|
|
 |
|
Viewing report
|
|
|
|
Outsourcing Transformed: New Models and Methods 2005 - 2010
Saugatuck Technology, May 2005, Pages: 30
Research indicates that the steady growth in business process and IT outsourcing will not only continue through 2010, but will be increasingly driven by firms making strategic shifts in their traditional business value and operations.
This report examines the changing role of outsourcing as it becomes an even more critical element of overall business strategy. It looks at the state of outsourcing today from the perspective of a company's enterprise-wide approach to outsourcing, the perception of outsourcing as strategic advantage, and the role of offshoring.
It identifies key trends that we believe will drive continued growth, including the trend toward buyers and vendors taking a more strategic view of outsourcing benefits, and the trend toward more strategic outsourcing relationships, including: Business Transformation Outsourcing, new delivery models and new pricing models. Lastly, we provide guidance and recommendations for both buying organizations and outsourcing vendors.
The study is a result of a year-long research program, including a web survey of more than 200 senior IT, finance and business executives and 40 detailed interviews. The research was conducted between October 2004 and March of 2005. More than two-thirds of the firms participating in the research had revenues of at least $1 Billion per year.
Key Findings
- An increasing acceptance of Business Transformation Outsourcing (BTO), involving a more strategic relationship between service provider and client, will drive new sources of business value beyond cutting costs. Forty-three percent of companies say that the percentage of outsourcing spending categorized as BTO would increase from 2004 to 2005.
- Twelve percent of outsourcing spending in 2005 will involve offshore resources, growing to 19 percent in 2009. Less than one-third of companies surveyed agreed that potential backlash against their company's brand is impacting their offshore outsourcing decisions. And less than one-third agreed that consideration of the potential impact on their home country's economy is impacting their offshore outsourcing decision.
- New standardized delivery models will reduce the upfront investment and short-term return on outsourcing options. Companies expect the percentage of their outsourcing spending that is for utility-type shared services to grow from 12 percent in 2005 to 22 percent in 2009 for IT outsourcing, and from 11 percent to 19 percent for business process outsourcing.
- New pricing models will better link outsourcing costs to business value obtained. The biggest changes in pricing models will be in benefits-based and equity-based models
Read This Report To Learn
- How and why sourcing models are changing to better meet changing business requirements
- Changing buyer profiles vis-a-vis how outsourcing is viewed as a cross-enterprise initiative, and its role in driving competitive advantage
- Buyer perceptions and spending plans concerning offshoring
- Spending profiles for BPO and BTO - and for utility-type shared services
- Buyer preferences concerning emerging pricing models
- Vertical and functional market readiness rankings
Customers who bought this item also bought
Growth Opportunities and Markets for IT Outsourcing: New Possibilities for Contact Center, Infrastructure, Applications and Business Process Outsourcing
Business Process Outsourcing - Global Strategic Business Report
Business Process Outsourcing - A World Market Analysis
Human Resource Outsourcing - Global Strategic Business Report
Global Outsourcing Strategies
Procurement Outsourcing - The Next Major BPO Growth Area? (Strategic Focus)
The Offshore and Nearshore Outsourcing Outlook: Key Locations, Outsourcing Models and the Leading Players
Outsourcing Handbook 2007/08
Finance and Accounting Outsourcing - Moving to Higher Value Services (Strategic Focus)
The Financial Services Outsourcing Outlook: Fast Growth Markets, Opportunities And Competitive Strategies
China Pharma Outsourcing Annual Review 2009
Retailing in a Recession - The Opportunities for Outsourcing
|
|
|
|
