Survey Shows it’s Time to Take a Fresh Look at Knowledge and Information Services Outsourcing

In 2009, FreePint and Integreon partnered to survey business research managers about outsourcing, barriers to its adoption, and the satisfaction level of those currently outsourcing. FreePint published the results in a June 2009 report called VIP Report: Survey on Outsourcing.

Integreon is making available a free copy of the report; click here if you would like to download a copy.

Summary and Findings of FreePint Report on Business Research Outsourcing

The survey targeted managers of knowledge and information services but also included managers of document preparation (word processing, etc.), legal support, and pitch support (graphics, presentations, etc.). The majority of respondents were senior-level decision-makers spanning a range of industries, including legal, financial services, management consultancies, and pharmaceuticals. A total of 71 managers responded with nearly 40 percent from corporations with more than 1,000 employees.  About one-third were in the US, one-third in the UK, and one-third elsewhere in the EU, Australia, Canada, or other countries.

The findings reveal disparate views about quality and the cost of outsourcing. On the one hand, the 40 percent of organizations that do outsource are satisfied with outsourcing quality and cost effectiveness. On the other hand, the 60 percent not outsourcing cited quality and cost concerns as the most important factors influencing their choice not to outsource.

We can’t explain this seeming contradiction though suspect it says more about outsourcing perception than reality. It may reflect negative perceptions of offshore outsourcing. Some recent surveys (e.g., see our blog post Cost Arbitrage is No Longer Enough (Black Book of Outsourcing Rankings and Findings)) suggest that customers look for high cultural compatibility, which typically favors onshore outsourcing.  The survey was not designed to tease out differences in onshore and offshore outsourcing. We welcome reader views on other explanations for the seeming inconsistency.

One other result particularly intrigued us: Among those who outsource, the majority of the work continues to be done in-house; respondents who outsource report that over 75 percent of the work remains in-house. This finding supports a key outsourcing benefit, namely, to free high-end professionals for their “highest and best use.” Outsourcing is ideal for handling important but routine tasks that can otherwise overwhelm more valuable strategic work.

Overall, the survey results suggest that organizations considering outsourcing may gain benefit from reviewing the upsides reported by those already engaging in outsourcing. With 2010 budget planning just around the corner, this may be the right time for those organizations to take a fresh look at how outsourcing can facilitate achieving their quality and cost efficiency goals in the new year.

Download a copy of the report from Integreon.