| IT Sourcing Europe, a UK-based nearshore IT sourcing | | | | expected (contracted) ones. An interesting trend was |
| research and consultancy company, announced today | | | | observed: most of the companies pointing to the |
| the completion of its Swedish IT Sourcing and | | | | above three challenges are offshore outsourcers. This |
| Software Development Survey 2010, conducted in the | | | | finding suggests that it is more difficult to manage the |
| frames of the All-European IT Outsourcing (ITO) | | | | outsourced projects if the development team is |
| Research 2010. The survey was aimed to explore the | | | | located more than 2 time zones away from the home |
| major trends, challenges and behaviors among the two | | | | country. On the other hand, companies that outsource |
| types of Western European companies – those | | | | their software development nearshore, seem to be |
| that outsource their software development to a 3d | | | | more satisfied with their ITO engagements. The |
| party offshore, nearshore or within Sweden and those | | | | greatest concerns of nearshore outsourcers in |
| that develop their software/web solutions within own | | | | Sweden are: poor quality of delivered products |
| house. The survey was completed by the 148 | | | | services and inappropriate resources from vendor's |
| outsourcing companies representing all of the major | | | | side. |
| verticals from IT and telecommunications to banking | | | | As many Swedish outsourcers continue to engage |
| and insurance to travel and hospitality etc. | | | | with their vendors via dedicated development center |
| According to the survey findings, the major challenge | | | | model or captive operations, our survey findings once |
| continuing to face Swedish IT outsourcers is delayed | | | | again support the idea that outsourcing of the future |
| delivery and vendor's inability to meet with project | | | | will need more innovative business models, able to |
| milestones on time. This challenge was cited by 31% of | | | | allow buyers to have as much control of their |
| companies polled. Another 19% pointed to poor project | | | | outsourced projects and as much transparency in |
| management from vendor's side among their biggest | | | | payment transactions as possible. |
| challenges and 17% said the actual annual incurred | | | | More thought-provoking findings are available in the |
| costs of the outsourced development far exceed the | | | | Swedish ITO Intelligence Report 2010. |