Partnering, outsourcing cited as key drivers for minding costs
Research conducted by Pitney Bowes has found that the economy is driving businesses toward partnering and outsourcing to control operating costs.
“While managing cost and risk remain top-of-mind for all organizations, especially in light of the current recessionary environment, businesses are beginning to realize now more than ever, the cost and efficiency benefits of managed or outsourced services that can be realized by partnering with the right outsourcing partner,” said Vincent De Palma, executive vice president and president, Pitney Bowes Management Services.
According to a survey of decision-makers by InfoTrends, Inc. prepared for Pitney Bowes, the recession has forced companies to reevaluate their business models and overall document spending.
Controlling capital costs and reducing operating costs were cited as the top two reasons companies today are outsourcing.
Three times as many respondents said they would increase their outsourcing investment rather than decrease it. The results also found organizations are looking more closely at potential partnerships in order to expand their market reach.
 “Outsourcing enables companies to focus on their core competencies and increase efficiency without making additional investments in people and technology,” De Palma said. “This helps companies become more profitable, and the use of experts in a particular area can lead to better service levels than internal departments can provide.”
Omri Duek, a consultant at InfoTrends, said companies in all industries should consider their core competencies and how managed or outsourced services can help support their non-core operations. He said the organizations can benefit from managed services by reducing up-front capital and operating costs, improving focus on their core business, increasing their agility, adapting to a smaller work force, looking to access best practices and technologies, wanting to improve consistency or service levels, and trying to meet environmental goals or compliance requirements.
“Despite their numerous benefits, misconceptions about managed services continue to exist,” Duek said. “The reality is managed services are often more secure than self-managed processes.”