Study Data · Part 2 · Indicator Deep-Dive Analysis

Rate the quality of the tools' logs, traces, and usage telemetry for detecting and diagnosing failures

Indicator C176 · By Phil Hatch · Akholi · October 9, 2026

Indicator Specification

Table 1. Indicator specificationTable
FieldValue
Indicator codeC176
Question as askedRate the quality of the tools' logs, traces, and usage telemetry for detecting and diagnosing failures.
Failure categoryAI technology
Place in the surveyChallenge Deep Dive > 5.4 AI > Maturity and Observability
Indicator classRespondent level
Indicator typeRated, POS
Response scale1 to 10, higher is the better outcome
Answering base796 of 850 respondents, across 150 of 150 engagements
Non-answersI do not know 0, I prefer to not answer 0, blank 54
Written responses addressing the indicator101 responses from 97 respondents on 73 engagements (80 primary, 21 secondary)

Summary of Findings

Table 2. Key results: association of the indicator with the four study measuresTable
MeasureFormnr95% CIp
Cancellation rateDescriptive contrast150 engagements−0.65−0.73 to −0.55< 0.001
Customer satisfactionClean estimate94 engagements0.660.52 to 0.76< 0.001
Engagement indicator meanLeave-one-out150 engagements0.850.79 to 0.89< 0.001
Intent to leaveRespondent level, clustered749 respondents−0.63−0.69 to −0.57< 0.001

The mean rating was 4.6 and the median 5.0 (n = 796 respondents). Ratings of 3 or below, the distressed range, made up 32.04% of the answers. The rating was associated with all four study measures. Higher ratings came with less cancellation (r = −0.65, 95% CI −0.73 to −0.55, p < 0.001, n = 150 engagements), higher customer satisfaction among active engagements (r = 0.66, 95% CI 0.52 to 0.76, p < 0.001, n = 94 engagements), a higher engagement indicator mean computed without the indicator (r = 0.85, 95% CI 0.79 to 0.89, p < 0.001, n = 150 engagements) and lower intent to leave (r = −0.63, cluster bootstrap 95% CI −0.69 to −0.57, p < 0.001 with standard errors clustered by engagement, n = 749 respondents). After Holm correction, ratings differed by engagement status and lifecycle stage (Welch F 44.03, Holm p < 0.001, omega squared 0.410), respondent role (Welch F 5.25, Holm p = 0.037, omega squared 0.011) and vendor type (Welch F 4.99, Holm p = 0.001, omega squared 0.024).

Of the 101 written responses, 82 were negative and 18 positive, and 44 carried the strongest negative score of −10. Respondents described logs that showed a start and a finish, or a result, and nothing of the steps between, so that failures had to be reconstructed by hand. Engagements with a negative written response were canceled more often, a more negative engagement mean written score came with cancellation, and respondents whose written responses were more negative reported higher intent to leave.

Distribution of Ratings

Table 3. Distribution of ratings, respondent levelTable
AnswerRespondentsShare of answered (base 796)Cumulative shareEngagements with at least oneShare of 150 engagementsDistressed
1658.17%8.17%4127.33%Yes
2627.79%15.95%4026.67%Yes
312816.08%32.04%7348.67%Yes
413917.46%49.50%8657.33%No
515018.84%68.34%8959.33%No
610212.81%81.16%6946.00%No
7759.42%90.58%4932.67%No
8587.29%97.86%3523.33%No
991.13%98.99%74.67%No
1081.01%100.00%74.67%No
I do not know0Not in baseNot in base00.00%Not applicable
I prefer to not answer0Not in baseNot in base00.00%Not applicable
Answered, total796100.00%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 view1504.61.71.54.38.63624.00%

Ratings of 3 or below, the distressed range, accounted for 255 of the 796 answers (32.04%). The engagement mean fell in the distressed range in 36 of 150 engagements.

Coverage and Origin of Written Responses

Figure 1. Written responses addressing the indicator, by question answered and written score (n = 101 responses)Exhibit
022.444.867.289.6C177 (primary)332915C029 (secondary)8C055 (secondary)C214 (secondary)C030 (secondary)C156 (secondary)C216 (secondary)−10 Strongly negative−5 Negative0 Neutral+5 Positive+10 Strongly positive
Note: Each bar is one survey question. C177 is the written-answer question of the indicator's survey section, so its responses are primary. The responses to every other question are secondary. Segments wide enough to hold a label carry their count. C177 asked: “Add any comments on the agentic AI tools that the ratings in this section do not capture.” C029 asked: “What are your top 3 challenges that reduce your job satisfaction?” C055 asked: “How does the vendor manipulate performance reports and dashboards?” C214 asked: “Why did you alter AI outputs?” C030 asked: “What are the top 3 things that you love most about your job?” C156 asked: “Add any comments on the joint management of this engagement that the ratings in this section do not capture.” C216 asked: “Comment”
Table 5. Written responses by originTable
OriginResponsesRespondentsEngagementsNegativeStrongest negative (−10)PositiveMean written score
Primary80806362 of 80 (77.50%)33 of 80 (41.25%)17 of 80 (21.25%)−4.8
Secondary21211820 of 21 (95.24%)11 of 21 (52.38%)1 of 21 (4.76%)−7.1
All responses101977382 of 101 (81.19%)44 of 101 (43.56%)18 of 101 (17.82%)−5.2

The primary responses numbered 80, all written in answer to C177, “Add any comments on the agentic AI tools that the ratings in this section do not capture.” The remaining 21 responses, 20.79% of the total, were secondary and came from 6 other questions. That secondary share ranked 34th from the highest among the 71 Part 2 indicators with 30 or more written responses, against a median of 18.92%. Respondents who wrote both a primary and a secondary response numbered 4. Negative responses made up 77.50% of primary responses (62 of 80) and 95.24% of secondary responses (20 of 21).

Twenty responses described logs or traces that recorded only the request, the final state or the result: a start time and an end time and nothing between, an action without the reason or the content the agent had read, a step marked finished on a load that was half missing, only the last of several runs kept, and an audit trail that held the agent's final output but not its intermediate steps. Twenty-one responses described no logs at all, or nothing useful in them, when something went wrong. One respondent said the platform should have been stopped on that ground alone, and another, on a pre-production engagement, said the gap was tolerable there and would not be in production.

Ten responses described work redone or a run reconstructed by hand because the trace could not show what happened: two days rebuilding a release from the team's own notes, the sequence of a failed access request rebuilt before the respondent could answer the financial institution, a whole batch or posting redone, and a run rebuilt by hand to show the error was not the respondent's own, a task that filled most of the respondent's week. Three respondents contrasted this with an earlier program where a failed run left a trace they could read. The responses to C055 added two practices that hid the gap: audit findings that could not be traced to an agent action logged as resolved with a generic note, and a curated weekly summary for the steering committee that smoothed over observability gaps the engineering team was raising internally.

The eighteen positive responses described logs good enough to find a failed step in minutes, several against an earlier engagement or the previous year, and one said a trace now ended disputes with the financial institution's operations lead. Several of these respondents rated logs well while placing their concern in drift, cost or false completion, and one said the trace existed but the team had no access to it.

