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Research & Insights

Focus on the Best, Outsource the Rest

Today’s business world is marked by complexity and the need to rapidly adapt to new market demands without losing momentum on strategic objectives. Along with the globalization and maturity of technology product life cycle, enterprises are continually looking for effective solutions that will catapult them ahead of their competitors. Outsourcing non-core activities frees up capital to allow a firm to concentrate on its core business and to increase agility of its operation. Outsourcing is therefore increasingly being used by firms as a tactic for gaining the competitive edge, allowing them to directly focus on their core competences.

Outsourcing delivers a wide array of benefits that will help your enterprise succeed in the global competitive marketplace. These benefits include:
  • Agility to manage customer expectations
  • Fast TimetoMarket
  • Extended market coverage
  • Lower and more predictable operation costs
  • Diverse expertise & resources
  • Improved productivity
  • Continuous business process improvement
  • Access to latest and best technologies without capital investment
It is clear the impact of outsourcing is expanding. Outsourcing was viewed as an intervention in the early 1990s. Companies outsourcing tasks to ad-hoc teams and outside experts simply aimed at cost savings. From the late 1990s to early 2000s, outsourcing was treated as a tactic to improve business process efficiency and to better focus on core competencies. From 2005 onwards, outsourcing has become a company’s best strategy for achieving sustainable value and business results.

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Many industry-leading companies like Procter & Gamble, Nokia, Ford and Aventis have already noticed the crucial role of outsourcing and have been outsourcing some of their non-core business processes to better focus on their core business. Outsourcing non-core business processes is now a global trend and its market is expanding rapidly. According to Gartner Research, global revenue for Business Process Outsourcing (BPO) will reach US$600 billion by the year 2008.

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According to the Everest Research Institute, although BPO is the new kid on the block in the outsourcing world, it already accounts for more than a third of the entire outsourcing market. In 2005, the outsourcing market in the United States accounted for $362 billion, and BPO accounted for $129 billion or 36 percent of the total outsourcing market size.

Therefore, the prospects for the BPO market are encouraging. BPO will continue to assume prominence over the next decade and beyond. It’s time to consider outsourcing!