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Outsourcing Fear Costs European Business 5.4Bn - Study

According to an international study commissioned by Logica CMG, organizations across Europe could be set to generate more than 2.5 times their current cost savings by overcoming their 'perceived' fear of outsourcing as a high risk strategy.
The study says that while corporate leaders are under increasing pressure to improve profitability and cut costs, they could be losing sight of GBP 5.4 billion worth of immediate savings through outsourcing.

The study states that companies are currently saving an estimated GBP 2.2 billion a year through outsourcing without even having investigated the optimum level of outsourcing.
According to analysis from Logica CMG, the optimum balance is struck if 70 percent of functions are outsourced and 30 percent remain insourced.

According to the study, of the companies covered about two third agree that business risk could be minimized by better balancing which business processes or systems they insource and which they outsource.
More than half of German companies and 83 percent of Dutch firms supported this view.


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