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PA IN THE MEDIA

What do the outsourcing buyers think about their suppliers?

Read the full article in Swedish.

Peter Wardell, sourcing expert at PA Consulting Group, spoke to Computer Sweden about future outsourcing trends in the Nordics. He drew some findings from the recent 2018 Nordic IT Outsourcing Study, which PA conducted with Stockholm School of Economics. More than 330 of the biggest buyers of IT outsourcing services in the Nordic region participated in the survey. In total, over 1,000 outsourcing contracts and 32 service providers are evaluated.

Despite their standardised services, it's the American cloud giants who come out on top in terms of customer satisfaction, with Salesforce, Amazon Web Services and Microsoft taking top spots.

"It is clear that cloud suppliers are moving up the customer satisfaction rankings of service providers. This is a bit surprising as we are talking about highly - standardised services where you get what you pay for," sais Peter Wardell, a sourcing expert at PA Consulting Group.

"The existing focus on setting up data centres may be one of the reasons behind the positive rating of the cloud suppliers," Peter continues.

Another interesting tendency for the outsourcing market is that companies insource more. In larger, more advanced markets, this movement is even stronger.

“In the Nordic region, 11 per cent of the organisations participating in the survey say they have the ambition of insourcing this year. But in a comparison to UK, it’s still quite rare. According to the same survey in the UK, 22 per cent are planning to insource. One reason for this is that companies want to work in a more agile way and with innovation," sais Peter.

Similarly, the survey shows that the interest in IT outsourcing is somewhat declining - which is a trend throughout Europe. In the Nordic region, 36 per cent intend to outsource more compared to 44 per cent last year. In Sweden, outsourcing plans have stayed the same year-on-year.

However, from a sector perspective, financial services is the most aggressive when it comes to outsourcing, while the interest in the public sector proves to be much weaker.

The top three drivers for IT outsourcing this year are focusing on core business (67 per cent), cost reduction (62 per cent) and resource access (60 per cent).

2018 UK IT Outsourcing Study: UK’s most comprehensive client study covering IT outsourcing and IT service provider performance.

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