EquaTerra, which offers outsourcing advice, defines outsourcing management and governance (OM/G) functions as the personnel, processes, software and tools, and external services (e.g., advisors, lawyers and auditors) required for outsourcing success, according to a release.
Key findings of the study include:
- Outsourcing satisfaction improves over time. The highest levels of satisfaction were with IT and CRM executives.
- While satisfaction was greatest for companies that spend 4% to 7% on OM/G, over 48% of respondents spend between 1% to 4%. HR executives were the least satisfied at the 1% to 4% spending level.
- Executives who outsourced for process improvement versus cost savings tended to be more satisfied.
- High-Tech Products & Services, Pharmaceuticals and Automotive/Manufacturing were more satisfied than other industries.
The study found that the spending on OM/G breaks down as:
- OM/G Personnel – 41%
- OM/G Software/Tools – 32%
- External services supporting OM/G – 29% (includes advisors, lawyers, auditors, etc.)
EquaTerra found that organizations care most about getting an OM/G tool that delivers timely, relevant and actionable data, the release said.