Despite the economy, the majority of companies still plan to pursue outsourcing but volume and prices will be lower, according to a recent survey.
The International Association of Outsourcing Professionals surveyed 450 organizations from 20 countries that attended its recent annual conference. The survey found 75 per cent of organizations will do the same or more outsourcing in response to the financial crisis. They also said that greater contract flexibility is their top need.
However, one-quarter of organizations reported lower volumes of outsourcing and 19 per cent said they have renegotiated prices on existing contracts.
Outsourcing users are also more concerned about safety and cost savings, the survey results showed, with more than 53 per cent saying they are doing more due diligence and also favor working with larger providers.
“Challenges create opportunities,” said IAOP chairman Michael Corbett. “Outsourcing service providers are very aggressively examining their products and services to create greater value and increase market share in these times. Companies are recognizing they need to use this as an opportunity to strengthen relationships with their partners because each one of those partners will make them a better company.”
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