Outsourcing looking more attractive

ihotdesk reports.

Some 71% of people polled in KPMG's Q3 Sourcing Advisory Pulse Survey said the most common approach buyers took to enhance their service capabilities was to improve their current outsourcing governance processes and capabilities, up 5% from the last quarter.

The next most commonly cited approach by advisors was the use or expansion of IT outsourcing (ITO) (56%), followed by internal process improvement or re-engineering efforts (46%), Procurement Leaders notes.

While investments in cloud computing services were ranked low by advisors (28%), deeper analysis suggests that cloud investments are also growing in significance, though are more often represented as an enabler in other efforts such as ITO, business process outsourcing (BPO) or shared services, rather than a discrete investment in itself.

Purcon quotes Stan Lepeak, global research director in KPMG's Management Consulting group, as saying: "These findings signal a maturing service delivery market, in which buyers are more focused on improving efforts already deployed in the field, versus just initiating new outsourcing or shared services arrangements.”

However, the report did note that many buyers are still struggling with the transition to outsourced services.