U.S. companies could save $9.9 Bn thru outsourcing

U.S. companies could save $9.9 Bn thru outsourcing

By SiliconIndia   |   Thursday, 20 September 2007, 07:00 Hrs
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New Delhi: Estimating that U.S. businesses could be sitting on $9.9 billion in potential infrastructure savings through outsourcing, a latest Forrester study has found that companies that have outsourced, in the past, ended up with 12-17 percent cost savings.

"The few dozen TPI clients analysed, have unlocked at least $3.3 billion of total commercial value. Firms at the high and low ends of the deal sizes saved closer to 12 percent, while firms in the middle of the bell curve saved more than 17 per cent," Dr Paul Roehrig, Principal Analyst, Forrester Research, said in the latest report, for which Forrester partnered with outsourcing advisory firm TPI.

While price remained a key driver, mature clients were seeking additional benefits such as access to skills, better service delivery, predictable delivery cost and sharper focus on the core business, reported Business Line.

"Outsourcing is about jettisoning non-core business processes, to enable value accrual by focusing on business-critical work rather than enabling work that can be done better and cheaper by other firms. Outsourcing can be the force multiplier that helps firms focus on the core business rather than ancillary support functions," it said.

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