Why do companies Outsource?

"Intangible factors – such as reliability, trust and soft skills – count as much as, or more than, technical factors, such as cost and specialist capabilities, in making outsourcing relationships work" according to a survey of 2,571 business executives in 36 economies around the world.

"The outsourcing of back-office processes is now a well entrenched business practice at companies around the world. Approximately two out of every five businesses use it as an important means to reduce costs, improve efficiencies and, in many cases, ensure compliance", according to this latest business report "Outsourcing: beyone technical expertise" from Grant Thornton

The reports key findings suggest that:-

- Intangible factors – such as reliability, trust and soft skills – count as much as, or more than, technical factors, such as cost and specialist capabilities, in making outsourcing relationships work. Companies that outsource cite communication as the key ingredient of a high-quality relationship between client and provider.

- Most companies that outsource services tend not to bring them back in-house. When companies do reverse course, service quality or cost are the main reasons, although for others, outsourcing was always meant to be temporary.

- For many companies, a provider’s technology platforms could be a decisive factor in a decision of whether or not to outsource. Advances in digital technology more broadly are likely to give further impetus to outsourcing, particularly for smaller businesses.

To read the full report....