Nearshore Americas

Survey: HfS and KPMG Envisions Outsourcing “Surge” in 2013


Despite heated debates in the developed world over offshoring and its effects on domestic job markets, outsourcing is not about to disappear. A recent survey jointly conducted by HfS Research and KPMG found that there are clear indicators of a strong increase in outsourcing projects during the current year.  In fact, the research companies – who surveyed  over 1,000 corporate stakeholders – are predicting a ‘surge’ in outsourcing.

“The majority of enterprises are not only aggressively focused on increasing their outsourcing portfolios, but many are now taking a more mature and realistic approach,” Phil Fersht, CEO of HfS Research, said.

Among the 399 major buy-side enterprises in the survey, barely a twentieth are looking to reduce their outsourcing scope across any IT or business function in 2013.

Moreover, he added, “half of them are looking to increase their outsourcing of application services, four out-of-ten their finance and accounting, and a third their HR. In addition, there is a notable pick up in newer sourcing areas, such as analytics and legal.”

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The primary motivations for outsourcing are not surprising: 87 percent seek to reduce operating costs, 81 percent seek greater flexibility and scale, and 74 percent seek to standardize processes.


Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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