Market Analysis

State of Operations and Outsourcing 2018

Is there light at the end of the tunnel for the business operations and outsourcing professionals? Or is it more confused than ever? The latest joint research from KPMG Global Advisory and HFS Research gives insight on these topics:

  • The operating model for business is changing as global business services (GBS) encompass more things—particularly building out a new role as the organization-wide broker of capability for automation and data integration. The transactional heart of GBS is shifting from people to process.

  • We’re also seeing a downturn in outsourcing and offshoring plus a growing interest and desire for internal control as technology gets closer to business fundamentals and becomes more deeply embedded in the DNA of the business.

  • There is a disconnect between the potential of automation and data analytics. The concern is where the cost savings will come from—it is important as ever, but stakeholders are less satisfied.

  • It’s technology crunch time as all the white-hat technologies—particularly automation, ML, and data insights—are expected to make a significant impact in the next one to two years. Operations strategy is increasingly at odds with reality—businesses need tactical help (which may become a possible scapegoat) for next year’s cost-saving target.

  • The key challenge will be the application of talent to operations.

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