We have recently completed our 3d Annual Danish IT Outsourcing (ITO) vs In-House Development Survey 2012 and are ready to share its most thought-provoking findings with you. The survey was conducted between April 17 and May 31, 2012 and was completed by the 695 Danish companies, of which 382 were IT / software development outsourcing companies and 313 – companies developing their IT solutions in-house.
Recapping the results:
Top three drivers of IT Outsourcing in Denmark:
- Reduction of operating costs (OPEX)
- Focus on core competences and business development
- Time-to-market (TTM) acceleration
Top three most decisive factors in the choice of an ITO destination among the Danish companies are:
- The available vast IT talent pool
- Proficient English language skills
- Low costs in general
Top three most decisive factors in the choice of an ITO partner in Denmark are:
- Successful test / pilot project completion
- Flexible contract terms
- Positive references from industry peers
Top three challenges of the outsourced software development:
- Poor communication with vendor’s project management / executive teams
- Cultural difference
- Lack of appropriate resources on ITO vendor’s side
Top 3 ITO business models:
- Project outsourcing (fixed price / time and material)
- Own software development team
- Dedicated Development Center
Nearshore (close to / up to 2 time zones away from Denmark) remains the most popular outsourcing destination (cited by 47% of survey respondents, which is up 10% from 2011). Offshore (2+ time zones away from Denmark) remains the second most popular outsourcing destination (cited by almost 44% of companies, which is up 16% from last year).
Access detailed information here.