The use of outsourcing is accelerating even as it radically reinvents itself to keep pace with changing technologies that enable outcome based business services. The quest to drive business value through outsourcing was once focused on cost-cutting—and this will remain a key motivation—but the results of Deloitte’s global outsourcing survey 2016 indicates that outsourcing is becoming a vibrant pathway for driving innovation into the enterprise.
Key survey findings
- More than one-third (35 percent) of survey respondents say they already measure the value of innovation in their outsourcing relationships. In response to the increasing emphasis on delivering value beyond cost savings, service providers are rapidly evolving into innovation centers with the aim of creating improvement opportunities for their clients.
- Some companies, for instance, look to their service providers to help them capture and integrate marketplace advances, such as tapping creative methods for improving quality and enhancing the user experience, to propel competitive advantage at a velocity they could not otherwise achieve by themselves. The savviest organizations use their providers to help them find, filter, and manage the many transformative products and services the marketplace invents to improve business performance.
- Disruption in the form of cloud-based services is just the start: we are on the verge of an entirely new model of service delivery comprising robotic and cognitive process automation, the “internet of things,” and digital IT management. This intersection of traditional outsourcing and the innovation storm could amplify value for those organizations that can correctly harness it, and this will likely lead to ever increasing uses of outsourcing, even as it reinvents itself.
Deloitte’s analysis of the 2016 Global Outsourcing Survey indicates that the market for outsourced services will likely continue its rapid adaption to meet—and in many cases to anticipate—the demands of the customer. While the regulatory environment has changed quite significantly for some industries since our 2014 survey, there is still significant strength in the outsourcing market.