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3 out of 5 companies resistant to outsourcing, survey reveals

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By Mark Atterby

Outsourcing has been around for ages.  The costs savings and process efficiencies it can deliver are attested to across the globe.  The possibility that there may still be significant resistance to it on the part of senior executive and business leaders is somewhat of a surprise.

two in five business leaders globally either currently or are planning to outsource back office processes

Yet these are some of the findings from new research published by Grant Thornton in their International Business Report (IBR). According to the IBR two in five business leaders globally either currently or are planning to outsource back office processes. The rest seem reluctant to lose control of a key process.

Further market penetration

This suggests the industry has a challenging, but eminently achievable, marketing task on its hands.

Samantha George, head of outsourcing for Grant Thornton in the UK, commented, “The results also show there is room for further penetration in the market by engaging with the three-fifths of businesses which are not currently considering outsourcing”.

“The results highlighted the popular misconception that outsourcing a process means losing control, whereas, in fact, it can help senior leaders at dynamic companies take a step back and gain a clearer picture of how the business is performing against its strategy. This suggests the industry has a challenging, but eminently achievable, marketing task on its hands.”

Business processes such as Tax, IT, HR and payroll are at the top of the list when it comes to outsourcing. Of those who have no plans to outsourcing, according to the report, 44% indicate an unwillingness to lose control of a key process. 57 % of business globally cited improving efficiencies, marginally ahead of reducing cost (55%) as the key drivers to outsourcing.


May 19, 2014
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