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4 November 2011 | Angeline Albert
Buyers are struggling
to make the transition to outsourcing a success, according to KPMG’s 3Q11 Sourcing Advisory Pulse survey.
The study quizzed shared
services and outsourcing advisers from more than 20 companies including KPMG,
Accenture and BT Global Services who work for client firms. They reported that buyers
are showing renewed interest in shared services as a means to complement or
supplant traditional outsourcing.
with under-achieving outsourcing efforts, changing economics and a desire for
greater control over strategic processes and sensitive data were cited as
reasons. The report said purchasers continue to face challenges in managing
outsourcing transition processes and their efforts are hampered by a lack of
skilled resources and inadequate planning and procedures. This leads to
transition efforts not being completed on time, within budget or to the
required functionality, it said. “This too often means that poorly handled
initial transition efforts negatively affect the start of the relationship
between the client and the service provider.”
adoption levels for shared services, however, has risen during the past two
years – in part due to disappointing outsourcing efforts and a wish to avoid
overly aggressive outsourcing. The report said buyers
are having moderate success in achieving the goals sought from shared services
efforts, with cost savings cited as the chief aim.
It said many
organisations achieve short-term success from quick wins - such as the one-time
cost savings achieved by moving work offshore or consolidating IT operations - but
then struggle to continually improve operations and drive down costs.