2021 Nordic IT Sourcing Study
The Nordic outsourcing market continues to be strong and resilient in the midst of a global pandemic
The 2021 Nordic IT Sourcing Study shows the region's market remains strong, with 27 per cent of organisations looking to outsource more.
At the same time, average customer satisfaction across the Nordics increased by three percentage points compared to 2020, meaning 89 per cent said they were either very satisfied, satisfied or somewhat satisfied. There is, however, an eight percentage point increase in respondents stating they won't change their current level of outsourcing, a trend that suggests they're either satisfied with current outsourcing arrangements or are unsure about making changes during the COVID-19 pandemic.
About the survey
The 2021 Nordic IT Sourcing Study, conducted by Whitelane Research in collaboration with PA Consulting, investigated more than 700 unique IT sourcing relationships and 700 cloud relationships held by more than 350 of the top IT spending organisations in the Nordic region. The survey evaluated and ranked 28 IT and/or cloud service providers based on the opinion of their clients. The scope of this research makes it the most comprehensive client study covering the performance of IT outsourcing and IT service providers across the Nordic region.
Key findings from the research
Future developments in sourcing partnerships
Clients are continuing their adoption of new technologies and ways of working. Observant service providers will make sure they help drive the implementation of new technologies while ensuring the client's organisational governance and internal alignment follows to drive long term success.
Cloud adoption and governance
More than half of organisations in Norway predict they'll run more than 70% of their new applications on a public cloud platform in two years. While this figure is significantly lower in Denmark (34%), Sweden (34%) and Finland (37%), public cloud adoption continues to rise in the Nordics. Yet 91% of respondents said they need to improve their cloud management and integration governance capabilities, indicating adoption has proven tougher than many expected.
More organisations are looking to invest in intelligent automation, with 44% planning to increase their use and 30% saying they aren't using intelligent automation today but are planning to start using it in the future. This shows that clients have started to work with more advanced automation.
Alignment between ITO and BPO decisions
Only 27% of respondents said they have a close internal alignment between IT outsourcing and Business Process Outsourcing decisions. With only 6% of respondents saying they consider these as one service delivery decision, there's plenty of opportunity to develop this valuable alignment and create more efficient service delivery set-ups.
Keys to success for outsourcing clients
- Create a climate for cooperation and trust through transparency
- Dare to expose the service provider to the business executives and share the strategic direction and challenges
- Incentivise supplier innovation and explore industry specific solutions developed by service providers
- Visit service provider delivery sites and meet the delivery team frequently
- Appreciate the need for a win-win partnership