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Nordic countries have been facing a shortage of skilled workers, especially in the information and technology sector. With the majority of Nordic people being able to converse in English, solves a huge logistic issue for international companies looking to establish their bases there. To enable the same, Nordic countries are also providing subsidies and incentives to foreign institutions, some of which may be outside the EU’s jurisdiction.
Great Scope For India: Chief Strategy Officer of Tech Mahindra, Jagdish Mitra said “The Nordic region of Europe is one of the most progressive and innovative regions, as many leading technology companies, including chipmakers, semiconductor, equipment manufacturers and service providers creating their RnD bases in the region”. President of sales, Sudhir Chaturvedi of the L&T Infotech (LTI), valued the Nordic IT industry at $25 billion. Jukka Holappa of Business Finland also said, “Companies have access to the global market beyond just the Nordics. With 5G and 6G connectivity, there’s a lot of R&D being done here across industries like telecom and healthcare.”
Looking Beyond Europe: Nordic countries have been outsourcing their IT service to service providers beyond the European ones, marking India as their number one destination. The cost has been one of the main reasons for the companies to outsource their IT service. A few of the other reasons are — to focus on their core industries that are fishery, metal, forestry, hydropower, fossil fuel, etc., and to have access to their resources.
Effects: Swedish investment bank Handelsbanken Capital Markets tried to explain the negative prospects of outsourcing to the Nordic business leader, who failed to comprehend the adverse effects such schemes can have on the country and its economy. Moving to a globally distributed model means everything changes – culture, HR, processes, customers, incentives and recruitment. The entire value proposition will change.”
Outlook: “There’s just no substitute for the kind of hunger the Indian firms have. Europeans don’t have it.” said Peter Schumacher, CEO of Value Leadership Group. He added that the IT infrastructure in Bangalore had experienced record growth for the year 2019. Indian IT companies are poised to reap sizable dividends while will have tremendous effects on the continuation and survival of the European IT companies, Nordic included.
Great Scope For India: Chief Strategy Officer of Tech Mahindra, Jagdish Mitra said “The Nordic region of Europe is one of the most progressive and innovative regions, as many leading technology companies, including chipmakers, semiconductor, equipment manufacturers and service providers creating their RnD bases in the region”. President of sales, Sudhir Chaturvedi of the L&T Infotech (LTI), valued the Nordic IT industry at $25 billion. Jukka Holappa of Business Finland also said, “Companies have access to the global market beyond just the Nordics. With 5G and 6G connectivity, there’s a lot of R&D being done here across industries like telecom and healthcare.”
Looking Beyond Europe: Nordic countries have been outsourcing their IT service to service providers beyond the European ones, marking India as their number one destination. The cost has been one of the main reasons for the companies to outsource their IT service. A few of the other reasons are — to focus on their core industries that are fishery, metal, forestry, hydropower, fossil fuel, etc., and to have access to their resources.
Effects: Swedish investment bank Handelsbanken Capital Markets tried to explain the negative prospects of outsourcing to the Nordic business leader, who failed to comprehend the adverse effects such schemes can have on the country and its economy. Moving to a globally distributed model means everything changes – culture, HR, processes, customers, incentives and recruitment. The entire value proposition will change.”
Outlook: “There’s just no substitute for the kind of hunger the Indian firms have. Europeans don’t have it.” said Peter Schumacher, CEO of Value Leadership Group. He added that the IT infrastructure in Bangalore had experienced record growth for the year 2019. Indian IT companies are poised to reap sizable dividends while will have tremendous effects on the continuation and survival of the European IT companies, Nordic included.