PA sourcing expert, Mikael Dahlstedt, discusses how a large portion of the Swedish government’s authorities are considering insourcing IT operations that are currently outsourced.
Drawing on research conducted by PA and Whitelane research, which surveyed 300 Nordic organisations that invest the most in outsourcing, Mikael says there is a clear difference between the private and public sector – with 21 per cent of the latter planning to reduce their outsourcing.
Mikael says: “One can imagine that the risk of too many trials means that authorities are reluctant to outsource. The process of choosing an outsourcing supplier in the public sector is a lengthy process. However, the fact that one in five authorities is planning to reduce their outsourcing investments goes against the prevailing trend in the private sector.”
The study also ranks the major suppliers based on customer satisfaction. Last year, Indian outsourcing companies secured the top three positions in the list but this has shifted this year with HCL and Cognizant dropping down the list.
Mikael adds: “This year we are seeing smaller Nordic players at the top such as Basefarm, while Accenture is also climbing up the ranks. However, Indian companies are still doing well. Tech Mahindra has climbed to third place and TCS is still at the top of the list for the third year in a row – although satisfaction has dropped from 87 percent down 81 per cent this year.”