Rethinking outsourcing for strategic value and innovation
Explore how companies are going beyond cost savings to transform outsourcing into a strategic tool for innovation and value creation.
In today's rapidly evolving business environment, the traditional approach to outsourcing no longer works. According to KPMG research, most companies (81 percent) now expect their providers to be strategic collaborators, while others (75 percent) are seeking transformational outcomes such as new business models and technology innovation, such as AI.
The future of outsourcing is about more than just cost reduction; it's about leveraging a multifaceted service delivery ecosystem to drive innovation and value. To succeed, organizations must treat outsourcing as a platform for agility and change, rather than just operational efficiency. This means prioritizing change management to ensure awareness and alignment across the organization. Part of that transformation is discovering ways AI can unlock value, and drive time efficiencies.
Redesigning governance frameworks to support shared accountability and innovation is essential. Inviting key providers into early-stage planning and transformation discussions, such as AI, can help align performance measures with business impact, not just technical metrics. Creating space for experimentation within contracts, such as innovation pilots or sandbox initiatives, can also foster a more collaborative and forward-thinking relationship.
As outsourcing moves from the back office to the middle and front office, the gap between "vendor" and "partner" is widening. Companies that build trust-based, business-aligned relationships will be better equipped to scale and deliver lasting value.
Dive into our thinking:
The Future of Outsourcing: Rethink Everything
The old “rules” are changing – outsourcing is an essential capability in transformation, innovation, and value creation.
Download PDFOutsourcing Advisory
Effective outsourcing can generate cost savings and help companies manage increasing market disruption to succeed in a changing world.
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