Outsourcing: ROI meets the expectations

Deloitte undertook a research effort to analyze companies outsourcing their operations a few months ago. The research included satisfaction with the outsourcing activities, motivation to outsource, expectations connected with the outsourcing initiative, how the venors had been selected, how flexible is the outsourcing contract and what they would another way while outsourcing now.

70% of the companies asked in the survey were satisfied or very satisfied with their outsourcing arrangements. They anticipated an ROI of 25.8% from outsourcing, and 83% reported that their contracts had met the ROI expectations. While asked about the primary drivers of outsourcing activities, the companies answered with "Cost reduction" (64%), "Leverage technology expertise" (56%), "Labor costs" (49%), "Lack of in-house resource" (40%).

What would the companies surveyed do differently if they had to re-do their outsourcing initiative? The most of them would define realistic service levels that align withbusiness goals (49%) and define and align business goals with outsourcing strategy (39%).

Magdalena Szarafin
http://www.szarafin.info