Administration December 5, 2007
Equaterra Finds Link Between Outsourcing Investment and Satisfaction
May 24, 2006 (PLANSPONSOR.com) - A new study
suggests that there is a direct connection between how much
companies invest in outsourcing management and governance
functions and their level of satisfaction.
Reported by Adrien Martin
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.