0000.0010.000 to 0.069
Class of work1.711, 148.00.1930.7740.0050.000 to 0.055
Engagement status and lifecycle stage21.823, 60.8< 0.001< 0.0010.2800.187 to 0.377
Respondent role9.242, 61.1< 0.0010.0020.0240.008 to 0.054
Vendor type5.535, 149.1< 0.001< 0.0010.0450.020 to 0.081
Table 6b. Tests of difference between segments, part 2 of 2Table
Segment familyKruskal-Wallis HpDistressed chi-squaredfpCramer's VLevels excluded
Outsourcing model3.190.3642.8330.4190.14None
Institution type3.090.92912.4980.127, simulated0.30Private equity and private capital, n = 9
Process family3.560.4696.3840.165, simulated0.23Credit, underwriting and suitability, n = 9, Regulatory, audit, tax and legal, n = 9, Financial crime and client onboarding, n = 7
Class of work1.380.2403.0010.0830.14None
Engagement status and lifecycle stage45.34< 0.00119.193< 0.001, simulated0.36None
Respondent role13.380.0017.5620.0230.12Customer Management Executive, n = 0
Vendor type28.02< 0.00128.955< 0.0010.24None

Segment families recorded at engagement level were tested on engagement means. Respondent role and vendor type were tested on respondents. Where an expected count fell below 5, the test of the distressed share used Fisher's exact test for a two-by-two table, marked exact, or a Monte Carlo test, marked simulated. After Holm correction, ratings differed by engagement status and lifecycle stage (Welch F 21.82, Holm p < 0.001, omega squared 0.280). Active engagements in Build-Out rated highest (mean 6.1, n = 112 respondents) and canceled engagements lowest (mean 3.5, n = 193 respondents). Ratings also differed by respondent role (Welch F 9.24, Holm p = 0.002, omega squared 0.024). Portfolio directors rated highest (mean 6.3, n = 23 respondents) and individual contributors lowest (mean 4.7, n = 343 respondents). Ratings also differed by vendor type (Welch F 5.53, Holm p < 0.001, omega squared 0.045). Boutique or specialist providers rated highest (mean 5.7, n = 54 respondents) and BPO specialists lowest (mean 4.1, n = 125 respondents). Outsourcing model, institution type, process family and class of work showed no difference.

Association with Cancellation Rate

Cancellation rate is the share of engagements canceled by the study date, measured at engagement level (150 engagements, 56 canceled). Canceled engagements were rated after cancellation. The association is therefore a descriptive contrast and not a forecast of cancellation.

