Companies are outsourcing more, not only because of economic factors, but also to utilize the talents of skilled specialists.
In a January 2010 poll conducted by Accenture, in collaboration with the International Association of Outsourcing Professionals, 56 percent of respondents indicated that they intended to outsource more of their business activities in the coming months.
This reflects an increase of 9 percent over the responses to a similar poll in September, 2009. As IAOP Chairman Michael Corbett observed, “Increasingly, companies are outsourcing to do more than cut costs but to add value, increase business flexibility and prepare for future growth. Companies that are using outsourcing are poised to emerge from the current economic crisis stronger.”
Businesses cited strategic considerations as a further reason for the increased use of outsourced talent. Outsourcing allows for a higher level of flexibility and scalability, making it easier to plan for future expansion, according to 50 percent of those surveyed.
Kevin Campbell, group chief executive, technology, at Accenture, expounded on this point, stating, “Outsourcing remains a strong option for businesses facing unprecedented market conditions and the imperative to change both quickly and dramatically. Most companies pursue outsourcing to not only realize immediate and sustained cost savings but to implement solutions to improve cash flow, achieve real business outcomes and to drive topline growth.”
Also a notable trend in outsourcing is the use of multi-sourcing, or bundled services. Knowledge-based outsourcing is also becoming a priority for many companies, with over 40 percent of survey respondents citing their increased use of highly skilled professionals. The use of lower skilled services is also increasing, however, as indicated by 30 percent of businesses surveyed, who plan to outsource more of these activities as well.
This increased use of outsourcing by both large and small businesses is reflected in the tremendous growth in the six trillion dollar global outsourcing industry. Many providers of outsourced services are responding to this demand by raising their standards of quality service through improved monitoring and training methods, and the companies who use them are reaping the benefits.
Tags: b2b, B2B services, Business, business to business, economy, outsourcing, sourcing
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