Distribution of Written Sentiment

Figure 2. Distribution of written sentiment (n = 101 responses)Exhibit
0%25%50%75%100%−10 Strongly negative44 (43.56%)−5 Negative38 (37.62%)0 Neutral1 (0.99%)+5 Positive16 (15.84%)+10 Strongly positive2 (1.98%)Share of responses
Note: Column height is the share of the 101 responses. Labels give the count and the share.
Table 6. Summary statistics of written sentimentTable
StatisticValueBasis
Mean written score−5.295% CI −6.3 to −4.1, cluster bootstrap by engagement, 10,000 draws, n = 101 responses
Median written score−5.0n = 101 responses
Negative responses82 of 101 (81.19%)95% CI 73.33% to 88.57% of 101 responses, cluster bootstrap by engagement
Strongest negative responses (−10)44 of 101 (43.56%)Statements of totality, constancy or serious harm
Positive responses18 of 101 (17.82%)+5 or +10
Net balance−63.37 percentage pointsShare positive minus share negative, base 101 responses
Respondent-level mean−5.1Mean of each respondent's own mean written score, n = 97 respondents

Of the 101 responses, 82 (81.19%, 95% CI 73.33% to 88.57%) were negative and 44 (43.56%) carried the strongest negative score of −10. Positive responses numbered 18 (17.82%), and 1 was neutral. The mean written score was −5.2 (95% CI −6.3 to −4.1, n = 101 responses), and the median was −5.0.

Correspondence Between Ratings and Written Sentiment

Figure 3. Written score against the respondent's rating of the indicator (n = 98 responses with a rating)Exhibit
012345678910-10-50510Written sentiment scoreRating133331111389371175246112111
Note: Each marker is one combination of written score and rating, and its area is proportional to the number of responses at that combination. The written score runs from −10 at the left to +10 at the right. The rating rises from the worst outcome at the bottom to the best at the top, and ratings of 3 or below are the distressed range. Of the 101 responses, 3 had no rating and are not shown.

Of the 101 responses, 98 came from respondents who also rated the indicator. Among them, the written score rose with the rating (Spearman rho 0.53, 95% CI 0.37 to 0.67, p < 0.001, n = 98 responses). The written responses corroborated the rating. Of the 79 negative responses with a rating, 44 (55.70%) came from respondents whose rating was in the distressed range.

Rating Profile of Respondents Providing Written Responses

Figure 4. Distribution of ratings, respondents who wrote about the indicator and respondents who did notExhibit
0%25%50%75%100%12345678910Respondents who wrote and gave a rating (n = 94)Respondents who did not write and gave a rating (n = 702)
Note: The columns of each group sum to the whole of that group: 94 respondents who wrote about the indicator and gave a rating, and 702 who gave a rating without writing about it.

Respondents who wrote about the indicator and gave a rating numbered 94, with a mean rating of 4.0. The 702 respondents who rated the indicator without writing about it had a mean of 4.6. The difference, −0.6 (95% CI −1.1 to −0.1), excluded zero. Ratings in the distressed range made up 43.62% of the ratings from respondents who wrote (41 of 94) and 30.48% of the ratings from respondents who did not (214 of 702).

The respondents who wrote came disproportionately from the distressed end of the scale. The written evidence therefore gives more weight to the respondents who rated the indicator worst.

