Danish companies’ reported savings from the outsourced software development

Posted: August 17, 2010 in Market Research

IT Sourcing Europe highlights some of the findings of its recent Danish IT Sourcing Survey 2010.

IT Sourcing Europe , a UK-based IT sourcing research and advisory company, has recently completed its Danish IT Sourcing Survey, conducted in the frames of its All-European IT Outsourcing (ITO) and In-House Software Development Best Practices Research 2010. The survey questionnaires were filled out by the 331 Danish companies with ITO experiences.

The survey finds that most of the Danish companies (25% of respondents) outsource 60% to 90%, while 16% of companies outsource less than 10% of their software/web development function. Twenty percent of companies outsource their development as a whole.

Sixty percent of the Danish outsourced projects fall under the Web (Web 2.0, Microsoft ASP.NET, Java, EpiServer, open source etc) and Enterprise (SAP, J2EE, J2SE, C#, MySQL etc) areas of expertise. Sixteen percent of companies outsource Mobile development (iPhone, Android, Blackberry, Windows Mobile etc), 10% outsource embedded development and 10% – Software as a Service (SaaS) and Cloud Computing.

Regarding comparison of the actual incurred annual costs of the outsourced development to the contracted costs, the research presents the following findings:  53% of Danish outsourcers claim that the actual incurred costs of their outsourced development match their contracted (expected) ones, 26% say their actual costs are up to 25% higher than the contracted ones, 10% say the actual costs are 25%-49% higher than expected, 3%  report the actual costs to be 50-75% higher than expected and 2% report the actual costs to be more than 75% higher than expected.

Overall, 26% of Danish companies save 40-59% from their outsourced development; 25% of companies save 10%-24%, 19% – 25%-39% and 16% – less than 10% of their operating costs. Only 14% of Danish outsourcers save 60% and more from IT Outsourcing.

Other survey findings and reduced Danish Report version can be downloaded from http://www.itsourcing-europe.com/uploads/Danish_Intelligence_Report_reduced.pdf

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