Posts Tagged ‘it outsourcing cyprus’

Despite the last year’s predictions that the European Union is likely to catch up with the United States by the total IT outsourcing (ITO) contracts value in 2011, the factual state of affairs demonstrates a substantial decline in the European outsourcing transaction volumes (both in ITO and business process outsourcing (BPO)). The last Global Services Industry Quarterly Report by Everest Group, one of the world’s leading outsourcing consultancies, determines this decline to make 7% from Q2 2011. On the other hand, IT Sourcing Europe’s country-specific surveys show that the number of the low-value and less asset-intensive outsourced IT/development projects has increased in Europe in 2011, compared to 2010.

The Pan-European IT Outsourcing Intelligence Report 2011 presents the summary of the All-European IT Outsourcing and In-House Software Development research conducted between February and December 2011. In the course of the research the following European countries were surveyed (in alphabetical order): Austria, Cyprus, Denmark, Finland, Malta, Norway, Sweden, Switzerland, Netherlands and United Kingdom. (more…)

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We have just finished a series of the European IT Outsourcing (ITO) and In-House Software Development surveys conducted between February and December 2011. Cyprus is the last EU country to have been surveyed. The survey arrived at the following key conclusions:

  • Cyprus-based B2B IT companies have the greatest demand for ITO services among other industries and verticals
  • The prevailing majority of ITO projects fall under the web development domain, require 1 to 5 IT specialists to complete and do not exceed € 49K in value
  • Multi-sourcing is an obvious trend of 2011
  • Most of the Cyprus outsourcers transfer their development / IT either nearshore alone or distribute them among multiple providers nearshore, offshore and within Cyprus
  • Reduction of operating costs is the core driver of corporate decisions to outsource in Cyprus
  • The key challenges of the outsourced IT / software development in Cyprus are poor communication with vendor’s project management and executive teams and vendor’s inability to understand their clients’ business objectives
  • Key steps that Cypriot companies make to respond to their ITO challenges are ITO partner change, extension of deadlines and dedication of additional managerial resources
  • Most of Cypriot companies manage to save 10% to 24% of operating costs from their ITO endeavors
  • More than 66% of non-outsourcing companies complain about the high cost of domestic IT resources and personnel and more than 33% complain about the scarce local IT resource pool
  • Around 30% of companies already consider outsourcing as an option to leverage costs and access broader resource pools in the future

These and other thought-provoking findings have been compiled in the Cyprus IT Outsourcing Intelligence Report 2011 that is currently available for free download.

The results of the All-European ITO Research 2011 will be presented in the Pan-European IT Outsourcing Intelligence Report 2011 that is expected to be released before December 25th, 2011.

We thank all European companies that dedicated their time and completed our survey questionnaires!