Table 7a. Association with cancellation rate by segment, part 1 of 2Table
SegmentEngagementsCanceledCancellation ratePoint-biserial r95% CIpHolm p
Study set1505637.33% of 150−0.53−0.64 to −0.41< 0.001< 0.001
Outsourcing model
CXM421535.71% of 42−0.54−0.72 to −0.28< 0.0010.004
ITO401537.50% of 40−0.50−0.70 to −0.220.0010.013
BPO371437.84% of 37−0.66−0.81 to −0.42< 0.001< 0.001
KPO311238.71% of 31−0.46−0.70 to −0.130.0080.059
Institution type
Asset management241354.17% of 24−0.65†< 0.0010.007
Wealth management and private banking23834.78% of 23−0.47†0.0240.145
Investment banking (advisory and capital-markets origination)19947.37% of 19−0.61†0.0060.053
Insurance (life, property and casualty, health)14535.71% of 14−0.39†0.1730.533
Commercial and business banking13430.77% of 13−0.08†0.7880.788
Payments and merchant acquiring (networks, acquiring, processing)13323.08% of 13−0.32†0.2840.568
Credit card and payments issuing12541.67% of 12−0.73†0.0070.056
Retail and consumer banking12433.33% of 12−0.91†< 0.001< 0.001
Markets and trading (sales and trading, global markets)11327.27% of 11−0.85†< 0.0010.010
Private equity and private capital922 of 9‡
Process family
Corporate and back-office functions471940.43% of 47−0.54−0.72 to −0.30< 0.0010.001
Technology engineering and operations351028.57% of 35−0.57−0.76 to −0.29< 0.0010.005
Client servicing and communications16956.25% of 16−0.39†0.1330.533
Trade, settlement and reconciliation15853.33% of 15−0.71†0.0030.032
Payments, cards and disputes12216.67% of 12−0.64†0.0240.145
Credit, underwriting and suitability911 of 9‡
Regulatory, audit, tax and legal944 of 9‡
Financial crime and client onboarding733 of 7‡
Class of work
LOB Operational763039.47% of 76−0.50−0.65 to −0.31< 0.001< 0.001
Corporate Functional742635.14% of 74−0.57−0.70 to −0.39< 0.001< 0.001
Engagement status and lifecycle stage
Active, Build-Out3100.00% of 31a
Active, Transition/Cut-Over4300.00% of 43a
Active, Production2000.00% of 20a
Canceled5656100.00% of 56a
Note: † Base under 30. No interval is reported. ‡ Base under 10. No statistic is reported. a Not tested: no variation in cancellation.
Table 7b. Association with cancellation rate by segment, part 2 of 2Table
SegmentOdds ratio per point95% CIAUCRate, distressed engagementsRate, other engagementsFisher pTOST p
Study set0.470.36 to 0.610.8270.97% of 3128.57% of 119< 0.0011.000
Outsourcing model
CXM0.520.35 to 0.790.8170.00% of 1025.00% of 320.0200.964
ITO0.410.21 to 0.780.804 of 531.43% of 350.0560.923
BPO0.280.13 to 0.630.8980.00% of 1022.22% of 270.0020.997
KPO0.570.36 to 0.910.803 of 636.00% of 250.6530.847
Institution type
Asset management0.28† n = 240.883 of 347.62% of 210.2230.985
Wealth management and private banking0.56† n = 230.775 of 820.00% of 150.0710.812
Investment banking (advisory and capital-markets origination)0.34† n = 190.863 of 337.50% of 160.0870.943
Insurance (life, property and casualty, health)0.60† n = 140.731 of 336.36% of 111.0000.626
Commercial and business banking0.88† n = 130.51a30.77% of 130.237
Payments and merchant acquiring (networks, acquiring, processing)0.57† n = 130.730 of 125.00% of 121.0000.530
Credit card and payments issuing0.30† n = 120.914 of 51 of 70.0720.968
Retail and consumer banking0.28† n = 121.003 of 31 of 90.0181.000
Markets and trading (sales and trading, global markets)0.31† n = 111.002 of 21 of 90.0550.997
Private equity and private capital‡ n = 9
Process family
Corporate and back-office functions0.480.31 to 0.750.835 of 835.90% of 390.2400.974
Technology engineering and operations0.280.11 to 0.690.883 of 321.88% of 320.0180.973
Client servicing and communications0.63† n = 160.754 of 545.45% of 110.3080.647
Trade, settlement and reconciliation0.24† n = 150.894 of 540.00% of 100.2820.976
Payments, cards and disputes0.28† n = 121.002 of 30 of 90.0450.913
Credit, underwriting and suitability‡ n = 9
Regulatory, audit, tax and legal‡ n = 9
Financial crime and client onboarding‡ n = 7
Class of work
LOB Operational0.510.37 to 0.720.8070.00% of 2028.57% of 560.0030.981
Corporate Functional0.420.28 to 0.630.8572.73% of 1128.57% of 630.0130.998
Engagement status and lifecycle stage
Active, Build-Outb
Active, Transition/Cut-Overb
Active, Productionb
Canceledb
Note: † Base under 30. No interval is reported. ‡ Base under 10. No statistic is reported. a None in this row. b Not tested: no variation in cancellation.

Across the study set, higher ratings came with less cancellation (r = −0.53, 95% CI −0.64 to −0.41, Holm p < 0.001, n = 150 engagements). The association held after Holm correction in eleven of the 20 segment levels tested.

Association with Customer Satisfaction

Customer satisfaction is the percentage recorded against each engagement. The primary estimate uses the 94 active engagements. A descriptive contrast uses all 150 engagements.

