As 2024 draws to a close, we at Upgraded take this opportunity to reflect on the year’s most significant events. And what a year we’ve had!

Upgraded continues its exceptional growth journey
2024 has been a record year for Upgraded People AB. With full-year sales exceeding SEK 1.7 billion, compared to SEK 1.06 billion the previous year, the company has cemented its position as one of Sweden’s fastest growing B2B players. During the first nine months of the year, sales have grown by an impressive 72.5%. We have broken new sales records month after month and in October we reached a whopping SEK 185 million – the highest monthly sales in the company’s history.

Strengthened market positions and new business
During the year, we have continued to expand both in the private and public sectors. Developments have been particularly prominent in segments such as banking, finance, insurance, energy and the automotive industry. At the same time, we have strengthened our position in the public sector through new collaborations with government agencies, municipalities and regions. Among our new customers, we can proudly count the municipalities of Landskrona and Eslöv, the Swedish Post and Telecom Agency (PTS) and Södertörn.

In the technology area, AI, Business Intelligence and IT security have seen the strongest growth in inquiry volumes. In addition, demand for Swedish consultants has increased in the international market, especially in Germany and Denmark, where the weak Swedish krona has created competitive advantages.

A successful year for procurement and awards
In 2024, we have won several significant procurements, including a framework agreement with the Swedish Post and Telecom Agency (PTS) worth an estimated SEK 150 million and a four-year framework agreement with Almi AB with a ceiling volume of SEK 400 million. These successes have contributed to increased business volume, which in the first quarter rose by 80% compared to the same period in 2023. This is a clear indication of the market’s increased confidence in Upgraded.

Awards and recognitions
In 2024, we were, for the second year in a row, designated a Gazelle company, a feat that less than 1% of Swedish limited companies achieve. We also ranked 74th in the Upsales Revenue Journal Ranking, a list of Sweden’s fastest growing B2B companies with sales over 100 million SEK. This is a clear recognition of our ability to combine growth with long-term sustainability.

A year of community involvement
In addition to business successes, 2024 has been a year in which we have deepened our social commitment. A sustainable society and positive value creation through the services and solutions we deliver are important to us. We have actively participated in initiatives that are close to our hearts, including:

• The Pink Ribbon Health Challenge, where we helped raise awareness about the Swedish Cancer Society’s important work while inspiring each other to increase everyday exercise and raising money for breast cancer research.
• The Mustache Fight, where we focused on men’s mental and physical health and helped raise awareness and spread knowledge about prostate cancer.
• Music Help, where this year’s theme “Everyone has the right to survive their pregnancy” inspired us to raise money and spread awareness about this important issue.

It is through initiatives like these that we want to give back to society and show that our work goes beyond business. We are constantly trying to find new opportunities where we can make as big a difference as possible.

A big thank you for the past year
Behind our success are our fantastic employees, customers and partners whose commitment and trust are the foundation for our success and continued growth.

“I am incredibly proud of what we have achieved together and look forward with great confidence and anticipation to what 2025 will bring. Thank you for a fantastic year! Together we are building an even stronger future.”

– Birgitta Hedegård, CEO, Upgraded People AB

Upgraded continues its strong growth journey and breaks a new sales record in October with sales exceeding 185 million SEK. Compared to the corresponding month in 2023, this represents growth of a whopping 51.6%.

Upgraded continues to go against the flow and begins the fourth quarter of the year with a very strong month. We break a new sales record for a single month where we reach 185 million sek and at the same time upgrade the forecast for the full year to a sales of 1.7 billion from the previous 1.5 billion sek. In 2023, Upgraded’s sales for the full year were just under 1.1 billion (1062 million sek).

We continue to strengthen our existing customer relationships while gaining new trust from both the public and private markets. Looking at the private market, it continues to perform strongly even though we still see that there is a recovery taking place, mainly in the construction sector. We have a great advantage of our national distribution, which means that we have spread our risks both by having a large variety of customers but also having a geographical distribution that allows us to capture needs and trends throughout the country. Within the public sector, we continue to be strengthened with increased trust from government agencies, municipalities and regions. In addition to gaining new market share, we are also seeing cautious optimism within public administration, which has been hard hit by rampant inflation and tight budgets over the past two years. We are also seeing the effects of an increasingly strong brand in the fact that the proportion of spontaneous inquiries is continuously increasing, a clear trend over the past year.

We are pleased to see that our forays into Norway and Denmark are starting to yield results. During October, the inflow of business opportunities in these markets has increased significantly, not least in Denmark, where the weak Swedish currency also creates exciting opportunities for Swedish consultants in remote assignments.

Overall, Upgraded’s position in the market continues to strengthen and we have high ambitions for the future. I would like to express my gratitude to all our fantastic employees, customers and partners who make this growth journey possible. I look forward with great confidence to the end of 2024 and the start of 2025, says Birgitta Hedegård, CEO of Upgraded People AB.

