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90pc of Irish firms say outsourcing adds value

Categories: Leadership
90pc of Irish firms say outsourcing adds value

Almost 90pc of organisations in Ireland that outsource business functions believe that doing so adds significant value to their businesses, according to the results of a new survey from accountancy firm Mazars.

The 2010 Mazars’ Annual Outsourcing Survey revealed that, in general, companies outsource to save costs (56pc), to access skills not available internally (73pc) or to improve the efficiency of internal business processes(79pc).

The findings showed that the most commonly outsourced services in Ireland are finance, accounting and payroll functions, with large numbers of firms also outsourcing IT services and/or web hosting.

It also revealed that 38pc of firms outsource one activity, with the same percentage outsourcing two or three activities and 24pc outsourcing four or more activities

Of those organisations that rated cost reduction as a key driver for outsourcing, 44pc increased their use of outsourcing in the past 12 months and plan to continue to do so in 2010.

“Our survey shows a number of clear patterns emerging. Firstly, outsourcing is becoming an increasingly popular means for ‘Ireland, Inc.’ to manage and in fact reduce operational costs. But it’s interesting to note that, of the organisations that outsource activities, most need these services to run their business regardless of how the economy is performing. This suggests that a reliance on high-quality outsourcing services is actually quite common in Ireland, across all business sectors,” said Dera McLoughlin, Partner, Mazars.

Recession not impacting on outsourcing
The survey also revealed that the recession was not having a huge impact on the amount of outsourcing Irish firms are currently engaged in as over 80pc of Irish businesses that outsource have either maintained or increased their use of outsourcing in the past year.

Meanwhile, of those businesses that outsourced key activities primarily for skills reasons, almost two thirds said the ongoing economic downturn would not be a reason for them to change their outsourcing practices over the coming 12 months.

Categories: Leadership