State of the industry
“In five years we’ll outsource services to a greater extent than today.” This was the response of 79% of people in the public sector who took part in Coor’s major questionnaire survey.
The target group for the survey was decision-makers in large companies and the public sector. The general conclusions were that outsourcing of individual service functions remains the most common form of outsourcing, but that interest in total solutions is increasing. The most commonly outsourced areas are cleaning, IT support and property-related services. Once again Norway has the least positive attitude to outsourcing, although interest is increasing and approaching levels in the other Nordic countries.
“The survey confirms our feeling that interest in integrated solutions is rising steadily. We are receiving many inquiries throughout the Nordic region, particularly in Sweden and even Norway. We have recently noticed a clear increase in professionalism among potential clients, and in their procurement processes. This is definitely contributing to an understanding of the benefits of total solutions,” says Jan-Olof Backman, SVP Business Development at Coor Service Management.
The survey shows that the majority are positive about outsourcing internal service and other peripheral services with external suppliers. The respondents say their main reason for outsourcing is the opportunity to focus more on their own core operation, reduce costs and increase quality. One problem with keeping everything in-house is a shortage of resources for developing new ideas and solutions.
“Time pressure and high costs are by far the most common reasons for initially choosing to outsource service functions. But over time we notice that factors such as flexibility and delivery development become more important. The ability to continuously adapt and develop the service delivery to ensure it provides optimal support to the client’s core business in every situation – those are the true and lasting benefits our clients enjoy with outsourcing,” Jan-Olof Backman concludes.
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