Price benchmarking of IT and business process services provide several benefits to companies who choose to take more of a “profit center” vs. “cost center” approach, according Alsbridge Inc., a benchmarking, sourcing and transformation advisory firm. Alsbridge today released the results of 2013 price benchmarking survey the firm conducted earlier this year, in its report –2013 State of Price Benchmarking, providing insight into the current state of IT and business process price benchmarking on a global basis.
2013 State of Price Benchmarking, is a result of survey conducted amongst over 664 sourcing buyers, providers, and consultants from global companies. The report reveals an in-depth analysis of:
- The history of price benchmarking
- The need for benchmarking
- Types of benchmarks and best practices
- Major findings of the study
- Benchmarking benefits
Over 80% of companies engage in outsourcing to reduce expenses, gain access to variable resources, increase time-to-market and focus on core competencies, says report.
“With the global economic crisis still in recovery, today’s business leaders remain challenged to “do more with less” by seeking ways to streamline operations, cut cost and become more efficient,” explains Alsbridge CEO, Chip Wagner.
Alsbridge’s research reveals that the total 2013 global outsourcing market is nearly $1 Trillion with approximately two-thirds in Information Technology Outsourcing (ITO) and one-third in Business Process Outsourcing (BPO). The percentage of IT services currently provided by third parties, including outsourcers and cloud providers, increased slightly to 25%, up from 23% last year and 22% two years ago. This figure is expected to climb to 37% within the next 3-5 years
“As the global economic recovery continues, IT and business process budgets continue to grow, but slowly.” Wagner said. “The magnitude of outsourcing spend is enormous and vitally important to companies as part of their overall management strategy,”
Access the complete report 2013 State of Price Benchmarking.
About Alsbridge Inc.
Alsbridge is a global consulting firm that provides data-driven sourcing advisory and benchmarking services for IT, Finance and Sourcing executives. We’ve helped hundreds of companies reduce costs and get more value from their vendors. Our experienced consultants leverage proprietary tools and information databases to identify and engage the optimal vendors for your situation, negotiate best practice terms at fair market prices, and improve the way you work with your vendors. Alsbridge clients utilize the most cost effective and value added sources globally for IT infrastructure services, hardware and maintenance, network services, software and maintenance, application support and development, business processes and cloud services. Alsbridge was ranked the #1 outsourcing advisor in the world by the International Association of Outsourcing Professionals (IAOP) based on the value delivered to clients. This commitment to delivering value to our clients has made Alsbridge a distinguished member of the 2010 Inc. 500 fastest growing privately held companies in America.
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