NEWS
Europe has overtaken North America as the region that spends the most money on outsourcing in the world.
The report by outsourcing advisory firm TPI looked at how much was being spent on outsourcing by G2000 companies, those rated as the most successful companies in the world by Forbes magazine.
It found that, by the end of the third quarter of 2009, G2000 companies headquartered in Europe were spending more on outsourcing deals overall than G2000 firms with headquarters in the US and Canada.
At the end of Q3 09 European G2000 companies were engaged in outsourcing deals with a total annual contract value (ACV) of $30.6bn, compared to the $28.4bn ACV of active outsourcing deals at US and Canadian G2000 companies, the TPI Momentum Market Trends and Insights report said.
Europe is now on track to hold onto this lead and end 2009 as the region with the highest level of spending on outsourcing by G2000 companies, according to the report.
At the end of 2008 it was G2000 companies based in the US and Canada that were spending more on outsourcing than their counterparts in other regions, holding deals with an overall ACV of $29.6bn, compared to the $28.7bn ACV of deals held by G2000 firms based in Europe.
Comments
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1. Richard Barker
This is positive new for UK businesses, given the benefits of outsourcing business processes - and in particular IT - to a specialist partner.
Some businesses, and in particular UK partnerships, are still reluctant to - as they perceive it - relinquish control to a third party. But in reality these organisations currently have minimal control over IT; data is insecure, even if it is located within the organisation; operational performance is jeopardised by limited IT skills; and business change or expansion is compromised by the lack of IT expertise required to assess the merits of new technology opportunities.
Outsourcing IT allows an organisation to enjoy far greater control over its business processes. Working to a clearly defined service level agreement and contract, the contracted organisation will ensure networks and software are maintained to deliver continual high levels of performance. In reality, opting to outsource the IT function to a third party not only delivers far more control but it can significantly drive down costs by leveraging economies of scale and providing low cost access to a broad, experienced skills set.
By combining a business-led approach with up-to-date processes and policies that deliver far tighter IT management, a business can achieve good operational performance and a reduction in downtime that delivers quantifiable bottom line benefits whilst reducing overall IT costs and providing unprecedented levels of control.
Richard Barker
CEO
Sovereign Business Integration
2. Richard Barker
This is positive new for UK businesses, given the benefits of outsourcing business processes - and in particular IT - to a specialist partner.
Some businesses, and in particular UK partnerships, are reluctant to - as they perceive it - relinquish control to a third party. But in reality these organisations currently have minimal control over IT; data is insecure, even if it is located within the organisation; operational performance is jeopardised by limited IT skills; and business change or expansion is compromised by the lack of IT expertise required to assess the merits of new technology opportunities.
Outsourcing IT allows an organisation to enjoy far greater control over its business processes. Working to a clearly defined service level agreement and contract, the contracted organisation will ensure networks and software are maintained to deliver continual high levels of performance. In reality, opting to outsource the IT function to a third party not only delivers far more control but it can significantly drive down costs by leveraging economies of scale and providing low cost access to a broad, experienced skills set.
By combining a business-led approach with up-to-date processes and policies that deliver far tighter IT management, a business can achieve good operational performance and a reduction in downtime that delivers quantifiable bottom line benefits whilst reducing overall IT costs and providing unprecedented levels of control.
3. karen challinor
I wonder if there is a relationship between unemployment statistics and offshoring/outsourcing spend statistics ?