Outsourcing: 'Ticket to the Game' for Business
- Download 2006 CFO Study
Outsourcing the Back Office: The Path Toward Sustainable Benefit
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- Press Release
- U.S. Companies Benefit From Outsourcing Experiences, Plan to Expand Efforts, Capgemini Study Shows
May 23, 2006
CFO Survey Results Show Outsourcing Is Vital to Driving Innovation, Growth, and Ultimately, Competitive Advantage
The most efficient way to remain competitive in business today is to leverage the power of outsourcing as a shortcut to success. Outsourcing allows companies to refocus resources, introduces innovation and promotes growth. Despite the ongoing debate on the value of outsourcing, executives clearly understand they must take advantage of all that outsourcing offers – or risk losing the game to competitors who do.
Outsourcing the Back Office: The Path Toward Sustainable Benefit, a report prepared by CFO Research Services in collaboration with Capgemini, debunks several myths and shows, as one executive said, that outsourcing has become a “ticket” to the fast-changing game of business.
Myth #1: Outsourcing does not deliver promised benefits.
Outsourcing overwhelmingly delivers! This study shows that companies get real value from outsourcing. In fact, 72 percent of executives able to measure the value of their outsourcing efforts said they “met or exceeded” expectations.
Myth #2: Outsourcing is dead.
Far from it! Most companies plan to outsource business processes and functions in the future. In fact, 73 percent of respondents said they want to outsource anything from “a few more discrete processes” to “everything that’s not core”.
Myth #3: Outsourcing only cuts costs.
Outsourcing does cut costs, but it also fuels growth and innovation. The ultimate goal of outsourcing is evolving as companies recognize it offers powerful tools to transform their organizations. Certainly, executives still want to reduce costs. But, they also recognize the greater business benefits of outsourcing – such as its power to integrate newly merged companies or speed growth.
Myth #4: Outsourcing eliminates corporate control.
Effective outsourcing requires good governance. Companies enjoying the greatest results from outsourcing said they apply the same rigorous management practices to their outsourcing arrangements as they do to everything else their companies manage. The most important practice is proper sourcing management, which requires a collaborative relationship with the outsourcing provider.
Myth # 5: Companies only outsource to low-cost markets.
In reality, companies demand flexible outsourcing solutions. Executives want options. Their survey responses show the single most popular outsourcing destination is the U.S. with India as a distant second. Canada, Western Europe and other options are, to lesser degrees, also popular.
Implications for Companies
Because a growing number of executives view outsourcing as the “ticket to the game,” it must be considered as companies develop corporate strategies. The benefits of outsourcing are real and significant. As executives around the world realize, outsourcing has become a game changing mechanism for business success. But it’s critical that companies choose the right outsourcing provider to deliver the advantages they seek.
If you’d like to discuss how we can help your company achieve better, faster more sustainable results through outsourcing, please contact us.
