Offshoring Forum Blog - we are a part of www.OffshoringForum.com empire!: February 2005

Offshoring Forum Blog - we are a part of www.OffshoringForum.com empire!

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Friday, February 11, 2005

Outsourcing Statistics and Facts

Between 1993 and 1996, companies that outsourced achieved a 26.3% growth rate. Companies that did not outsource only grew their revenues at a rate of 20.9%--Coopers & Lybrand
92.2% of companies surveyed report that outsourcing functions formerly performed by in-house departments are effective.--Management Recruiters International

Between 1995 and 2005, outsourcing professional services will expand at a rate of 15%, making it the seventh fastest-growing labor category from 1995 to 2005; this category will grow four-to-five times the overall employment base.--Alex. Brown & Sons

Companies that outsource realize a cost savings of 9%, and increase their overall capacity and measurable quality by 15%.--Outsourcing Institute, 1997 data

Companies are expected to continue outsourcing their sales duties to outside professionals rather than use in-house or direct selling personnel...[outsourced] agents are more likely to have worked in specific sales areas for longer than [in house] representatives...outsourced agents can create a better working relationship and understanding of customers and their businesses' needs.--Bureau of Labor Statistics, Occupational Outlook Handbook: Manufacturers' and Wholesale Sales Representatives, April 1996

Many industries are turning to outsourcing; there are 2 specific growth areas; administrative support (+30%) and human resources (+20%). The marketplace for outsourcing is at $400 billion -- The Outsourcing Institute

"It's a headache and payroll outsourcing is affordable, so why not do it?" asks David Schnitt, CEO of Ledgent Inc., a Torrance, Calif.-based company that handles payroll and human resources services for clients. Carlos Rodriguez, president of ADP TotalSource, a Miami outsourcing company for HR services and benefits for small and mid-sized businesses, estimates that between 40 and 50 percent of all small companies hire an outside firm to handle payroll. --Outsource your payroll problems By Jenny C. McCune • Bankrate.com



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