On mySimon: Transformers Cybertron Skywarp
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By Staff Writer, Consultant-News.com
Posted on ZDNet News: Apr 10, 2006 6:55:00 PM

An IDC and Capgemini survey of almost 300 executives attending IDC's Outsourcing Forum East last week found that top reasons for deciding to use Business Process Outsourcing in a corporate strategy include reducing costs, driving innovation, and the ability to focus on core competencies.

"Companies understand the next chapter of outsourcing will focus on the importance of growth and innovation to their business," said Rick Tober, a vice president at Capgemini, a global leader in consulting, technology and outsourcing. "Simply focusing on the lowest cost solution without transformational services and innovation solutions will not allow companies to obtain the more sustained ongoing strategic value they want."

Consistent with last year's results, participants indicated that IT Outsourcing (51.5 percent) is the outsourcing strategy that has the biggest potential upside to an organization over the next 3-5 years, followed by Finance & Accounting Outsourcing (21.2 percent). IT Outsourcing (37.3 percent) is also the main service that has already been outsourced to external service providers.

Additional survey highlights include:

* More than one third (38.2 percent) of participants felt the biggest downside to outsourcing is not getting the expected results, followed by public/customer backlash (23.5 percent), and anxiety over loosing control (20.6 percent).

* The greatest internal challenge participants felt the company faced when considering BPO was management resistance (39.4 percent), followed by lack of internal metrics/goals (27.3 percent) and cultural issues (24.2 percent).

* The three most important legal issues concerning BPO today according to those surveyed were: governance procedures (33.8%), business continuity (27.7 percent) and intellectual property rights (26.2 percent).

* Again, this year, participants cited ability to offer transformational services in addition to operate capability as the most important criteria for selecting a BPO provider (45.6 percent last year and 47.2 percent this year).

The survey results are available at no charge at the Capgemini Web site. Registration is not required.

Entire contents, Copyright © 2006 Consultant-News.com. All rights reserved.

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  • Talkback
  • Most Recent of 26 Talkback(s)
Which is also true, I concede.
Indeed, a person at a job assistance facility has said there are many high paying jobs in IT and it is still a hot field in the US.

I still wonder why top notch engineering and science positi... (Read the rest)
Posted by: HypnoToad72 Posted on: 12/26/07 You are currently: a Guest | | Terms of Use
time to Outsource the executives  mikegbo | 04/10/06
Remind us of that when you lose your job.  HypnoToad72 | 12/26/07
Definitely... and then we come to fix those innovations which I do after...  FirstNLastN | 04/10/06
Which is also true, I concede.  HypnoToad72 | 12/26/07
Consider the source  LGLisle | 04/10/06
What innovation has come from outsourcing?  csa0307 | 04/11/06
Offshoring versus H1-B  think_tank | 04/11/06
Simply economics. Funny, but nothing in life is simple.  HypnoToad | 04/11/06
It's Not All Greed  Visionark | 04/11/06
Point taken  csa0307 | 04/11/06
Re: Point taken  Visionark | 04/11/06
Is this another "industrial revolution"  I am Gorby | 04/11/06
Economics can change.. and in a hurry...  redstone | 04/11/06
Best thread response yet!  HypnoToad | 04/11/06
The problem is..  MyLord | 04/11/06
It's Not All Greed  Visionark | 04/11/06
Well Said.  think_tank | 04/11/06
And paid in the yuan or rupee, the dollar is almost worthless now...  HypnoToad | 04/11/06
Fairness  JimSatterfieldW | 04/11/06
Re: Fairness  Visionark | 04/11/06
What about incentives for long term planning  I am Gorby | 04/11/06
Long-Term Planning Incentives May Be Key  Visionark | 04/12/06
B***s**t!  gmerin | 04/11/06
OK  BlackDiamond | 04/11/06
Only Part of Innovation  Visionark | 04/11/06
The word is "losing", not "loosing".  HypnoToad | 04/11/06

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