Descriptive Statistics by Segment

Table 7a. Descriptive statistics by segment, part 1 of 2Table
SegmentBaseAnsweredAnswer rateEngagementsMean95% CISD
Study set85079693.65% of 8501504.64.4 to 4.72.1
Outsourcing model
CXM23221693.10% of 232424.84.5 to 5.12.2
ITO24422592.21% of 244404.74.5 to 5.01.9
BPO20920095.69% of 209374.23.9 to 4.52.0
KPO16515593.94% of 165314.64.2 to 4.92.1
Institution type
Asset management13212292.42% of 132244.44.0 to 4.82.1
Wealth management and private banking14013193.57% of 140234.34.0 to 4.72.2
Investment banking (advisory and capital-markets origination)1059792.38% of 105194.64.2 to 5.01.9
Insurance (life, property and casualty, health)787697.44% of 78144.74.2 to 5.32.3
Commercial and business banking827895.12% of 82134.94.5 to 5.31.8
Payments and merchant acquiring (networks, acquiring, processing)716895.77% of 71134.54.1 to 5.01.9
Credit card and payments issuing737095.89% of 73124.13.7 to 4.61.9
Retail and consumer banking736893.15% of 73124.54.0 to 5.12.2
Markets and trading (sales and trading, global markets)574884.21% of 57115.44.8 to 6.12.2
Private equity and private capital393897.44% of 3994.74.1 to 5.21.6
Process family
Corporate and back-office functions24823193.15% of 248474.54.3 to 4.82.2
Technology engineering and operations20419294.12% of 204355.04.8 to 5.31.9
Client servicing and communications949095.74% of 94164.43.9 to 4.92.3
Trade, settlement and reconciliation807593.75% of 80154.33.8 to 4.82.1
Payments, cards and disputes736994.52% of 73124.54.1 to 4.91.6
Credit, underwriting and suitability575392.98% of 5794.74.2 to 5.31.9
Regulatory, audit, tax and legal514792.16% of 5194.23.5 to 4.92.3
Financial crime and client onboarding433990.70% of 4373.93.4 to 4.41.6
Class of work
LOB Operational45142494.01% of 451764.44.2 to 4.62.1
Corporate Functional39937293.23% of 399744.84.5 to 5.02.1
Engagement status and lifecycle stage
Active, Build-Out17516594.29% of 175315.45.2 to 5.71.9
Active, Transition/Cut-Over25023292.80% of 250435.45.2 to 5.71.8
Active, Production1039592.23% of 103205.45.0 to 5.81.9
Canceled32230494.41% of 322563.23.0 to 3.41.6
Respondent role
Individual Contributor66761592.20% of 6671504.54.3 to 4.62.1
Engagement Manager150150100.00% of 1501504.84.5 to 5.12.0
Portfolio Director313096.77% of 31305.54.8 to 6.32.1
Customer Management Executive211 of 21‡
Vendor type
IT services major31629693.67% of 316594.74.5 to 5.02.1
BPO specialist19818894.95% of 198374.33.9 to 4.62.2
Consulting firm11710993.16% of 117235.34.9 to 5.72.0
Boutique or specialist provider878294.25% of 87174.44.0 to 4.81.7
Pure-play agentic AI firm756992.00% of 75144.23.7 to 4.72.0
Not reported, recovered by engagement575291.23% of 57434.13.6 to 4.61.8
Note: ‡ Base under 10. No statistic is reported.
Table 7b. Descriptive statistics by segment, part 2 of 2Table
SegmentMinQ1MedianQ3MaxDistressed nDistressed %
Study set1.03.05.06.010.025532.04%
Outsourcing model
CXM1.03.05.06.010.06630.56%
ITO1.03.05.06.09.05825.78%
BPO1.03.04.05.010.07537.50%
KPO1.03.04.06.010.05636.13%
Institution type
Asset management1.03.04.06.09.04738.52%
Wealth management and private banking1.03.04.06.010.05239.69%
Investment banking (advisory and capital-markets origination)1.03.04.06.010.03030.93%
Insurance (life, property and casualty, health)1.03.05.06.010.02228.95%
Commercial and business banking1.04.05.06.010.01519.23%
Payments and merchant acquiring (networks, acquiring, processing)1.03.04.06.08.02333.82%
Credit card and payments issuing1.03.04.05.010.02535.71%
Retail and consumer banking1.03.04.06.010.02435.29%
Markets and trading (sales and trading, global markets)1.04.06.07.010.0816.67%
Private equity and private capital1.04.05.06.08.0923.68%
Process family
Corporate and back-office functions1.03.04.06.010.08034.63%
Technology engineering and operations1.04.05.06.010.04121.35%
Client servicing and communications1.03.04.06.010.03640.00%
Trade, settlement and reconciliation1.03.04.05.010.03141.33%
Payments, cards and disputes1.04.04.05.08.01724.64%
Credit, underwriting and suitability1.04.05.06.08.01324.53%
Regulatory, audit, tax and legal1.02.04.06.010.02246.81%
Financial crime and client onboarding1.03.04.05.07.01538.46%
Class of work
LOB Operational1.03.04.06.010.015035.38%
Corporate Functional1.03.05.06.010.010528.23%
Engagement status and lifecycle stage
Active, Build-Out1.04.05.07.010.02112.73%
Active, Transition/Cut-Over1.04.05.07.010.03113.36%
Active, Production1.04.05.07.09.01717.89%
Canceled1.02.03.04.08.018661.18%
Respondent role
Individual Contributor1.03.04.06.010.021334.63%
Engagement Manager1.04.05.06.010.03624.00%
Portfolio Director2.04.05.57.010.0620.00%
Customer Management Executive‡ n = 1
Vendor type
IT services major1.03.05.06.010.08729.39%
BPO specialist1.03.04.05.010.07338.83%
Consulting firm1.04.05.07.010.02422.02%
Boutique or specialist provider1.03.04.05.88.02226.83%
Pure-play agentic AI firm1.03.04.05.010.02739.13%
Not reported, recovered by engagement1.03.04.05.08.02242.31%
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 8a. Tests of difference between segments, part 1 of 2Table
Segment familyWelch FdfpHolm pOmega squared90% CI
Outsourcing model0.733, 78.20.5371.000−0.0050.000 to 0.044
Institution type0.428, 49.40.9051.000−0.0330.000 to 0.016
Process family0.734, 39.40.5761.000−0.0100.000 to 0.050
Class of work1.541, 148.00.2170.8670.0040.000 to 0.053
Engagement status and lifecycle stage44.033, 56.3< 0.001< 0.0010.4100.315 to 0.497
Respondent role5.252, 73.20.0070.0370.0110.002 to 0.028
Vendor type4.995, 234.4< 0.0010.0010.0240.010 to 0.047
Table 8b. Tests of difference between segments, part 2 of 2Table
Segment familyKruskal-Wallis HpDistressed chi-squaredfpCramer's VLevels excluded
Outsourcing model2.780.4274.3330.2280.17None
Institution type3.710.8826.6080.595, simulated0.22Private equity and private capital, n = 9
Process family3.990.4087.8340.097, simulated0.25Credit, underwriting and suitability, n = 9, Regulatory, audit, tax and legal, n = 9, Financial crime and client onboarding, n = 7
Class of work1.680.1951.1110.2910.09None
Engagement status and lifecycle stage67.57< 0.00154.753< 0.001, simulated0.60None
Respondent role9.790.0078.3520.0150.10Customer Management Executive, n = 1
Vendor type26.52< 0.00115.1050.0100.14None

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 44.03, Holm p < 0.001, omega squared 0.410). Active engagements in Build-Out rated highest (mean 5.4, n = 165 respondents) and canceled engagements lowest (mean 3.2, n = 304 respondents). Ratings also differed by respondent role (Welch F 5.25, Holm p = 0.037, omega squared 0.011). Portfolio directors rated highest (mean 5.5, n = 30 respondents) and individual contributors lowest (mean 4.5, n = 615 respondents). Ratings also differed by vendor type (Welch F 4.99, Holm p = 0.001, omega squared 0.024). Consulting firms rated highest (mean 5.3, n = 109 respondents) and pure-play agentic AI firms lowest (mean 4.2, n = 69 respondents). Outsourcing model, institution type, process family and class of work showed no difference.

Written Sentiment by Segment

Figure 5. Written sentiment by engagement status and lifecycle stage, share of each group's responsesExhibit
0%25%50%75%100%All responses (n = 101)43.6%37.6%15.8%Active, Build-Out (n = 19)36.8%31.6%26.3%Active, Transition/Cut-Over (n = 20)25.0%55.0%20.0%Active, Production (n = 10)10.0%50.0%30.0%10.0%Canceled (n = 52)59.6%30.8%−10 Strongly negative−5 Negative0 Neutral+5 Positive+10 Strongly positive
Note: Each bar is the whole of its group's responses, divided by written score from −10 at the left to +10 at the right. Segments large enough to hold a label carry their share.
Table 9. Written sentiment by segmentTable
SegmentResponsesRespondentsEngagementsMean written scoreNegativeStrongest negative (−10)
Engagement status and lifecycle stage
Active, Build-Out191916−3.413 of 19 (68.42%)7 of 19 (36.84%)
Active, Transition/Cut-Over202015−4.316 of 20 (80.00%)5 of 20 (25.00%)
Active, Production10107−1.06 of 10 (60.00%)1 of 10 (10.00%)
Canceled524835−7.147 of 52 (90.38%)31 of 52 (59.62%)
Respondent role
Individual Contributor726960−5.356 of 72 (77.78%)38 of 72 (52.78%)
Engagement Manager212121−5.520 of 21 (95.24%)4 of 21 (19.05%)
Portfolio Director877‡6 of 82 of 8
Customer Management Executive000No responses
Note: ‡ Base under 10. No statistic is reported.

Written sentiment did not differ by engagement status and lifecycle stage across the 73 engagements with a written response (Kruskal-Wallis H 7.55, df 3, p = 0.056). Of the groups with 10 or more responses, responses from canceled engagements were the most negative (mean −7.1, 52 responses) and responses from active engagements in Production the least negative (mean −1.0, 10 responses).

No test across respondent roles was run, because fewer than two roles had 30 or more written responses. Individual contributors wrote 72, engagement managers wrote 21 and portfolio directors wrote 8 responses.

