October 01, 2005
Outsourcing in a mature phase, says survey
The preceding two years have seen a rapid growth in the number of outsourced projects. However, according to the results of the latest Legal Week Benchmarker survey, this trend may soon become slow, with a fewer number of outsourced projects in 2006. This conclusion is based on a survey of 100 corporate counsel. The survey indicates that most of the important industries where outsourcing has met success in the past will experience a slowdown, including IT and business processes. Call center business may see a rise in outsourced activities from the preceding years.
Benchmarker reports that outsourcing is now becoming more broadbased in terms of services that are being sought. Also, a cut in costs is no longer the prime objective in outsourced work; more important are the considerations of improved services and access to increased expertise. All this shows that the outsourcing industry is in a mature phase, where key performance indicators are going to count. The future is also going to see a change in outsourcing destinations. Legal Director reports:
Significant changes in the location of outsourcing are on the way. While, not surprisingly perhaps, the UK has so far been the prime receiver of work outsourced by UK organizations, that looks set to change. In the past, 43% of organisations have outsourced to the UK, according to the Benchmarker survey. But only 5% of respondents see the UK as being in the next generation of outsourcing destinations.
Read More: Outsourcing out of steam?
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