Posts Tagged ‘own development team nearshore’

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:

  1. Reduction of operating costs (OPEX)
  2. Focus on core competences and business development
  3. Time-to-market (TTM) acceleration

Top three most decisive factors in the choice of an ITO destination among the Danish companies are:

  1. The available vast IT talent pool
  2. Proficient English language skills
  3. Low costs in general

Top three most decisive factors in the choice of an ITO partner in Denmark are:

  1. Successful test / pilot project completion
  2. Flexible contract terms
  3. Positive references from industry peers

Top three challenges of the outsourced software development:

  1. Poor communication with vendor’s project management / executive teams
  2. Cultural difference
  3. Lack of appropriate resources on ITO vendor’s side

Top 3 ITO business models:

  1. Project outsourcing (fixed price / time and material)
  2. Own software development team
  3. 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.

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