Outsourcing Strategy: Measuring Returns on Outsourcing

The research carried out by a Dun & Bradstreet revealed that the worldwide figure for outsourcing expenditure in year 2000 was $1 trillion. The report also shows that United States’ contribution to this figure was $318 million. Obviously, outsourcing strategy is used massively by companies to cut operational costs, while keeping up high quality in a dispensation of rapid technological change.In addition to massive cost saving, companies also use outsourcing as a strategy to focus on what they do best by redirecting management’s attention from business functions to core activities that enhance corporate image. Obviously, outsourcing is a partnership venture whereby the partnering vendor handles the client’s specific business functions faster, better and at a significant reduced operating cost. However, successful outsourcing strategy requires measuring the returns pr...
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