CFOs not measuring outsourcing, finds report

13 August 2009

The majority of chief information officers and chief financial officers (CFOs) have failed to calculate the impact financial outsourcing has on their business operations.

This is according to a new study by the Warwick BusinessSchool and Cognizant, which surveyed some of Europe's biggest companies.

According to the findings, 43 per cent have attempted to quantify their use of outsourcing, with over a third not trying to work out the return on investment and 20 per cent unsure if they have endeavored to determine a figure.

Figures from Gartner showed that $42 billion was spent on outsourcing deals across Europe last year, but the survey concluded that only 19 per cent of those that have calculated the effects of outsourcing were very confident their statistics are correct.

"The report flags a critical gap in managerial knowledge and some businesses clearly have to do better in justifying their significant outsourcing spend to the board," Julia Kotlarsky of the Warwick Business School remarked.

In related news, retailer Marks & Spencer recently announced it is outsourcing a number of IT positions to India.

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