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
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19 sectionsIndicator Specification
| Field | Value |
|---|---|
| Indicator code | C058 |
| Question as asked | My management team fully understands these laws, regulations, and similar, and how they affect the engagement. |
| Failure category | Not one of the 100 rated indicators |
| Place in the survey | Engagement Details > 2.6 Regulatory Context > Understanding |
| Indicator class | Respondent level |
| Indicator type | Rated, POS |
| Response scale | 1 to 10, higher is the better outcome |
| Answering base | 516 of 850 respondents, across 150 of 150 engagements |
| Non-answers | I do not know 265, I prefer to not answer 0, blank 69 |
Summary of Findings
| Measure | Form | n | r | 95% CI | p |
|---|---|---|---|---|---|
| Cancellation rate | Descriptive contrast | 150 engagements | −0.53 | −0.64 to −0.41 | < 0.001 |
| Customer satisfaction | Clean estimate | 94 engagements | 0.62 | 0.48 to 0.73 | < 0.001 |
| Engagement indicator mean | Full | 150 engagements | 0.71 | 0.62 to 0.78 | < 0.001 |
| Intent to leave | Respondent level, clustered | 492 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
| Answer | Respondents | Share of answered (base 516) | Cumulative share | Engagements with at least one | Share of 150 engagements | Distressed |
|---|---|---|---|---|---|---|
| 1 | 40 | 7.75% | 7.75% | 21 | 14.00% | Yes |
| 2 | 39 | 7.56% | 15.31% | 30 | 20.00% | Yes |
| 3 | 70 | 13.57% | 28.88% | 54 | 36.00% | Yes |
| 4 | 65 | 12.60% | 41.47% | 51 | 34.00% | No |
| 5 | 91 | 17.64% | 59.11% | 63 | 42.00% | No |
| 6 | 81 | 15.70% | 74.81% | 66 | 44.00% | No |
| 7 | 60 | 11.63% | 86.43% | 45 | 30.00% | No |
| 8 | 42 | 8.14% | 94.57% | 30 | 20.00% | No |
| 9 | 21 | 4.07% | 98.64% | 18 | 12.00% | No |
| 10 | 7 | 1.36% | 100.00% | 5 | 3.33% | No |
| I do not know | 265 | Not in base | Not in base | 135 | 90.00% | Not applicable |
| I prefer to not answer | 0 | Not in base | Not in base | 0 | 0.00% | Not applicable |
| Answered, total | 516 | 100.00% | 150 | 100.00% |
| Engagement level summary | Engagements | Mean of engagement means | SD | Min | Median | Max | Engagements with a distressed mean | Share of engagements distressed |
|---|---|---|---|---|---|---|---|---|
| Engagement means, goodness view | 150 | 4.9 | 1.9 | 1.0 | 5.0 | 9.5 | 31 | 20.67% |
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
| Segment | Base | Answered | Answer rate | Engagements | Mean | 95% CI | SD |
|---|---|---|---|---|---|---|---|
| Study set | 850 | 516 | 60.71% of 850 | 150 | 4.9 | 4.7 to 5.1 | 2.2 |
| Outsourcing model | |||||||
| CXM | 232 | 143 | 61.64% of 232 | 42 | 5.4 | 5.0 to 5.8 | 2.3 |
| ITO | 244 | 140 | 57.38% of 244 | 40 | 5.1 | 4.8 to 5.4 | 2.0 |
| BPO | 209 | 134 | 64.11% of 209 | 37 | 4.4 | 4.0 to 4.8 | 2.2 |
| KPO | 165 | 99 | 60.00% of 165 | 31 | 4.7 | 4.2 to 5.2 | 2.3 |
| Institution type | |||||||
| Asset management | 132 | 74 | 56.06% of 132 | 24 | 4.9 | 4.4 to 5.5 | 2.3 |
| Wealth management and private banking | 140 | 85 | 60.71% of 140 | 23 | 5.0 | 4.5 to 5.4 | 2.2 |
| Investment banking (advisory and capital-markets origination) | 105 | 57 | 54.29% of 105 | 19 | 4.7 | 4.1 to 5.3 | 2.2 |
| Insurance (life, property and casualty, health) | 78 | 50 | 64.10% of 78 | 14 | 5.1 | 4.5 to 5.6 | 1.9 |
| Commercial and business banking | 82 | 51 | 62.20% of 82 | 13 | 5.2 | 4.7 to 5.7 | 1.7 |
| Payments and merchant acquiring (networks, acquiring, processing) | 71 | 45 | 63.38% of 71 | 13 | 5.2 | 4.6 to 5.8 | 1.9 |
| Credit card and payments issuing | 73 | 44 | 60.27% of 73 | 12 | 4.4 | 3.5 to 5.2 | 2.8 |
| Retail and consumer banking | 73 | 52 | 71.23% of 73 | 12 | 5.1 | 4.4 to 5.9 | 2.7 |
| Markets and trading (sales and trading, global markets) | 57 | 33 | 57.89% of 57 | 11 | 5.2 | 4.5 to 6.0 | 2.0 |
| Private equity and private capital | 39 | 25 | 64.10% of 39 | 9 | 4.2 | † | 2.2 |
| Process family | |||||||
| Corporate and back-office functions | 248 | 153 | 61.69% of 248 | 47 | 4.9 | 4.5 to 5.2 | 2.3 |
| Technology engineering and operations | 204 | 120 | 58.82% of 204 | 35 | 5.6 | 5.2 to 5.9 | 2.0 |
| Client servicing and communications | 94 | 55 | 58.51% of 94 | 16 | 5.0 | 4.5 to 5.6 | 2.1 |
| Trade, settlement and reconciliation | 80 | 48 | 60.00% of 80 | 15 | 4.5 | 3.8 to 5.1 | 2.1 |
| Payments, cards and disputes | 73 | 44 | 60.27% of 73 | 12 | 4.9 | 4.2 to 5.7 | 2.5 |
| Credit, underwriting and suitability | 57 | 35 | 61.40% of 57 | 9 | 4.9 | 4.0 to 5.7 | 2.4 |
| Regulatory, audit, tax and legal | 51 | 32 | 62.75% of 51 | 9 | 4.2 | 3.3 to 5.0 | 2.3 |
| Financial crime and client onboarding | 43 | 29 | 67.44% of 43 | 7 | 4.0 | † | 1.8 |
| Class of work | |||||||
| LOB Operational | 451 | 268 | 59.42% of 451 | 76 | 4.7 | 4.4 to 5.0 | 2.2 |
| Corporate Functional | 399 | 248 | 62.16% of 399 | 74 | 5.2 | 4.9 to 5.5 | 2.2 |
| Engagement status and lifecycle stage | |||||||
| Active, Build-Out | 175 | 112 | 64.00% of 175 | 31 | 6.1 | 5.7 to 6.5 | 2.0 |
| Active, Transition/Cut-Over | 250 | 155 | 62.00% of 250 | 43 | 5.4 | 5.1 to 5.7 | 1.9 |
| Active, Production | 103 | 56 | 54.37% of 103 | 20 | 6.0 | 5.5 to 6.6 | 2.1 |
| Canceled | 322 | 193 | 59.94% of 322 | 56 | 3.5 | 3.3 to 3.8 | 1.8 |
| Respondent role | |||||||
| Individual Contributor | 667 | 343 | 51.42% of 667 | 142 | 4.7 | 4.5 to 5.0 | 2.2 |
| Engagement Manager | 150 | 150 | 100.00% of 150 | 150 | 5.2 | 4.8 to 5.5 | 2.2 |
| Portfolio Director | 31 | 23 | 74.19% of 31 | 23 | 6.3 | † | 1.8 |
