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Shared service models 'outpacing traditional outsourcing'

10 June 2012

Many businesses may be looking to outsource more of their operations this year, with shared services models gaining particular prominence.

Research by KPMG found 52 per cent of firms are looking to reorganise admin functions once performed in separate divisions of a business into a centralised service.

This is outpacing demand for more traditional outsourcing areas, as 37 per cent of organisations reported seeing a growth in interest for IT outsourcing, while 27 per cent witnessed an increase in business process outsourcing.

Shamus Rae, partner in KPMG's shared services and outsourcing advisory team, observed: "It appears that the trend towards focusing on more specialised outsourcing is a consequence of the expanding number of quality global sourcing locations with highly skilled resources."

In addition to this, the growing sophistication of available skillsets from outsourcing providers and the ability of Indian firms to diversify delivery capabilities beyond their home market were also cited as drivers for the growth in the market.

According to recent research from Gartner, the IT outsourcing sector grew by 7.8 per cent last year, seeing revenues of $246.6 billion (£158.7 billion).

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Categories: Functional Practices, Program & Project Management

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