PA sourcing expert Tom Krohn is quoted in an article in Teknisk Ukeblad covering the results of the biggest IT outsourcing survey in the Nordics this year.
The article draws on research by PA and Whitelane Research where more than 1,000 IT outsourcing contracts held by over 350 organisations in the Nordics were investigated. It highlights how Indian companies have proved to be the most popular with customers, while traditional consulting firms are struggling to keep up.
Explaining their success, Tom says: “The Indian companies have surprisingly good feedback. They dominate the top ranks when it comes to customer satisfaction, while some of the traditional IT consultancies are struggling to satisfy their customers.
“The successful firms have slowly built up customer relationships and began by taking on small jobs. Now they work with many major organisations dealing with large orders and challenging the traditional players.
“There has been a shift in how companies look at Indian companies. There is no doubt that they can offer cheaper deliveries even though costs have risen at home. But customers want more than low price – they appreciate that the Indian organisations can offer innovation and expertise.”
The article covers how there are three things that companies look for when they outsource IT: a reduction in costs, a chance to concentrate on their core business and an opportunity to improve their own capacities. Norway stands a little apart from the other Nordic countries because it is the chance to focus on their core business (and not cost) that businesses see as their priority.
Commenting on the high level of outsourcing in the Nordics, Tom says: “A whopping 78% of companies say they have outsourced parts of their data centre and application management, while 37% in Norway say they will outsource more in the coming years.”
Tom also comments on how these Indian companies have a growing number of Norwegians in their ranks: “When these companies take over the infrastructure and operations of Norwegian companies, it is quite common that they take over their IT departments. This means that these Indian companies have an increasing number of Norwegian employees within their organisation.”