Recent Survey Finds Why Many Swiss Companies Still Refuse to Outsource

Posted: September 15, 2010 in Market Research

IT Sourcing Europe highlights the major reasons keeping the Swiss companies away from the outsourced development.

IT Sourcing Europe, a UK-based research and nearshore IT sourcing consultancy company, announced the completion of its Swiss In-House Software Development Best Practices Survey 2010, conducted in the frames of its All-European IT Outsourcing Research. The research is aimed to explore the major reasons keeping the Swiss companies away from the outsourced software/web development as well as key trends and challenges of the in-house development. The survey was completed by the 136 companies. The survey sample was comprised of innovative companies, IT start-ups and representatives of all major verticals from telecommunications to retail to entertainment to travel etc.

The survey findings suggest that most of Swiss companies do not outsource because of the following main reasons:

  • they want to have 100% managerial control of their software/web development function and project team;
  • they think that outsourcing will eventually cost more money and “headaches” than in-house development;
  • they don’t believe that low-cost countries are able to deliver high quality software products;
  • they are afraid of putting their intellectual property at risk and creating shared environments;
  • they think they are too small and/or immature for outsourcing.

On the other hand, Swiss companies point out that in-house software development and implementation are a way too expensive and the Swiss IT resources are quite scarce. Other frequently cited challenges are: slow time to market, lack of sustainability, staff turnover and extra costs and time associated with software bugs/errors fixing.

More thought-provoking findings are available in the Swiss Software Development Intelligence Report 2010 .

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Comments
  1. R O'Flanagan says:

    It’s not just in IT, the Swiss are fundamentally extremely conservative and hugely risk averse. If a manager believes his decision to outsource could prove to be wrong, he (very few she’s) just won’t make the leap. They also think that they are very “special” and that outsiders won’t understand the way things work here. OK they are world leaders in a number of technologies but all of these are things they have been doing for a long time and the excellence is more a result of patience and bloody mindedness than creativity. Anyway, as a result of the innate conservatism, there is little “retail” e-commerce and so no great need for high flying web design. The standards of web design here are generally very poor, but even so it will be a long time before someone is brave enough to make the leap to outsourcing. They would much rather put up with unfulfilled contracts and poor service than take the risk.

  2. Joseph says:

    Great article! I really enjoyed reading and found some very interesting tips in here. Thanks again.

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