In this age of globalisation, outsourcing has become an integral part of the way large, multinational enterprises are managed. From helping to provide application support, processing claims, managing networks, billing systems or even customer service, the majority of large businesses are spending more on outsourcing now than at any point in the last few years. Research from Gartner shows that 53% of European organisations in 2010 were planning to outsource more with 40% due to increase their external IT services spending.
Innovation is increasingly becoming a vital element of outsourcers’ offering, and businesses are relying ever more heavily on their outsourcers to deliver innovation capabilities. Research we recently conducted with Warwick Business School among 250 CIOs and CFOs across six regions (the UK, Germany, Switzerland, Benelux, France and the Nordics), reveals just how important this innovation is: 70% of European C-level executives believe the innovation achieved through outsourcing contributes to their organisations’ financial performance. But, worryingly, the research suggests that businesses are not getting most of outsourcers’ innovation capabilities. If only 35% are actually quantifying the financial value that innovation adds to their business, how can they prove its worth and make the case for future investment?
To read the full, original article click on this link: How to Harness the Value of Outsourcing-led Innovation | InnovationManagement
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