IT Sourcing Europe, a UK-based nearshore IT outsourcing (ITO) research and consultancy company, has recently completed its Dutch ITO survey 2010, conducted in the frames of its ongoing All-European IT Sourcing and In-House Software Development Best Practices Research. The survey was completed by the 167 companies representing all of the major market verticals.
According to the survey findings, the Dutch software development outsourcing domain observes the following major trends in 2010:
- 29% of companies polled outsource their software development function to reduce operating costs, while 28% of companies adopt the outsourced development to accelerate time to market via flexibility and scalability and/or due to difficulty finding appropriate IT resources within the Netherlands;
- 29% of Dutch companies outsource 10% to 40%, while 16% outsource up to 100% of their software development function;
- 43% of companies outsource Web 2.0 projects (Microsoft ASP.NET, Java, EpiServer, open source etc), 26% – Enterprise 2.0 projects (J2EE, J2SE, C#, MySQL etc), 14% – mobile development, 9% – cloud computing etc;
- 28% of companies actually save 10% to 39%, while 12% save more than 60% from their outsourced development.
We asked our survey participants to evaluate their current level of satisfaction with the software development services provided on a 5-point scale, where 1 is least satisfied and 5 is most satisfied. The majority of participants – 42% – gave 3 points to the quality of services and attitudes provided by their vendors. Of these companies, 78% were offshore outsourcers (i.e. companies that outsource at least 2 time zones away from the Netherlands). On the other hand, only 16% of companies surveyed indicated very high level of satisfaction (5 points) and of these companies 92% were those who outsource either nearshore (maximum 2 time zones away from home country) or nearshore and within the Netherlands.
Regarding the future outsourcing destinations, 27% of companies revealed their plans to outsource nearshore versus 24% of those who intend to go offshore.
More thought-provoking findings are available in the Dutch IT Outsourcing Intelligence Report 2010.