Large digital transformation is placing new demands on the big outsourcing suppliers. Swedish organisations want to insource more and also make use of smaller niche players in their digitization projects.
One of the biggest trends seen in a study on outsourcing conducted by Whitelane Research and PA Consulting, is that Swedish organisations are not as focused on outsourcing IT activities as before.
In Sweden, for example, only 29 percent expect to increase their level of outsourcing. Last year, this figure was 36 percent. Meanwhile, 18 percent state that they should outsource less – a high figure in these contexts.
“We see a clear trend here,” says Peter Wardell, sourcing expert at PA Consulting. “The pressure to come out with new digital services quickly means that fewer plan to outsource them. It’s simply faster if you have your IT insourced. In addition, it benefits an agile way of working."
Wardell continues: “We can also see that it is not the big suppliers that solve these problems for the customers, but there are smaller niche players who come in and help. They are speedier. This is a clear message to the big suppliers that they have to step up."
Wardell further says that the big digital wave raises questions about offshore functioning as a delivery model if the organisation wants to work in an agile way.
So this means a renaissance for your own IT department?
“Yes, you could say that,” says Wardell. “At the same time, the IT department is growing more and more in conjunction with business development. This also means that the sourcing models become more diversified and more selective. Organisations are outsourcing more niche parts like agile customer-related services and apps."
According to PA Consulting, this is a development that has been going on for a couple of years in the UK and which is now becoming increasingly clear in Sweden.
2019 Nordic IT Sourcing Study