{"id":1469,"date":"2011-08-29T21:20:00","date_gmt":"2011-08-29T21:20:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/facts-about-outsourcing-part-8_082911\/"},"modified":"2011-08-29T21:20:00","modified_gmt":"2011-08-29T21:20:00","slug":"facts-about-outsourcing-part-8_082911","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/facts-about-outsourcing-part-8_082911\/","title":{"rendered":"The undisputed facts about outsourcing, Part 8: Industries experiencing secular change have more aggressive outsourcing plans"},"content":{"rendered":"

Our recent State of Outsourcing study<\/a>, conducted with the Outsourcing Unit at the London School of Economics, has been uncovering many home-truths about why some industries are more motivated than others to externalize their support operations to third-parties. \u00a0<\/strong><\/p>\n

However, one factor that is continuously being reinforced, is that those organizations being impacted by radical,\u00a0fundamental\u00a0shifts to their very industry economics, are more prepared than ever to admit they need to look outside<\/em> of their current organization boundaries to keep their business operations cost-competitive. \u00a0Simply-put, secular change crystallizes<\/em> options for businesses and the outsourcing planning process often becomes more clear-cut as a result.<\/p>\n

Buyers today are figuring out where to focus their outsourcing plans to benefit the core business<\/strong><\/p>\n

Increasingly, we are seeing a realization that retaining some processes internally isn’t – in any shape of form – bringing organizations a competitive edge, and these sourcing decisions are no longer only about cost – they represent a fundamental change in the way business leaders now view outsourcing as an integral function<\/em> of their operations. \u00a0For example, does a bank lead its market because it processes mortgage applications better than its competitors? \u00a0Or would its management rather find someone else to process them at lower cost, using\u00a0industry-standard process flows and technology, while they focus internal competency on business functions that can help them\u00a0gain<\/em> marketshare, such as smarter customer targeting, or \u00a0upselling new product through customer support channels etc. \u00a0And does a retailer really need to maintain its entire application\u00a0portfolio\u00a0inhouse, when it can devote its internal talent and IT resources to improving its customers’ online shopping experience, where it can actually grow<\/em> its business?<\/p>\n

Today’s buyers are getting a lot smarter at figuring out how they can improve their organizations by using the resources and knowledge available through third-party relationships. \u00a0Examining plans to outsource over the next three years reinforces this mind-shift:<\/p>\n

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The Secular-Shifters: Gearing up with long-term aggressive outsourcing strategies<\/strong><\/p>\n

\u00a0<\/strong>The five most bullish industries planing significant increases with outsourcing, are not only basing their planning on their proven, ongoing cost-reduction outcomes (see Part I<\/a>), but also because the fundamentals of their industries have dramatically shifted in the recent past, for example:<\/p>\n