The 2019 annual Nordic IT Sourcing Study, conducted by Whitelane Research in cooperation with PA Consulting Group, investigates more than 1000 unique IT outsourcing relationships held by over 330 of the top IT spending organisations across all industry sectors in the Nordics. Whilst the Nordic outsourcing market remains healthy, it certainly continues to change.
Key findings from the Nordic Study include:  

  • Over the next two years outsourcing will continue to increase across the Nordics with 72% of organisations planning to outsource at the same rate or more, although the percentage of organisations planning to outsource more has decreased by 5 percentage points in comparison with last year and 13 percentage points in comparison with 2017 confirming a trend. 
  • Across the four Nordic countries, most outsourcing growth is expected in Denmark with 38% of organisations citing that they plan to outsource more (down by 5 percentage points in comparison with 2018). In contrast, most insourcing is predicted in Sweden with almost 1 in 5 clients planning to outsource less (up by 10 percentage points since last year). 
  • The top three objectives for IT outsourcing from a client perspective in the Nordics are focus on core business, cost reduction and access to resources. Service Providers, asked why their clients outsource, rank cost reduction number 1 and place twice as much importance on business transformation. They also underestimate the importance of focus on core business by -20% and innovation by more than half, highlighting that differences in perspectives between clients and service providers continue to exist.
  • 81% of clients state that they are not achieving or only partly achieving innovation as one of their outsourcing objectives while almost 3 out of 4 clients cite they are not or only partially achieving their business transformation objectives. Clients need to communicate their objectives more clearly while service providers should look into how they can help their clients with innovation through outsourcing, ideally on a continuous basis through effective collaboration.
  • 13% of clients state that they will outsource less (Insourcing). The clients indicate the main rationale for Insourcing is driven by the shift towards more “agile ways of working” (70%) and “a desire to increase the speed and quality of delivery” (62%).
  • The service provider community continues to show a strong overall satisfaction level with 87% of the clients being somewhat to very satisfied of the 1,009 evaluated IT sourcing relationships.
  • On the overall ranking for general satisfaction, TCS and Amazon Web Services (AWS) receive the joint highest score with 77%, followed by Basefarm and Salesforce.com (both at 76%), Telenor and LTI (both at 75%) and new entrant Sopra Steria (74%). The average satisfaction score remains unchanged in comparison with last year. 
Across the 4 different IT domains, the highest ranking providers are:
    • For application development, maintenance, testing and SaaS: TCS, Salesforce.com, LTI and Wipro (joint 3rd)
    • For data centre, managed infrastructure and hosting: TCS, Amazon Web Services (AWS) and Basefarm
    • For network & telecommunications: Telenor, Telia Company, Elisa, TDC and BT (joint 3rd)
    • For end-user services and collaboration solutions: Atos, CGI and Microsoft
Across the four Nordic countries, the highest ranking providers are:
    • For Denmark: Salesforce.com, HCL, Atos and LTI (joint 3rd)
    • For Finland: TCS, Telia Company and CGI
    • For Norway: TCS, Salesforce.com and Telenor
    • For Sweden: TCS, EVRY and Telenor

  • Almost 60 percent of organisations are already using agile as their preferred model with another 31% planning to use it. Adoption of Agile as the preferred delivery model is spreading across the Nordics with significant increases in Agile adoption since last year in Denmark (from 35% to 58%) and in Norway (41% to 63%). 
  • Usage of DevOps is also on the rise, with one third of organisations are already using DevOps as their preferred model and another 48% planning to use it in the future.
  • New technologies focused on more efficiently and effectively delivering services such as robotics and artificial intelligence (AI) are also becoming increasingly more important. 59 percent of all organisations are already using these new technologies and another 30 percent is planning to make use of this in the near future. While the use of technologies in Robotics and/or AI is widespread across the Nordics, Sweden is lagging behind the other Nordic countries.

Results Presentation

The results of our 2019 IT Sourcing Study for the Nordics were presented in Copenhagen, Oslo, Helsinki and Stockholm. We were delighted to have client presentations from the following companies: DNA, UPM, Lantmännen, Velliv, NETS, DNB and Yara.

Purchase the Nordic Report

If you would like to purchase a copy of the full report containing more detailed information, such as the main sourcing  and technology trends, ranking of the service providers by four different IT domains as well as by 9 different KPIs, please email info@whitelane.com.

Request the Management Summary

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Management Summary