New report from the Radar Group
We want to draw attention to new interesting report published by the Radar Group which follows up on the company’s previous research about the cost, financing and market aspects of integration in the Nordic countries. Radar has given us permission to include some highlights and material from the report here, but we strongly encourage you to read the full report, which is available (in Swedish) on the Radar website: Integration 2017
The Swedish IT market
During 2016, the Swedish IT market grew by at least 3.3% (4.93 billion SEK), to a total of 154 billion SEK. The “Business-oriented IT” segment, which includes integration, is the area which has grown the most during the past year.
Radar points out that the increasing use of outsourcing and cloud services require specific integration competence to ensure that the concerned applications and systems work well together with the existing IT environment. This also requires that companies find efficient ways to measure the effects of integration, to satisfy the needs of the IT-organization’s customers (the business) which want to see concrete improvements in the shape of new functionality and new integration “access points”. Radar has noticed that several organizations now apply KPIs for integration, even for outsourced contracts, which is a trend that is likely to continue.
The integration market
Radar concludes that up to 74% of all businesses has allocated budget and resources for integration initiatives during the next 24 months. At iCore, we find it interesting and reassuring that companies have this level of foresight. Another interesting trend is the ongoing shift of IT investments, where the “tab” for IT projects are more often picked up by departments other than the IT department. Considering the size of the integration area, we are seeing a continued strong growth. The total market value of integration (when combining funds from IT budget and department budgets) amounts to more than 15 billion SEK.
Key Performance Indicators
The Radar study shows that more than 60% of all operations in medium to large organizations dedicate resources (in-house or consultants) specifically to integration. The tendency to finance integration-related initiatives outside the IT budget also increases with the size of the organization. Smaller organizations generally do not have as clear a view of integration since it is often a part of other areas with no dedicated responsibilities or budget.
|KPIs, large organizations||Average value|
|Number of integration flows||42|
|Number of integrated applications/systems||13.5|
|Number of messages per hour||525|
|Number of integration-related incidents per month||10.5|
|Cost per integration flow (operations) / year||63 500 SEK|
It is worth noting that, according to Radar, the cost of each integration flow has increased by almost 50% from 42 500 SEK to 63 500 SEK. This is a significant increase, which we think is highly interesting and demands further investigation.
Contact iCore if you want to know more about the TCO (Total Cost of Ownership) aspects of integration. Helping companies calculate the returns of their integration investments is one of our specialties!