| Customer Management Executive | 2 | 0 | 0 of 2 | 0 | ‡ | ||
| Vendor type | |||||||
| IT services major | 316 | 191 | 60.44% of 316 | 59 | 5.2 | 5.0 to 5.5 | 2.0 |
| BPO specialist | 198 | 125 | 63.13% of 198 | 37 | 4.1 | 3.7 to 4.5 | 2.4 |
| Consulting firm | 117 | 63 | 53.85% of 117 | 23 | 4.9 | 4.3 to 5.5 | 2.2 |
| Boutique or specialist provider | 87 | 54 | 62.07% of 87 | 17 | 5.7 | 5.2 to 6.3 | 2.0 |
| Pure-play agentic AI firm | 75 | 50 | 66.67% of 75 | 14 | 5.1 | 4.4 to 5.8 | 2.4 |
| Not reported, recovered by engagement | 57 | 33 | 57.89% of 57 | 29 | 4.7 | 4.0 to 5.4 | 2.0 |
| Segment | Min | Q1 | Median | Q3 | Max | Distressed n | Distressed % |
|---|---|---|---|---|---|---|---|
| Study set | 1.0 | 3.0 | 5.0 | 7.0 | 10.0 | 149 | 28.88% |
| Outsourcing model | |||||||
| CXM | 1.0 | 4.0 | 6.0 | 7.0 | 10.0 | 32 | 22.38% |
| ITO | 1.0 | 4.0 | 5.0 | 6.0 | 10.0 | 34 | 24.29% |
| BPO | 1.0 | 3.0 | 4.0 | 6.0 | 10.0 | 47 | 35.07% |
| KPO | 1.0 | 3.0 | 5.0 | 6.0 | 9.0 | 36 | 36.36% |
| Institution type | |||||||
| Asset management | 1.0 | 3.0 | 5.0 | 6.0 | 10.0 | 23 | 31.08% |
| Wealth management and private banking | 1.0 | 3.0 | 5.0 | 7.0 | 10.0 | 23 | 27.06% |
| Investment banking (advisory and capital-markets origination) | 1.0 | 3.0 | 5.0 | 6.0 | 9.0 | 19 | 33.33% |
| Insurance (life, property and casualty, health) | 1.0 | 4.0 | 5.0 | 6.0 | 9.0 | 12 | 24.00% |
| Commercial and business banking | 2.0 | 4.0 | 5.0 | 6.5 | 9.0 | 9 | 17.65% |
| Payments and merchant acquiring (networks, acquiring, processing) | 1.0 | 4.0 | 5.0 | 6.0 | 9.0 | 9 | 20.00% |
| Credit card and payments issuing | 1.0 | 2.0 | 4.0 | 6.3 | 10.0 | 21 | 47.73% |
| Retail and consumer banking | 1.0 | 3.0 | 5.5 | 7.3 | 10.0 | 16 | 30.77% |
| Markets and trading (sales and trading, global markets) | 1.0 | 4.0 | 5.0 | 7.0 | 9.0 | 7 | 21.21% |
| Private equity and private capital | 1.0 | 3.0 | 4.0 | 6.0 | 8.0 | 10 | 40.00% |
| Process family | |||||||
| Corporate and back-office functions | 1.0 | 3.0 | 5.0 | 6.0 | 10.0 | 47 | 30.72% |
| Technology engineering and operations | 1.0 | 4.0 | 5.0 | 7.0 | 10.0 | 21 | 17.50% |
| Client servicing and communications | 1.0 | 4.0 | 5.0 | 6.0 | 9.0 | 13 | 23.64% |
| Trade, settlement and reconciliation | 1.0 | 3.0 | 4.0 | 6.0 | 8.0 | 19 | 39.58% |
| Payments, cards and disputes | 1.0 | 3.0 | 5.0 | 7.0 | 9.0 | 15 | 34.09% |
| Credit, underwriting and suitability | 1.0 | 2.5 | 5.0 | 7.0 | 9.0 | 10 | 28.57% |
| Regulatory, audit, tax and legal | 1.0 | 2.8 | 4.5 | 6.0 | 9.0 | 13 | 40.63% |
| Financial crime and client onboarding | 1.0 | 3.0 | 5.0 | 5.0 | 7.0 | 11 | 37.93% |
| Class of work | |||||||
| LOB Operational | 1.0 | 3.0 | 5.0 | 6.0 | 9.0 | 87 | 32.46% |
| Corporate Functional | 1.0 | 3.8 | 5.0 | 7.0 | 10.0 | 62 | 25.00% |
| Engagement status and lifecycle stage | |||||||
| Active, Build-Out | 2.0 | 5.0 | 6.0 | 8.0 | 10.0 | 12 | 10.71% |
| Active, Transition/Cut-Over | 1.0 | 4.0 | 5.0 | 7.0 | 10.0 | 23 | 14.84% |
| Active, Production | 2.0 | 4.0 | 6.0 | 8.0 | 10.0 | 7 | 12.50% |
| Canceled | 1.0 | 2.0 | 3.0 | 5.0 | 9.0 | 107 | 55.44% |
| Respondent role | |||||||
| Individual Contributor | 1.0 | 3.0 | 5.0 | 6.0 | 10.0 | 110 | 32.07% |
| Engagement Manager | 1.0 | 4.0 | 5.0 | 7.0 | 10.0 | 37 | 24.67% |
| Portfolio Director | 3.0 | 5.0 | 6.0 | 8.0 | 10.0 | 2 | 8.70% |
| Customer Management Executive | ‡ n = 0 | ||||||
| Vendor type | |||||||
| IT services major | 1.0 | 4.0 | 5.0 | 7.0 | 10.0 | 42 | 21.99% |
| BPO specialist | 1.0 | 2.0 | 4.0 | 6.0 | 10.0 | 57 | 45.60% |
| Consulting firm | 1.0 | 3.0 | 5.0 | 7.0 | 9.0 | 22 | 34.92% |
| Boutique or specialist provider | 2.0 | 4.0 | 6.0 | 7.0 | 9.0 | 8 | 14.81% |
| Pure-play agentic AI firm | 1.0 | 4.0 | 5.0 | 7.0 | 10.0 | 11 | 22.00% |
| Not reported, recovered by engagement | 1.0 | 3.0 | 5.0 | 6.0 | 9.0 | 9 | 27.27% |
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
| Segment family | Welch F | df | p | Holm p | Omega squared | 90% CI |
|---|---|---|---|---|---|---|
| Outsourcing model | 0.99 | 3, 78.6 | 0.404 | 1.000 | 0.000 | 0.000 to 0.055 |
| Institution type | 0.39 | 8, 49.4 | 0.919 | 1.000 | −0.037 | 0.000 to 0.005 |
| Process family | 1.15 | 4, 38.4 | 0.347 | 1.000 | 0.001 | 0.000 to 0.069 |
| Class of work | 1.71 | 1, 148.0 | 0.193 | 0.774 | 0.005 | 0.000 to 0.055 |
| Engagement status and lifecycle stage | 21.82 | 3, 60.8 | < 0.001 | < 0.001 | 0.280 | 0.187 to 0.377 |
| Respondent role | 9.24 | 2, 61.1 | < 0.001 | 0.002 | 0.024 | 0.008 to 0.054 |
| Vendor type | 5.53 | 5, 149.1 | < 0.001 | < 0.001 | 0.045 | 0.020 to 0.081 |
| Segment family | Kruskal-Wallis H | p | Distressed chi-square | df | p | Cramer's V | Levels excluded |
|---|---|---|---|---|---|---|---|
| Outsourcing model | 3.19 | 0.364 | 2.83 | 3 | 0.419 | 0.14 | None |
| Institution type | 3.09 | 0.929 | 12.49 | 8 | 0.127, simulated | 0.30 | Private equity and private capital, n = 9 |
| Process family | 3.56 | 0.469 | 6.38 | 4 | 0.165, simulated | 0.23 | Credit, underwriting and suitability, n = 9, Regulatory, audit, tax and legal, n = 9, Financial crime and client onboarding, n = 7 |
| Class of work | 1.38 | 0.240 | 3.00 | 1 | 0.083 | 0.14 | None |
| Engagement status and lifecycle stage | 45.34 | < 0.001 | 19.19 | 3 | < 0.001, simulated | 0.36 | None |
| Respondent role | 13.38 | 0.001 | 7.56 | 2 | 0.023 | 0.12 | Customer Management Executive, n = 0 |
| Vendor type | 28.02 | < 0.001 | 28.95 | 5 | < 0.001 | 0.24 | None |
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.
