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Swedish outsourcing doubles

by: Carlo Abadilla

Wednesday, March 3, 2010 |

Data from PAC's Worldwide Deal Tracker revealed that Swedish IT outsourcing contracts reached 46% in 2009 double the 23% recorded the previous year, Waters News reported. The data covered all publicly disclosed IT service deals worldwide worth at least $1.35 million.

According to PAC London consultant, Dominic Trott, Swedish firms are becoming increasingly aware of the effectiveness of outsourcing non-core activities to offshore locations:

"The use of global delivery for IT outsourcing contracts in Sweden had been limited up until 2008, with challenges such as language difficulties and proximity to the customer preventing wider take-up," he said.

"However, the global economic crisis proved to be a significant disruptive factor for companies in Sweden, and the growing requirement for cost reductions meant that the issue was re-visited. The benefits available through global delivery, such as 24/7 support, labor arbitrage reductions and wider skill sets, were viewed as means by which efficiencies could be achieved."

The majority of outsourcing processes involved applications outsourcing - accounting for 65% of Swedish IT outsourcing contracts signed in the last two years.



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