Most financial services companies and manufacturers
believe that outsourcing suppliers fail to understand their
business processes, according to a survey of 100 businesses by
theNational Outsourcing
Association (NOA).
Some 67% of the companies surveyed said that potential business
process outsourcing suppliers failed to demonstrate detailed
knowledge of their business models.
Research firm Nelson Hall asked sourcing managers at all 100
companies what were the main obstacles to outsourcing at their
businesses.
Although companies criticised suppliers for failing to
understand their individual business processes, the same companies
believed that legal protection was more important than knowledge of
business processes in their industries when choosing an outsourcing
location.
Some 89% of companies said legal protection was an important
factor when choosing a location, compared with 88 companies that
said power was important and 63 that talked about knowledge of
their industry’s business processes.
The survey found that the big Asian economies were more
attractive outsourcing locations than Eastern Europe or Latin
America.
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