The 2011 Danish IT Outsourcing and In-House Software Development Survey demonstrates an increasing demand for ITO services from high-tech startups and the SME sector actors as well as diverse industry niches, both “traditional” such as finance and construction and innovative such as digital media, online gaming and mobile computing.
Many Danish businesses adopted the outsourced IT / software development at the time of the economic meltdown in order to “keep the head above water” via the decreased IT budgets and operating costs and continue using it now, both for cost leverage and enhanced business focus purposes. On the other hand, there is another huge segment of companies that adopted ITO less than 12 months ago driven by the shortage of appropriate IT resources within Denmark.
Close-up analysis of the survey findings suggests that although a lot of Danish outsourcers seem to be positive about the essential use of outsourcing, there is still the evidence of inconsistency in what they tend to achieve via the ITO engagement.
In-house development companies continue to face the same challenges that drove/drive their peers and/or competitors to outsource: scarce local IT talent pool, high cost of domestic resources, slow time-to-market, pressing customers and investors etc. A significant number of the survey participants already view outsourcing as an inevitable practice to be used as a response to their in-house development issues in the future.
More thought-provoking findings as well as comparison of the 2010 and 2011 results are available in the Danish IT Outsourcing Intelligence Report 2011.