Deloitte's 2014 global outsourcing and insourcing survey

Outsourcing continues to see growth

Read the key findings of Deloitte's 2014 outsourcing & insourcing survey, which had representation from 22 industry sectors, and geographical diversity, with respondents from 30 countries.

2014 and beyond

The outsourcing landscape is constantly changing to better serve customers. It is nearly impossible to predict with any level of certainty when an economic downturn will happen and how that will affect the interaction between companies and service providers. Despite the uncertainty, there are a few things that we do know.


1. Vendors’ service offerings are continuously evolving to fulfill customer needs

2. Customers will likely continue to demand more from their vendors expecting them to go above and beyond the terms of the agreement to deliver value on both qualitative and quantitative terms

3. The bar for vendor management capabilities will likely keep rising as companies seek to leverage multi-vendor or multi-functional strategies requiring transition and service integration capabilities

4. The regulatory and legislative landscape will likely continue to influence outsourcing decisions and retaining the flexibility to change direction rapidly, even for complex services, is key

Beyond 2014, as vendors become adept at delivering innovative solutions, analytics and cloud offerings, customers will continue to benefit from the resulting increased flexibility. Despite a political environment that can dampen the appeal of outsourcing, for the foreseeable future, we expect to see a continued growth of the industry.


The results indicate that while outsourcing as a business practice continues to see growth across all functions surveyed, there are technological and political factors that can be expected to increase or reduce the pace of growth.

Other notable findings of the 2014 survey include:

  • Political implications: Legislation or regulation to curb the offshoring of domestic jobs, if enacted, can be expected to have a negative effect on businesses and consumers. To date, government incentives to promote on-shoring have not created a significant motivation for respondents to move work back to their home countries.
  • Regulatory: Increased regulations related to data privacy are expected to reduce organizations’ reliance on outsourcing as a business model, while relaxation of employment related restrictions are expected to increase organizations’ use of outsourcing.
  • Geography: Established sourcing destinations show continued growth, while a second tier of developing outsourcing destinations can expect to see more rapid growth.
  • Technology: Technology advancements, such as cloud computing and business process as a service, will reduce but not remove the importance of service delivery location and lead to an increase in the use of outsourcing.
  • Vendor management: Vendor management is recognized as a critical factor for successful outsourcing, yet vendor management organizations continue to be challenged by staffing shortfalls, poor tooling and immature service integration.

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