Outsourcing drivers in today’s climate: large companies want to globalize, mid-sized companies seek expertise

June 27, 2009
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We wanted to share some recent dynamics from our new survey of outsourcing adoption intentions in mid-2009. While the onus on firms today is to drive out as much cost as they can from their businesses (close to four-fifths view cost-reduction as the primary driver for outsourcing), other factors are becoming crucial for companies’ planning as they evaluating outsourcing business models, notably globalizing their businesses more effectively, re-engineering business processes, and accessing expertise from service partners. If there’s one thing this recession taught us, it is how integrated global economies and markets are today, how businesses need to adapt to…

We wanted to share some recent dynamics from our new survey of outsourcing adoption intentions in mid-2009. While the onus on firms today is to drive out as much cost as they can from their businesses (close to four-fifths view cost-reduction as the primary driver for outsourcing), other factors are becoming crucial for companies’ planning as they evaluating outsourcing business models, notably globalizing their businesses more effectively, re-engineering business processes, and accessing expertise from service partners.

If there's one thing this recession taught us, it is how integrated global economies and markets are today, how businesses need to adapt to move in and out of diverse regional markets, and how they must make rapid decisions to invest or divest global service / product lines in order to prosper. While some firms are find it hard to make radical decisions in this downturn, others are clearly addressing how critical it is to operate as a global business, and this is especially the case with large enterprises ($3bn+ annual revenues), with 60% of enterprises viewing this as a very important factor in their outsourcing decision making:

Key drivers behind outsourcing uptake in today’s economy

Outsourcing-drivers-2009