Deloitte: outsourcing not reaching strategic objectives

by Editor 9/1/2008 3:19:00 PM
A new report from Deloitte indicates that, even though outsourcing suppliers are generally successful in reaching cost objectives, a significant number of companies are underwhelmed by outsourcers’ ability to provide continuous process and technology developments.

37 percent of the firms included in the report want to improve customer service and 27 percent hope to get a competitive advantage through outsourcing contracts.

The National Outsourcing Association (NOA) has pointed out that the numbers that represent the firms’ strategic objectives were based on cost and not strategy. NOA chairman Martyn Hart explains:

“To claim that outsourcing per se is failing to meet companies’ strategic objectives is probably a bit far fetched. The report clearly shows that only a small number of businesses entered into an outsourcing contract for strategic reasons. The supplier cannot be expected to provide a strategic service if end users do not make it clear what they want from an outsourcing contract right from the start.”

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