About Upgraded

Upgraded offers the market tailor-made solutions to meet the unique needs and wishes of its clients, we have a focus on services that lead the digital transformation forward to sleeplessly take on the challenges and opportunities of the future. Upgraded’s clients are found in both the public and private sectors with resource deliveries in Sweden, Norway and Denmark with over 1000 consultants on assignment. We provide the right resource at the right time to enable our clients’ goals and visions for the benefit of the individual, organizations and society. We have a focus on services that lead the digital transformation to sleeplessly take on the challenges and opportunities of the future.

For more information:

CEO, Birgitta Hedegård

birgitta.hedegard@upgraded.se

After the Temporary Employment Act has been in force for more than two years, discussions continue about its application. A new EU ruling on the law has recently been issued, but the question is whether it contributes to increased clarity or whether the confusion persists.

“To create clarity, it can be stated that the EU ruling is still somewhat unclear,” says Birgitta Hedegård, CEO of Upgraded People AB, one of Sweden’s fastest growing consulting agencies. “Anyone who was hoping for clear guidelines will be disappointed.” However, the ruling addresses the difference between staffing and service delivery. When it comes to IT consulting companies, it is common for them not to conduct an activity where consultants are hired out to work under the direction and control of the client company, which is an important aspect in assessing the applicability of the law. If a consultant is employed for other purposes or works with different types of service deliveries, the criteria of the law are not met.

The judgment particularly emphasizes what is meant by “control and management”. To be considered to be working under the management of the client company, the client company must both direct the work tasks, determine how the work is to be carried out according to the company’s instructions and rules, and supervise the work. In practice, this means that the entire responsibility for work management needs to have been transferred to the client company. The client company must then have both the competence and resources to manage the work, as well as the authority to do so according to the business agreement. In the current EU case, it turned out that the right to manage the work had not been fully transferred, which meant that the law was not applicable. This creates an interesting room for interpretation, especially for IT consultants who often work independently based on the entire competence base of the consulting company, where they follow the client company’s goals but decide themselves how the work is to be carried out. According to this interpretation, IT consultants are not covered by the Temporary Employment Act and client companies therefore do not have to offer the consultant two months’ wages or employment after two years of work during a three-year period.

What can consulting firms do? Birgitta believes that it is important to clearly specify in the business agreement how the services are delivered and who is responsible for management and working methods. However, she believes that further guidance from future legal cases in Swedish courts is needed to create greater clarity and finds it very regrettable that many clients now, fearing being forced to hire or pay two months’ salary, are instead choosing to terminate innovative projects.

Upgraded Gazelle company for the second year in a row! This is a feat that very few companies manage to achieve. Less than 1 percent of all Swedish limited companies meet the requirements to become a Gazelle company each year. Upgraded not only doubled its turnover during the measurement period, but also grew by a whopping 274%!

Sweden needs growth and the country’s entrepreneurs need inspiration, practical knowledge and strong role models. The Gazelle survey ranks Sweden’s most successful companies in 21 counties. The survey is based on the company’s four most recent annual reports. To be eligible for the title of Gazelle company, the following criteria must be met:

1. A net turnover exceeding SEK 10 million, according to the most recent annual report.
2. At least ten employees, according to the most recent annual report.
3. At least doubled its turnover, comparing the first and last financial year in the four-year investigation period.
4. Increased its turnover every year for the last three years.
5. A positive overall operating profit for the last four financial years.
6. In all material respects, it has grown organically, not through acquisitions or mergers.
7. Sound finances.

I feel enormous joy and pride! This award would not have been possible without our fantastic employees, customers and partners. We have managed to combine innovation, quality and a good corporate culture with commercial success. Together we continue to develop our business and look forward to an exciting 2025. It will be a year that will be about refining what we have, constantly developing ourselves and our customers to new levels, says Birgitta Hedegård, CEO at Upgraded People.

Upgraded People continues its strong growth journey during the third quarter of the year and has a turnover of 1,217 million sek during the first 9 months of the year, a growth of 72.5%. In the 3rd quarter, the turnover reaches 376.5 million sek (236 million sek). The month of September is the strongest month in history in terms of turnover with a turnover of 163 million sek!

We experience that the market is gaining momentum, the request volumes are increasing, the time to decision from our clients is decreasing and the project initiatives are tending to become larger. We also notice that the request volumes for project managers and requirements managers are increasing significantly, which are early roles in customers’ project initiatives. This, together with a continuously increasing customer base, means that we are very positive about the end of the year and the start of 2025.

