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IT outsourcing is increasing in the private sector

Read the full article in Danish

PA sourcing expert, Henrik Ringgaard Pedersen, has had an article published in Computerworld that draws on the finding of an annual IT sourcing survey by PA Consulting Group and Whitelane Research. The survey is based on responses from more than 300 participants from organisations that spend the most on IT in Denmark, Finland, Norway and Sweden.

According to Henrik, the most significant trend in the report is a general increase in IT sourcing. This trend is seen primarily in private sector companies, while public sector organisations are tending to outsource less.

Henrik explains: “Some public sector organisations find it complicated to draw up contracts on public IT especially with more modern ways of working including Agile and DevOps; Business complexity can be difficult to define in a contract so for many organisations it’s simply easier to engage your own people.”

The report also reveals that 15 per cent of the Danish respondents don’t intend to increase their outsourcing of IT services and that clients’ satisfaction with their suppliers has dropped. Moreover, an increasing number of companies no longer outsource their IT services just because of cost savings but because they want easier and better access to resources to improve their business.

“In general, organisations have become better at choosing the right suppliers and defining their sourcing strategies. However, they need to improve their focus on contract management and governance,” says Henrik. 

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