Outsourcing, Offshore, Companies
Offshore outsourcing satisfies
-
|
- Print |
- Email Page
Financial services companies in particular are benefiting from outsourcing their IT functions, says survey
A new survey conducted by the Weissman Center for International Banking at Baruch College and The Paaras Group (TPG) found that offshore outsourcing (simply called "offshoring" in the survey) is working for many adopters.The survey canvassed 38 adopter companies (30 from North America and the remainder from Europe), of which over 60 percent were banks and financial services companies. Half of the entire sample space was constituted by companies with more than $5 billion a year in revenues.
Most (85 percent) of these companies are involved in IT offshoring, with 36 percent outsourcing contact centers and 40 percent offsourcing business processes. Although the tendency is to think of offshoring as a relatively recent phenomenon, over a quarter of all surveyed companies have been involved for over six years. There were no offshore call center adopters, on the other hand, who had that length of experience.
Regardless of the offshoring model, the surveyed companies reported an 89 percent satisfaction rate (with 43 percent satisfied "in a major way"). Furthermore, 89 percent also plan to increase offsourcing (65 percent "in a major way"). A total of 93 percent of respondents believe that offshoring has grown, while 61 percent believe that the quality of offshoring has improved.
The survey affirms that the primary (94 percent) motive behind offshoring is cost savings; however, no less than 63 percent of companies said it was about accessing skilled resources and 51 percent cited improving quality.
Specifically, making offshoring work involves setting up a program management office (85 percent) which broader success factors involve knowledge transfer (76 percent) and internal commitment (also 76 percent).
Suresh C. Gupta, managing partner with TPG, told Line56 that 75 companies were slated to take part in this year's survey, but that the "offshore backlash" prompted many of them to abstain, even though the survey was anonymous.
-
|
- Print |
- Email Page
Making Gainsharing WorkHow to Create, Cultivate and Maintain the Business of Innovation in an Outsourcing Arrangement14 Jul 2008 | (Thinking Point)
NelsonHall BPO Index Identifies Short-Term Slowdown in BPO Contract Signings Resulting From Credit CrunchThe NelsonHalls BPO Index for the quarter ending June 2008 shows that the BPO market has been impacted by the credit crunch with a decline in contract signings as organizations rethink their business and...14 Jul 2008 | (News)
The Benefits and Challenges of GlobalizationThis report, conducted by the Economist Intelligence Unit on behalf of EquaTerra and World 50, examines corporate attitudes to the risks and opportunities presented by global competition and the challenges...16 May 2008 | (Thinking Point)
EquaTerra Advisor and BPO/ITO Service Provider Pulse Survey Results 1Q08This edition of the Advisor and Service Provider Pulse Surveys reflects BPO and ITO market activity during 1Q08 (January through March 2008) and projections for the balance of 2008. It also features results...16 May 2008 | (Survey)
