Failure to Launch: Why are So Many Organizations struggling to move Process and Capability to Shared Services and Outsourcing?

On the surface, it appears that most enterprises today are taking full advantage ofboth shared services and outsourcing – last year, our State of Outsourcing study with the Outsourcing Unit at the London School of Economic revealed that 97% of large organizations greater than $1B in revenues outsource to a degree, and 90% have a shared service capability in place. However, HfS research’s latest survey data emphatically demonstrates that only a modest fraction of business process has actually been shifted to either the shared service center or the outsourcing partner. In most cases, over two-thirds of transactional process work is still, bewilderingly, sitting in the business units, despite the proven business benefits of centralizing processes.