Myths, Facts and Statistics By Martin Conboy Work is no longer bounded by co-worker proximity or time zone. It also involves a much broader set of ‘workers’ – not just employees, suppliers and partners, but customers, freelancers and an increasingly capable network of smart devices and interconnected systems, all tied together by business processes that span organisations, time and distance. Outsourcing is an integral part of this story. Myth One: Most companies outsource work to reduce costs Fact: These days the primary reason for outsourcing is global expansion and to add value in terms of capability and capacity. Important to remember outsourcing does not necessarily mean offshoring. A lot of outsourcing work doesn’t actually leave Australia’s shores. Admittedly, when offshore outsourcing began, the outsourcer’s biggest focus was cost saving through labour arbitrage. But most outsourcing relationships based purely on cost have a tendency to fail. Research conducted by The Sauce last year (Attach executive summary) showed that cost savings, although important, ranked number eleven. The primary drivers are, Global Expansion and access to Skills. We know that as companies become more sophisticated and better understand the benefits of outsourcing, they move past the basic inhibitor of outsourcing which is ‘Can someone do this business process more efficiently and better than I can and for a cheaper price?’ In the early development of the market, there were serious concerns about security safeguards; however, these days as the market has matured these concerns have largely disappeared as most modern Outsourcing vendors have very sophisticated security programs and management in place. Please go to http://www.theoutsourcing-guide.com/article/myths-facts-and-statistics/
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Global, Outsourcing, BPO, Human Resource, Work, Employment, Offshoring,
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