New business and assignments

We are continuing on the path we have chosen and during the 3rd quarter of this year we have been awarded new exciting assignments in both the public and private sectors. If we look at the private sector, it is primarily in the banking, finance, insurance and energy segments that things are moving the most. In the public sector, we are also noticing that inquiry volumes are starting to move from having been relatively low during the latter part of 2023 and the beginning of 2024. We are also noticing an increasing international interest in Swedish consultants, as the weak Swedish krona makes them very competitive in a global context.

Looking at technology areas, AI, Business Intelligence (BI) and IT security are the areas that have had the strongest growth in inquiry volumes.

Stronger brand

Upgraded is strengthening its position in the market and has ambitious goals for the future. By both attracting new customers and building on the trust of our existing customers, we ensure continued strong growth. In a competitive market, it is crucial to constantly develop our service portfolio in order to offer the market high-quality solutions that meet current needs. I would like to extend a big thank you to all our employees, customers and partners who make this impressive growth journey possible, and I look forward to the rest of 2024 and the beginning of 2025 with great optimism, says Birgitta Hedegård, CEO of Upgraded People AB.

About Upgraded

Upgraded offers the market tailor-made solutions to meet its clients’ unique needs and desires and has a focus on services that lead the digital transformation forward to sleeplessly take on the challenges and opportunities of the future. Upgraded’s clients are found in both the public and private sectors with resource deliveries in Sweden, Norway and Denmark with over 1000 consultants on assignment. We provide the right resource at the right time to enable our clients’ goals and visions for the benefit of the individual, organizations and society.

For more information:

CEO, Birgitta Hedegård

birgitta.hedegard@upgraded.se

The new rules in the Temporary Employment Act that came into force on 1 October 2024 were originally intended to ensure the security of individuals working as staff in industry, but given their design, most service-oriented industries are covered. In recent months, we have seen several examples where consultants in the IT industry who have chosen to move to a job within a line organization have been dismissed from their new job only a few months into their new job. The fact that there is now legislation that “forces” consulting companies to offer employment or pay two months’ salary in the event of a longer commitment means that we should see significantly more examples where individuals leave a secure job with a consulting company to go to a line organization where the principle, as everywhere else, “last in” – “first out” applies. In this case, with the knowledge that the job offer is enforced by law, we should be able to see many more sad examples where individuals are thrown into unemployment within a short time of their employment.

Risks of permanent employment at the client company

1. Uncertain future with changing needs: Many people see employment in a line organization as a safe solution, but this is not always the case. If you get a permanent job with a client company, there is always a risk that your specific skills will no longer be in demand when the project you were hired for ends or if the company’s needs change. Companies may need to restructure, which can lead to you becoming redundant, being reassigned to a role that does not match your skills, or in the worst case, being laid off.
2. Lack of development opportunities: Becoming a permanent employee at a client company can also mean that you are stuck in a specific role or task for a long time. It can be difficult to develop your skills or advance if the company does not offer the right development opportunities. This can hinder your career development and make you less attractive in the job market in the future.
3. Reduced flexibility: As an employee in a line organization, you are tied to a company and must adapt to their long-term strategy. It can be difficult to change tasks, departments or get access to exciting projects. If you remain as a consultant through a consulting agency, you retain the flexibility to quickly change assignments and adapt your career to your own goals and interests.

Advantages of being a consultant through a consulting agency

The consulting role through a consulting agency has several advantages that should not be underestimated. You often have greater opportunities to build your attractiveness by broadening both industry experience and experience from different roles and positions as a consultant.

1. Greater security through continuous assignments: As a consultant through a consulting agency, you have access to many different assignments and if one project ends, the agency will help you find the next one. This provides a smoother workflow and reduces the risk of suddenly being out of work, which can happen in an employment with a line organization when the need for your skills ceases.
2. Opportunity for continuous development: As a consultant, you can work in different industries, with different types of projects, and for different clients. This gives you the opportunity to constantly expand your skills, gain experience from different work environments, and stay up to date with the latest developments in your field. This variety allows you to constantly grow professionally, something that can otherwise be difficult to achieve.
3. Stronger negotiating position: Consultants, especially through consulting agencies, often have better opportunities to negotiate compensation and terms. Because you offer specialized skills for specific projects, you can value your expertise and negotiate better compensation and benefits.
4. Flexibility and freedom: As a consultant, you retain the freedom to choose the assignments that suit you best and you can easily change direction if you wish. You can work with multiple companies, thus avoiding the uncertainty that can come with a traditional line-organizational position, where you are dependent on the success and needs of a single company. This flexibility is often one of the greatest advantages of being a consultant, especially in a changing job market.
5. Long-term security through the consulting agency: By working with a consulting agency, you gain access to a broad labor market and assignment opportunities. The company helps you find new assignments when a project ends, which means you always have a backup plan. This creates long-term security and reduces the risk of periods of unemployment.

Conclusion

By working as a consultant, you maintain the advantage of having access to several different assignments while minimizing the risk of becoming redundant or trapped in a role that does not match your ambitions.