Cost-cutting: Top priority for outsourcing

Companies have reduced their spend on IT services and business transformation by almost one fifth by turning to outsourcers, according to a survey.

Businesses canvassed by outsourcing advisory firm TPI have saved about $50bn by turning to third parties to help deliver their IT services and improve business processes.

The firm surveyed 120 companies it had advised on sourcing over the last five years. TPI found its clients saved on average more than 33 per cent. After one-time and ongoing management expenses, the savings averaged more than 17 per cent.