{"id":1292,"date":"2013-01-27T13:47:00","date_gmt":"2013-01-27T13:47:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/outsourcing-in-2013_01213\/"},"modified":"2013-01-27T13:47:00","modified_gmt":"2013-01-27T13:47:00","slug":"outsourcing-in-2013_01213","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/outsourcing-in-2013_01213\/","title":{"rendered":"Outsourcing may be battered, bruised and vilified&#8230; so why is only a twentieth of enterprises planning to reduce it in 2013?"},"content":{"rendered":"<div id=\"attachment_12705\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12705\" title=\"Outsourcing-new-dawn\" src=\"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2013\/01\/Outsourcing-new-dawn.png\" alt=\"\" width=\"292\" height=\"194\" \/><\/p>\n<p class=\"wp-caption-text\">2013: A new dawn for a maturing outsourcing industry<\/p>\n<\/div>\n<p style=\"text-align: justify;\"><strong>Make no bones about it: \u00a02012 was a pretty dire year for the industry known as &#8220;outsourcing&#8221;.<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong><\/strong>However, brand new data from our <em>State of Outsourcing 2013<\/em>\u00a0S<em>tudy<\/em>\u00a0conducted with the support of KPMG, the largest-ever research survey focused on IT and business function outsourcing, clearly shows that the\u00a0majority\u00a0of enterprises are not only aggressively\u00a0focused on increasing their outsourcing portfoilios, but many are now taking a more mature and realistic approach.<\/p>\n<p><em>So, as always, let&#8217;s examine the facts&#8230;<\/em><\/p>\n<p><span style=\"font-size: medium; color: #ff6600;\"><strong>How outsourcing got battered, bruised and vilified in 2012<\/strong><\/span><\/p>\n<ul>\n<li>A painful presidential campaign that positioned outsourcing as an evil activity, despite the fact US IT <a href=\"http:\/\/news.dice.com\/2013\/01\/22\/tech-professionals-enjoy-biggest-raise-in-a-decade\/\" target=\"_blank\" rel=\"noopener\">unemployment is running at 3.8% and tech salaries have now reached 10-year record highs<\/a>;<\/li>\n<li>A media desperate to jump on the fact that IT outsourcing must be in its <em>death throes<\/em> if GM&#8217;s Randy Mott was creating a <a href=\"http:\/\/blogs.wsj.com\/cio\/2012\/07\/17\/cio-randy-mott-says-gms-it-lags-imagination-of-the-business\/\" target=\"_blank\" rel=\"noopener\">few jobs on US soil<\/a>;<\/li>\n<li>Pundits, consultants and &#8220;analysts&#8221; claiming outsourcing is yesterday&#8217;s strategy for our enterprises, without really being able to explain why, but eager to bury it under the negativity. \u00a0Meanwhile, the fact that the great American innovator they love to laud, Apple, has been\u00a0<a href=\"http:\/\/www.telegraph.co.uk\/technology\/apple\/9826928\/Apple-audit-finds-underage-workers-in-China.html\" target=\"_blank\" rel=\"noopener\">using Chinese children<\/a>\u00a0to manufacturer its wares, seems to escape practically unnoticed&#8230;<\/li>\n<li>The outsourcing industry itself calling for a re-brand to escape the negativity.<\/li>\n<\/ul>\n<p><span style=\"font-size: medium; color: #ff6600;\"><strong>Why outsourcing is more embedded than ever in corporate operations strategy<\/strong><\/span><\/p>\n<p>1355 stakeholders across\u00a0enterprise\u00a0buyers, service providers and consultant\/influencer organizations shared their views, observations and intentions for 2013 and beyond, when it comes to outsourcing IT and business processes. \u00a0We are going to delve deep to share these dynamics with you in the coming weeks, but let&#8217;s start with the key dynamics &#8211; how <em>fast<\/em> is the industry growing, and what is <em>driving<\/em> the decisions:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12702\" title=\"Plans-to-outsource, 2013\" src=\"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2013\/01\/Plans-to-outsource-2013.png\" alt=\"\" width=\"600\" height=\"389\" \/><\/p>\n<p>399 major buy-side enterprises have spoken about their 2013 outsourcing plans, and barely a<!-- pagebreak --> <em>twentieth<\/em> of them are looking to reduce their outsourcing scope across any IT or business function in 2013. Moreover, half of them are looking to <em>increase<\/em> their outsourcing of application services, four out-of-ten their finance and accounting, and a third their HR. In addition, there is a notable pick up in newer sourcing areas, such as analytics and legal.