Outsourcing IT projects from Sweden

Transcription

1 Outsourcing IT projects from Sweden What are the current and future characteristics of the Swedish IT outsourcing market, and how can vendors optimise their performance? What does the market demand for outsourcing services look like? How are partnerships, alliances and joint ventures being used, and What skills are Swedish companies looking for?

2 Why Swedes do offshore outsourcing? Skills - state-of-the-art services. Time - speed of set-up and time to market. Costs - greater efficiency and productivity at lower costs. Flexibility - an easier way to provide IT services!

3 Why is St. Petersburg and Russia of great interest? Bright developers - the quality of the talent remains extreme high despite the affordable price tag. Geography being close to Stockholm. Similar business culture; objective oriented, competitive and quick to make decisions.

4 Characteristics of the Swedish IT outsourcing market Co-sourcing. Starting with small projects. The degree of outsourcing differ. Different types of vendors. A great supply of vendors. With a market growth of 28 %, the Swedish vendors count for a $ 920 million market.

5 What does the market demand for outsourcing services look like? Vendors to mobile developers, operators and service producers. Vendors to software, security or Internet consultancy. Vendors within ISP. Vendors as ASP.

6 All IT-skills are interesting, but the demand are greater for basic skills C, C++, Visual C++, MFC, Visual Basic, Java/JavaScript, JDBC, CGI, PHP, PERL, DHTML, Delphi, Client/Server Side VB & Database Applications, SQL Server, PL/SQL, SQL*Plus , Web Databases, Web Enabling, Transaction Based Software/Database Solutions, Oracle Forms 4.5, Clipper, Oracle Designer/2000, Macromedia Director, Macromedia Author ware, Active Server Pages (ASP), ActiveX, ISAPI Server Extensions and Filters, Data Driven Dynamic Web Sites, NT DCOM Services, ODBC, DAO, ADODB, RDO, Windows Applications, COM/DCOM, Internet Information Server, OLE, etc.

7 How a Swedish company reason when approaching a vendor? If the development is central to the business, they prefer partnerships. If they don t think any vendor alone can handle the project, they are looking at consortiums. They like to start off with a small project to learn how to work together. Language is not a barrier, but someone needs to speak fluently English (or Scandinavian).

8 How a Swedish company reason when approaching a vendor? (2)? Time zone differences aren't much of a problem (still it isn t uncommon that the offshore partner is willing to work the buyer's hours). They are not just interested in getting the right price, but to make sure that the deal can do nothing to damage their business.

9 How can vendors optimise their performance? To better differentiate themselves. Develop service content and packaging strategies. Understand the market, the particulars of the country and the legal issues. Try to match your country's business culture with your offshore partner's. More effectively deliver services and products. Do not look for the best deal exclusively, look for the best partner. Then within the framework of the best partner, you re looking for a good deal!

10 The Swedish IT market in 2000 market value in million Euro Carrier services Network equipment End-user equipment IT services Software products Data communications hardware Sweden Russia Computer hardware Source: EITO 2001

11 The Swedish IT industry Ericsson and its partners Telecom operators (130!) IT services & outsourcing Software companies in business administration, IT-security, image processing, etc. Specialized hardware companies Plus Volvo, ABB, Electrolux, Sandvik, Saab, Tetra Laval and the others building IT into their products

12 The traditional companies are entering the scene - Building IT into their products

13 The main objective of the Association of the Swedish IT and Telecom Industry To increase the use of ICT in Sweden and to support the growth and prosperity of the members: Eliminate obstacles on the market Develop new businesses Assist members with service support

14 Outsourcing IT projects from Sweden The Swedish market for outsourcing vendors increases, in year 2000 with 28% The companies are demanding a wide range of services, but plain and basic are most interesting. Partnerships are common, but never in the beginning of a cooperation. Gradually, it could become a question. Differentiate and deliver on time.

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