Tuesday, October 03, 2006

According to a Capgemini survey at the IDC Midwest Conference, outsourcing results in a substantial return on investment. Around 85 percent of the respondents stated that they managed to save at least the expenses which they had incurred on outsourcing, with 26.4 percent reporting their savings quantum to be about twice the size of their investment on outsourcing. In terms of investments, around 60 percent of the respondents reported having spent up to USD 50 million on outsourcing, while 18 percent of the respondents reported having spent up to USD 100 million.

About 9 percent of the respondents had invested between USD 100 million and USD 200 million, while an equal percentage of respondents had invested more than USD 500 million. Cost reductions, increased productivity, along with opportunity to redeploy the resources for executing core functions were identified as the prime underlying drivers of outsourcing decisions.

About 94.8 percent of respondents stated that outsourcing helps in augmenting the shareholders' value. About 70 percent of respondents stated that the US is their preferred choice for outsourcing.

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