Companies keep services in-house

17 July 2002
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18 July 2002 | Robin Parker

Enthusiasm for outsourcing is on the wane, according to a study from Accenture.

Two-thirds of the 150 senior executives polled around the world said they had no plans to outsource any more of their operations in the next 18 months.

Nearly 90 per cent said they had outsourced at least one aspect of their business to date. Almost three-quarters expected to see a return on investment within a year.

Fear of losing operational control was the most significant barrier to increasing their use of outsourced services.

But Accenture said the findings suggested companies' reticence to let go of core activities could put them at a competitive disadvantage in a difficult economic climate.

Greg Caster, a partner in Accenture's products operating group, said: "Purchasers need to change the mindset of their companies to see if there are more creative ways of driving organisational strategies, either by outsourcing or using their own skills."

He predicted competitive pressures would lead to growth in the outsourcing market, particularly in IT.

SMjul2002

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