Stan Lepeak, Managing Director, EquaTerra Global Research interviews Carl-Henrik Hallström, EquaTerra’s Regional Director, The Nordic Region, to get his thoughts on the results of the 2010 edition of the Nordic Service Provider Performance and Satisfaction study.

Stan Lepeak: How would you characterise the current IT outsourcing market in the Nordics?  Is it being positively or negatively impacted by either general improvements in the local economies or by debt problems in other Eurozone markets?

Carl-Henrik Hallström: The study results show that the outsourcing market is continuing to grow.  It has been particularly noticeable that the recent financial crisis has driven interest in outsourcing as a business tool – it is now viewed more as a necessary activity than an optional activity. Quite simply, as business revenues have come under pressure, there is a greater need to reduce costs. In addition, as the outsourcing market matures in the Nordic region, interest in outsourcing is naturally growing.

Stan Lepeak:  What do you feel are the key findings from this year’s study?  What are the most important messages for buyers and service providers to take away from this research?

Carl-Henrik Hallström: A significant change highlighted by the research is the increased propensity to outsource to offshore locations. My personal opinion is that this is being driven by the growth in demand for Application Development services which are well suited to offshoring. Also as the market matures, offshoring’s growth is supported by it being perceived as a viable solution, not as a risky activity.

Outsourcing buyers and service providers should both take away the fact that there is an ever-greater demand from buyers for flexibility and innovation to be built into contracts.  Buyers should be demanding this, and service providers should be working hard to reassure clients that they can be proactive, innovative and offer contracts with the flexibility to accommodate changing business needs.

Stan Lepeak: Looking forward, how do you see outsourcing evolving in the Nordics over the next few years?  How should buyers view outsourcing compared to other emerging change enablers like software as a service and cloud computing?

Carl-Henrik Hallström: I see outsourcing growing in the Nordics and the question being asked by organisations changing from, “should services be delivered internally or externally?”  to, “what external shared services delivery model is most appropriate for me?” I also see the shared services delivery model remaining popular, both for service delivery and as a centre of excellence for outsourcing expertise.

Software as a service and cloud computing are being considered by clients, but they are among many tools available – and it should not be forgotten that cloud is currently an immature market.

For more, read the Nordics Service Provider Performance and Satisfaction study 2010.

Filed under: Market Trends and News, Outsourcing by EquaTerra