Table 8a. Association with customer satisfaction by segment, part 1 of 2Table
SegmentActive engagementsClean r95% CIpHolm pSpearman rhop
Study set940.620.48 to 0.73< 0.001< 0.0010.63< 0.001
Outsourcing model
CXM270.64†< 0.0010.0040.590.001
ITO250.58†0.0020.0170.600.001
BPO230.66†< 0.0010.0060.69< 0.001
KPO190.68†0.0010.0110.690.001
Institution type
Asset management110.46†0.1510.3030.430.188
Wealth management and private banking150.70†0.0040.0240.550.034
Investment banking (advisory and capital-markets origination)100.27†0.4530.4530.150.685
Insurance (life, property and casualty, health)9‡
Commercial and business banking9‡
Payments and merchant acquiring (networks, acquiring, processing)100.76†0.0110.0550.730.018
Credit card and payments issuing7‡
Retail and consumer banking8‡
Markets and trading (sales and trading, global markets)8‡
Private equity and private capital7‡
Process family
Corporate and back-office functions280.66†< 0.0010.0020.560.002
Technology engineering and operations250.42†0.0350.1060.450.026
Client servicing and communications7‡
Trade, settlement and reconciliation7‡
Payments, cards and disputes100.70†0.0250.1020.690.026
Credit, underwriting and suitability8‡
Regulatory, audit, tax and legal5‡
Financial crime and client onboarding4‡
Class of work
LOB Operational460.640.43 to 0.79< 0.001< 0.0010.65< 0.001
Corporate Functional480.610.39 to 0.76< 0.001< 0.0010.60< 0.001
Engagement status and lifecycle stage
Active, Build-Out310.570.27 to 0.77< 0.0010.0080.61< 0.001
Active, Transition/Cut-Over430.680.47 to 0.81< 0.001< 0.0010.69< 0.001
Active, Production200.63†0.0030.0220.590.007
Canceled0a
Note: † Base under 30. No interval is reported. ‡ Base under 10. No statistic is reported. a Not tested: canceled engagements fall outside the active population.
Table 8b. Association with customer satisfaction by segment, part 2 of 2Table
SegmentSlope, points per rating point95% CIR squaredTOST pAll engagementsDescriptive rp
Study set4.223.12 to 5.310.391.0001500.65< 0.001
Outsourcing model
CXM4.83† n = 270.400.985420.65< 0.001
ITO3.59† n = 250.340.954400.62< 0.001
BPO4.60† n = 230.440.985370.75< 0.001
KPO4.22† n = 190.470.982310.65< 0.001
Institution type
Asset management2.48† n = 110.210.706240.66< 0.001
Wealth management and private banking3.17† n = 150.480.971230.620.002
Investment banking (advisory and capital-markets origination)3.48† n = 100.070.464190.620.005
Insurance (life, property and casualty, health)‡ n = 9
Commercial and business banking‡ n = 9
Payments and merchant acquiring (networks, acquiring, processing)6.21† n = 100.580.965130.610.026
Credit card and payments issuing‡ n = 7
Retail and consumer banking‡ n = 8
Markets and trading (sales and trading, global markets)‡ n = 8
Private equity and private capital‡ n = 7
Process family
Corporate and back-office functions4.83† n = 280.440.993470.67< 0.001
Technology engineering and operations3.00† n = 250.180.746350.65< 0.001
Client servicing and communications‡ n = 7
Trade, settlement and reconciliation‡ n = 7
Payments, cards and disputes4.05† n = 100.480.927120.810.001
Credit, underwriting and suitability‡ n = 8
Regulatory, audit, tax and legal‡ n = 5
Financial crime and client onboarding‡ n = 4
Class of work
LOB Operational4.763.04 to 6.480.410.999760.63< 0.001
Corporate Functional3.742.30 to 5.170.370.996740.68< 0.001
Engagement status and lifecycle stage
Active, Build-Out3.321.51 to 5.130.330.964310.57< 0.001
Active, Transition/Cut-Over4.973.27 to 6.660.460.999430.68< 0.001
Active, Production4.29†0.390.961200.630.003
Canceleda
Note: † Base under 30. No interval is reported. ‡ Base under 10. No statistic is reported. a Not tested: canceled engagements fall outside the active population.

Across the active engagements, higher ratings came with higher customer satisfaction (r = 0.62, 95% CI 0.48 to 0.73, Holm p < 0.001, n = 94 engagements). The association held after Holm correction in eleven of the 16 segment levels tested.

Association with the Engagement Indicator Mean

The engagement indicator mean is the mean of an engagement's ratings across the rated indicators, measured at engagement level (150 engagements). The indicator does not enter the mean.

