IT Outsourcing Report Denmark

19.06.2012

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. 

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