McKinsey: Consider the benefits of outsourcing

McKinsey: Consider the benefits of outsourcing

Companies from all sectors have been encouraged to consider the benefits of IT outsourcing by two McKinsey representatives.

Ferruccio Lagutaine, a principal in McKinsey & Company's Business Technology Office in Zurich, and Matthias Daub, an associate principal based in Berlin, have argued that companies don't need to keep all their operations 'in house'.

Writing in an article for the Financial Times, the pair encouraged companies to enjoy the rewards that come with "transformational" outsourcing.

The two wrote: "Just because core operations are essential to a company, they don’t necessarily need to be run by the organisation.

"That's the lesson businesses in a range of industries - as diverse as financial services and telecommunications - are learning as they outsource core operations."

McKinsey data, highlighted in the article, shows transformational outsourcing has the potential to deliver up to 50 per cent improvements, not just in people but also in process, IT, and capital expenditures.

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