The End of Outsourcing – but only as we know it!

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The ground is shifting in business services. To succeed in today’s markets, service delivery models need to recognize and support the attributes that enable an enterprise to assimilate new markets and new processes most effectively. As a result, today’s models are prioritizing the needs of the enterprise as a whole, and are characterized by what KPMG calls the Extended Global Enterprise (EGE): a globally-sourced pool of resources delivering nimble services, aligned to the business, and connected with customers, employees, and suppliers alike. It’s effectively a paradigm for delivering business services based on end-to-end processes, internally and externally sourced providers, and strong central governance.

Traditional "outsourcing" has felt the change: today's average deal size is smaller, performance expectations are higher, and customers are looking for greater industry knowledge and business acumen from providers. As a result, success in outsourcing relationships is more likely to be based on the contribution to the business overall, then on cost savings alone.

Find out more about EGE attributes you should be fostering. Download KPMG's latest white paper on the Extended Global Enterprise now.