Outsourcing Holds Strong Despite Economy
Contract Flexibility, Partnerships and People Valued, IAOP Reports
POUGHKEEPSIE, N.Y., Feb. 20, 2009 – Despite the economy, the majority of companies still plan to pursue outsourcing but volume and prices will be lower, according to survey results reported by the International Association of Outsourcing Professionals™ (IAOP™) at its recently completed annual conference, The 2009 Outsourcing World Summit®.
With the financial crisis and economic and political uncertainty dominating discussions, some 450 outsourcing leaders from 20 countries came together for the three-day event in Carlsbad, Calif., to learn strategies for success from more than 50 speakers.
Building closer relationships with outsourcing suppliers, negotiating flexibility in contracts and understanding the value that people add will all be important moving forward, keynote speakers stressed.
“Challenges create opportunities,” said IAOP Chairman Michael Corbett, who spoke about the new agenda in a new world. “Outsourcing service providers are very aggressively examining their products and services to create greater value and increase market share in these times. Companies are recognizing they need to use this as an opportunity to strengthen relationships with their partners because each one of those partners will make them a better company.”
Corbett shared results of a membership survey that found nearly 75 percent of organizations will do the same or more outsourcing in response to the financial crisis and that greater contract flexibility is their top need. But 25 percent reported lower volumes and 19 percent said they have renegotiated prices on existing contracts.
Outsourcing users are more concerned about safety and cost savings, the survey results showed, with more than 53 percent saying they are doing more due diligence and also favor working with larger providers.
During the conference, IAOP also announced the companies named to its annual Global Outsourcing 100™ and new World’s Best Outsourcing Advisors lists and inducted three new members into its Outsourcing Hall of Fame.
Upbeat Outlook
Executives who attended left upbeat about the future following the high-level discussions and networking opportunities.
“The Outsourcing World Summit was a great venue to learn about cutting-edge outsourcing issues, especially in today’s tough economic climate," said Bernice Karn, a partner of Cassels Brock and Blackwell LLP. “The conference was a fantastic opportunity to meet outsourcing professionals from all over the world to gain an appreciation for their perspectives on outsourcing.”
Said Bob Livingston, executive director, marketing communications for TeleTech, a company recognized on the Global Outsourcing 100list, “The IAOP Summit provides a unique forum to have key stakeholders – buyers, advisors and providers – work together to discuss mutual business issues. The candid conversation and high level of collaboration make this conference very different from other events.”
Walter Fang, vice president of Neusoft Corp. and president of Neusoft America, predicted that outsourcing demand will surge when the global economy recovers and that China will emerge as a major player in the global outsourcing landscape.
"The IAOP Outsourcing World Summit provides an excellent platform for customers, providers and advisors to get together and interact with each other to share outsourcing experiences, best practices and lessons learned,” Fang said. “It is particularly significant, under the current global financial crisis and economic turmoil, for companies to explore how outsourcing could cut costs and maintain competitiveness to survive, and how to make outsourcing part of their corporate strategies for long-term sustainable growth.”
The association next will bring insights learned from the annual summit to professionals around the world with its IAOP Global Tour that will make stops throughout the Asia-Pacific Feb. 21 through March 14.
About IAOP
The International Association of Outsourcing Professionals (IAOP) is the global, standard-setting organization and advocate for the outsourcing profession. With more than 100,000 members and affiliates worldwide, IAOP helps companies increase their outsourcing success rate, improve their outsourcing ROI, and expand the opportunities for outsourcing across their businesses. To learn more, visit www.outsourcingprofessional.org.
Media Contact:
Michael Forbes
IAOP Communications Manager
(845) 452-0600, ext. 118
mike.forbes@outsourcingprofessional.org
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