<\/p>\n<p><strong><span style=\"color: #ff6600; font-size: medium;\">The classical values of outsourcing are stronger than ever: cost, standardization and global delivery<\/span><\/strong><\/p>\n<p>When it comes to the decision drivers, it&#8217;s almost refreshing to see enterprises focusing on the basics: \u00a0cost, global delivery and standardized process:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12710\" title=\"Outs-decision-drivers, 2013\" src=\"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2013\/01\/Outs-decision-drivers-2013.png\" alt=\"\" width=\"600\" height=\"396\" \/><\/p>\n<p>While, on the surface, this data isn&#8217;t exactly<em> surprising<\/em>, what it&#8217;s telling us is the vast majority of enterprises are eagerly looking to industry\u00a0standard offerings as a priority. \u00a0We&#8217;ve been lauding the old &#8220;ADP payroll analogy&#8221; for several years now, where there is little discernible business reason to run your payrolls <em>yourself<\/em> these days, and this is ringing true for the rest of the operational functions: \u00a0being <em>competitive<\/em> with business operations is achieved by standardizing onto best-in-class processes. \u00a0And to\u00a0achieve\u00a0that standardization is, really, quite\u00a0straightforward\u00a0&#8211; move these processes onto proven technology platforms and have them operated in a cost-efficient manner. \u00a0For most organizations today, they&#8217;ve failed to do this effectively inhouse (through many years of pain and wasted investments) and shifting them over to a third-party has forced the issue and got them from A to C.<\/p>\n<p><strong><span style=\"color: #ff6600; font-size: medium;\">The Bottom-line: \u00a0The tenets of outsourcing haven&#8217;t changed &#8211; it&#8217;s the simple fact that operations leaders have run out of excuses <em>not<\/em> to do it<\/span><\/strong><\/p>\n<p>The outsourcing debate used to be centered on the ability of enterprises and providers to do it right, to make the required cost savings with the\u00a0appropriate\u00a0amount\u00a0of risk mitigation. This data finally, finally, renders that debate moot: \u00a0the basic ingredients of outsourcing today are maturing and proven to work when executed effectively&#8230; the focus now shifts to the\u00a0<em>how<\/em> enterprises can evolve into a globally sourced environment, not simply the\u00a0<em>should<\/em>. \u00a0Our next piece of analysis will zone into the core challenge of enterprise operations in 2013: \u00a0how enterprises can alter their internal mindsets, attitudes and operational issues holding them back. \u00a0Stay tuned&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>2013: A new dawn for a maturing outsourcing industry Make no bones about it: \u00a02012 was a pretty dire year&#8230;<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,50,51,835,61,76,79,80,81,838,83,836,91,832,830,97],"tags":[303],"organization":[],"ppma_author":[19],"class_list":["post-1292","post","type-post","status-publish","format-standard","hentry","category-business-process-outsourcing-bpo","category-captives-and-shared-services-strategies","category-cloud-computing","category-f-a","category-financial-services-sourcing-strategies","category-hfs-surveys-state-of-the-outsourcing-2013","category-hr-outsourcing","category-hr-strategy","category-it-outsourcing-it-services","category-kpo-analytics","category-legal-services-outsourcing","category-procurement-engineering-supply-chain-outsourcing","category-saas","category-sourcing-best-practises","category-sourcing-change","category-talent-in-sourcing","tag-enterprise-irregulars"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Outsourcing may be battered, bruised and vilified... so why is only a twentieth of enterprises planning to reduce it in 2013? - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/outsourcing-in-2013_01213\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Outsourcing may be battered, bruised and vilified... so why is only a twentieth of enterprises planning to reduce it in 2013? - Horses for Sources | No Boundaries\" \/>\n<meta property=\"og:description\" content=\"2013: A new dawn for a maturing outsourcing industry Make no bones about it: \u00a02012 was a pretty dire year...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.horsesforsources.com\/outsourcing-in-2013_01213\/\" \/>\n<meta property=\"og:site_name\" content=\"Horses for Sources | No Boundaries\" \/>\n<meta property=\"article:published_time\" content=\"2013-01-27T13:47:00+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2013\/01\/Outsourcing-new-dawn.png\" \/>\n<meta name=\"author\" content=\"Phil Fersht\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@pfersht\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Phil Fersht\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.horsesforsources.com\/outsourcing-in-2013_01213\/\",\"url\":\"https:\/\/www.horsesforsources.com\/outsourcing-in-2013_01213\/\",\"name\":\"Outsourcing may be battered, bruised and vilified... so why is only a twentieth of enterprises planning to reduce it in 2013? 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