| Segment | Engagements | Canceled | Cancellation rate | Point-biserial r | 95% CI | p | Holm p |
|---|---|---|---|---|---|---|---|
| Study set | 150 | 56 | 37.33% of 150 | −0.53 | −0.64 to −0.41 | < 0.001 | < 0.001 |
| Outsourcing model | |||||||
| CXM | 42 | 15 | 35.71% of 42 | −0.54 | −0.72 to −0.28 | < 0.001 | 0.004 |
| ITO | 40 | 15 | 37.50% of 40 | −0.50 | −0.70 to −0.22 | 0.001 | 0.013 |
| BPO | 37 | 14 | 37.84% of 37 | −0.66 | −0.81 to −0.42 | < 0.001 | < 0.001 |
| KPO | 31 | 12 | 38.71% of 31 | −0.46 | −0.70 to −0.13 | 0.008 | 0.059 |
| Institution type | |||||||
| Asset management | 24 | 13 | 54.17% of 24 | −0.65 | † | < 0.001 | 0.007 |
| Wealth management and private banking | 23 | 8 | 34.78% of 23 | −0.47 | † | 0.024 | 0.145 |
| Investment banking (advisory and capital-markets origination) | 19 | 9 | 47.37% of 19 | −0.61 | † | 0.006 | 0.053 |
| Insurance (life, property and casualty, health) | 14 | 5 | 35.71% of 14 | −0.39 | † | 0.173 | 0.533 |
| Commercial and business banking | 13 | 4 | 30.77% of 13 | −0.08 | † | 0.788 | 0.788 |
| Payments and merchant acquiring (networks, acquiring, processing) | 13 | 3 | 23.08% of 13 | −0.32 | † | 0.284 | 0.568 |
| Credit card and payments issuing | 12 | 5 | 41.67% of 12 | −0.73 | † | 0.007 | 0.056 |
| Retail and consumer banking | 12 | 4 | 33.33% of 12 | −0.91 | † | < 0.001 | < 0.001 |
| Markets and trading (sales and trading, global markets) | 11 | 3 | 27.27% of 11 | −0.85 | † | < 0.001 | 0.010 |
| Private equity and private capital | 9 | 2 | 2 of 9 | ‡ | |||
| Process family | |||||||
| Corporate and back-office functions | 47 | 19 | 40.43% of 47 | −0.54 | −0.72 to −0.30 | < 0.001 | 0.001 |
| Technology engineering and operations | 35 | 10 | 28.57% of 35 | −0.57 | −0.76 to −0.29 | < 0.001 | 0.005 |
| Client servicing and communications | 16 | 9 | 56.25% of 16 | −0.39 | † | 0.133 | 0.533 |
| Trade, settlement and reconciliation | 15 | 8 | 53.33% of 15 | −0.71 | † | 0.003 | 0.032 |
| Payments, cards and disputes | 12 | 2 | 16.67% of 12 | −0.64 | † | 0.024 | 0.145 |
| Credit, underwriting and suitability | 9 | 1 | 1 of 9 | ‡ | |||
| Regulatory, audit, tax and legal | 9 | 4 | 4 of 9 | ‡ | |||
| Financial crime and client onboarding | 7 | 3 | 3 of 7 | ‡ | |||
| Class of work | |||||||
| LOB Operational | 76 | 30 | 39.47% of 76 | −0.50 | −0.65 to −0.31 | < 0.001 | < 0.001 |
| Corporate Functional | 74 | 26 | 35.14% of 74 | −0.57 | −0.70 to −0.39 | < 0.001 | < 0.001 |
| Engagement status and lifecycle stage | |||||||
| Active, Build-Out | 31 | 0 | 0.00% of 31 | a | |||
| Active, Transition/Cut-Over | 43 | 0 | 0.00% of 43 | a | |||
| Active, Production | 20 | 0 | 0.00% of 20 | a | |||
| Canceled | 56 | 56 | 100.00% of 56 | a |
| Segment | Odds ratio per point | 95% CI | AUC | Rate, distressed engagements | Rate, other engagements | Fisher p | TOST p |
|---|---|---|---|---|---|---|---|
| Study set | 0.47 | 0.36 to 0.61 | 0.82 | 70.97% of 31 | 28.57% of 119 | < 0.001 | 1.000 |
| Outsourcing model | |||||||
| CXM | 0.52 | 0.35 to 0.79 | 0.81 | 70.00% of 10 | 25.00% of 32 | 0.020 | 0.964 |
| ITO | 0.41 | 0.21 to 0.78 | 0.80 | 4 of 5 | 31.43% of 35 | 0.056 | 0.923 |
| BPO | 0.28 | 0.13 to 0.63 | 0.89 | 80.00% of 10 | 22.22% of 27 | 0.002 | 0.997 |
| KPO | 0.57 | 0.36 to 0.91 | 0.80 | 3 of 6 | 36.00% of 25 | 0.653 | 0.847 |
| Institution type | |||||||
| Asset management | 0.28 | † n = 24 | 0.88 | 3 of 3 | 47.62% of 21 | 0.223 | 0.985 |
| Wealth management and private banking | 0.56 | † n = 23 | 0.77 | 5 of 8 | 20.00% of 15 | 0.071 | 0.812 |
| Investment banking (advisory and capital-markets origination) | 0.34 | † n = 19 | 0.86 | 3 of 3 | 37.50% of 16 | 0.087 | 0.943 |
| Insurance (life, property and casualty, health) | 0.60 | † n = 14 | 0.73 | 1 of 3 | 36.36% of 11 | 1.000 | 0.626 |
| Commercial and business banking | 0.88 | † n = 13 | 0.51 | a | 30.77% of 13 | 0.237 | |
| Payments and merchant acquiring (networks, acquiring, processing) | 0.57 | † n = 13 | 0.73 | 0 of 1 | 25.00% of 12 | 1.000 | 0.530 |
| Credit card and payments issuing | 0.30 | † n = 12 | 0.91 | 4 of 5 | 1 of 7 | 0.072 | 0.968 |
| Retail and consumer banking | 0.28 | † n = 12 | 1.00 | 3 of 3 | 1 of 9 | 0.018 | 1.000 |
| Markets and trading (sales and trading, global markets) | 0.31 | † n = 11 | 1.00 | 2 of 2 | 1 of 9 | 0.055 | 0.997 |
| Private equity and private capital | ‡ n = 9 | ||||||
| Process family | |||||||
| Corporate and back-office functions | 0.48 | 0.31 to 0.75 | 0.83 | 5 of 8 | 35.90% of 39 | 0.240 | 0.974 |
| Technology engineering and operations | 0.28 | 0.11 to 0.69 | 0.88 | 3 of 3 | 21.88% of 32 | 0.018 | 0.973 |
| Client servicing and communications | 0.63 | † n = 16 | 0.75 | 4 of 5 | 45.45% of 11 | 0.308 | 0.647 |
| Trade, settlement and reconciliation | 0.24 | † n = 15 | 0.89 | 4 of 5 | 40.00% of 10 | 0.282 | 0.976 |
| Payments, cards and disputes | 0.28 | † n = 12 | 1.00 | 2 of 3 | 0 of 9 | 0.045 | 0.913 |
| Credit, underwriting and suitability | ‡ n = 9 | ||||||
| Regulatory, audit, tax and legal | ‡ n = 9 | ||||||
