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Nearly 75% of Large Firms Plan to Outsource More

by: Sarah Joson

Wednesday, October 1, 2014 |

In the study "The State of Services & Outsourcing in 2014: Things Will Never be the Same" done by KPMG and HfS Research, it was discovered that almost 75 percent of global organizations are planning to invest more on outsourcing.

The study stated that firms are now more interested in the global delivery models of specific functions like finance, recruitment, and human resources. It also indicated that 72 percent considered increasing their outsourcing budgets; while 61 percent said they are going to increase the use of offshore global shared services for IT and business processes in the next two years.

KPMG cited report findings that an increase of 20 to 30 percent in offshoring activities is possible in the coming year.

One of the highlights of the report is that majority of companies are focused on using global service delivery models that utilize both outsourcing and internal shared services. In fact, 56 percent are found increasing investments in centralized management hubs that will help align outsourced, internal, and even mix type of operations with the goals of the company.

According to Dave Brown, KPMG’s head of global lead, shared services, and outsourcing consultancy, outsourcing is facing an issue about its real objective - if it actually adds value and helps businesses scale operations at a low cost. The executive added that providers should do more than increase the volume of the talent pool and carry out basic operations. In this way, they will remain valuable and clients will see them as business partners that can help innovate and develop strategies and not a staffing agency.


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