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 10a. Association with cancellation rate by segment, part 1 of 2Table
SegmentEngagementsCanceledCancellation ratePoint-biserial r95% CIpHolm p
Study set1505637.33% of 150−0.65−0.73 to −0.55< 0.001< 0.001
Outsourcing model
CXM421535.71% of 42−0.58−0.75 to −0.33< 0.001< 0.001
ITO401537.50% of 40−0.68−0.82 to −0.47< 0.001< 0.001
BPO371437.84% of 37−0.65−0.80 to −0.41< 0.001< 0.001
KPO311238.71% of 31−0.75−0.87 to −0.54< 0.001< 0.001
Institution type
Asset management241354.17% of 24−0.84†< 0.001< 0.001
Wealth management and private banking23834.78% of 23−0.68†< 0.0010.004
Investment banking (advisory and capital-markets origination)19947.37% of 19−0.45†0.0530.159
Insurance (life, property and casualty, health)14535.71% of 14−0.67†0.0090.054
Commercial and business banking13430.77% of 13−0.61†0.0280.111
Payments and merchant acquiring (networks, acquiring, processing)13323.08% of 13−0.63†0.0210.105
Credit card and payments issuing12541.67% of 12−0.51†0.0890.177
Retail and consumer banking12433.33% of 12−0.83†< 0.0010.008
Markets and trading (sales and trading, global markets)11327.27% of 11−0.83†0.0020.012
Private equity and private capital922 of 9‡
Process family
Corporate and back-office functions471940.43% of 47−0.61−0.76 to −0.39< 0.001< 0.001
Technology engineering and operations351028.57% of 35−0.65−0.81 to −0.41< 0.001< 0.001
Client servicing and communications16956.25% of 16−0.66†0.0060.039
Trade, settlement and reconciliation15853.33% of 15−0.78†< 0.0010.005
Payments, cards and disputes12216.67% of 12−0.49†0.1020.177
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 76−0.68−0.78 to −0.53< 0.001< 0.001
Corporate Functional742635.14% of 74−0.62−0.74 to −0.46< 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 10b. Association with cancellation rate by segment, part 2 of 2Table
SegmentOdds ratio per point95% CIAUCRate, distressed engagementsRate, other engagementsFisher pTOST p
Study set0.230.15 to 0.370.9088.89% of 3621.05% of 114< 0.0011.000
Outsourcing model
CXM0.330.16 to 0.680.8780.00% of 1021.88% of 320.0020.986
ITO0.120.03 to 0.490.916 of 626.47% of 340.0010.999
BPO0.160.05 to 0.530.9284.62% of 1312.50% of 24< 0.0010.997
KPO0.150.04 to 0.590.957 of 720.83% of 24< 0.0011.000
Institution type
Asset management0.00† n = 240.999 of 926.67% of 15< 0.0011.000
Wealth management and private banking0.28† n = 230.907 of 86.67% of 15< 0.0010.990
Investment banking (advisory and capital-markets origination)0.42† n = 190.792 of 343.75% of 160.5820.759
Insurance (life, property and casualty, health)0.21† n = 140.932 of 327.27% of 110.5050.951
Commercial and business banking0.28† n = 130.892 of 218.18% of 110.0770.894
Payments and merchant acquiring (networks, acquiring, processing)0.09† n = 131.002 of 29.09% of 110.0380.914
Credit card and payments issuing0.26† n = 120.802 of 230.00% of 100.1520.779
Retail and consumer banking0.19† n = 121.004 of 40 of 80.0020.995
Markets and trading (sales and trading, global markets)0.23† n = 111.002 of 21 of 90.0550.994
Private equity and private capital‡ n = 9
Process family
Corporate and back-office functions0.330.17 to 0.630.8678.57% of 1424.24% of 33< 0.0010.996
Technology engineering and operations0.130.03 to 0.560.914 of 419.35% of 310.0040.996
Client servicing and communications0.36† n = 160.855 of 640.00% of 100.1450.958
Trade, settlement and reconciliation0.11† n = 150.985 of 530.00% of 100.0260.995
Payments, cards and disputes0.03† n = 120.951 of 19.09% of 110.1670.757
Credit, underwriting and suitability‡ n = 9
Regulatory, audit, tax and legal‡ n = 9
Financial crime and client onboarding‡ n = 7
Class of work
LOB Operational0.200.10 to 0.410.9295.24% of 2118.18% of 55< 0.0011.000
Corporate Functional0.260.14 to 0.480.8880.00% of 1523.73% of 59< 0.0011.000
Engagement status and lifecycle stage
Active, Build-Outa
Active, Transition/Cut-Overa
Active, Productiona
Canceleda
Note: † Base under 30. No interval is reported. ‡ Base under 10. No statistic is reported. a Not tested: no variation in cancellation.

Across the study set, higher ratings came with less cancellation (r = −0.65, 95% CI −0.73 to −0.55, Holm p < 0.001, n = 150 engagements). The association held after Holm correction in fourteen 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 11a. Association with customer satisfaction by segment, part 1 of 2Table
SegmentActive engagementsClean r95% CIpHolm pSpearman rhop
Study set940.660.52 to 0.76< 0.001< 0.0010.66< 0.001
Outsourcing model
CXM270.76†< 0.001< 0.0010.78< 0.001
ITO250.46†0.0200.0610.450.024
BPO230.72†< 0.0010.0010.76< 0.001
KPO190.80†< 0.001< 0.0010.77< 0.001
Institution type
Asset management110.26†0.4470.4470.290.391
Wealth management and private banking150.61†0.0150.0590.600.018
Investment banking (advisory and capital-markets origination)100.77†0.0090.0520.520.125
Insurance (life, property and casualty, health)9‡
Commercial and business banking9‡
Payments and merchant acquiring (networks, acquiring, processing)100.86†0.0010.0100.860.001
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 functions280.67†< 0.0010.0010.68< 0.001
Technology engineering and operations250.44†0.0270.0610.410.040
Client servicing and communications7‡
Trade, settlement and reconciliation7‡
Payments, cards and disputes100.78†0.0070.0510.550.097
Credit, underwriting and suitability8‡
Regulatory, audit, tax and legal5‡
Financial crime and client onboarding4‡
Class of work
LOB Operational460.770.62 to 0.87< 0.001< 0.0010.78< 0.001
Corporate Functional480.530.30 to 0.71< 0.0010.0010.52< 0.001
Engagement status and lifecycle stage
Active, Build-Out310.640.37 to 0.81< 0.0010.0010.65< 0.001
Active, Transition/Cut-Over430.760.60 to 0.86< 0.001< 0.0010.73< 0.001
Active, Production200.56†0.0110.0550.560.010
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 11b. Association with customer satisfaction by segment, part 2 of 2Table
SegmentSlope, points per rating point95% CIR squaredTOST pAll engagementsDescriptive rp
Study set5.284.02 to 6.540.431.0001500.76< 0.001
Outsourcing model
CXM5.76† n = 270.581.000420.75< 0.001
ITO4.40† n = 250.210.812400.70< 0.001
BPO4.92† n = 230.530.997370.77< 0.001
KPO7.53† n = 190.640.999310.88< 0.001
Institution type
Asset management1.96† n = 110.070.447240.84< 0.001
Wealth management and private banking3.85† n = 150.380.921230.75< 0.001
Investment banking (advisory and capital-markets origination)5.69† n = 100.600.971190.630.004
Insurance (life, property and casualty, health)‡ n = 9
Commercial and business banking‡ n = 9
Payments and merchant acquiring (networks, acquiring, processing)8.41† n = 100.740.996130.86< 0.001
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 functions4.87† n = 280.450.994470.74< 0.001
Technology engineering and operations4.23† n = 250.200.781350.70< 0.001
Client servicing and communications‡ n = 7
Trade, settlement and reconciliation‡ n = 7
Payments, cards and disputes6.75† n = 100.620.976120.730.007
Credit, underwriting and suitability‡ n = 8
Regulatory, audit, tax and legal‡ n = 5
Financial crime and client onboarding‡ n = 4
Class of work
LOB Operational7.025.25 to 8.790.591.000760.80< 0.001
Corporate Functional3.731.98 to 5.480.290.973740.71< 0.001
Engagement status and lifecycle stage
Active, Build-Out3.942.14 to 5.740.410.991310.64< 0.001
Active, Transition/Cut-Over7.445.43 to 9.440.581.000430.76< 0.001
Active, Production4.17†0.310.904200.560.011
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 = 0.66, 95% CI 0.52 to 0.76, Holm p < 0.001, n = 94 engagements). The association held after Holm correction in nine 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 is one of the rated indicators. Each comparison therefore uses the mean recomputed without it.

