Challenges of the Swiss In-House Software Development

Posted: September 17, 2010 in Market Research

IT Sourcing Europe highlights the major findings of its recent Swiss IT Sourcing and Software Development Best Practices Survey 2010 with regards to challenges facing today’s Swiss software development / IT companies.

IT Sourcing Europe , a UK-based IT sourcing and Nearshoring research and advisory company, announced the completion of its Swiss In-House Software Development Survey, conducted in the frames of the All-European IT Outsourcing (ITO) Research 2010. The survey was aimed to explore major trends, challenges and behaviors among the Swiss IT and non-IT companies that develop their software/web solutions within own house. The survey was completed by the 136 companies representing all of the major verticals from telecommunication to banking to travel etc.

According to the survey results, the following major challenges are facing the Swiss non-outsourcing companies in 2010:

  • slow time to market as a result of slow development and implementation;
  • high cost of domestic development and bugs/errors fixing;
  • shortage of domestic IT resources and specific skills;
  • in-house staff turnover etc.

To respond to these and other challenges, most of Swiss companies take the following actions:

  • improve software development methodology;
  • hire foreign IT specialists to complete projects within own house;
  • encourage staff to work overtime;
  • distribute non-core development among freelancers to assist the in-house teams;
  • improve corporate training function etc.

Some of the survey findings suggest that many Swiss non-outsourcing companies obviously do things which may ruin rather than improve their software development function. Encouraging staff to work overtime will eventually result in higher staff turnover and/or burnout, which lead to poorer software product quality. In addition, although many Swiss non-outsourcing companies claim that they do not outsource to escape creating shared environments, they inevitably create such environments when deciding to implement distributed development.

It generally suggests that many Swiss businesses have underdeveloped IT strategies and what they try to evangelize as “made in Switzerland” via the in-house software development is just a false economy. The truth is that when companies spend too much on software development without having a clear cost reduction roadmap and do not know how to manage/retain internal IT staff, they are nearly doomed to fail generating long-term benefits from their software solutions and, thus, to lag behind competitors in terms of time-to-market speed, differentiation and overall grasp of innovation, which are the three key determinants of today’s e-business success.

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


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