Outsourcing Understanding The Facts, Issues And Benefits

OUTSOURCING FACTS OUTSOURCING PROBLEMS AT A GLANCE MAKE OUTSOURCED EASIER TASKS IT WITH WHAT THE Outsourcing not only helps in cost cutting but also helps in adding value to capability and capacity. 60% OF OUTSOURCING EXPERTS SAY 40% 33% 37% ACTIVITIES CONSIST Graph1 Outsourcing expenditure increases at a 20% rate annually. OF HR FUNCTIONS. Outsourcing is increasingly becoming popular helps to with a number of businesses Businesses Businesses Businesses believe believe believe Outsourcing increases efficiency by allowing greater output with lower input costs. outsourcing Graph2 55% of outsourcing ventures fall in the first five years. outsourcing helps in geographic expansion. outsourcing helps in new product development. improve customer 26% 38% relationships. THREE MAIN OUTSOURCING PROBLEMS outsourcing their core functions. Outsourcing Percentage by Sector 43% ANNUAL SAVINGS IN U.S. 53% 53% COMPANIES DUE TO OUTSOURCING 53% reported lack of management skills. PROJECT Manufacturing Upto 17% savings! IT Services This equals to $10 billion! 58% R & D 58% reported lack of adequate processes. World's Top Five Destination Countries for Outsourcing Core Activities Distribution OUTSOURCING 48% 48% reported lack of right performance UNDERSTANDING metrics. THE BENEFITS OF OUTSOURCING FACTS, Czech 19 Percent Germany 12 percent Republic ISSUES Helps gain operational efficiencies. Helps meet seasonal, specialized or temporary needs. China 19 Percent AND Eliminates large inventory and specialized equipment costs. India 12 percent Eliminates BENEFITS Poland 20 Percent cost of hiring.