Table 12a. Association with the engagement indicator mean by segment, part 1 of 2Table
SegmentEngagementsLeave-one-out r95% CIpHolm pSpearman rhop
Study set1500.850.79 to 0.89< 0.001< 0.0010.84< 0.001
Outsourcing model
CXM420.890.80 to 0.94< 0.001< 0.0010.89< 0.001
ITO400.760.59 to 0.87< 0.001< 0.0010.77< 0.001
BPO370.820.68 to 0.90< 0.001< 0.0010.80< 0.001
KPO310.890.77 to 0.94< 0.001< 0.0010.86< 0.001
Institution type
Asset management240.87†< 0.001< 0.0010.84< 0.001
Wealth management and private banking230.91†< 0.001< 0.0010.90< 0.001
Investment banking (advisory and capital-markets origination)190.81†< 0.001< 0.0010.77< 0.001
Insurance (life, property and casualty, health)140.92†< 0.001< 0.0010.95< 0.001
Commercial and business banking130.84†< 0.0010.0010.90< 0.001
Payments and merchant acquiring (networks, acquiring, processing)130.90†< 0.001< 0.0010.91< 0.001
Credit card and payments issuing120.84†< 0.0010.0010.710.010
Retail and consumer banking120.89†< 0.001< 0.0010.90< 0.001
Markets and trading (sales and trading, global markets)110.90†< 0.001< 0.0010.93< 0.001
Private equity and private capital9‡
Process family
Corporate and back-office functions470.850.75 to 0.92< 0.001< 0.0010.80< 0.001
Technology engineering and operations350.740.54 to 0.86< 0.001< 0.0010.71< 0.001
Client servicing and communications160.93†< 0.001< 0.0010.93< 0.001
Trade, settlement and reconciliation150.88†< 0.001< 0.0010.91< 0.001
Payments, cards and disputes120.79†0.0020.0020.660.018
Credit, underwriting and suitability9‡
Regulatory, audit, tax and legal9‡
Financial crime and client onboarding7‡
Class of work
LOB Operational760.880.81 to 0.92< 0.001< 0.0010.88< 0.001
Corporate Functional740.820.72 to 0.88< 0.001< 0.0010.80< 0.001
Engagement status and lifecycle stage
Active, Build-Out310.740.52 to 0.87< 0.001< 0.0010.74< 0.001
Active, Transition/Cut-Over430.770.61 to 0.87< 0.001< 0.0010.79< 0.001
Active, Production200.80†< 0.001< 0.0010.79< 0.001
Canceled560.500.27 to 0.67< 0.001< 0.0010.360.006
Note: † Base under 30. No interval is reported. ‡ Base under 10. No statistic is reported.
Table 12b. Association with the engagement indicator mean by segment, part 2 of 2Table
Segmentr with indicator includedChange in rSlope95% CIR squaredTOST pEquivalent
Study set0.850.000.740.67 to 0.820.721.000No
Outsourcing model
CXM0.890.000.820.68 to 0.950.791.000No
ITO0.760.000.680.49 to 0.870.581.000No
BPO0.830.000.640.49 to 0.790.671.000No
KPO0.890.000.800.64 to 0.960.781.000No
Institution type
Asset management0.870.000.77† n = 240.751.000No
Wealth management and private banking0.910.000.72† n = 230.831.000No
Investment banking (advisory and capital-markets origination)0.810.000.61† n = 190.650.999No
Insurance (life, property and casualty, health)0.930.000.73† n = 140.851.000No
Commercial and business banking0.840.000.83† n = 130.700.998No
Payments and merchant acquiring (networks, acquiring, processing)0.900.000.86† n = 130.811.000No
Credit card and payments issuing0.850.000.73† n = 120.710.997No
Retail and consumer banking0.890.000.72† n = 120.791.000No
Markets and trading (sales and trading, global markets)0.900.000.74† n = 110.811.000No
Private equity and private capital‡ n = 9
Process family
Corporate and back-office functions0.860.000.740.60 to 0.880.731.000No
Technology engineering and operations0.74−0.010.680.46 to 0.900.541.000No
Client servicing and communications0.930.000.78† n = 160.871.000No
Trade, settlement and reconciliation0.890.000.67† n = 150.781.000No
Payments, cards and disputes0.800.000.75† n = 120.630.990No
Credit, underwriting and suitability‡ n = 9
Regulatory, audit, tax and legal‡ n = 9
Financial crime and client onboarding‡ n = 7
Class of work
LOB Operational0.880.000.780.68 to 0.880.771.000No
Corporate Functional0.820.000.720.60 to 0.830.671.000No
Engagement status and lifecycle stage
Active, Build-Out0.75−0.010.500.33 to 0.670.551.000No
Active, Transition/Cut-Over0.780.000.720.53 to 0.910.601.000No
Active, Production0.810.000.71† n = 200.640.999No
Canceled0.51−0.010.330.17 to 0.490.250.959No
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 = 0.85, 95% CI 0.79 to 0.89, 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 13a. Association with intent to leave by segment, part 1 of 2Table
SegmentRespondentsr95% CICluster bootstrap 95% CIpHolm p
Study set749−0.63−0.67 to −0.59−0.69 to −0.57< 0.001< 0.001
Outsourcing model
CXM202−0.64−0.72 to −0.56−0.74 to −0.51< 0.001< 0.001
ITO216−0.55−0.63 to −0.45−0.64 to −0.45< 0.001< 0.001
BPO187−0.66−0.73 to −0.57−0.75 to −0.54< 0.001< 0.001
KPO144−0.72−0.79 to −0.63−0.81 to −0.59< 0.001< 0.001
Institution type
Asset management114−0.62−0.72 to −0.49−0.75 to −0.46< 0.001< 0.001
Wealth management and private banking123−0.63−0.72 to −0.51−0.77 to −0.43< 0.001< 0.001
Investment banking (advisory and capital-markets origination)92−0.52−0.65 to −0.35−0.68 to −0.27< 0.001< 0.001
Insurance (life, property and casualty, health)69−0.76−0.84 to −0.64−0.85 to −0.62< 0.001< 0.001
Commercial and business banking72−0.62−0.74 to −0.45−0.75 to −0.43< 0.001< 0.001
Payments and merchant acquiring (networks, acquiring, processing)66−0.71−0.82 to −0.57−0.83 to −0.52< 0.001< 0.001
Credit card and payments issuing68−0.55−0.70 to −0.36−0.78 to −0.19< 0.001< 0.001
Retail and consumer banking62−0.83−0.89 to −0.73−0.89 to −0.71< 0.001< 0.001
Markets and trading (sales and trading, global markets)46−0.74−0.85 to −0.58−0.80 to −0.57< 0.001< 0.001