Table 9a. Association with the engagement indicator mean by segment, part 1 of 2Table
SegmentEngagementsLeave-one-out r95% CIpHolm pSpearman rhop
Study set1500.710.62 to 0.78< 0.001< 0.0010.71< 0.001
Outsourcing model
CXM420.740.57 to 0.85< 0.001< 0.0010.72< 0.001
ITO400.590.34 to 0.76< 0.001< 0.0010.56< 0.001
BPO370.770.60 to 0.88< 0.001< 0.0010.75< 0.001
KPO310.700.46 to 0.84< 0.001< 0.0010.72< 0.001
Institution type
Asset management240.76†< 0.001< 0.0010.73< 0.001
Wealth management and private banking230.65†< 0.0010.0060.570.005
Investment banking (advisory and capital-markets origination)190.65†0.0030.0180.640.003
Insurance (life, property and casualty, health)140.60†0.0230.0410.570.032
Commercial and business banking130.63†0.0210.0410.440.129
Payments and merchant acquiring (networks, acquiring, processing)130.78†0.0020.0140.710.007
Credit card and payments issuing120.72†0.0080.0390.760.004
Retail and consumer banking120.89†< 0.0010.0010.85< 0.001
Markets and trading (sales and trading, global markets)110.88†< 0.0010.0030.830.002
Private equity and private capital9‡
Process family
Corporate and back-office functions470.780.63 to 0.87< 0.001< 0.0010.77< 0.001
Technology engineering and operations350.590.32 to 0.77< 0.0010.0020.59< 0.001
Client servicing and communications160.60†0.0130.0400.650.006
Trade, settlement and reconciliation150.91†< 0.001< 0.0010.90< 0.001
Payments, cards and disputes120.87†< 0.0010.0030.85< 0.001
Credit, underwriting and suitability9‡
Regulatory, audit, tax and legal9‡
Financial crime and client onboarding7‡
Class of work
LOB Operational760.730.60 to 0.82< 0.001< 0.0010.73< 0.001
Corporate Functional740.700.56 to 0.80< 0.001< 0.0010.70< 0.001
Engagement status and lifecycle stage
Active, Build-Out310.600.32 to 0.79< 0.0010.0030.66< 0.001
Active, Transition/Cut-Over430.680.47 to 0.81< 0.001< 0.0010.72< 0.001
Active, Production200.57†0.0080.0390.490.028
Canceled560.390.14 to 0.590.0030.0200.340.010
Note: † Base under 30. No interval is reported. ‡ Base under 10. No statistic is reported.
Table 9b. Association with the engagement indicator mean by segment, part 2 of 2Table
Segmentr with indicator includedChange in rSlope95% CIR squaredTOST pEquivalent
Study setNot a component0.550.46 to 0.630.511.000No
Outsourcing model
CXMNot a component0.580.42 to 0.750.551.000No
ITONot a component0.440.24 to 0.640.350.988No
BPONot a component0.550.40 to 0.710.601.000No
KPONot a component0.570.35 to 0.790.490.998No
Institution type
Asset managementNot a component0.59† n = 240.570.999No
Wealth management and private bankingNot a component0.46† n = 230.430.983No
Investment banking (advisory and capital-markets origination)Not a component0.44† n = 190.420.968No
Insurance (life, property and casualty, health)Not a component0.52† n = 140.360.900No
Commercial and business bankingNot a component0.65† n = 130.400.915No
Payments and merchant acquiring (networks, acquiring, processing)Not a component0.77† n = 130.600.989No
Credit card and payments issuingNot a component0.37† n = 120.520.965No
Retail and consumer bankingNot a component0.63† n = 120.801.000No
Markets and trading (sales and trading, global markets)Not a component0.66† n = 110.780.999No
Private equity and private capital‡ n = 9
Process family
Corporate and back-office functionsNot a component0.660.50 to 0.810.611.000No
Technology engineering and operationsNot a component0.460.24 to 0.690.350.983No
Client servicing and communicationsNot a component0.49† n = 160.360.919No
Trade, settlement and reconciliationNot a component0.71† n = 150.831.000No
Payments, cards and disputesNot a component0.49† n = 120.760.999No
Credit, underwriting and suitability‡ n = 9
Regulatory, audit, tax and legal‡ n = 9
Financial crime and client onboarding‡ n = 7
Class of work
LOB OperationalNot a component0.560.44 to 0.680.531.000No
Corporate FunctionalNot a component0.540.41 to 0.670.491.000No
Engagement status and lifecycle stage
Active, Build-OutNot a component0.390.19 to 0.580.370.981No
Active, Transition/Cut-OverNot a component0.470.31 to 0.630.460.999No
Active, ProductionNot a component0.46† n = 200.330.920No
CanceledNot a component0.160.06 to 0.270.150.760No
Note: † Base under 30. No interval is reported. ‡ Base under 10. No statistic is reported.

Higher ratings came with a higher engagement indicator mean (r = 0.71, 95% CI 0.62 to 0.78, Holm p < 0.001, n = 150 engagements). The association held after Holm correction in twenty-four of the 24 segment levels tested.

Association with Intent to Leave

Intent to leave is the answer to C019, “How likely are you to leave your current job in the next 12 months?”, rated 1 to 10. It is measured at respondent level on up to 798 respondents, with the engagement-level form reported alongside.

