State of the Outsourcing Industry 2013: Executive Findings

IT and Finance & Accounting Dominate Outsourcing Plans:

• Close to a third of high-end enterprises view Global Business Services as mission-critical
• Enterprises still very focused on achieving operational results when they outsourcing
• High-end enterprises focused on cost, mid-market focused on provider solutions
• Outsourcing performance meeting the table-stakes, but falling short in strategic areas
• ITO results are are functionally effective, but light on innovation
• Mid-market clients having the most success transforming processes and achieving innovation with ITO
• 90% of BPO initiatives highly effective at meeting operation targets; BPO outperforms ITO for cost reduction effectiveness and process standardization
• Large enterprises getting better performance from BPO than mid-sized enterprises
• Outsourcing adoption still very nascent for business processes
• Service Providers main goal is to shift enterprise focus away from cost and towards value
• Buyers don’t expect innovation from suppliers, they want stability, industry understanding and delivery excellence