Why Settle For Less: Deloitte Consulting 2008 Outsourcing Report

A survey report of more than 300 business and IT executives representing outsourcing buyers, outsourcing vendors and legal firms conducted by the Outsourcing Advisory Services service line of Deloitte Consulting Extended Business Services LLC has found that a large percentage of companies utilizing outsourcing reached their financial objectives and averaged a strategically important ROI of over 25 percent. However, a much larger than expected number of companies reported some level of company-outsourcer conflict, and many expressed disappointment with the outsourcers' overall ability to provide continuous process and technology improvements. Based on our analysis of the survey, it appears that companies that implement outsourcing programs with proper financial analyses, methodologies, and governance strategies can overcome many of the shortcomings identified. This could add to the business benefit that many companies obtain from their outsourcing initiatives. Five dimensions for an outsourcing program are outlined and are intended to aid those considering such a program in achieving full value from the effort.