Market study: The Swedish market for IT services

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Sweden is one of the most technologically advanced countries in the world. It is the birthplace of many well-known global tech brands in various sectors that play a leading role in the world. IT is an ever-growing industry with a great need for expertise. The purpose of this market study is to provide a comprehensive guide for companies from developing countries that are interested in entering the Swedish IT market.

Despite the fact that Sweden has come a long way, some big challenges still remain. The availability of large amounts of data is growing rapidly, and the need to process and analyse this data is becoming increasingly important. One persistent challenge is the lack of IT skills. The shortage of skills is also significant in the rapidly growing gaming segment of the IT market and AI, which will create a lot of new opportunities. This makes Sweden an important destination for international digital talent.

IT services in demand in Sweden

Software development

Software development remains a critical component for the functionality and competitiveness of Swedish companies. Nearly all companies in Sweden depend heavily on software for their operations. Approximately 22 per cent of Swedish companies have in-house software development, while a majority are fully or partly dependent on consultants.

Web and mobile application development

The web and mobile application development industry in Sweden is robust, encompassing various professional roles, including web development, web applications and e-commerce systems.

IT support and maintenance

IT support and maintenance services are experiencing a surge in demand as the economy continues to expand, driving the need for skilled IT professionals.

Game development

Sweden's video game industry is renowned for its innovation and global impact. Despite its modest population, Sweden hosts the third-largest concentration of gaming companies in Europe.

Cloud computing

Cloud computing (or simply the cloud) is the delivery of computing services – including servers, storage, databases, networking, software, analytics and intelligence – over the Internet. Cloud services, such as email cloud services, work with documents in the cloud, data storage and backup, team and project management online, etc., have increasingly become an essential part of enabling digitalisation and the realisation of data-driven functions throughout Sweden, and these services are expected to show strong growth.

AI (Artificial Intelligence)

AI adoption is rapidly increasing across various sectors in Sweden, driving automation, enhancing customer experiences and optimising operations. Investments in AI research and development are growing, with significant applications in healthcare, manufacturing and finance.

Blockchain

Blockchain technology is gaining traction in Sweden, especially in financial services and supply chain management. It offers transparency, security and efficiency, attracting interest from large corporations and institutional investors. Applications include digital identity verification, real estate transactions and secure data sharing.

IT outsourcing and consulting

The need for digital competence in Sweden remains great. However, the current increased focus on profitability and slimming organisations within the IT sector has led to a slight downturn in talent shortages, both globally and in Sweden.

Sought-after IT competence in Sweden

The competence need that will increase the most in the coming 3-5 years is general programming knowledge, regardless of language, followed by Cloud and Microsoft Azure.

Strongest increasing competence requirements in Sweden within 3–5 years

Source: Tech Sweden

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