Sweden poised to become key destination for Indian IT: report

Sweden has a significant focus on digitisation with its government's 'Digital First' strategy

Sweden has the potential to emerge as a market for Indian IT services industry, said a joint report by Nasscom, Business Sweden and Radar Ecosystem.

The IT industry lobby, Nasscom, said that the Nordic country has the highest GDP of $550 billion and been identified to have 40 per cent ($23 billion in 2016-17) share of the Nordic region IT spend.

Sweden, the country which is home to companies such as Truecaller, Candy Crush, Skype and Spotify, has a significant focus on digitisation with its government's "Digital First" strategy.

The report, Sweden a key driver of Nordic ICT growth, noted 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. With most Swedish firms embracing cloud computing at a rapid pace, a growing need for skills in the field is also on the rise. Another technology that is increasingly penetrating the Swedish markets is the Internet of Things (IoT) market in the vehicle, health, banking and logistics space," said Nasscom quoting the findings of the report.

Sweden is also learnt to have a strong presence in the manufacturing subsectors with varied opportunities to develop innovative products like connected cars and digital locks.

"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," said R Chandrashekhar, President, Nasscom.

The report has also stated that the country has seen an increasing demand for expertise in IT consulting and it "will continue as the value of the consulting market is expected to grow by 3.6 per cent to $6.65 billion by 2017.

Based on the report, Nasscom said Sweden has "simple procedures and efficient operations based on a transparent system and the country seeks to facilitate the establishment of new enterprises including factors that no Swedish partner is required to start a business and a competitive corporate tax rate of 22 per cent.

"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," said Vineet Garg, BU Head ICT at Business Sweden.