As shown by the preliminary results of the 2011 Austrian IT Outsourcing and In-House Software Development Survey, poor communication with vendor’s project teams and management is the major challenge facing Austrian companies that outsource their IT / software development to third parties.

IT Sourcing Europe, a UK-based market intelligence company, is about to close its 2d Annual Austrian IT Outsourcing (ITO) and In-House Software Development Survey 2011 that has been in progress since early October. While the final findings are yet to be analyzed and released, the preliminary results allow picturing some of the key hallmarks of today’s Austrian ITO landscape.

According to the survey, the top three ITO challenges in Austria are: poor communication with vendor’s project teams and management (reported by over 40% of survey respondents), lack of appropriate resources on vendor’s side (reported by over 38% of participants) and change management (reported by over 30% of respondents).

Of those companies that point to poor communication with ITO vendors, around 70% engage via the project-based outsourcing models (fixed-price, time-and-material) and only around 3% – via the own software team model. Of those companies that report poor resource pool on vendor’s side, more than 60% partner with small ITO vendors (less than 50 by headcount) and only less than 5% – with large providers (1000 and more). Change management is the biggest issue for almost 75% of small companies and less than 10% of large companies.

Overall, the prevailing majority of survey participants – more than 55% – believe that outsourcing their development / QA functions has been the right decision, while less than 10% are very dissatisfied with their outsourcing engagements.

To date, the base survey sample is comprised of the 312 outsourcing companies. The survey will be available online until October 28, 2011. The final results will be compiled into a comprehensive Austrian IT Outsourcing Intelligence Report 2011.

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