PracticeConsultingNews: Outsourcing raises its profile

News: Outsourcing raises its profile

Outsourcing has evolved from a cost-cutting tool to an area of strategic importance, driven by top executives. Outsourcing: Current and Future Practice, a report from Xansa and Cranfield School of Management, surveyed 600 senior managers in European organisations. It shows that nearly 60% of outsourcing initiatives now emanate from senior management. This contrasts with a 1999 Moran study in which 70% of respondents reported poor outsourcing experiences, suggesting that the area has greatly improved its quality of service in the last two years.

The new study found that 53% of respondents outsource IT, with cleaning, catering and printing, at 63%. The most successful outsourced activity was purchasing with 74% of respondents very positive with the outcome.

The report also cites organisations outsourcing on an international scale. IT Enabled Services (ITES) is the outsourcing of business activities to a different country, heavily enabled by IT. India has become popular for ITES due to its highly skilled workforce and well-developed technology infrastructure.

Cranfield’s Professor Andrew Kakabadse said: “The survey indicates that outsourcing has become as important a differentiator for businesses as branding.” For details contact www.xansa.com.

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