Outsourcing is Key to Recovering from the Downturn
(August 26, 2009)Capgemini Survey Reveals Outsourcing is Key to Recovering from the Downturn
Survey Finds Public Opinion does not Impact Executive's Decisions to Outsource Business Operations
Capgemini, one of the world's foremost providers of consulting, technology and outsourcing services, announced the results of the Capgemini Executive Outsourcing Survey which found that most executives today agree that outsourcing IT, finance and accounting, HR or procurement can help a company survive the current economic downturn. The survey also revealed that while a majority of executives (79%) recognize outsourcing may have a poor public perception, this has little to no effect on most executives' (72%) decision to outsource, suggesting the benefits of outsourcing outweigh the potential negative impact from poor public opinion.
The survey revealed that outsourcing remains a strategic driver in helping companies maintain the bottom line as 74 percent of executives agree that outsourcing helps a company survive in today's economy. Among other key findings, 70 percent of executives feel that money saved by outsourcing can help a company grow, and 60 percent believe outsourcing makes a company more agile and flexible.
"When it comes to outsourcing decisions, the need to restore profitability and growth is the most pressing issue, outweighing other factors such as perceived public opinion," said David Poole, vice president and head of Americas Business Process Outsourcing, Capgemini. "Capgemini understands that companies that outsource are better poised for the future, as they are able to reinvest their savings to drive innovation. Over time, the business can build, expand and emerge from the economic slump in a stronger position because, through outsourcing, they have been able to focus on their core business."
The results of the Capgemini survey reinforce what companies are already witnessing in the market—outsourcing spending has continued to climb during the last decade, in good economic times and bad, and companies are continuing to turn to outsourcing for a competitive edge.
Other survey highlights include:
70 percent of executives agree that outsourcing saves money;
79 percent of executives acknowledge that outsourcing may have poor public perception1;
65 percent of executives agree that if outsourcing had a better reputation, it would not impact their outsourcing decisions, demonstrating that public opinion does not influence an executive's decision on whether or not to outsource;
Manufacturing companies feel more positively about outsourcing with regard to helping a company to grow, be more agile and flexible and saving American jobs than service companies.
Capgemini's business process outsourcing organization applies unique business insight, business intelligence tools and deep domain knowledge to help clients transform business operations. The study was commissioned by Capgemini in North America and conducted by Harris Interactive® to measure business leaders' opinions on outsourcing in the context of the current recession. A total of 151 senior executives from Fortune 1000 companies participated in the telephone survey between April 29 and May 15, 2009.
Survey Methodology
This survey was conducted by telephone within the United States by Harris Interactive on behalf of Capgemini between April 29 and May 15, 2009, among 151 senior executives at Fortune 1000 companies. No estimates of theoretical sampling error can be calculated; a full methodology is available.
All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with no response, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Interactive avoids the words "margin of error" as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal.
About Capgemini
Capgemini, one of the world's foremost providers of consulting, technology and outsourcing services, enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working, the Collaborative Business Experience. The Group relies on its global delivery model called Rightshore®, which aims to get the right balance of the best talent from multiple locations, working as one team to create and deliver the optimum solution for clients. Present in more than 30 countries, Capgemini reported 2008 global revenues of EUR 8.7 billion (approximately USD $12.74 billion) and employs 90,000 people worldwide.
Capgemini's expertise is recognized in Business Process Outsourcing (BPO) with a solution portfolio that spans Finance & Accounting, Customer Care & Intelligence, Procurement, Assurance Management Human Resources and Knowledge Process Outsourcing services. As part of Capgemini's Rightshore® delivery network, more than 9,100,000 BPO professionals provide services to clients worldwide 24 hours a day, seven days a week, in 36 languages, from centers located in Australia, Brazil, Canada, Chile, China, Guatemala, India, Poland, and the United States.