Jesper kildebogaard | finans.dk | 28 april 2015
PA IT outsourcing expert, Henrik Ringgaard Pedersen, is quoted in Finans.dk explaining why Indian IT sourcing suppliers have once again taken the lead as the most popular sourcing providers in the Nordics.
Henrik refers to Whitelane and PA’s annual sourcing survey of more than 300 respondents and stresses that Danish IT sourcing suppliers are also rated well: “Indian companies take pole position but some of the Danish players are also doing quite well. NNIT and KMD are the leaders in the middle segment which is quite impressive.”
In the early days, the outsourcing of a company’s IT services to India, Eastern Europe and other geographies with a low hourly pay was potentially a risky affair. However, says Henrik, today it has become the norm, and suppliers and customers are able to handle the pitfalls.
“The entire business has matured significantly. Today, three out of four respondents in our survey outsource their services to near or offshore locations, either directly or through suppliers. In Denmark, many companies chose to keep operations local but even though they keep the hardware in Denmark, the operations may be handled remotely by Indian companies,” says Henrik.
According to Henrik, the difference between near shoring and offshoring is about to be levelled out. Large Indian companies have started settling in Eastern Europe to keep work power within the EU borders. At the same time, the wage level in India has increased, so from a global perspective it is no longer a cheap country to operate in, but rather a country with a huge, qualified work force.
Henrik says: “There is a certain level of inflation in India, so it will be interesting to see what happens with other countries in the coming years […] Due to the financial crisis in Southern Europe, some suppliers have established operations in countries like Spain with skilled resources.”