Oct 3, 2003

More companies outsource for strategic value than to cut costs

Top Consultant also reports a study by Accenture that says:

Executives are outsourcing for the control it gives them over business outcomes, not simply as a cost-cutting measure, according to results of a survey from Accenture. The findings indicate that outsourcing, which initially gained appeal as a means of reducing costs, is being embraced for the ability it gives executives to predict business results and support strategic planning.

The survey, which entailed interviews with more than 800 health, manufacturing, retail and travel executives in the United States and Europe, found that an overwhelming majority (86 percent) said that outsourcing gave them more control over business results in a variety of critical areas, the most important being the ability to plan. And while cost-cutting is among these critical areas, the executives also reported equal levels of control in reliability, cost variability improvements, and effective implementation of ideas. More than half (55 percent) of respondents said that outsourcing allows their companies to implement strategies and change at a faster and more controlled rate.