According to a survey conducted by TPI, the leading global sourcing advisory firm, companies have reduced their spend on IT services and business transformation by almost one fifth by turning to outsourcers, thus saving $50 bn.
firm surveyed 120 companies it had advised on sourcing over the last
five years. TPI found its clients saved on average more than 33 per
cent. After one-time and ongoing management expenses, the savings
averaged more than 17 per cent.
According to TPI chairman and
CEO Michael Connors the majority of businesses, 60 per cent, said that
reducing costs was “their number one reason for implementing sourcing
Last year Europe became the world’s highest spender on outsourcing, with companies based in Europe spending more on IT outsourcing than those based in any other region of the world.