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PA IN THE MEDIA

New sourcing report on customer satisfaction and expectations for IT outsourcing

This article was first published in Finansavisen.

PA Consulting’s Tom Krohn, IT transformation expert, is quoted in an article setting out the results of the 2021 Nordic IT Sourcing Study carried out by Whitelane Research and PA Consulting.

PA Consulting surveyed customer satisfaction in over 1,400 unique outsourcing contracts in the most comprehensive analysis carried out in the Nordic region. Of the 1,400 agreements, half are classic IT operations agreements and the other half are cloud contracts.

28 percent of Norwegian companies say they want to outsource more, an increase of 21 percent from last year's survey. 45 percent say they want to keep outsourcing at the same level as this year.

“Where one would expect that many businesses would be anxious about outsourcing to India or the Baltics, there is still a marked increase in the number of companies that will increase outsourcing. In addition, we are seeing an increase in customer satisfaction from the previous survey” says Tom Krohn, partner at PA Consulting.

Lack of resources

63 per cent of the companies in the survey wanting to outsource more point to opportunities to scale operations, while 53 per cent put both access to IT resources and cost reduction as the most important drivers.

“Access to talent and resources is the category with the largest increase. The pandemic sent all employees to their home offices, but at the same time it helped to put further pressure on digitisation and the need to obtain digital resources is high” says Krohn.

He continued “Scalability is a driver that is becoming more important in many companies, while cost reduction has remained stable. If you look at Norway specifically, it is primarily scalability and business transformation that apply, the cost element is almost never present as a factor”.

Customer satisfaction

The survey ranked the various companies within the categories of Service Providers and Cloud Providers. For Service Providers, the Indian Tata Consultancy Services (TCS) was the winner for the 12th year in a row.

TCS customer satisfaction rates increased by 4 percent to 88 percent, compared with the industry average of 72 percent. Four companies had poorer customer satisfaction than last year including Sopra Steria, which fell 4 percent to 72 percent.

The Norwegian companies Basefarm and Atea come behind Tata in the rankings and Tietoevry is the lowest ranked company in Norway. Tietoevry is disadvantaged because it has by far the most contracts, it also has several older contracts in its portfolio that probably pull the overall score down.

“TCS has done well for many years, but it is especially striking that they are such clear winners this year. Many predicted that India would face challenges with shutdowns and consultants working from home office, but this prediction has proved to be wrong. Norwegian Basefarm and Atea are also doing very well” says Krohn.

In Norway, TCS, Basefarm and Atea occupy the top three places for customer satisfaction, while Cognizant and Tietoevry are at the bottom.

Microsoft and Salesforce top the rankings

Within the cloud services category, companies are ranked in two different subcategories, Infrastructure as a service (IaaS) and Software as a service (SaaS).

In the infrastructure category, MicrosoftAzure came out ahead of Amazon Web Services and in the software category, Salesforce.com beat Microsoft 365 into second place.

2021 NORDIC IT SOURCING STUDY - Learn more about the strong but changing outsourcing market in the Nordics

More insights here

Nordic sourcing team

Tom Krohn

Tom Krohn

Henrik Ringgaard Pedersen

Henrik Ringgaard Pedersen

Peter Wardell

Peter Wardell

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