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IT Leaders Go Beyond Cost Savings

by: Sarah Joson

Tuesday, November 6, 2012 | Outsourcing News |

According to Arvato Chief Executive Officer Matthias Mierish, business owners are likely to outsource IT processes not only because of cost savings, especially since providers have greatly evolved over time.

IT executives are looking for solutions that offer flexibility, enabling them to adapt to changes in the market.

Mierish cited a survey participated by 100 senior outsourcing clients. He said businesses do not prioritize cost reduction as much as they used to. Furthermore, he explained that only 10 percent of the participants consider cost reduction as their top reason for outsourcing. On the other hand, 72 percent said they outsource for specific skills and expertise, and 66 percent said they outsource to aid expansion plans. Moreover, 74 percent of respondents mentioned they wanted to adhere to strict KPIs, while 69 percent believe outsourcing has a well-defined process.

Mierish also said the outsourcing sector accounts for over 207 billion of UKs economic output.

Meanwhile, a Deloitte study found that companies in UK are already learning the ropes of outsourcing and have become very cautious in awarding contracts.


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