Who is the best outsourcing supplier in the Nordic region?
The answer to that question, based on responses from more than 330 participants at the top IT spending organisations in the Nordics, has become more complex than in recent years.
Tata Consultancy Services (TCS) has been at the top of the list in the previous four years, but the Indian company must share their first place with another company this year. Amazon Web Services (AWS) has moved alongside TCS in the 2019 edition of the largest IT outsourcing report prepared by PA Consulting in collaboration with Whitelane.
"AWS is moving up so massively because customers have become more mature in buying the company's services because they have known it for quite a while now. AWS does not have many employees in Denmark and the Nordic countries, but the company has many partners that help implement AWS services. Customers are no longer afraid of IT security issues. They have more and more confidence in AWS," says Henrik Ringgaard.
He adds: "TCS is affected by the fact that when you have long customer relationships, there will come challenges. Customers want renewal and innovation and they become less tolerant with mistakes. The honeymoon is over. You expect more over time. TCS and the other Indian suppliers all have long customer relationships at the same time as they are moving upwards in complexity, which means the companies must defend and be on target for the entire delivery. It's not always straightforward."
The article notes key findings from the report, including that Salesforce and Microsoft are also towards the top of the list.
"Public cloud providers like AWS, Microsoft and Salesforce are popular. They are quite inflexible in relation to contracts, price models and delivery models. Usually, it’s just one standard solution you can buy and that normally doesn’t make the customers happy," Henrik Ringgaard says.
He adds: "But we must admit that these suppliers keep what they promise, both in relation to system and uptime. This is not always the case with other suppliers. The standardisation has the advantage that customers get what they’re promised.”
He predicts that the dominance of cloud companies' in the Nordic outsourcing market will continue in the coming year:
"The next few years will definitely see the cloud providers, including AWS, move up the list, but they will eventually hit the wall, since not many companies have it all in the cloud. But right now, cloud is growing massively,” Henrik Ringgaards says.
2019 Nordic IT Sourcing Study