What are the key benefits that companies can achieve through outsourcing and in reality, are they ever realized?
Companies consider outsourcing for many reasons and the range of reasons is growing. Initially, companies considered outsourcing in order to achieve a step-change reduction in costs of non-core, support services and to focus management effort on the core business. Access to better technologies and more balanced headcount/skills profile were also key. Then, achieving a step-change performance improvement in service levels and flexibility became paramount. Today, companies are considering outsourcing to enable fundamental transformation of their technology infrastructure, business operating model/processes, and their financial statements. Innovative pay-as-you-go arrangements and deferred payment for investments contracts have driven changes in the economic benefits of outsourcing but the major leap forward is the emerging trend towards delivering major transformation programs through outsourcing harnessing the power of the combined consulting and outsourcing suppliers, with their experi
