Secular changes to industry environments are crystallizing options for businesses and driving more radical and actionable behaviors from executives under pressure to deliver continual productivity improvements. The radical impact outsourcing can potentially have on business performance is clearly becoming more attractive to those businesses in the throes of tackling fundamental challenges and opportunities to their business environments.
Those organizations being impacted by radical, fundamental shifts to their very industry economics, are more prepared than ever to admit they need to look outside of their current organization boundaries to keep their business operations cost-competitive. Simply-put, secular change crystallizes options for businesses and the outsourcing planning process often becomes more clear-cut as a result.
We asked a cross-section of buyers with significant influence over outsourcing decisions, to reveal the critical attributes they seek in a provider. At the same time, we asked providers what attributes they believe their clients deem critical. And – guess what – their are significant gaps between what clients want and what providers think they want.
What’s driving outsourcing decision-making across the world? HfS Research’s new study on global outsourcing adoption reveals some key regional differences
Outsourcing of IT and business process has always been a game for large enterprises, where well-executed large-scale employee transitions have resulted in profitable endeavors for both providers and buyers. But while the large buyers like saving the money, it’s actually mid-market sector ($1bn-$3bn revenues) which is getting a lot more out of the experience
HfS Research’s “State of Outsourcing 2011″ study of 1335 industry stakeholders, conducted with the Outsourcing Unit at the London School of Economics, points to a marked turnaround in outsourcing intentions as global economies reach a period of sustained (albeit limping) recovery. For many organizations today, clearly the short-term counter-recessionary measures have been executed through to fruition, leaving business function leaders under renewed pressure to seek out new operational strategies for driving out cost and improving global effectiveness.
If you participated in our State of Outsourcing 2011 survey, you may have been anxiously monitoring your inbox for a notification that you’d won the iPad 2. Well, the anticipation is over, and we can announce that the winner of the drawing is Stephen Kincanon, Vice President – Shared Services at Sara Lee Corporation. Congratulations, Stephen!
Our State of Outsourcing 2011 study reveals huge untapped potential for future outsourcing right across both IT and business functions, so surely this means the market is set to explode and we can wield new hockey-stick growth projections? Perhaps… but a few things need to happen first. Let’s investigate…
Whatever the motives buyers have when they outsource, the first critical metric they must reach is to save the money they were promised at the onset of the engagement. And we have spectacularly good news for the entire outsourcing industry – the cost savings targets are being met – and being met well, with over 95% of current buyers viewing the engagements as effective for reducing their operating costs. However, that’s pretty much where the good news tapers off, as the rest of the results are pretty modest