Private equity and private capital37−0.52−0.72 to −0.23§ n = 90.0010.003
Process family
Corporate and back-office functions211−0.69−0.75 to −0.61−0.77 to −0.58< 0.001< 0.001
Technology engineering and operations184−0.54−0.64 to −0.43−0.64 to −0.43< 0.001< 0.001
Client servicing and communications86−0.62−0.73 to −0.47−0.78 to −0.26< 0.001< 0.001
Trade, settlement and reconciliation70−0.70−0.80 to −0.55−0.80 to −0.54< 0.001< 0.001
Payments, cards and disputes66−0.56−0.71 to −0.37−0.77 to −0.26< 0.001< 0.001
Credit, underwriting and suitability49−0.79−0.88 to −0.66§ n = 9< 0.001< 0.001
Regulatory, audit, tax and legal45−0.81−0.89 to −0.68§ n = 9< 0.001< 0.001
Financial crime and client onboarding38−0.60−0.77 to −0.35§ n = 7< 0.001< 0.001
Class of work
LOB Operational399−0.64−0.69 to −0.58−0.72 to −0.54< 0.001< 0.001
Corporate Functional350−0.63−0.69 to −0.56−0.70 to −0.55< 0.001< 0.001
Engagement status and lifecycle stage
Active, Build-Out157−0.51−0.61 to −0.38−0.68 to −0.29< 0.001< 0.001
Active, Transition/Cut-Over220−0.56−0.64 to −0.46−0.68 to −0.39< 0.001< 0.001
Active, Production88−0.51−0.65 to −0.33−0.71 to −0.27< 0.001< 0.001
Canceled284−0.01−0.13 to 0.10−0.14 to 0.110.8160.816
Respondent role
Individual Contributor569−0.65−0.70 to −0.60−0.71 to −0.59< 0.001< 0.001
Engagement Manager150−0.63−0.71 to −0.52−0.70 to −0.54< 0.001< 0.001
Portfolio Director30−0.30−0.60 to 0.06−0.63 to 0.070.1020.204
Customer Management Executive0‡
Vendor type
IT services major284−0.66−0.72 to −0.59−0.73 to −0.57< 0.001< 0.001
BPO specialist174−0.65−0.73 to −0.55−0.75 to −0.49< 0.001< 0.001
Consulting firm101−0.60−0.72 to −0.46−0.73 to −0.44< 0.001< 0.001
Boutique or specialist provider75−0.65−0.77 to −0.50−0.79 to −0.42< 0.001< 0.001
Pure-play agentic AI firm67−0.61−0.74 to −0.43−0.79 to −0.37< 0.001< 0.001
Not reported, recovered by engagement48−0.60−0.76 to −0.38−0.80 to −0.36< 0.001< 0.001
Note: § Too few engagements for a cluster bootstrap interval. ‡ Base under 10. No statistic is reported.
Table 13b. 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−0.64< 0.00190.72% of 23736.91% of 512150−0.74−0.80 to −0.661.000
Outsourcing model
CXM−0.65< 0.00180.33% of 6127.66% of 14142−0.75−0.86 to −0.571.000
ITO−0.57< 0.00194.55% of 5546.58% of 16140−0.64−0.79 to −0.400.996
BPO−0.68< 0.00192.86% of 7033.33% of 11737−0.77−0.88 to −0.591.000
KPO−0.71< 0.00196.08% of 5138.71% of 9331−0.83−0.92 to −0.681.000
Institution type
Asset management−0.65< 0.001100.00% of 4345.07% of 7124−0.72†0.997
Wealth management and private banking−0.63< 0.00183.33% of 4826.67% of 7523−0.74†0.998
Investment banking (advisory and capital-markets origination)−0.49< 0.00189.66% of 2957.14% of 6319−0.52†0.856
Insurance (life, property and casualty, health)−0.77< 0.001100.00% of 1932.00% of 5014−0.87†1.000
Commercial and business banking−0.66< 0.00192.31% of 1333.90% of 5913−0.79†0.992
Payments and merchant acquiring (networks, acquiring, processing)−0.70< 0.00186.96% of 2330.23% of 4313−0.83†0.997
Credit card and payments issuing−0.54< 0.00186.96% of 2337.78% of 4512−0.76†0.979
Retail and consumer banking−0.85< 0.00190.91% of 2220.00% of 4012−0.91†1.000
Markets and trading (sales and trading, global markets)−0.70< 0.001‡ n = 831.58% of 3811−0.91†1.000
Private equity and private capital−0.470.003‡53.57% of 289‡‡
Process family
Corporate and back-office functions−0.67< 0.00191.55% of 7139.29% of 14047−0.78−0.87 to −0.641.000
Technology engineering and operations−0.57< 0.00192.11% of 3836.30% of 14635−0.63−0.80 to −0.370.993
Client servicing and communications−0.52< 0.00188.24% of 3446.15% of 5216−0.74†0.989
Trade, settlement and reconciliation−0.69< 0.001100.00% of 2951.22% of 4115−0.80†0.997
Payments, cards and disputes−0.55< 0.00162.50% of 1620.00% of 5012−0.69†0.948
Credit, underwriting and suitability−0.80< 0.00192.31% of 1327.78% of 369‡‡
Regulatory, audit, tax and legal−0.82< 0.001100.00% of 2125.00% of 249‡‡
Financial crime and client onboarding−0.58< 0.00186.67% of 1543.48% of 237‡‡
Class of work
LOB Operational−0.63< 0.00190.85% of 14235.80% of 25776−0.75−0.83 to −0.631.000
Corporate Functional−0.64< 0.00190.53% of 9538.04% of 25574−0.73−0.82 to −0.601.000
Engagement status and lifecycle stage
Active, Build-Out−0.49< 0.00163.16% of 1918.84% of 13831−0.53−0.74 to −0.220.931
Active, Transition/Cut-Over−0.54< 0.00176.67% of 3020.53% of 19043−0.61−0.77 to −0.370.993
Active, Production−0.54< 0.00150.00% of 1616.67% of 7220−0.55†0.895
Canceled−0.010.813100.00% of 172100.00% of 112560.17−0.10 to 0.410.153
Respondent role
Individual Contributor−0.66< 0.00191.28% of 19536.90% of 374150−0.74−0.81 to −0.661.000
Engagement Manager−0.63< 0.00191.67% of 3636.84% of 114150−0.63−0.71 to −0.521.000
Portfolio Director−0.300.108‡ n = 637.50% of 2430−0.30−0.60 to 0.060.510
Customer Management Executive‡ n = 0
Vendor type
IT services major−0.68< 0.00191.76% of 8537.19% of 19959−0.76−0.85 to −0.631.000
BPO specialist−0.61< 0.00192.19% of 6438.18% of 11037−0.77−0.88 to −0.601.000
Consulting firm−0.60< 0.00190.48% of 2140.00% of 8023−0.69†0.992
Boutique or specialist provider−0.62< 0.00186.36% of 2243.40% of 5317−0.79†0.998
Pure-play agentic AI firm−0.65< 0.00188.46% of 2621.95% of 4114−0.67†0.952
Not reported, recovered by engagement−0.67< 0.00189.47% of 1931.03% of 2940−0.57−0.75 to −0.320.981
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 −0.67 to −0.59, Holm p < 0.001, n = 749 respondents). The association held after Holm correction in thirty-five of the 37 segment levels tested.