| Financial crime and client onboarding | ‡ n = 7 | ||||||
| Class of work | |||||||
| LOB Operational | 0.51 | 0.37 to 0.72 | 0.80 | 70.00% of 20 | 28.57% of 56 | 0.003 | 0.981 |
| Corporate Functional | 0.42 | 0.28 to 0.63 | 0.85 | 72.73% of 11 | 28.57% of 63 | 0.013 | 0.998 |
| Engagement status and lifecycle stage | |||||||
| Active, Build-Out | b | ||||||
| Active, Transition/Cut-Over | b | ||||||
| Active, Production | b | ||||||
| Canceled | b |
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.
| Segment | Active engagements | Clean r | 95% CI | p | Holm p | Spearman rho | p |
|---|---|---|---|---|---|---|---|
| Study set | 94 | 0.62 | 0.48 to 0.73 | < 0.001 | < 0.001 | 0.63 | < 0.001 |
| Outsourcing model | |||||||
| CXM | 27 | 0.64 | † | < 0.001 | 0.004 | 0.59 | 0.001 |
| ITO | 25 | 0.58 | † | 0.002 | 0.017 | 0.60 | 0.001 |
| BPO | 23 | 0.66 | † | < 0.001 | 0.006 | 0.69 | < 0.001 |
| KPO | 19 | 0.68 | † | 0.001 | 0.011 | 0.69 | 0.001 |
| Institution type | |||||||
| Asset management | 11 | 0.46 | † | 0.151 | 0.303 | 0.43 | 0.188 |
| Wealth management and private banking | 15 | 0.70 | † | 0.004 | 0.024 | 0.55 | 0.034 |
| Investment banking (advisory and capital-markets origination) | 10 | 0.27 | † | 0.453 | 0.453 | 0.15 | 0.685 |
| Insurance (life, property and casualty, health) | 9 | ‡ | |||||
| Commercial and business banking | 9 | ‡ | |||||
| Payments and merchant acquiring (networks, acquiring, processing) | 10 | 0.76 | † | 0.011 | 0.055 | 0.73 | 0.018 |
| Credit card and payments issuing | 7 | ‡ | |||||
| Retail and consumer banking | 8 | ‡ | |||||
| Markets and trading (sales and trading, global markets) | 8 | ‡ | |||||
| Private equity and private capital | 7 | ‡ | |||||
| Process family | |||||||
| Corporate and back-office functions | 28 | 0.66 | † | < 0.001 | 0.002 | 0.56 | 0.002 |
| Technology engineering and operations | 25 | 0.42 | † | 0.035 | 0.106 | 0.45 | 0.026 |
| Client servicing and communications | 7 | ‡ | |||||
| Trade, settlement and reconciliation | 7 | ‡ | |||||
| Payments, cards and disputes | 10 | 0.70 | † | 0.025 | 0.102 | 0.69 | 0.026 |
| Credit, underwriting and suitability | 8 | ‡ | |||||
| Regulatory, audit, tax and legal | 5 | ‡ | |||||
| Financial crime and client onboarding | 4 | ‡ | |||||
| Class of work | |||||||
| LOB Operational | 46 | 0.64 | 0.43 to 0.79 | < 0.001 | < 0.001 | 0.65 | < 0.001 |
| Corporate Functional | 48 | 0.61 | 0.39 to 0.76 | < 0.001 | < 0.001 | 0.60 | < 0.001 |
| Engagement status and lifecycle stage | |||||||
| Active, Build-Out | 31 | 0.57 | 0.27 to 0.77 | < 0.001 | 0.008 | 0.61 | < 0.001 |
| Active, Transition/Cut-Over | 43 | 0.68 | 0.47 to 0.81 | < 0.001 | < 0.001 | 0.69 | < 0.001 |
| Active, Production | 20 | 0.63 | † | 0.003 | 0.022 | 0.59 | 0.007 |
| Canceled | 0 | a |
| Segment | Slope, points per rating point | 95% CI | R squared | TOST p | All engagements | Descriptive r | p |
|---|---|---|---|---|---|---|---|
| Study set | 4.22 | 3.12 to 5.31 | 0.39 | 1.000 | 150 | 0.65 | < 0.001 |
| Outsourcing model | |||||||
| CXM | 4.83 | † n = 27 | 0.40 | 0.985 | 42 | 0.65 | < 0.001 |
| ITO | 3.59 | † n = 25 | 0.34 | 0.954 | 40 | 0.62 | < 0.001 |
| BPO | 4.60 | † n = 23 | 0.44 | 0.985 | 37 | 0.75 | < 0.001 |
| KPO | 4.22 | † n = 19 | 0.47 | 0.982 | 31 | 0.65 | < 0.001 |
| Institution type | |||||||
| Asset management | 2.48 | † n = 11 | 0.21 | 0.706 | 24 | 0.66 | < 0.001 |
| Wealth management and private banking | 3.17 | † n = 15 | 0.48 | 0.971 | 23 | 0.62 | 0.002 |
| Investment banking (advisory and capital-markets origination) | 3.48 | † n = 10 | 0.07 | 0.464 | 19 | 0.62 | 0.005 |
| Insurance (life, property and casualty, health) | ‡ n = 9 | ||||||
| Commercial and business banking | ‡ n = 9 | ||||||
| Payments and merchant acquiring (networks, acquiring, processing) | 6.21 | † n = 10 | 0.58 | 0.965 | 13 | 0.61 | 0.026 |
| 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 functions | 4.83 | † n = 28 | 0.44 | 0.993 | 47 | 0.67 | < 0.001 |
| Technology engineering and operations | 3.00 | † n = 25 | 0.18 | 0.746 | 35 | 0.65 | < 0.001 |
| Client servicing and communications | ‡ n = 7 | ||||||
| Trade, settlement and reconciliation | ‡ n = 7 | ||||||
| Payments, cards and disputes | 4.05 | † n = 10 | 0.48 | 0.927 | 12 | 0.81 | 0.001 |
| Credit, underwriting and suitability | ‡ n = 8 | ||||||
| Regulatory, audit, tax and legal | ‡ n = 5 | ||||||
| Financial crime and client onboarding | ‡ n = 4 | ||||||
| Class of work | |||||||
| LOB Operational | 4.76 | 3.04 to 6.48 | 0.41 | 0.999 | 76 | 0.63 | < 0.001 |
| Corporate Functional | 3.74 | 2.30 to 5.17 | 0.37 | 0.996 | 74 | 0.68 | < 0.001 |
| Engagement status and lifecycle stage | |||||||
| Active, Build-Out | 3.32 | 1.51 to 5.13 | 0.33 | 0.964 | 31 | 0.57 | < 0.001 |
| Active, Transition/Cut-Over | 4.97 | 3.27 to 6.66 | 0.46 | 0.999 | 43 | 0.68 | < 0.001 |
| Active, Production | 4.29 | † | 0.39 | 0.961 | 20 | 0.63 | 0.003 |
| Canceled | a |
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.
