19/11-04   -   Pressmeddelande

Offshore Services Set to Impact Delivery of IT Services in Nordics, Says IDC

The use of offshore services is still limited in the Nordic region, but local IT services vendors are taking the first steps towards offshoring, establishing their own offshore services operations or using subcontractors and partners. At the same time, low-cost countries are playing an increasingly important role in the delivery of IT services in the Nordics.

“Offshoring is becoming an integral part of delivering services from low-cost regions and a means for offshore players from a variety of regions to build market presence in the major ´onshore´ IT and business services markets such as the Nordic countries. With the ongoing need for customers to reduce costs, coupled with the proven capabilities of offshore players, IDC foresees considerable market opportunities for these players in the onshore markets and for local players looking to leverage offshoring as part of their service delivery capabilities," said IDC Research Manager Esa Peltonen.

According to a new IDC study, large end-user companies are best suited to dealing with offshore vendors because they have the resources and knowledge to work globally with all types of companies. However, in the SME sector there is demand for local representatives that take a project manager role and deal with the offshore operations. However, it seems that the biggest offshore vendors are also hiring locals who speak the local language to deal with customers.

Offshore services providers (OSPs) such as Tata Consultancy Services, Wipro, and Infosys will have only a moderate effect on the IT services industry in the Nordic region, with Nordic organizations´ spending with OSPs accounting for only about 0.6% of the total Nordic IT services market in 2004. Low-cost countries, however, will increasingly have an impact on the delivery of IT services in the Nordics, though clients are much more likely to use intermediaries — IT services providers such as Accenture, IBM, Capgemini, and TietoEnator — than OSPs. Some Nordic organizations, particularly in telecom services, have already established their own operations in India, Eastern Europe, and Russia.

The study, Nordic Offshore IT Services Trends: Implications to the Local Industry, 2003–2008 (IDC #N560465L, November 2004), offers a five-year forecast for the Nordic market for offshore services and analyzes the trends influencing opportunities in offshore services.
To purchase the study, please visit contact your local IDC office or visit www.idc.com.

About IDC
IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world´s leading technology media, research, and events company. Additional information can be found at www.idc.com
# # #

All product and company names may be trademarks or registered trademarks of their respective holders.

For more information:
Esa Peltonen
epeltonen@idc.com
+358 9 8770 466