Sweden has emerged as the key market for Indian IT BPM sector as per a report released by National Association of Software and Services Companies (NASSCOM) along with Business Sweden and Radar Ecosystem.
In the report, Sweden has been identified as the country with 40% ($23 billion in 2016-17) of the total share of the Nordic IT spend. Just like Indian markets, the central market trend reflected in Sweden is the drive for digitisation. The country is fuelled by increased demand for IT and digitization across all other industries.
The report also talks about Sweden having the highest GDP of $550 billion among Nordic countries and is also home to big technology names like Truecaller, Candy Crush, Skype and Spotify.
Commenting on the report launch, R. Chandrashekhar, President, NASSCOM said, “India and Sweden’s IT ecosystem have a mutual affinity for each other – with both the countries are at the threshold of digitisation, opening multiple opportunities for the countries to collaborate. This report will provide an impetus for IT employees and companies to broaden their horizons and opens its doors to new markets.”
Vineet Garg, BU Head ICT at Business Sweden said, “Sweden has always been in the forefront of innovation and technology adoption. We have seen a strong growth in interest from Indian IT services companies who want to establish and grow in Sweden to tap the Nordic market. Access to talent, rather than cost, is a key concern for CXOs and Indian players having the relevant competence are well placed to capitalize on this opportunity.”
The report points out that with a strong underlying economic development, Sweden is witnessing the adoption of new delivery models, such as cloud computing and offshore delivery. This is in congruence with IT industry, where adoption of new technologies is disrupting the IT space.
Another technology that is increasingly penetrating the Swedish markets is the Internet of Things (IoT) market in the vehicle, health, banking and logistics space. The report indicated that Sweden has a strong presence in the manufacturing sub-sectors where there are varied opportunities to develop innovative products like connected cars and digital locks.
In terms of IT consultant market, the report predicts that with an increasing demand for expertise, the trend of increased sourcing will continue as the value of the consulting market is expected to grow by 3.6% to a total value of $6.65 billion by 2017.
Almost akin to the Digital India programme, Sweden’s ‘Digital First’ strategy the Swedish government and SKL (the organization for Swedish municipalities and counties) aim to create a public e-government system that meets citizen, organization, and private sector expectations in an increasingly digital society. The report further stipulates that the Swedish public sector is the 3rd largest sector in terms of value added to GDP.