| Segment | Engagements | Leave-one-out r | 95% CI | p | Holm p | Spearman rho | p |
|---|---|---|---|---|---|---|---|
| Study set | 150 | 0.71 | 0.62 to 0.78 | < 0.001 | < 0.001 | 0.71 | < 0.001 |
| Outsourcing model | |||||||
| CXM | 42 | 0.74 | 0.57 to 0.85 | < 0.001 | < 0.001 | 0.72 | < 0.001 |
| ITO | 40 | 0.59 | 0.34 to 0.76 | < 0.001 | < 0.001 | 0.56 | < 0.001 |
| BPO | 37 | 0.77 | 0.60 to 0.88 | < 0.001 | < 0.001 | 0.75 | < 0.001 |
| KPO | 31 | 0.70 | 0.46 to 0.84 | < 0.001 | < 0.001 | 0.72 | < 0.001 |
| Institution type | |||||||
| Asset management | 24 | 0.76 | † | < 0.001 | < 0.001 | 0.73 | < 0.001 |
| Wealth management and private banking | 23 | 0.65 | † | < 0.001 | 0.006 | 0.57 | 0.005 |
| Investment banking (advisory and capital-markets origination) | 19 | 0.65 | † | 0.003 | 0.018 | 0.64 | 0.003 |
| Insurance (life, property and casualty, health) | 14 | 0.60 | † | 0.023 | 0.041 | 0.57 | 0.032 |
| Commercial and business banking | 13 | 0.63 | † | 0.021 | 0.041 | 0.44 | 0.129 |
| Payments and merchant acquiring (networks, acquiring, processing) | 13 | 0.78 | † | 0.002 | 0.014 | 0.71 | 0.007 |
| Credit card and payments issuing | 12 | 0.72 | † | 0.008 | 0.039 | 0.76 | 0.004 |
| Retail and consumer banking | 12 | 0.89 | † | < 0.001 | 0.001 | 0.85 | < 0.001 |
| Markets and trading (sales and trading, global markets) | 11 | 0.88 | † | < 0.001 | 0.003 | 0.83 | 0.002 |
| Private equity and private capital | 9 | ‡ | |||||
| Process family | |||||||
| Corporate and back-office functions | 47 | 0.78 | 0.63 to 0.87 | < 0.001 | < 0.001 | 0.77 | < 0.001 |
| Technology engineering and operations | 35 | 0.59 | 0.32 to 0.77 | < 0.001 | 0.002 | 0.59 | < 0.001 |
| Client servicing and communications | 16 | 0.60 | † | 0.013 | 0.040 | 0.65 | 0.006 |
| Trade, settlement and reconciliation | 15 | 0.91 | † | < 0.001 | < 0.001 | 0.90 | < 0.001 |
| Payments, cards and disputes | 12 | 0.87 | † | < 0.001 | 0.003 | 0.85 | < 0.001 |
| Credit, underwriting and suitability | 9 | ‡ | |||||
| Regulatory, audit, tax and legal | 9 | ‡ | |||||
| Financial crime and client onboarding | 7 | ‡ | |||||
| Class of work | |||||||
| LOB Operational | 76 | 0.73 | 0.60 to 0.82 | < 0.001 | < 0.001 | 0.73 | < 0.001 |
| Corporate Functional | 74 | 0.70 | 0.56 to 0.80 | < 0.001 | < 0.001 | 0.70 | < 0.001 |
| Engagement status and lifecycle stage | |||||||
| Active, Build-Out | 31 | 0.60 | 0.32 to 0.79 | < 0.001 | 0.003 | 0.66 | < 0.001 |
| Active, Transition/Cut-Over | 43 | 0.68 | 0.47 to 0.81 | < 0.001 | < 0.001 | 0.72 | < 0.001 |
| Active, Production | 20 | 0.57 | † | 0.008 | 0.039 | 0.49 | 0.028 |
| Canceled | 56 | 0.39 | 0.14 to 0.59 | 0.003 | 0.020 | 0.34 | 0.010 |
| Segment | r with indicator included | Change in r | Slope | 95% CI | R squared | TOST p | Equivalent |
|---|---|---|---|---|---|---|---|
| Study set | Not a component | 0.55 | 0.46 to 0.63 | 0.51 | 1.000 | No | |
| Outsourcing model | |||||||
| CXM | Not a component | 0.58 | 0.42 to 0.75 | 0.55 | 1.000 | No | |
| ITO | Not a component | 0.44 | 0.24 to 0.64 | 0.35 | 0.988 | No | |
| BPO | Not a component | 0.55 | 0.40 to 0.71 | 0.60 | 1.000 | No | |
| KPO | Not a component | 0.57 | 0.35 to 0.79 | 0.49 | 0.998 | No | |
| Institution type | |||||||
| Asset management | Not a component | 0.59 | † n = 24 | 0.57 | 0.999 | No | |
| Wealth management and private banking | Not a component | 0.46 | † n = 23 | 0.43 | 0.983 | No | |
| Investment banking (advisory and capital-markets origination) | Not a component | 0.44 | † n = 19 | 0.42 | 0.968 | No | |
| Insurance (life, property and casualty, health) | Not a component | 0.52 | † n = 14 | 0.36 | 0.900 | No | |
| Commercial and business banking | Not a component | 0.65 | † n = 13 | 0.40 | 0.915 | No | |
| Payments and merchant acquiring (networks, acquiring, processing) | Not a component | 0.77 | † n = 13 | 0.60 | 0.989 | No | |
| Credit card and payments issuing | Not a component | 0.37 | † n = 12 | 0.52 | 0.965 | No | |
| Retail and consumer banking | Not a component | 0.63 | † n = 12 | 0.80 | 1.000 | No | |
| Markets and trading (sales and trading, global markets) | Not a component | 0.66 | † n = 11 | 0.78 | 0.999 | No | |
| Private equity and private capital | ‡ n = 9 | ||||||
| Process family | |||||||
| Corporate and back-office functions | Not a component | 0.66 | 0.50 to 0.81 | 0.61 | 1.000 | No | |
| Technology engineering and operations | Not a component | 0.46 | 0.24 to 0.69 | 0.35 | 0.983 | No | |
| Client servicing and communications | Not a component | 0.49 | † n = 16 | 0.36 | 0.919 | No | |
| Trade, settlement and reconciliation | Not a component | 0.71 | † n = 15 | 0.83 | 1.000 | No | |
| Payments, cards and disputes | Not a component | 0.49 | † n = 12 | 0.76 | 0.999 | No | |
| Credit, underwriting and suitability | ‡ n = 9 | ||||||
| Regulatory, audit, tax and legal | ‡ n = 9 | ||||||
| Financial crime and client onboarding | ‡ n = 7 | ||||||
| Class of work | |||||||
| LOB Operational | Not a component | 0.56 | 0.44 to 0.68 | 0.53 | 1.000 | No | |
| Corporate Functional | Not a component | 0.54 | 0.41 to 0.67 | 0.49 | 1.000 | No | |
| Engagement status and lifecycle stage | |||||||
| Active, Build-Out | Not a component | 0.39 | 0.19 to 0.58 | 0.37 | 0.981 | No | |
| Active, Transition/Cut-Over | Not a component | 0.47 | 0.31 to 0.63 | 0.46 | 0.999 | No | |
| Active, Production | Not a component | 0.46 | † n = 20 | 0.33 | 0.920 | No | |
| Canceled | Not a component | 0.16 | 0.06 to 0.27 | 0.15 | 0.760 | No |
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.
| Segment | Respondents | r | 95% CI | Cluster bootstrap 95% CI | p | Holm p |
|---|---|---|---|---|---|---|
| Study set | 492 | −0.63 | −0.68 to −0.58 | −0.71 to −0.55 | < 0.001 | < 0.001 |
| Outsourcing model | ||||||
| CXM | 135 | −0.51 | −0.63 to −0.37 | −0.69 to −0.29 | < 0.001 | < 0.001 |
| ITO | 136 | −0.63 | −0.73 to −0.52 | −0.75 to −0.45 | < 0.001 | < 0.001 |
| BPO | 125 | −0.73 | −0.80 to −0.63 | −0.83 to −0.58 | < 0.001 | < 0.001 |
| KPO | 96 | −0.67 | −0.77 to −0.55 | −0.77 to −0.55 | < 0.001 | < 0.001 |
| Institution type | ||||||
| Asset management | 71 | −0.71 | −0.81 to −0.57 | −0.83 to −0.44 | < 0.001 | < 0.001 |
| Wealth management and private banking | 83 | −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 banking | 47 | −0.35 | −0.58 to −0.07 | −0.72 to 0.18 | 0.016 | 0.067 |
| 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 issuing | 42 | −0.70 | −0.83 to −0.51 | −0.86 to −0.41 | < 0.001 | < 0.001 |
| Retail and consumer banking | 50 | −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 capital | 24 | −0.46 | † | † | 0.025 | 0.074 |
| Process family | ||||||
| Corporate and back-office functions | 139 | −0.57 | −0.67 to −0.45 | −0.71 to −0.40 | < 0.001 | < 0.001 |
| Technology engineering and operations | 116 | −0.65 | −0.74 to −0.53 | −0.77 to −0.49 | < 0.001 | < 0.001 |
| Client servicing and communications | 53 | −0.49 | −0.67 to −0.25 | −0.79 to 0.01 | < 0.001 | 0.002 |
| Trade, settlement and reconciliation | 47 | −0.76 | −0.86 to −0.60 | −0.87 to −0.47 | < 0.001 | < 0.001 |
| Payments, cards and disputes | 43 | −0.80 | −0.89 to −0.66 | −0.92 to −0.54 | < 0.001 | < 0.001 |
| Credit, underwriting and suitability | 34 | −0.74 | −0.86 to −0.53 | § n = 9 | < 0.001 | < 0.001 |
| Regulatory, audit, tax and legal | 32 | −0.68 | −0.83 to −0.43 | § n = 9 | < 0.001 | < 0.001 |
| Financial crime and client onboarding | 28 | −0.56 | † | † | 0.002 | 0.012 |
| Class of work | ||||||
| LOB Operational | 259 | −0.64 | −0.70 to −0.56 | −0.73 to −0.51 | < 0.001 | < 0.001 |
| Corporate Functional | 233 | −0.63 | −0.70 to −0.54 | −0.73 to −0.49 | < 0.001 | < 0.001 |
| Engagement status and lifecycle stage | ||||||
| Active, Build-Out | 108 | −0.66 | −0.76 to −0.54 | −0.77 to −0.50 | < 0.001 | < 0.001 |
| Active, Transition/Cut-Over | 149 | −0.41 | −0.53 to −0.26 | −0.55 to −0.25 | < 0.001 | < 0.001 |
| Active, Production | 55 | −0.60 | −0.75 to −0.40 | −0.76 to −0.38 | < 0.001 | < 0.001 |
| Canceled | 180 | −0.15 | −0.29 to −0.01 | −0.33 to 0.01 | 0.038 | 0.077 |
| Respondent role | ||||||
| Individual Contributor | 319 | −0.65 | −0.70 to −0.58 | −0.73 to −0.54 | < 0.001 | < 0.001 |
| Engagement Manager | 150 | −0.65 | −0.74 to −0.55 | −0.73 to −0.57 | < 0.001 | < 0.001 |
| Portfolio Director | 23 | −0.51 | † | † | 0.013 | 0.067 |
| Customer Management Executive | 0 | ‡ | ||||
| Vendor type | ||||||
| IT services major | 185 | −0.62 | −0.70 to −0.52 | −0.72 to −0.49 | < 0.001 | < 0.001 |
| BPO specialist | 116 | −0.74 | −0.82 to −0.65 | −0.84 to −0.58 | < 0.001 | < 0.001 |
| Consulting firm | 61 | −0.61 | −0.75 to −0.43 | −0.75 to −0.44 | < 0.001 | < 0.001 |
| Boutique or specialist provider | 50 | −0.58 | −0.74 to −0.35 | −0.79 to −0.25 | < 0.001 | < 0.001 |
| Pure-play agentic AI firm | 48 | −0.69 | −0.81 to −0.50 | −0.87 to −0.35 | < 0.001 | < 0.001 |
| Not reported, recovered by engagement | 32 | −0.26 | −0.56 to 0.10 | −0.59 to 0.12 | 0.152 | 0.152 |
| Segment | Spearman rho | p | Share at 7 or above, distressed | Share at 7 or above, other | Engagements | Engagement level r | 95% CI | TOST p |
|---|---|---|---|---|---|---|---|---|
| Study set | −0.63 | < 0.001 | 87.94% of 141 | 38.18% of 351 | 150 | −0.66 | −0.75 to −0.56 | 1.000 |
| Outsourcing model | ||||||||
| CXM | −0.50 | < 0.001 | 70.97% of 31 | 31.73% of 104 | 42 | −0.56 | −0.74 to −0.30 | 0.976 |
| ITO | −0.61 | < 0.001 | 90.91% of 33 | 45.63% of 103 | 40 | −0.71 | −0.84 to −0.51 | 1.000 |
| BPO | −0.73 | < 0.001 | 90.91% of 44 | 38.27% of 81 | 37 | −0.77 | −0.87 to −0.59 | 1.000 |
| KPO | −0.68 | < 0.001 | 96.97% of 33 | 36.51% of 63 | 31 | −0.69 | −0.84 to −0.45 | 0.998 |
| Institution type | ||||||||
| Asset management | −0.65 | < 0.001 | 95.45% of 22 | 59.18% of 49 | 24 | −0.70 | † | 0.994 |
| Wealth management and private banking | −0.59 | < 0.001 | 82.61% of 23 | 26.67% of 60 | 23 | −0.70 | † | 0.993 |
| Investment banking (advisory and capital-markets origination) | −0.59 | < 0.001 | 100.00% of 18 | 44.44% of 36 | 19 | −0.62 | † | 0.949 |
| Insurance (life, property and casualty, health) | −0.57 | < 0.001 | 90.00% of 10 | 36.11% of 36 | 14 | −0.59 | † | 0.886 |
| Commercial and business banking | −0.34 | 0.021 | ‡ n = 8 | 43.59% of 39 | 13 | −0.45 | † | 0.716 |
| Payments and merchant acquiring (networks, acquiring, processing) | −0.58 | < 0.001 | ‡ n = 9 | 41.18% of 34 | 13 | −0.80 | † | 0.994 |