Table 10a. Association with intent to leave by segment, part 1 of 2Table
SegmentRespondentsr95% CICluster bootstrap 95% CIpHolm p
Study set492−0.63−0.68 to −0.58−0.71 to −0.55< 0.001< 0.001
Outsourcing model
CXM135−0.51−0.63 to −0.37−0.69 to −0.29< 0.001< 0.001
ITO136−0.63−0.73 to −0.52−0.75 to −0.45< 0.001< 0.001
BPO125−0.73−0.80 to −0.63−0.83 to −0.58< 0.001< 0.001
KPO96−0.67−0.77 to −0.55−0.77 to −0.55< 0.001< 0.001
Institution type
Asset management71−0.71−0.81 to −0.57−0.83 to −0.44< 0.001< 0.001
Wealth management and private banking83−0.58−0.71 to −0.42−0.76 to −0.37< 0.001< 0.001
Investment banking (advisory and capital-markets origination)54−0.62−0.76 to −0.42−0.84 to −0.29< 0.001< 0.001
Insurance (life, property and casualty, health)46−0.55−0.73 to −0.31−0.77 to −0.27< 0.001< 0.001
Commercial and business banking47−0.35−0.58 to −0.07−0.72 to 0.180.0160.067
Payments and merchant acquiring (networks, acquiring, processing)43−0.60−0.76 to −0.36−0.84 to −0.27< 0.001< 0.001
Credit card and payments issuing42−0.70−0.83 to −0.51−0.86 to −0.41< 0.001< 0.001
Retail and consumer banking50−0.86−0.92 to −0.76−0.92 to −0.72< 0.001< 0.001
Markets and trading (sales and trading, global markets)32−0.69−0.84 to −0.46−0.84 to −0.46< 0.001< 0.001
Private equity and private capital24−0.46††0.0250.074
Process family
Corporate and back-office functions139−0.57−0.67 to −0.45−0.71 to −0.40< 0.001< 0.001
Technology engineering and operations116−0.65−0.74 to −0.53−0.77 to −0.49< 0.001< 0.001
Client servicing and communications53−0.49−0.67 to −0.25−0.79 to 0.01< 0.0010.002
Trade, settlement and reconciliation47−0.76−0.86 to −0.60−0.87 to −0.47< 0.001< 0.001
Payments, cards and disputes43−0.80−0.89 to −0.66−0.92 to −0.54< 0.001< 0.001
Credit, underwriting and suitability34−0.74−0.86 to −0.53§ n = 9< 0.001< 0.001
Regulatory, audit, tax and legal32−0.68−0.83 to −0.43§ n = 9< 0.001< 0.001
Financial crime and client onboarding28−0.56††0.0020.012
Class of work
LOB Operational259−0.64−0.70 to −0.56−0.73 to −0.51< 0.001< 0.001
Corporate Functional233−0.63−0.70 to −0.54−0.73 to −0.49< 0.001< 0.001
Engagement status and lifecycle stage
Active, Build-Out108−0.66−0.76 to −0.54−0.77 to −0.50< 0.001< 0.001
Active, Transition/Cut-Over149−0.41−0.53 to −0.26−0.55 to −0.25< 0.001< 0.001
Active, Production55−0.60−0.75 to −0.40−0.76 to −0.38< 0.001< 0.001
Canceled180−0.15−0.29 to −0.01−0.33 to 0.010.0380.077
Respondent role
Individual Contributor319−0.65−0.70 to −0.58−0.73 to −0.54< 0.001< 0.001
Engagement Manager150−0.65−0.74 to −0.55−0.73 to −0.57< 0.001< 0.001
Portfolio Director23−0.51††0.0130.067
Customer Management Executive0‡
Vendor type
IT services major185−0.62−0.70 to −0.52−0.72 to −0.49< 0.001< 0.001
BPO specialist116−0.74−0.82 to −0.65−0.84 to −0.58< 0.001< 0.001
Consulting firm61−0.61−0.75 to −0.43−0.75 to −0.44< 0.001< 0.001
Boutique or specialist provider50−0.58−0.74 to −0.35−0.79 to −0.25< 0.001< 0.001
Pure-play agentic AI firm48−0.69−0.81 to −0.50−0.87 to −0.35< 0.001< 0.001
Not reported, recovered by engagement32−0.26−0.56 to 0.10−0.59 to 0.120.1520.152
Note: † Base under 30. No interval is reported. § Too few engagements for a cluster bootstrap interval. ‡ Base under 10. No statistic is reported.
Table 10b. Association with intent to leave by segment, part 2 of 2Table
