Opportunities for IT companies
Outsourcing of IT activities will continue to grow significantly. This offers business opportunities for foreign IT companies.
A growing number of IT activities are eligible for outsourcing. Clients want to focus on core business, business process innovation and improving the quality of IT processes to reduce costs.
The average size of an agreement decreases. This leads to an increased total number of agreements.
For smaller IT companies, this offers opportunities in a market that was initially dominated by large System Integrators.
If you are looking for opportunities for IT companies in The Netherlands, we suggest you also read:
Drivers for IT-outsourcing
The four main reasons for outsourcing parts of the IT environment are:
- Elasticity (quickly add or reduce IT capacity according to changing needs)
- Knowledge (access to talent and information that is difficult to find due to a shortage of specialised professionals)
- Focus on core activities
- Cost savings
The top 10 budgets consist of Enterprise Resource Planning (ERP), Security, ICT infrastructure, Application Development, BI, Digital Workplace, Web/Mobile, CRM, Organization Development and IoT.
Sources: Quint and CIONET and Cegeka
The information for the analysis was collected during interviews with the NextSales Ambassador Network → and clients →, market reports and surveys.
In addition, the number of current vacancies has been used as another indicator of the demand for services. For this purpose, two important hubs were used for posting vacancies (Indeed and Glassdoor).
CIO top 10 high priority
As mentioned earlier, Application Development & Renewal and Web / Mobile are among the top 10 IT investments for CIOs. It is also one of the areas where the NextSales Ambassador Network identified a market potential for foreign companies.
Mobile applications pricing
- IT service providers advertise with “We’ll build an app within 1 week”
- Some providers offer a price of € 200/week or let you calculate a price on their website: www.mylermedia.nl
- Hourly rates range from € 30 to € 140 with an average of € 70
Mobile applications market
By the end of August 2019, there were between 380 and 687 vacancies for mobile app developers. These vacancies were mainly in Amsterdam, Utrecht, Rotterdam and Eindhoven.
Web applications pricing Identical to Mobile Applications
- IT service providers advertise with “We’ll build an app within 1 week”
- Some providers offer a price of € 200/week or let you calculate a price on their website: www.mylermedia.nl
- Hourly rates range from € 30 to € 140 with an average of € 70
Web applications market
At the end of August 2019 there were between 388 and 2,888 vacancies in Amsterdam, Rotterdam, Utrecht and Eindhoven.
Web development & design
Web development pricing is identical to Mobile Applications
- IT service providers advertise with “We’ll build an app within 1 week”
- Some providers offer a price of € 200/week or let you calculate a price on their website: www.mylermedia.nl
- Hourly rates range from € 30 to € 140 with an average of € 70
Web development market
At the end of August 2019 there were between 968 and 1,900 vacancies in Amsterdam, Utrecht, Rotterdam and Eindhoven.
Web design pricing
- Hourly rates range from € 30 to € 90 with an average of € 50
Web design market
At the end of August 2019, there were between 684 and 2,034 vacancies for mobile app developers. These vacancies were mainly in Amsterdam, Utrecht, Rotterdam and Eindhoven.
Conclusions
This area is high on the priority list of CIOs, it is an area where companies are willing to work with a foreign IT service provider.
Many companies are looking for personnel and prefer to hire personnel in their own company. These companies face a dilemma:
- Do nothing and start to lag behind in their development, or
- Hire external support
For external support, most of these companies (unless they are an IT service provider themselves) will then turn to their trusted IT service providers or brokers. As this does not reduce the shortage of qualified personnel, this is an opportunity for foreign companies.
What does this mean?
- There is a high demand for services in this segment
- Companies are willing to work with external suppliers
- Most likely customers for foreign companies are local IT companies or brokers
- This segment is very attractive for foreign companies
What to do?
- Use references from other customers and publish white papers about these services
- Define a unique value proposition
