Outsourcing is Key to Recover from the Downturn
74 percent of executives agree that outsourcing helps a company survive in todays economy,70 percent feel that money saved by outsourcing can help a company grow and 60 percent believe outsourcing makes a company more agile and flexible.
Aug 25, 2009
Capgemini, a global provider of consulting, technology and outsourcing services has announced the results of the Capgemini Executive Outsourcing Survey which found that most executives today agree that outsourcing IT, finance and accounting, HR or procurement can help a company survive the current economic downturn.
This survey was conducted by telephone within the United States by Harris Interactive on behalf of Capgemini between April 29 and May 15, 2009, among 151 senior executives at Fortune 1000 companies.
The survey also revealed that while a majority of executives (79%) recognize outsourcing may have a poor public
perception, this has little to no effect on most executives’ (72%) decision to outsource, suggesting the benefits of outsourcing outweigh the potential negative impact from poor public opinion.
The survey revealed that outsourcing remains a strategic driver in helping companies maintain the bottom line as 74 percent of executives agree that outsourcing helps a company survive in today’s economy. Among other key findings, 70 percent of executives feel that money saved by outsourcing can help a company grow, and 60 percent believe outsourcing makes a company more agile and flexible.
"When it comes to outsourcing decisions, the need to restore profitability and growth is the most pressing issue, outweighing other factors such as perceived public opinion," said David Poole, Vice President and Head of Americas Business Process Outsourcing, Capgemini. "Capgemini understands that companies that outsource are better poised for the future, as they are able to reinvest their savings to drive innovation. Over time, the business can build, expand and emerge from the economic slump in a stronger position because, through outsourcing, they have been able to focus on their core business."
The results of the Capgemini survey reinforce what companies are already witnessing in the market—outsourcing spending has continued to climb during the last decade, in good economic times and bad, and companies
are continuing to turn to outsourcing for a competitive edge.
The survey also says that 70 percent of executives agree that outsourcing saves money, 79 percent acknowledge that outsourcing may have poor public perception and 65 percent agree that if outsourcing had a better reputation, it would not impact their outsourcing decisions, demonstrating that public opinion does not influence an executive’s decision on whether or not to outsource.
Manufacturing companies feel more positively about outsourcing with regard to helping a company to grow, be more agile and flexible and saving American jobs than service companies.
This article was originally posted by GlobalServicesMedia.com and is the property of Global Services
This survey was conducted by telephone within the United States by Harris Interactive on behalf of Capgemini between April 29 and May 15, 2009, among 151 senior executives at Fortune 1000 companies.
The survey also revealed that while a majority of executives (79%) recognize outsourcing may have a poor public
perception, this has little to no effect on most executives’ (72%) decision to outsource, suggesting the benefits of outsourcing outweigh the potential negative impact from poor public opinion.
The survey revealed that outsourcing remains a strategic driver in helping companies maintain the bottom line as 74 percent of executives agree that outsourcing helps a company survive in today’s economy. Among other key findings, 70 percent of executives feel that money saved by outsourcing can help a company grow, and 60 percent believe outsourcing makes a company more agile and flexible.
"When it comes to outsourcing decisions, the need to restore profitability and growth is the most pressing issue, outweighing other factors such as perceived public opinion," said David Poole, Vice President and Head of Americas Business Process Outsourcing, Capgemini. "Capgemini understands that companies that outsource are better poised for the future, as they are able to reinvest their savings to drive innovation. Over time, the business can build, expand and emerge from the economic slump in a stronger position because, through outsourcing, they have been able to focus on their core business."
The results of the Capgemini survey reinforce what companies are already witnessing in the market—outsourcing spending has continued to climb during the last decade, in good economic times and bad, and companies
are continuing to turn to outsourcing for a competitive edge.
The survey also says that 70 percent of executives agree that outsourcing saves money, 79 percent acknowledge that outsourcing may have poor public perception and 65 percent agree that if outsourcing had a better reputation, it would not impact their outsourcing decisions, demonstrating that public opinion does not influence an executive’s decision on whether or not to outsource.
Manufacturing companies feel more positively about outsourcing with regard to helping a company to grow, be more agile and flexible and saving American jobs than service companies.
This article was originally posted by GlobalServicesMedia.com and is the property of Global Services