Media releases are provided as is by companies and have not been edited or checked for accuracy. Any queries should be directed to the company itself.

Fundamental Strategy Shifts in Outsourcing, Reports IDC

  • 12 October, 2004 14:45

<p>NORTH SYDNEY, OCTOBER 12th, 2004 - IDC's recent research findings indicate that cost savings are once again the primary driver for organisations choosing to outsource. IDC has just released a report titled "Shifting Perceptions: IDC's Australian Outsourcing Survey", that monitors user satisfaction levels with their existing service providers and the expectations of organisations looking to procure these services in the near future.</p>
<p>"Driving the costs down has become the primary driver for organisations looking at using external service providers for provision of IT solutions and services, whereas last year access to skills and resources was cited as the foremost driver. The focus as far as IT assets are concerned has moved from 'capital expense' to 'operating expense' and we will see a further movement down this line with the pricing models becoming more performance-based with extensive risk sharing," said Aprajita Sharma, IDC Outsourcing and BPO Analyst.</p>
<p>IDC's outsourcing report also reveals that whilst the overall satisfaction levels have improved since last year, areas where customers place highest importance when selecting a provider are the areas where providers do not fully meet their clients' expectations. This indicates that suppliers should take the opportunity to redress their approach and performance.</p>
<p>"Australian outsourcing providers are grappling with a dynamic and competitive environment. Customers are more demanding, educated and volatile. Added to this mix is the dilemma of how to balance profitability and productivity imperatives with optimising performance to the customer for long-term growth and market advantage. With this in mind, it is increasingly important to maintain the customer base and keep customers happy," commented Kathy Benson, IDC Research Manager for Outsourcing and BPO.</p>
<p>Key findings from the survey:</p>
<p>* Competitive differentiation will centre on vertical expertise and alignment and the ability to integrate management consulting and business expertise into the services provisioned.
* Organisations are looking at outsourcing as a vehicle to procure a host of other diverse services.
* A host of risks are still attributed to a decision to outsource, and there has to be a joint effort on the part of the outsourcing service provider and the organisation to develop an effective risk-mitigation strategy.
* Most organisations are looking at renegotiating their current contract with very few indicating a desire to insource.
* The SMB market still remains untapped.</p>
<p>This survey consisted of 204 in-depth interviews from small, medium and large Australian businesses across various vertical market segments.</p>
<p>To purchase this study, please call the IDC sales team on (61 2) 9925-5300 or email Gary Clarke on</p>
<p>For press enquiries please contact:</p>
<p>Aprajita Sharma
Market Analyst, Outsourcing and BPO
Phone: 61 2 9925 2257</p>
<p>Kathy Benson
Research Manager, Outsourcing and BPO
Phone: 61 2 9925 2225</p>

Most Popular


James Cook University - Master of Data Science Online Course

Learn more >


Victorinox Werks Professional Executive 17 Laptop Case

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Join the newsletter!

Error: Please check your email address.

Latest Articles


PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?