Swedish IT Outsourcing Intelligence Report 2011: Pre-Release Highlights
Summary
Coventry, United Kingdom, April 02, 2011 --( The survey allowed benchmarking the following trends at the Swedish ITO market in 1Q 2011: · 43.9% of Swedish companies have been outsourcing their IT and/or software development functions for more than 37 months.· Key drivers of corporate decisions to outsource in Sweden are: reduction of operating costs (up 33.5% from 2010), shortage of domestic IT skills and resources (up 33% from 2010) and necessity to focus on core competences such as product marketing, business development, infrastructure setup/upgrade etc (up 21.3% from 2010).· Outsourcing is most adopted by the IT, software development and telecom companies – 40.5%, followed by mobile software development companies – 17.5% and iGambling providers and games studios – 9.5% of the entire representative sample.The survey was conducted online in February-March 2011 and completed by the 479 Swedish companies of different sizes and industry sectors.The ratio of outsourcing to non-outsourcing companies that took part in the survey was 41.8% to 55%.The survey allowed benchmarking the following trends at the Swedish ITO market in 1Q 2011:· 43.9% of Swedish companies have been outsourcing their IT and/or software development functions for more than 37 months.· Key drivers of corporate decisions to outsource in Sweden are: reduction of operating costs (up 33.5% from 2010), shortage of domestic IT skills and resources (up 33% from 2010) and necessity to focus on core competences such as product marketing, business development, infrastructure setup/upgrade etc (up 21.3% from 2010).· The overall volume of the outsourced projects in Sweden has lessened over the past months with the euro0-49K projects increasing by 34.9%, and the €500+K projects dropping by 7.2%, compared to 2010.· 28.9% of the companies surveyed use Offshore/Nearshore Dedicated Center model, which is down 23.5% from last year, while 34% of companies use Dedicated/Own Team model to engage with providers – up 14.7% from 2010.