Association of Written Sentiment with the Study Measures

Table 14. Written sentiment and the study measuresTable
ComparisonWith a negative responseWithout a negative responseTestStatisticnp
Cancellation rate, engagements34 of 63 (53.97%)22 of 87 (25.29%)Fisher exact150< 0.001
Customer satisfaction, active engagements66.10%, n = 2963.20%, n = 65Welch t1.13940.262
Engagement mean written score and cancellation, engagementsPoint-biserial r−0.34730.003
Respondent mean written score and intent to leave, respondentsSpearman rho−0.4192< 0.001

Two comparisons set the engagements with at least one negative response against all other engagements. Of the 87 other engagements, 77 had no written response addressing the indicator. These two comparisons therefore do not isolate written sentiment. Of the 63 engagements with a negative response, 34 (53.97%) were canceled, against 22 of the 87 other engagements (25.29%). The difference reached significance (Fisher exact p < 0.001). Customer satisfaction among active engagements did not differ between the two groups (mean 66.10% on 29 engagements against 63.20% on 65, Welch t 1.13, p = 0.262).

Two correlations test written sentiment directly. Across the 73 engagements with a written response, a more negative engagement mean written score came with cancellation (point-biserial r −0.34, p = 0.003). Across 92 respondents, a more negative respondent mean written score came with higher intent to leave (Spearman rho −0.41, p < 0.001). Of the four comparisons, three reached significance at 0.05.

Comparison of Associations Across the Four Measures

Table 15. Associations across the four measuresTable
MeasureFormUnitnr95% CIpEquivalent to zeroRank among the four
Cancellation rateDescriptive contrastEngagement150−0.65−0.73 to −0.55< 0.001No3
Customer satisfactionClean estimateEngagement940.660.52 to 0.76< 0.001No2
Engagement indicator meanLeave-one-outEngagement1500.850.79 to 0.89< 0.001No1
Intent to leaveRespondent level, clusteredRespondent749−0.63−0.69 to −0.57< 0.001No4
Table 16. Pairwise comparison of associationsTable
Pair comparedDifference in rSteiger zpHolm pReading
Cancellation rate and customer satisfaction−0.11−5.30< 0.001< 0.001Differed
Cancellation rate and engagement indicator mean−0.20−5.53< 0.001< 0.001Differed
Cancellation rate and intent to leave−0.09−2.580.0100.020Differed
Customer satisfaction and engagement indicator mean−0.09−3.66< 0.001< 0.001Differed
Customer satisfaction and intent to leave0.020.630.5280.528Did not differ
Engagement indicator mean and intent to leave0.104.02< 0.001< 0.001Differed

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, five of the six pairs differed. The association with the engagement indicator mean was the strongest and the association with intent to leave the weakest. The associations with customer satisfaction and intent to leave did not differ (Holm p = 0.528).

Clustering and Effective Sample Size

Table 17. Clustering and effective sample sizeTable
StatisticValueReading
Clusters (engagements)150Engagements with one or more answers.
Mean respondents per engagement5.3Answers per engagement, among engagements with one or more answers.
ICC(1)0.59Share of the variance that lies between engagements.
Design effect3.56One plus the product of the ICC and the mean cluster size less one.
Nominal respondent n796Respondents who answered.
Effective n224Nominal 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 0.59). Clustering reduced the 796 respondent answers to the equivalent of about 224 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 18. Equivalence tests of null resultsTable
MeasurenrEquivalence boundTOST p, lowerTOST p, upperEquivalent to zeroAchieved powerMDE at power 0.80Detection floor for this n
Cancellation rate150−0.65|r| < 0.301.000< 0.001No0.960.230.23
Customer satisfaction940.66|r| < 0.30< 0.0011.000No0.840.290.23
Engagement indicator mean1500.85|r| < 0.30< 0.0011.000No0.960.230.23
Intent to leave749, effective 210−0.63|r| < 0.301.000< 0.001No0.990.190.23

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 19. Robustness checksTable
CheckMeasurePrimary rCheck r95% CIChangeConclusion holds
Rank correlation in place of PearsonCancellation rate−0.65−0.67a−0.02Yes
Rank correlation in place of PearsonCustomer satisfaction0.660.66a0.00Yes
Rank correlation in place of PearsonEngagement indicator mean0.850.84a0.00Yes
Rank correlation in place of PearsonIntent to leave−0.63−0.64a0.00Yes
Non-answers excluded, then imputed at the engagement meanIntent to leave−0.63−0.63a0.00Yes
Active engagements onlyEngagement indicator mean0.850.760.66 to 0.84−0.08Yes
Active engagements onlyIntent to leave−0.63−0.52−0.59 to −0.460.11Yes
Most influential engagement removed (largest Cook's distance)Cancellation rate−0.65−0.67−0.75 to −0.57−0.02Yes
Most influential engagement removed (largest Cook's distance)Customer satisfaction0.660.680.55 to 0.770.02Yes
Most influential engagement removed (largest Cook's distance)Engagement indicator mean0.850.850.79 to 0.890.00Yes
Most influential engagement removed (largest Cook's distance)Intent to leave−0.63−0.64−0.68 to −0.590.00Yes
Engagements weighted by respondent countCancellation rate−0.65−0.65a0.00Yes
Engagements weighted by respondent countCustomer satisfaction0.660.66a0.00Yes
Engagements weighted by respondent countEngagement indicator mean0.850.84a0.00Yes
Bootstrap of engagementsCancellation rate−0.65−0.65−0.73 to −0.560.00Yes
Bootstrap of engagementsCustomer satisfaction0.660.650.54 to 0.750.00Yes
Bootstrap of engagementsEngagement indicator mean0.850.850.80 to 0.880.00Yes
Bootstrap of engagementsIntent to leave−0.63−0.63−0.69 to −0.570.00Yes
Thin-base segments removedCancellation rate−0.65−0.63−0.75 to −0.480.02Yes
Thin-base segments removedCustomer satisfaction0.660.590.38 to 0.74−0.07Yes
Thin-base segments removedEngagement indicator mean0.850.820.73 to 0.88−0.03Yes
Thin-base segments removedIntent to leave−0.63−0.63−0.69 to −0.570.00Yes
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. The indicator is one of the rated indicators, and the engagement indicator mean was recomputed without it. The correction changed r by 0.00, from 0.85 to 0.85.

