Outsourcing saves 15% on average
Outsourcing of IT and business services delivers average cost savings of 15%, disproving claims that outsourcing can reduce costs by over 60%. After professional fees, severance pay and governance costs, savings range between 10% and 39%, with the average level at 15% when contracts are first let, according to TPI. Q1 2006 had the largest number of outsourcing contracts ever signed in a Q1. TPI found that 83 contracts were signed, valued globally at $21.9 bln.