Outsourcing: Still In The Closet

Data for this report was collected in September of 2002, and includes information and analyses on: the adoption and implementation of outsourcing, including future plans; reasons for NOT outsourcing; reasons FOR outsourcing; factors that most influence the outsourcing of service providers; key attributes that customers look for in outsourcing service providers; the number of outsourcing service providers typically used by individual companies; the impact of the weak economy, and security concerns stemming from terrorism, on attitudes toward outsourcing; and the amount of money companies expect to spend on outsourcing in 2002.

This report will be of particular benefit to: product managers, marketing managers, sales managers and outsourcing service providers seeking to determine what issues are most relevant to their customers; financial analysts seeking to understand end-user trends in outsourcing; and consultants needing to advise clients on end-user trends in outsourcing.

• Executive Summary
  
  
  


• Introduction
  
  


• About The Panel
  
  
  


• Methodology
  
  


• Panel Findings
  
  
  
  
  
  
  • Most Companies
    Do Not Outsource
    
    
  
  
  • Most Companies
    Have No Plans To Outsource
    
    
  
  
  • Reasons Why
    Companies Will Not Outsource
    
    
  
  
  • Various Reasons
    Given For Outsourcing
    
    
  
  
  • Personal Recommendation
    Is Important
    
    
  
  
  • Good Reputation
    Is Key Attribute For Providers
    
    
  
  
  • Most Companies
    Using Only One Provider
    
    
  
  
  • Poor Economy
    Has Had Some Effect…
    
    
  
  
  • …Companies
    More Likely To Outsource
    
    
  
  
  • Outsourcing
    Relatively Unaffected By Terrorism
    
    
  
  
  • Those With
    Concerns More Likely To Outsource
    
    
  
  
  • Companies Spending
    Between $1,000 and $99,999
    
    
  
  
  
  


• Conclusion

List of Figures

• Figure 1. LAN functions
  outsourced by panel companies
  
  


• Figure 2. Outsourcing
  plans among those panelists not currently outsourcing
  
  


• Figure 3. Reasons
  why companies will not outsource
  
  


• Figure 4. Reasons
  for planning to outsource, or for currently outsourcing
  
  


• Figure 5. Important
  sources of influence in deciding to use an outsource vendor
  
  


• Figure 6. Key attributes
  customers are looking for in an outsource provider
  
  


• Figure 7. Number
  of LAN outsource providers used by each panel company
  
  


• Figure 8. Impact
  of 2001/2002 economy on attitude toward outsourcing
  
  


• Figure 9. Likelihood
  of outsourcing due to impact of 2001/2002 economy
  
  


• Figure 10. Impact
  of security concerns related to terrorism, on views toward outsourcing
  
  
  


• Figure 11. Likelihood
  of outsourcing due to impact of security concerns from terrorism
  
  


• Figure 12. Approximate
  budgets for 2002 LAN outsourcing cited by panel companies