Comparison with the Study Norm

Table 20. Comparison with the study normTable
MeasureThe indicator, oriented rStudy median, oriented rDeviationFisher zpHolm p
Cancellation rate0.650.600.051.050.2961.000
Customer satisfaction0.760.720.040.980.3271.000
Engagement indicator mean0.850.840.010.400.6911.000
Intent to leave0.740.710.030.760.4471.000
Spread of deviations0.04
VerdictTypical

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 followed the study's typical pattern on all four measures, and no deviation held after Holm correction.

Comparison of Written Sentiment with Other Part 2 Indicators

Figure 6. Share of negative written responses, Part 2 indicators with 30 or more written responses (n = 71 indicators)Exhibit
0%25%50%75%100%C128C159C132C152C105C098C126C148C108C122C116C096C149C112C173C097C113C139C109C157C101C172C158C095C094C138C187C100C106C127C195C111C186C176C110C143C144C175C102C196C145C103C133C124C125C115C130C189C168C182C164C178C123C141C188C147C179C137C160C120C174C181C104C161C165C183C129C185C136C190C171Share of negative responsesMedian of the 71 indicators
Note: Each column is one indicator, ordered from the highest share of negative responses. The indicator is the amber column. The dashed line marks the median share, 80.82%.

Among the 71 Part 2 indicators with 30 or more written responses, the indicator's share of negative responses, 81.19%, ranked 34th from the highest, against a median of 80.82%. Its mean written score, −5.2, ranked 29th from the most negative, against a median of −4.7.

Co-Occurring Indicators and Themes

Figure 7. Other indicators and themes in the same written responses (n = 101 responses)Exhibit
09.2418.4827.7236.96C17333 (32.67%)C15733 (32.67%)C17212 (11.88%)C16811 (10.89%)C16410 (9.90%)Theme: The scale or question does notfit9 (8.91%)Theme: Human rework absorbs thefailure8 (7.92%)Theme: Comparison to a priorengagement6 (5.94%)Theme: Respondent proposes a remedy4 (3.96%)Theme: Occurs every cycle or most days4 (3.96%)Other indicatorsThemes
Note: Themes carry no score. Labels give the count and the share of the 101 responses. The figure shows each indicator and each theme among the five most frequent of its kind, with every tie at the cut. C157: “Rate the factual reliability of the AI tools' outputs on this engagement before any human review.” C173: “Rate the tools' ability to explain and evidence how each output was produced, at the depth an audit requires.” C172: “Rate how accurately the tools' own reports of success or failure matched the actual outcomes of their work.” C168: “Rate how consistently the agents took only intended and authorized actions when operating connected tools and systems.” C164: “Rate how reliably the tools retained instructions and constraints given earlier in long tasks and sessions.” Emotional states in the same responses, as counts: calm or fine 3, stressed 3, proud 1, frustrated 1.

The indicator most often present in the same responses was C157, “Rate the factual reliability of the AI tools' outputs on this engagement before any human review.”, in 33 of the 101 responses (32.67%). C173, “Rate the tools' ability to explain and evidence how each output was produced, at the depth an audit requires.” (33 responses), C172, “Rate how accurately the tools' own reports of success or failure matched the actual outcomes of their work.” (12 responses), C168, “Rate how consistently the agents took only intended and authorized actions when operating connected tools and systems.” (11 responses) and C164, “Rate how reliably the tools retained instructions and constraints given earlier in long tasks and sessions.” (10 responses) followed.

The most frequent theme was “The scale or question does not fit”, in 9 responses (8.91%). The second was “Human rework absorbs the failure”, in 8 responses.

Interpretation of the Data

About a third of all ratings of the quality of the tools' logs, traces and telemetry fell in the distressed range (255 of 796 answers, 32.04%). The rating was associated with all four study measures, and every association held under each of the 22 robustness checks. Canceled engagements rated far below the three active stages (mean 3.2, n = 304 respondents).

The written evidence places the weakness between the request and the result. Telemetry that records only endpoints cannot locate a failure, so every failure becomes a manual reconstruction and every dispute a matter of recollection. Written sentiment was associated with cancellation in both engagement-level tests and with intent to leave.

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.

Customer management executives gave 1 answers, a base of anecdote strength.

Shares of written sentiment are shares of responses and not of the study set of respondents. The written score takes five fixed values, so its mean and median are coarse. Responses clustered within engagements (101 responses on 73 engagements). Intervals for written sentiment therefore used a bootstrap by engagement.

Definitions

Table 21. 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 categoryOne of the five failure categories of the Study Taxonomy. The indicator belongs to AI technology.
Engagement indicator meanThe mean of an engagement's ratings on the rated indicators. The indicator is one of the rated indicators, so the mean is recomputed without it wherever the two are compared.
Written responseA written answer about the respondent's own engagement that addresses the indicator. Non-answers and answers about another engagement are excluded.
Primary and secondaryA primary response answered the written-answer question of the indicator's survey section. A secondary response answered a question in another section and addressed the indicator in its content.
Written sentiment scoreEach written response carries one of five scores: −10, −5, neutral, +5 or +10. The sign records whether the response described the state of the indicator as harmful or helpful to the engagement. The magnitude records its strength. A score of −10 marks a statement of totality, constancy or serious harm.
Cluster bootstrapAn interval computed by resampling engagements rather than responses, so that the responses from one engagement stay together.

Sources and Provenance

Table 22. Sources and provenanceTable
SourceValue
Study dataStudy Data.xlsx, Data sheet, column C176, sha256 219eba0457274d04
Statistics enginecompute_statistics.py, sha256 738319eef764602b
Statistics recordComputed Statistics.json, record C176, sha256 1ae50a3637fc9370
ComputedOctober 13, 2026, 04:57 UTC
TemplateIndicator Template v2, version 2.0 of 10 October 2026
Figures placed by script3,115
Written responsesQuotes Master.jsonl, sha256 27da38085e2b13fd
Written sentiment scoresQuote Coding Rulebook, version 0.6, with section 21
Written-response computationqa_stats.py, sha256 74a61f3a96169da9. wfacts.py, sha256 b85fae20adf812a1. build_indicator.py, sha256 a97ad6e74627e11e
Written-response recordsC176.qa.json, sha256 620f9545c6087ee3. C176.wfacts.json, sha256 4e51a77dd64e1d0f. Hand-written text handcraft/C176.json, sha256 66c26d4abe2b615e

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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