IT vendors’ customer satisfaction levels is generally high in the Nordics but differs between suppliers, with new consultant giant TietoEVRY ranked bottom – according to the largest client satisfaction study of its kind of the Nordic IT sourcing market.
In this year's survey of customer satisfaction in the Nordic IT outsourcing market, Whitelane Research and PA Consulting reviewed over 700 IT outsourcing and cloud contracts in the Nordic region.
"Satisfaction among customers with their IT suppliers is on average 69 per cent, a relatively high figure. The most important parameter in customer satisfaction is the quality and consistency of delivery without interruption. Here we can see that quality increased from last year," says Peter Wardell, sourcing expert at PA Consulting. "But the relationship between the customer and supplier is also of major importance, taking precedence over contract flexibility or innovation, for example," Peter adds.
Strong insourcing trend
The survey shows that the outsourcing trend remains strong in the Nordic countries. Thirty one per cent say they will outsource more in the next two years; 36 per cent say there will be no difference and only 18 per cent say they will outsource less.
But Peter also refers to a trend in this year's survey that may seem somewhat contradictory, namely that more and more organisations want to take back outsourced business.
"The insourcing trend is strong, not least in Sweden. Nineteen per cent of the participants in the survey have plans to insource. The conclusion we draw is that companies and government authorities are becoming more selective in what they outsource," says Peter.
"The key drivers behind the insourcing trend are the desire to better achieve agile ways of working, quicker time-to-market, and more customer-centric development," says Peter. "But organisations are selective with what they plan to insource; they do not plan to take back all management."
Impact of the recession
When it comes to the continued interest in outsourcing, the biggest drivers are cost reduction, being able to focus on core business, scalability and quality improvements. So even though insourcing is gaining some ground, Peter expects outsourcing to increase in the years to come.
"And, with the economy heading towards a recession during the coronavirus crisis, outsourcing will increase," adds Peter. The manufacturing industry is the biggest buyer of outsourcing services. Almost half state that they plan to outsource more.
If we then look at the supplier side, just like in recent years, TCS is at the top of the ranking with a customer satisfaction score of 81 per cent. In second place, Basefarm, with an 80 per cent customer satisfaction score.
Cloud platforms are popular
In this year's survey, Whitelane Research and PA Consulting also looked at cloud platforms, where overall satisfaction is good. Microsoft's Azure has the highest satisfaction score with 75 per cent, followed by AWS with 74 per cent, Google Cloud with 73 per cent, Oracle 70 per cent and IBM at 61 per cent. "These are good results for cloud vendors. No one who purchases cloud services expects a standardised solution where innovation is included as default," says Peter.
At the same time, it turns out that cloud development in Sweden is not developing at the same pace as in the other Nordic countries as a result of the legal issues being discussed here. "Fewer organisations, specifically in the public sector, are planning to outsource their operations in the cloud," says Peter.
In terms of cloud-based software, Google Suite ranks 81 per cent ahead of Microsoft with 79 per cent, and ServiceNow and Salesforce 73 per cent. "Even those are high scores. They are generally higher in customer satisfaction than traditional IT outsourcing suppliers," Peter concludes.
CUSTOMER SATISFACTION IN SWEDEN
How satisfied are customers in Sweden with their IT suppliers (per cent):
1. TCS (82)
2. Atea (78)
3. Accenture (74)
4. HCL (73)
5. CGI (72)
6. Fujitsu (68)
7. Capgemini (67)
8. TietoEVRY (66)
9. Wipro (66)
10. Atos (66)
11. DXC Technology (64)
12. IBM (62)
Source: Whitelane Research and PA Consulting
2020 NORDIC IT SOURCING STUDY - Learn more about the strong but changing outsourcing market in the Nordics