As markets develop and competitive pressures escalate, outsourcing continues to be businesses' preferred method of reducing costs and accessing specialist expertise. But companies are increasingly moving away from older models, where cost-cutting was often the only driver, where services outsourced were clearly "non-core" and a long-term relationship with a sole supplier was preferred, toward a strategic outsourcing model that is more value-driven, more integrated with the business' main operations and thus more flexible.
Many companies are now quite familiar with outsourcing back-office services to save money, but have been disappointed with a lack of service quality or promised innovation that has failed to materialize. They are now driving harder bargains with their vendors and exploring different ways to ensure that they not only reap cost savings but also increased innovation, quality and business value.
