Why is outsourcing appealing to midsize companies?
A survey conducted by IDC notes that midsize companies are increasingly examining outsourcing as an option. Seventy-seven percent of respondents stated cost-savings to be the key reason for outsourcing operations. We believe that mid-market companies need to evaluate the options and confirm that they are truly paying the best price possible for support of their IT, HR and Finance functions.

What is driving this phenomenon?
Consistently, and not surprisingly, cost reduction is the primary reason for outsourcing. Additionally, outsourcing improves service quality, streamlines processes, and frees up internal resources. It also insulates companies from the continual investment to maintain state-of-the-art systems and processes.

What impact does outsourcing have on business and consumers?
Outsourcing reduces costs and often provides access to new capabilities that effect both top and bottom-line competitiveness. The impacts to businesses include lower costs, improved productivity, and increased flexibility, all of which contribute to the consumer receiving a better product or service at a cheaper price.

Ben Trowbridge is the CEO and Managing Partner of the Trowbridge Group, a global sourcing advisory firm whose clients include Mervyn’s, BlueLinx, and Sprint PCS. TG consultants draw on experience from some of the largest BPO and IT outsourcing contracts in Asia, Europe, and the Americas with a total contract value of over $40 billion.