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Companies 'must work to drive innovation through outsourcing'

25 November 2011

Although outsourcing can generate significant cost savings, companies need to further improve their level of innovation in this area, a new paper suggests.

Last month, data showed that the outsourcing market had reached a record level in the EMEA region during 2011's third quarter.

According to TPI, total contract value rose to €12.1 billion (£10.34 billion).

However, a 2011 Forrester research study suggesting that more than four in ten outsourcing clients do not receive enough in the way of innovation from their external partners, reports CIO magazine.

Problem solving and new ideas are just two of the by-products successful outsourcing can generate, but providers are failing to deliver, said Forrester sourcing and vendor management analyst Jan Erik Aase.

"Their expectations of getting advanced innovations from their offshore vendors is not unrealistic," he added. "These vendors know their clients' companies inside and out in many relationships."

Categories: Functional Practices


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