SegmentSpearman rhopShare at 7 or above, distressedShare at 7 or above, otherEngagementsEngagement level r95% CITOST p
Study set−0.63< 0.00187.94% of 14138.18% of 351150−0.66−0.75 to −0.561.000
Outsourcing model
CXM−0.50< 0.00170.97% of 3131.73% of 10442−0.56−0.74 to −0.300.976
ITO−0.61< 0.00190.91% of 3345.63% of 10340−0.71−0.84 to −0.511.000
BPO−0.73< 0.00190.91% of 4438.27% of 8137−0.77−0.87 to −0.591.000
KPO−0.68< 0.00196.97% of 3336.51% of 6331−0.69−0.84 to −0.450.998
Institution type
Asset management−0.65< 0.00195.45% of 2259.18% of 4924−0.70†0.994
Wealth management and private banking−0.59< 0.00182.61% of 2326.67% of 6023−0.70†0.993
Investment banking (advisory and capital-markets origination)−0.59< 0.001100.00% of 1844.44% of 3619−0.62†0.949
Insurance (life, property and casualty, health)−0.57< 0.00190.00% of 1036.11% of 3614−0.59†0.886
Commercial and business banking−0.340.021‡ n = 843.59% of 3913−0.45†0.716
Payments and merchant acquiring (networks, acquiring, processing)−0.58< 0.001‡ n = 941.18% of 3413−0.80†0.994
Credit card and payments issuing−0.71< 0.00185.00% of 2022.73% of 2212−0.67†0.932
Retail and consumer banking−0.86< 0.00193.33% of 1525.71% of 3512−0.92†1.000
Markets and trading (sales and trading, global markets)−0.73< 0.001‡ n = 736.00% of 2511−0.77†0.977
Private equity and private capital−0.440.031‡40.00% of 159‡‡
Process family
Corporate and back-office functions−0.58< 0.00190.24% of 4142.86% of 9847−0.61−0.76 to −0.390.996
Technology engineering and operations−0.66< 0.00185.00% of 2036.46% of 9635−0.73−0.85 to −0.521.000
Client servicing and communications−0.420.00276.92% of 1347.50% of 4016−0.50†0.809
Trade, settlement and reconciliation−0.71< 0.00194.74% of 1939.29% of 2815−0.81†0.998
Payments, cards and disputes−0.80< 0.00173.33% of 1510.71% of 2812−0.85†0.998
Credit, underwriting and suitability−0.73< 0.001‡32.00% of 259‡‡
Regulatory, audit, tax and legal−0.62< 0.001100.00% of 1336.84% of 199‡‡
Financial crime and client onboarding−0.60< 0.00190.91% of 1152.94% of 177‡‡
Class of work
LOB Operational−0.62< 0.00188.10% of 8438.29% of 17576−0.66−0.77 to −0.511.000
Corporate Functional−0.63< 0.00187.72% of 5738.07% of 17674−0.67−0.78 to −0.521.000
Engagement status and lifecycle stage
Active, Build-Out−0.66< 0.00163.64% of 1118.56% of 9731−0.68−0.83 to −0.420.997
Active, Transition/Cut-Over−0.41< 0.00154.55% of 2224.41% of 12743−0.49−0.69 to −0.220.923
Active, Production−0.59< 0.001‡ n = 712.50% of 4820−0.67†0.980
Canceled−0.190.010100.00% of 101100.00% of 79560.03−0.23 to 0.290.022
Respondent role
Individual Contributor−0.64< 0.00185.29% of 10238.25% of 217136−0.66−0.74 to −0.551.000
Engagement Manager−0.67< 0.00194.59% of 3735.40% of 113150−0.65−0.74 to −0.551.000
Portfolio Director−0.470.024‡ n = 252.38% of 2123−0.51†0.868
Customer Management Executive‡ n = 0
Vendor type
IT services major−0.63< 0.00190.24% of 4138.19% of 14459−0.64−0.77 to −0.461.000
BPO specialist−0.71< 0.00185.19% of 5435.48% of 6237−0.74−0.86 to −0.541.000
Consulting firm−0.61< 0.00195.00% of 2024.39% of 4123−0.62†0.970
Boutique or specialist provider−0.55< 0.001‡ n = 852.38% of 4217−0.67†0.971
Pure-play agentic AI firm−0.65< 0.001‡ n = 930.77% of 3914−0.75†0.986
Not reported, recovered by engagement−0.270.139‡ n = 956.52% of 2328−0.25†0.393
Note: † Base under 30. No interval is reported. ‡ Base under 10. No statistic is reported.

Respondents who gave higher ratings reported lower intent to leave (r = −0.63, 95% CI −0.68 to −0.58, Holm p < 0.001, n = 492 respondents). The association held after Holm correction in thirty-two of the 37 segment levels tested.

Comparison of Associations Across the Four Measures

Table 11. Associations across the four measuresTable
MeasureFormUnitnr95% CIpEquivalent to zeroRank among the four
Cancellation rateDescriptive contrastEngagement150−0.53−0.64 to −0.41< 0.001No4
Customer satisfactionClean estimateEngagement940.620.48 to 0.73< 0.001No3
Engagement indicator meanFullEngagement1500.710.62 to 0.78< 0.001No1
Intent to leaveRespondent level, clusteredRespondent492−0.63−0.71 to −0.55< 0.001No2
Table 12. Pairwise comparison of associationsTable
Pair comparedDifference in rSteiger zpHolm pReading
Cancellation rate and customer satisfaction−0.12−5.27< 0.001< 0.001Differed
Cancellation rate and engagement indicator mean−0.18−3.93< 0.001< 0.001Differed
Cancellation rate and intent to leave−0.14−3.56< 0.0010.001Differed
Customer satisfaction and engagement indicator mean−0.06−1.830.0670.202Did not differ
Customer satisfaction and intent to leave−0.02−0.760.4470.518Did not differ
Engagement indicator mean and intent to leave0.041.130.2590.518Did not differ

The four associations were compared in pairs on their engagement-level forms, each oriented so that a higher value is the better outcome, across the 150 engagements with all four measures. After Holm correction, three of the six pairs differed. The association with the engagement indicator mean was the strongest and the association with cancellation the weakest.

Clustering and Effective Sample Size

Table 13. Clustering and effective sample sizeTable
StatisticValueReading
Clusters (engagements)150Engagements with one or more answers.
Mean respondents per engagement3.4Answers per engagement, among engagements with one or more answers.
ICC(1)0.65Share of the variance that lies between engagements.
Design effect2.59One plus the product of the ICC and the mean cluster size less one.
Nominal respondent n516Respondents who answered.
Effective n199Nominal n divided by the design effect.
Cluster bootstrap appliedYesApplied to every respondent-level interval where the ICC is 0.05 or above.

Answers clustered within engagements (ICC 0.65). Clustering reduced the 516 respondent answers to the equivalent of about 199 independent answers. Respondent-level intervals therefore used the cluster bootstrap. Respondent-level tests of intent to leave used standard errors that allow for clustering by engagement.

Equivalence Tests of Null Results

Table 14. Equivalence tests of null resultsTable
MeasurenrEquivalence boundTOST p, lowerTOST p, upperEquivalent to zeroAchieved powerMDE at power 0.80Detection floor for this n
Cancellation rate150−0.53|r| < 0.301.000< 0.001No0.960.230.23
Customer satisfaction940.62|r| < 0.30< 0.0011.000No0.840.290.23
Engagement indicator mean1500.71|r| < 0.30< 0.0011.000No0.960.230.23
Intent to leave492, effective 189−0.63|r| < 0.301.000< 0.001No0.990.200.23

No association was equivalent to zero. Each of the four differed from zero. The detection floor shown is the study floor at 150 engagements. Intent to leave was tested on its effective sample size.

Robustness Checks

Table 15. Robustness checksTable
CheckMeasurePrimary rCheck r95% CIChangeConclusion holds
Rank correlation in place of PearsonCancellation rate−0.53−0.54a−0.01Yes
Rank correlation in place of PearsonCustomer satisfaction0.620.63a0.00Yes
Rank correlation in place of PearsonEngagement indicator mean0.710.71a0.00Yes
Rank correlation in place of PearsonIntent to leave−0.63−0.63a0.00Yes
Non-answers excluded, then imputed at the engagement meanIntent to leave−0.63−0.62a0.01Yes
Active engagements onlyEngagement indicator mean0.710.620.47 to 0.73−0.10Yes
Active engagements onlyIntent to leave−0.63−0.55−0.62 to −0.470.08Yes
Most influential engagement removed (largest Cook's distance)Cancellation rate−0.53−0.55−0.66 to −0.43−0.02Yes
Most influential engagement removed (largest Cook's distance)Customer satisfaction0.620.640.50 to 0.750.02Yes
Most influential engagement removed (largest Cook's distance)Engagement indicator mean0.710.730.65 to 0.800.02Yes
Most influential engagement removed (largest Cook's distance)Intent to leave−0.63−0.63−0.68 to −0.580.00Yes
Engagements weighted by respondent countCancellation rate−0.53−0.53a0.00Yes
Engagements weighted by respondent countCustomer satisfaction0.620.61a−0.02Yes
Engagements weighted by respondent countEngagement indicator mean0.710.70a−0.01Yes
Bootstrap of engagementsCancellation rate−0.53−0.54−0.64 to −0.420.00Yes
Bootstrap of engagementsCustomer satisfaction0.620.620.51 to 0.720.00Yes
Bootstrap of engagementsEngagement indicator mean0.710.710.63 to 0.780.00Yes
Bootstrap of engagementsIntent to leave−0.63−0.63−0.71 to −0.550.00Yes
Thin-base segments removedCancellation rate−0.53−0.56−0.69 to −0.39−0.02Yes
Thin-base segments removedCustomer satisfaction0.620.560.35 to 0.72−0.06Yes
Thin-base segments removedEngagement indicator mean0.710.720.59 to 0.810.00Yes
Thin-base segments removedIntent to leave−0.63−0.61−0.68 to −0.530.02Yes
Note: a No interval for this check.

