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A new study from HfS Research and KPMG International reports that businesses are continuing to rely heavily on outsourcing, not only to save money, but also to strengthen their business by leveraging the expertise and up-to-date processes of service providers.
Phil Fersht of Horses for Sources noted that this is despite increased negative media attention that has been directed recently at the practice of outsourcing.
The survey, which focused mainly on trends in business process outsourcing, as opposed to manufacturing outsourcing, polled nearly 400 buyer-side businesses. Most of the businesses surveyed were planning to increase their outsourcing in several areas.
Businesses intending to decrease their use of outsourcing fall in the single digits percentage wise in any given category. In contrast, nearly four out of ten study participants plan to increase their outsourcing of application development and management, and close to one third are looking to increase outsourcing of their financing and accounting processes.
The study also analyzed the factors driving the decision to outsource and found, not surprisingly, cost savings, flexibility and standardization to be key reasons.
Clearly, outsourcing is not only here to stay, but will also be a vital strategy for many companies.