by: Sarah Joson
Wednesday, May 14, 2014 | Outsourcing News |
Data from the International Business Report (IBR) created by Grant Thornton found that two in five business leaders across the globe either have already outsourced their back office work or are strongly considering it.
The report also indicated that outsourcing has become a popular business tool in Latin America. In fact, over 50 percent of business executives are outsourcing their back office processes. The report predicts that even with varying views on outsourcing, it will remain as a key business tool and will gain more traction in the coming years.
According to Samantha George, head of outsourcing at Grant Thornton UK, since three-fifths of the market is not yet saturated and familiar with outsourcing, it could present more opportunities for service providers.
Business entities are just realizing that apart from significant cost savings, outsourcing also helps streamline operations through freeing up budget tied to back office processes. However, 44 percent of businesses that took part in the survey are keeping an eye out for challenges like loss of control over the operation and the process itself.
George was quick to clarify that this rarely happens, saying outsourcing can even help senior leaders see the bigger picture and compare the performance of their outsourced process with their regular strategy.
There are still misconceptions about outsourcing. These include the view that it’s expensive and that subcontracting processes elsewhere is risky.
Some of the most outsourced back office processes are tax (49%), IT (46%), and HR and payroll (36%).
Nowadays, outsourcing has become available to various processes and industries. Providers, on the other hand, have come up with flexible and scalable solutions to fit the requirements of their clients.