| Credit card and payments issuing | −0.71 | < 0.001 | 85.00% of 20 | 22.73% of 22 | 12 | −0.67 | † | 0.932 |
| Retail and consumer banking | −0.86 | < 0.001 | 93.33% of 15 | 25.71% of 35 | 12 | −0.92 | † | 1.000 |
| Markets and trading (sales and trading, global markets) | −0.73 | < 0.001 | ‡ n = 7 | 36.00% of 25 | 11 | −0.77 | † | 0.977 |
| Private equity and private capital | −0.44 | 0.031 | ‡ | 40.00% of 15 | 9 | ‡ | ‡ | |
| Process family | ||||||||
| Corporate and back-office functions | −0.58 | < 0.001 | 90.24% of 41 | 42.86% of 98 | 47 | −0.61 | −0.76 to −0.39 | 0.996 |
| Technology engineering and operations | −0.66 | < 0.001 | 85.00% of 20 | 36.46% of 96 | 35 | −0.73 | −0.85 to −0.52 | 1.000 |
| Client servicing and communications | −0.42 | 0.002 | 76.92% of 13 | 47.50% of 40 | 16 | −0.50 | † | 0.809 |
| Trade, settlement and reconciliation | −0.71 | < 0.001 | 94.74% of 19 | 39.29% of 28 | 15 | −0.81 | † | 0.998 |
| Payments, cards and disputes | −0.80 | < 0.001 | 73.33% of 15 | 10.71% of 28 | 12 | −0.85 | † | 0.998 |
| Credit, underwriting and suitability | −0.73 | < 0.001 | ‡ | 32.00% of 25 | 9 | ‡ | ‡ | |
| Regulatory, audit, tax and legal | −0.62 | < 0.001 | 100.00% of 13 | 36.84% of 19 | 9 | ‡ | ‡ | |
| Financial crime and client onboarding | −0.60 | < 0.001 | 90.91% of 11 | 52.94% of 17 | 7 | ‡ | ‡ | |
| Class of work | ||||||||
| LOB Operational | −0.62 | < 0.001 | 88.10% of 84 | 38.29% of 175 | 76 | −0.66 | −0.77 to −0.51 | 1.000 |
| Corporate Functional | −0.63 | < 0.001 | 87.72% of 57 | 38.07% of 176 | 74 | −0.67 | −0.78 to −0.52 | 1.000 |
| Engagement status and lifecycle stage | ||||||||
| Active, Build-Out | −0.66 | < 0.001 | 63.64% of 11 | 18.56% of 97 | 31 | −0.68 | −0.83 to −0.42 | 0.997 |
| Active, Transition/Cut-Over | −0.41 | < 0.001 | 54.55% of 22 | 24.41% of 127 | 43 | −0.49 | −0.69 to −0.22 | 0.923 |
| Active, Production | −0.59 | < 0.001 | ‡ n = 7 | 12.50% of 48 | 20 | −0.67 | † | 0.980 |
| Canceled | −0.19 | 0.010 | 100.00% of 101 | 100.00% of 79 | 56 | 0.03 | −0.23 to 0.29 | 0.022 |
| Respondent role | ||||||||
| Individual Contributor | −0.64 | < 0.001 | 85.29% of 102 | 38.25% of 217 | 136 | −0.66 | −0.74 to −0.55 | 1.000 |
| Engagement Manager | −0.67 | < 0.001 | 94.59% of 37 | 35.40% of 113 | 150 | −0.65 | −0.74 to −0.55 | 1.000 |
| Portfolio Director | −0.47 | 0.024 | ‡ n = 2 | 52.38% of 21 | 23 | −0.51 | † | 0.868 |
| Customer Management Executive | ‡ n = 0 | |||||||
| Vendor type | ||||||||
| IT services major | −0.63 | < 0.001 | 90.24% of 41 | 38.19% of 144 | 59 | −0.64 | −0.77 to −0.46 | 1.000 |
| BPO specialist | −0.71 | < 0.001 | 85.19% of 54 | 35.48% of 62 | 37 | −0.74 | −0.86 to −0.54 | 1.000 |
| Consulting firm | −0.61 | < 0.001 | 95.00% of 20 | 24.39% of 41 | 23 | −0.62 | † | 0.970 |
| Boutique or specialist provider | −0.55 | < 0.001 | ‡ n = 8 | 52.38% of 42 | 17 | −0.67 | † | 0.971 |
| Pure-play agentic AI firm | −0.65 | < 0.001 | ‡ n = 9 | 30.77% of 39 | 14 | −0.75 | † | 0.986 |
| Not reported, recovered by engagement | −0.27 | 0.139 | ‡ n = 9 | 56.52% of 23 | 28 | −0.25 | † | 0.393 |
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
| Measure | Form | Unit | n | r | 95% CI | p | Equivalent to zero | Rank among the four |
|---|---|---|---|---|---|---|---|---|
| Cancellation rate | Descriptive contrast | Engagement | 150 | −0.53 | −0.64 to −0.41 | < 0.001 | No | 4 |
| Customer satisfaction | Clean estimate | Engagement | 94 | 0.62 | 0.48 to 0.73 | < 0.001 | No | 3 |
| Engagement indicator mean | Full | Engagement | 150 | 0.71 | 0.62 to 0.78 | < 0.001 | No | 1 |
| Intent to leave | Respondent level, clustered | Respondent | 492 | −0.63 | −0.71 to −0.55 | < 0.001 | No | 2 |
| Pair compared | Difference in r | Steiger z | p | Holm p | Reading |
|---|---|---|---|---|---|
| Cancellation rate and customer satisfaction | −0.12 | −5.27 | < 0.001 | < 0.001 | Differed |
| Cancellation rate and engagement indicator mean | −0.18 | −3.93 | < 0.001 | < 0.001 | Differed |
| Cancellation rate and intent to leave | −0.14 | −3.56 | < 0.001 | 0.001 | Differed |
| Customer satisfaction and engagement indicator mean | −0.06 | −1.83 | 0.067 | 0.202 | Did not differ |
| Customer satisfaction and intent to leave | −0.02 | −0.76 | 0.447 | 0.518 | Did not differ |
| Engagement indicator mean and intent to leave | 0.04 | 1.13 | 0.259 | 0.518 | Did 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
| Statistic | Value | Reading |
|---|---|---|
| Clusters (engagements) | 150 | Engagements with one or more answers. |
| Mean respondents per engagement | 3.4 | Answers per engagement, among engagements with one or more answers. |
| ICC(1) | 0.65 | Share of the variance that lies between engagements. |
| Design effect | 2.59 | One plus the product of the ICC and the mean cluster size less one. |
| Nominal respondent n | 516 | Respondents who answered. |
| Effective n | 199 | Nominal n divided by the design effect. |
