Almost 90% ofoutsourcingagreements are achieving
more than a 25% return on investment (ROI) but companies are
failing to get the most out of it, according to
Deloitte.
In its
Outsourcing Report for 2008 the business consultancy revealed
that a massive 89% of outsourcing deals achieved an ROI of more
than 25%.
Savings and access to skills were the two main attractions to
companies when choosing to outsource.
Cost reduction was cited as the biggest motivation for
outsourcing while 56% said access to skills was the main
driver.
Only 37% said the reason they outsourced was to improve customer
value and only 27% said they hoped to gain competitive advantage
through it.
Peter Moller, partner at Deloitte's consulting practice, said,
"
The true potential of outsourcing is not being achieved and we
are still seeing a focus on a narrow remit of labour arbitrage and
cost reduction. Overall our survey shows that the emphasis on cost
reduction and access to a vendor's skilled workers reveals a
procurement-oriented mind set that takes a narrow view of the
potential benefits of an outsourcing relationship. In short,
companies are aiming too low."
The report also found that 70% of respondents were satisfied or
very satisfied with their outsourcing arrangements, which was the
highest level in any Deloitte outsourcing study.