The rising popularity of outsourcing in Germany
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In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical.
!["imgname--a_more_pessimistic_v</p/]("https://www.bridge-global.com/blog//wp-content/uploads/2010/01/imgname-a_more_pessimistic_view_of_outsourcing-50226711-images-istock_7893322-150x150.jpg")
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iew_of_outsourcing—50226711–images–istock_7893322″ width=”150″ height=”150″ />
In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical.
kamagra without a prescription
iew_of_outsourcing—50226711–images–istock_7893322″ width=”150″ height=”150″ />
In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical.
kamagra without a prescription
iew_of_outsourcing—50226711–images–istock_7893322″ width=”150″ height=”150″ />
In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical. Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical.
![]("https://www.bridge-global.com/blog//wp-content/uploads/2010/01/imgname-a_more_pessimistic_view_of_outs</p/ "\"imgname--a_more_pessimistic_view_of_outsourcing---50226711--images--istock_7893322\"")
ourcing-50226711-images-istock_7893322-150×150.jpg” alt=”imgname–a_more_pessimistic_view_of_outsourcing—50226711–images–istock_7893322″ width=”150″ height=”150″ />
In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical.
ourcing-50226711-images-istock_7893322-150×150.jpg” alt=”imgname–a_more_pessimistic_view_of_outsourcing—50226711–images–istock_7893322″ width=”150″ height=”150″ />
In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical.
ourcing-50226711-images-istock_7893322-150×150.jpg” alt=”imgname–a_more_pessimistic_view_of_outsourcing—50226711–images–istock_7893322″ width=”150″ height=”150″ />
In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical. Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
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In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical. Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
Path:
In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical. Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
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In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical. Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
Path:
In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical. Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
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In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical. Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
Path:
In 2006 the phantom of the financial crisis appeared for the first time on the surface, when some bad speculations on the US real estate market emerged. In 2007 the first banks announced losses and depreciations of billions. Till this time nobody was really worried, but when the well-known investment bank Lehmann Brothers registered insolvency in September 2008, the day became part of world’s history, the so called “Black Monday” at the Wall Street. At the end of 2008 Germany is already standing at the edge of a recession and the financial crisis is affecting the real economy. Results of these events are fear for investment, short-time work, increasing unemployment rates, insolvencies and order losses.
But besides these future fears, uncertainties and stand stills, one could already see some light stripes on the horizon – Outsourcing. So far often treated as a taboo word, new discussions and considerations towards this topic are arising at the end of 2008 and at the beginning of 2009.
So it was no wonder when the international market research institution EITO (http://www.eito.com/) announced a strong increase for the demand of outsourcing for the year 2009. For the German market it forecasted a growth in revenue for IT and Business-Process Outsourcing of about 7.2% to an amount of € 14.6 billion. Cause of the difficult economic situation at that time, even these companies started thinking of outsourcing who faced this topic till now rather skeptical. Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
Martin Jetter, member of BITKOM, the German branch-organization for high-tech, who commented these results, said that companies are now thinking of their core competences, which parts of the value chain are essential and which are probably represented better by another market actor. Outsourcing is leading to an economical shear production, according to Jetter. Whereas it took almost a year to fix outsourcing contracts in the past, the decisions for projects are made much faster in recent times. Preferred are especially these IT Projects which generate fast cuts in costs, heighten efficiency rapidly and which amortize quickly. He considers outsourcing as a way out of the crisis as it can create financial scopes. Suppliers of outsourcing services can help by keeping the monthly costs low in the start phase and later on increase the costs. (http://www.bitkom.org/de/presse/8477_57416.aspx)
But despite the difficult economic situation, a turnaround in the outsourcing business can be recognized according to an article of the Harvey Nash Group (July 2009), a professional service provider for technical recruitment, outsourcing services and strategic leadership. Almost every company is currently searching for saving possibilities and therefore they are questioning their structures. The simple way to get rid of cost blocks seems to be outsourcing, at least for those who haven’t thought of the topic in detail yet. But there are some more aspects which make the glimpse towards outsourcing even more attractive. Flexibility and continuous innovation are two of these reasons, but furthermore the outsourcer himself is no longer seen as a cash cow, but as a real partner for a long-term relationship. For that the possibility of standardizations can bring even more cost benefits as the understanding of each other’s working processes grows and make the common processes more fluent and efficient.
http://www.harveynash.com/de/presse/charset/2009/07/outsourcing_kosten_stehen_nich.asp
So what is the situation now at the end of the year 2009? According to a research of the Sourcing Monitor “Deutschland Q3/09” the behavior of German companies reflects the impacts of the economical crisis like anticipated. They outsourced obviously more compared to previous year’s period.
http://www.active-sourcing.com/pdf_files/20091030_MI_SourcingMonitor_Q309.pdf
German IT companies think their outsourcing potential is only reached by 44%, claims an article of the magazine CIO. So there is no end for the increase of the German IT outsourcing market forecasted. Besides the most common reasons for outsourcing; (cost benefits 72%), availability of resources (41%), Know-How (33%) and lack of qualified staff (21%), it was also asked how the willingness towards outsourcing of German companies will change in the fields of On shoring, Near shoring and Off shoring within the next five years. The interesting results mark a decrease in the on shoring sector, only a slight increase for the near shore outsourcing business, but a massive growth of the offshore outsourcing field.
http://www.cio.de/knowledgecenter/outsourcing/874859/
So is outsourcing only the winner of the current economical situation or are these results simply reflecting the natural c(o)urse of globalization towards a flattened world?
Great and informative article. Outsourcing is very common already. In today’s business environment, more or every company is looking for ways to reduce costs. So outsourcing could be their option.