Client satisfaction with outsourcing arrangements has reached an all-time high, according to the 2014 Nordic IT Outsourcing Study conducted by PA and Whitelane Research. The study represents the most comprehensive survey of IT outsourcing in the Nordic region and investigates more than 1,000 IT outsourcing contracts.
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The Nordic outsourcing market matures
The history of outsourcing in Nordic countries has been an uneven one. In the early 2000s, outsourcing took off with several leading companies embarking on high-profile IT outsourcing projects. Shortly after, many of these projects suffered complications.
However, this latest study suggests that, with an average customer satisfaction rating of 73%, the outsourcing market has now matured, with customers and providers learning to handle complex outsourcing projects more effectively. The report also suggests that the drivers for outsourcing have developed, with quality and business focus becoming as important as cost reduction.
Governance remains an issue
Despite noted improvements in client sentiment, the report points to some outstanding areas for improvement. For example, almost half the outsourcing providers surveyed complained of major flaws in their clients’ governance capacity. At the same time, the clients themselves believed that they have strong capabilities in this area. This disconnect is noteworthy because PA’s experience suggests that poor governance is frequently the cause for outsourcing projects failing to meet their targets.
About the report
The 2014 Nordic IT Outsourcing Study, conducted in collaboration with Whitelane, investigates more than 1,000 unique IT outsourcing contracts held by over 350 of the top IT spending organizations in the Nordics region. In total, these contracts represent over €4.5 billion in outsourcing revenue across the industry.