“From finance and healthcare to real estate, technology, creative, and retail sectors, outsourcing now plays a strategic role in scaling teams, filling skill gaps, and supporting rapid innovation across core and non-core business functions.”
The situation in Australia is reflected overseas. Data cited by DemandSage revealed that 92% of G2000 companies have active IT outsourcing contracts.
Approximately 300,000 jobs are outsourced from the United States, contributing to a global outsourcing market valued at around $85.6 billion.
Aside from cost-cutting, there are other reasons why companies are outsourcing roles, according to the Corporate Finance Institute. They include:
Focusing more on the company’s core competencies, and thus improving its competitive advantages by outsourcing time-consuming processes to external companies
Freeing up internal resources and using the resources for other purposes
Mitigating risk by sharing risks with external parties and building meaningful partnerships
Improving flexibility and efficiency by delegating responsibilities that are difficult to manage and control to external companies
Planning effective outsourcing initiatives
For organisations planning to outsource roles, Jennifer Dublino, an expert on business operations, outlined five steps where employers can start: