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IBM Global Services - Strategic Outsourcing IBM Strategic Outsourcing Emily WrightBusiness Consulting ServicesIBM Strategic Outsourcing? 2003 IBM CorporationAgendaThe Market EnvironmentStrategic OutsourcingIBMs CapabilitiesOn DemandCompanies are taking actions to improve their bottom line rather than waiting for “the recovery” to solve problemsIn a weak global economy, companies face uncertainty about their economic and strategic futureSlow economic growth and pressures to improve earnings are combining to make cost cutting the primary agenda item for a large majority (78%) of companies Growth is emerging as an important issue as economic recovery has been postponed (and may be slow to return). IT continues to be an important lever in achieving the cost saving objective for most companies in two very different waysIT is being tasked to enable business process efficiencyIT spending is also a source of savings as budgets for all functions are being trimmed.In general, IT budget pressure is in line with the overall business, however 30% of respondents indicate that IT spending has been cut more than other functions while 10% state that IT has been protected from cutsSource: 2003 SO Market Insights study of 300 senior executives, Mercer Management Consulting Strategic NeedsImproved core business focusTransformed business designAdditional dollars invested in higher-value projects Management NeedsReal-time decision support analytics and toolsOperating model flexibility Financial NeedsReduce and control operating costsImprove cash flowImprove return on capitalShareholder ValueToday’s Economy is Forcing Companies to Address Complex Needs to Enhance Shareholder ValueWhy outsource? To increase shareholder value...Strategic outsourcing positively impacts shareholder value. Our research suggests the difference is in the order of 5.4% above the individual sector average and 4.9% above the overall FTSE 100. - Source: Morgan Chambers, Outsourcing in the FTSE 100: The Defini
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