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Nordic Enterprises Focus on Innovation and Improving Customer Experience

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ISG Provider Lens Report Finds Companies in the Region Turning to Digital Business Services Providers for Help With Analytics, Artificial Intelligence and Other Technologies

Enterprises in the Nordic countries are focused on improving customer experience and enhancing innovation, and they are turning to digital business service providers to achieve their goals, according to a new report published today by Information Services Group , a leading global technology research and advisory firm.

The 2019-2020 ISG Provider Lens Digital Business Solutions and Service Partners Report for the Nordics finds enterprises in the region embracing technologies such as data analytics, artificial intelligence, the Internet of Things and blockchain to deliver quality services to their customers and to differentiate themselves from competitors.

“Nordic enterprises are seeking transformation services from IT providers to not only take them through their digital journeys, but also to bring the cultural transformation needed to realize the full potential of digital services,” said Barry Matthews, partner and head of ISG North Europe.

Most traditional businesses in the Nordic countries are moving toward digital transformation, the report says. They are focused on consumerization of services using mobile apps, data and analytics. Most providers, both global and local, are focused on providing digital services for core banking, payment apps, smart utilities, insurance services and other e-commerce.

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Providers in the region have a strong focus on delivering customer experience services, operational efficiencies and innovation to their clients, the report says. Providers are embracing local partnership as well as growing organically. Increasingly, they are associating themselves with universities to focus on current and emerging technologies.

Nordic enterprises expect their providers to be proactive in response to their needs and align with their goals and vision, the report adds. Cost savings is a major concern for many enterprise clients, and they want to leverage the intellectual property and expertise of service providers to save money.

The report also finds a huge demand for digital services in the Nordics, with only a small number of local vendors. The consolidation of these vendors has been increasing. The provider landscape is highly competitive, and those that demonstrate the ability to scale and partner with their clients are preferred by enterprises.

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In addition, the report sees a steady increase in outsourcing in the Nordic countries. The growing adoption of digital technologies by enterprises in the region and the organizational changes required at legacy-rich companies is driving that demand. Nearshoring from Poland is also on the rise, with better cultural integration and matching time zones making Polish workers attractive to Nordic companies.

Finally, the report sees a shortage of digital skills among service providers in the Nordics. With new technologies such as virtual reality and blockchain emerging, some providers are finding it difficult to find specialists.

The 2019-2020 ISG Provider Lens Digital Business – Solutions and Service Partners Report for the Nordics evaluates the capabilities of 25 providers across four quadrants: Customer Journey Services, Digital Product Lifecyle Services, Digital Backbone Managed Services and Blockchain Services.

The report names Accenture, Atos, HCL, Infosys and Tech Mahindra as leaders in all four quadrants, and TCS as a leader in three. Cognizant and IBM are named leaders in two quadrants, and Capgemini, LTI and TietoEVRY are named leaders in one.

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