| Cluster bootstrap applied | Yes | Applied 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
| Measure | n | r | Equivalence bound | TOST p, lower | TOST p, upper | Equivalent to zero | Achieved power | MDE at power 0.80 | Detection floor for this n |
|---|---|---|---|---|---|---|---|---|---|
| Cancellation rate | 150 | −0.53 | |r| < 0.30 | 1.000 | < 0.001 | No | 0.96 | 0.23 | 0.23 |
| Customer satisfaction | 94 | 0.62 | |r| < 0.30 | < 0.001 | 1.000 | No | 0.84 | 0.29 | 0.23 |
| Engagement indicator mean | 150 | 0.71 | |r| < 0.30 | < 0.001 | 1.000 | No | 0.96 | 0.23 | 0.23 |
| Intent to leave | 492, effective 189 | −0.63 | |r| < 0.30 | 1.000 | < 0.001 | No | 0.99 | 0.20 | 0.23 |
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
| Check | Measure | Primary r | Check r | 95% CI | Change | Conclusion holds |
|---|---|---|---|---|---|---|
| Rank correlation in place of Pearson | Cancellation rate | −0.53 | −0.54 | a | −0.01 | Yes |
| Rank correlation in place of Pearson | Customer satisfaction | 0.62 | 0.63 | a | 0.00 | Yes |
| Rank correlation in place of Pearson | Engagement indicator mean | 0.71 | 0.71 | a | 0.00 | Yes |
| Rank correlation in place of Pearson | Intent to leave | −0.63 | −0.63 | a | 0.00 | Yes |
| Non-answers excluded, then imputed at the engagement mean | Intent to leave | −0.63 | −0.62 | a | 0.01 | Yes |
| Active engagements only | Engagement indicator mean | 0.71 | 0.62 | 0.47 to 0.73 | −0.10 | Yes |
| Active engagements only | Intent to leave | −0.63 | −0.55 | −0.62 to −0.47 | 0.08 | Yes |
| Most influential engagement removed (largest Cook's distance) | Cancellation rate | −0.53 | −0.55 | −0.66 to −0.43 | −0.02 | Yes |
| Most influential engagement removed (largest Cook's distance) | Customer satisfaction | 0.62 | 0.64 | 0.50 to 0.75 | 0.02 | Yes |
| Most influential engagement removed (largest Cook's distance) | Engagement indicator mean | 0.71 | 0.73 | 0.65 to 0.80 | 0.02 | Yes |
| Most influential engagement removed (largest Cook's distance) | Intent to leave | −0.63 | −0.63 | −0.68 to −0.58 | 0.00 | Yes |
| Engagements weighted by respondent count | Cancellation rate | −0.53 | −0.53 | a | 0.00 | Yes |
| Engagements weighted by respondent count | Customer satisfaction | 0.62 | 0.61 | a | −0.02 | Yes |
| Engagements weighted by respondent count | Engagement indicator mean | 0.71 | 0.70 | a | −0.01 | Yes |
| Bootstrap of engagements | Cancellation rate | −0.53 | −0.54 | −0.64 to −0.42 | 0.00 | Yes |
| Bootstrap of engagements | Customer satisfaction | 0.62 | 0.62 | 0.51 to 0.72 | 0.00 | Yes |
| Bootstrap of engagements | Engagement indicator mean | 0.71 | 0.71 | 0.63 to 0.78 | 0.00 | Yes |
| Bootstrap of engagements | Intent to leave | −0.63 | −0.63 | −0.71 to −0.55 | 0.00 | Yes |
| Thin-base segments removed | Cancellation rate | −0.53 | −0.56 | −0.69 to −0.39 | −0.02 | Yes |
| Thin-base segments removed | Customer satisfaction | 0.62 | 0.56 | 0.35 to 0.72 | −0.06 | Yes |
| Thin-base segments removed | Engagement indicator mean | 0.71 | 0.72 | 0.59 to 0.81 | 0.00 | Yes |
| Thin-base segments removed | Intent to leave | −0.63 | −0.61 | −0.68 to −0.53 | 0.02 | Yes |
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
| Measure | The indicator, oriented r | Study median, oriented r | Deviation | Fisher z | p | Holm p |
|---|---|---|---|---|---|---|
| Cancellation rate | 0.53 | 0.60 | −0.06 | −1.13 | 0.260 | 0.519 |
| Customer satisfaction | 0.65 | 0.72 | −0.06 | −1.49 | 0.137 | 0.412 |
| Engagement indicator mean | 0.71 | 0.84 | −0.12 | −3.84 | < 0.001 | < 0.001 |
| Intent to leave | 0.68 | 0.71 | −0.04 | −0.84 | 0.404 | 0.519 |
| Spread of deviations | 0.09 | |||||
| Verdict | Divergent |
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
| Term | Definition |
|---|---|
| Response scale | Ratings run from 1 to 10, from the worst outcome a respondent can report to the best. |
| Distressed | A rating of 3 or below. At engagement level, an engagement mean of 3 or below. |
| Answering base | Respondents 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 class | Respondent level: a value recorded for each respondent and computed across the respondents who answered. |
| Failure category | The 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 mean | The mean of an engagement's ratings across the rated indicators. The indicator does not enter it. |
| Cluster bootstrap | An interval computed by resampling engagements rather than responses, so that the responses from one engagement stay together. |
Sources and Provenance
| Source | Value |
|---|---|
| Study data | Study Data.xlsx, Data sheet, column C058, sha256 219eba0457274d04 |
| Statistics engine | compute_statistics.py, sha256 738319eef764602b |
| Statistics record | Computed Statistics.json, record C058, sha256 1ae50a3637fc9370 |
| Computed | October 13, 2026, 04:57 UTC |
| Template | Indicator Template v2, version 2.0 of 10 October 2026 |
| Figures placed by script | 2,726 |
