Almost Three Quarters of Companies to Increase Outsourcing

According to research from KPMG, almost three quarters of global businesses will increase their investment in outsourced services.

The research indicates that more firms are taking advantage of global delivery methods, including functions such as finance, procurement and HR delivered centrally.

KPMG's survey found that 72% of big businesses plan to increase outsourcing spending, while 61% said they will increasingly use global shared services for IT and business processes over the next two years.

The report titled The State of Services & Outsourcing in 2014: Things Will Never be the Same stated that, on average, enterprises plan to increase their offshoring activities by 20%-30% over the next year.

The report also stated that integrated global service models that incorporate internal shared services and outsourcing are the core focus for most enterprises.

Dave Brown, head of global lead, shared services and outsourcing advisory said: "Providers need to prove they can do more than basic operations, otherwise outsourcing runs the risk of becoming a staff augmentation model for flexing operations as opposed to a strategic partnership between provider and buyer that can add more skill, technology, and analytical capability for clients."

As the global service delivery map is changing to offer a wide choice of location, today buyers must also consider where to have services delivered from. Asian countries currently dominate the management consultancy's index of the top 50 global locations.

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