Each change was computed before rounding and may differ by 0.01 from the difference between the two printed values.

All 22 checks held. A check holds when its test falls on the same side of 0.05 as the primary test. Where the primary test falls below 0.05, the check must also keep the sign of the primary correlation. The thin-base check removes the engagements in any level of outsourcing model or process family with fewer than 30 engagements. Institution type is not used for that check, because every one of its levels has fewer than 30 engagements.

Measure Independence and Part-Whole Correction

Each of the four measures was computed from data the indicator does not contain. Each result is therefore a finding and not an arithmetic consequence.

Comparison with the Study Norm

Table 16. Comparison with the study normTable
MeasureThe indicator, oriented rStudy median, oriented rDeviationFisher zpHolm p
Cancellation rate0.530.60−0.06−1.130.2600.519
Customer satisfaction0.650.72−0.06−1.490.1370.412
Engagement indicator mean0.710.84−0.12−3.84< 0.001< 0.001
Intent to leave0.680.71−0.04−0.840.4040.519
Spread of deviations0.09
VerdictDivergent

Each deviation was computed before rounding and may differ by 0.01 from the difference between the two printed values.

The comparison covered 150 engagements. The indicator departed from the study's typical pattern on the engagement indicator mean. Its association was weaker than the norm on the engagement indicator mean.

Interpretation of the Data

Close to three in ten of all ratings of whether the respondent's management team fully understands how laws and regulations affect the engagement fell in the distressed range (149 of 516 answers, 28.88%). The rating was associated with all four study measures, and every association held under each of the 22 robustness checks. Canceled engagements rated well below the three active stages (mean 3.5, n = 193 respondents).

No respondent wrote about the management team's understanding of the laws and regulations that affect the engagement. The evidence for the indicator is therefore the rating alone, and the reasons behind it are not recorded.

Limitations

The evidence is the reported experience of the vendor's delivery teams, collected in a single cross-section. The associations reported here are not causal.

Tests by respondent role and by vendor type treated respondents as independent. The section on clustering reports how far clustering within engagements reduced the information in respondent-level figures.

No written response addressed the indicator.

Definitions

Table 17. DefinitionsTable
TermDefinition
Response scaleRatings run from 1 to 10, from the worst outcome a respondent can report to the best.
DistressedA rating of 3 or below. At engagement level, an engagement mean of 3 or below.
Answering baseRespondents who gave a rating from 1 to 10.
Non-answers“I do not know” and “I prefer to not answer” are counted separately and excluded from the mean.
Indicator classRespondent level: a value recorded for each respondent and computed across the respondents who answered.
Failure categoryThe five failure categories of the Study Taxonomy apply only to the rated indicators. The indicator is not a rated indicator and carries none.
Engagement indicator meanThe mean of an engagement's ratings across the rated indicators. The indicator does not enter it.
Cluster bootstrapAn interval computed by resampling engagements rather than responses, so that the responses from one engagement stay together.

Sources and Provenance

Table 18. Sources and provenanceTable
SourceValue
Study dataStudy Data.xlsx, Data sheet, column C058, sha256 219eba0457274d04
Statistics enginecompute_statistics.py, sha256 738319eef764602b
Statistics recordComputed Statistics.json, record C058, sha256 1ae50a3637fc9370
ComputedOctober 13, 2026, 04:57 UTC
TemplateIndicator Template v2, version 2.0 of 10 October 2026
Figures placed by script2,726

Continue the report

Executive summary →
Overview

Executive Summary

Four findings from 150 engagements

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Introduction

Introduction

Scope, evidence, and how the report is organized

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Part 1

Engagement Outcomes

Poor results on every measure, and what separates them

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Part 2

The Five Failure Categories

Where failure concentrates, category by category

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Part 3

Governance, Oversight, and Control

Controls that existed in name only

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Part 4

The Delivery Workforce

Early in their careers, dissatisfied, and many intending to leave

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Part 5

Manual Alteration

How the delivery team altered the work to sustain it

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Part 6

Executive Action Plan

Seven immediate actions and a first-year plan

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Appendices

Appendices

Definitions, indicator inventory, method, and disclosures

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Data

Study Data

Deep-dive analyses of the study indicators, published in stages

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