Cost not the driver of outsource rise

Most Australian companies don’t want to send business functions offshore, nevertheless many intend to outsource a lot more roles in the straightway two years and the primary aim isn’t to reduce costs, according to a recent survey.

"I think we have seen a few companies who are laggards who have been forced to do something because business as usual won’t work."

Part of the reason is that it is "inherently more difficult than IT because a business process has a lot more tentacles in an organisation – even finance and accounting, though there are many providers that can deliver that more effectively and cheaply through global delivery models".

The then and there stage is "process re-engineering", 3.0 is moving expenses from a capital expenditure model to an operational expenditure model, and cloud computing is part of that shift. 4.0 involves the outsourcing of data and analysis.