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!