IT Outsourcing Report Denmark
The myth that outsourcing can only be effective and beneficial for large companies has finally been dispelled in Denmark this year, with cumulative 21% of all IT outsourcing (ITO) buyers being less than 100 people and only less than 5% of companies being more than 1,000 people in size.
Around 55% of all ITO buyers in Denmark surveyed said they had begun outsourcing their IT / software development function more than 37 months ago and only less than 4% of companies admitted having begun outsourcing less than 12 months ago.
Nearshore remains the most popular outsourcing destination (cited by 47% of survey respondents, which is up 10% from 2011).
In 2012, the top three drivers pushing Danish companies into outsourcing engagements are needs to:
• Reduce operating costs,
• Focus on core competences and business development, and
• Speed up time-to-market (TTM).
The top three most decisive factors in the choice of an ITO partner in Denmark are:
• Successful test project completion,
• Flexible contract terms, and
• Positive references from peer companies
One more positive change relates to the factual saving from outsourcing: this year cumulative 28% of ITO buyers report saving 10% to 39% of operating costs. Regarding enormous savings (60% +), this year’s percentage of such companies remains almost the same as it was in 2011 – 13.5%.
Asked whether they plan to continue outsourcing in the next 12 to 24 months, 100% of survey respondents replied with “yes”, which is up 35% from last year.
The above information has been taken from the 2012 survey report of IT sourcing Europe.