Credit crunch to lead to rise in outsourcing, report suggests
As the global credit crunch continues to impact upon businesses of all sizes in 2008, the practice of outsourcing certain operations is set to increase, a new report has suggested.
In the latest annual trends report, the National Outsourcing Association (NOA) has predicted that firms will look to outsource 'high-value add functions' in particular, including areas such as research and development and IT operations.
According to the report, after observing the benefits over recent years, businesses "have started to place faith in external organisations to carry out mission critical operations".
Furthermore, the outsourcing industry is likely to be further boosted by the "looming credit crisis", as organisations look to become more efficient and minimise their risk exposures.
Martyn Hart, chairman of the NOA, explained: "The credit crunch will create a situation whereby outsourcing will offer a solution to business needs and the maximisation of outsourcing, through knowledge process outsourcing and innovation, will mean that the effect that outsourcing has on companies' bottom lines will grow."
New research carried out by EquaTerra has found that the number of UK businesses offshoring some of their operations grew from 47 per cent in 2006 to 57 per cent last year.
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