IT outsourcing survey: 63 percent of buyers said their outsourcing initiatives had been very successful

According to a survey of 277 outsourcing buyers conducted by outsourcing analyst firm HfS Research and the London School of Economics, 63 percent of mid-market buyers said their outsourcing initiatives had been very successful at reducing costs compared to 44 percent of large companies.

HfS’s researcher talks to CIO magazine about recent survey on IT Outsourcing. The results of this collaboration is really interesting and useful not only for mid-size and big-size companies article “IT Outsourcing: What Big Companies Can Learn from Midsize Companies“.

HfS and CIO

The other stats are:

  • 33 percent of mid-market buyers said outsourcing had given them more effective global operations, compared to 18 percent of large companies.
  • 30 percent of mid-market buyers said their deals were very effective in providing access to new business process acumen compared to 17 percent of large companies.
  • 42 percent of mid-market buyers said their deals were very effective in meeting compliance and regulatory requirements, compared to 30 percent of large companies.

Why are the smaller companies seeing more gains from outsourcing? They take what HfS Research founder Phil Fersht describes as a “ripping off the band-aid” approach to outsourcing. “Quite simply, mid-market organizations have to bundle more processes together into one broader deal to make it large enough to warrant the attention of the leading services vendors,” Fersht says. “They rarely will have the luxury of outsourcing step-by-step.”

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Please consider Software Development Outsourcing Company SoftElegance to be in the 63 percent of buyers with outsourcing initiatives had been successful.

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