Can outsourcing create value beyond savings?

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The global outsourcing market is in turmoil. The industry has been perceived as operational and tactical, but is now being put on the CXO agenda. It is very clear that outsourcing, as we know it, is slowly disappearing. Companies all over the world are experiencing an unprecedented pace of change, and they need to transform now.

True partnerships that enable a win-win situation do exist, but they are rare.

This article examines the challenges that we believe the outsourcing market is currently confronting. In particular, we explore how to get the sourcing model strategy right. We introduce “Vested,” which has been described as a “business model, methodology, mindset and movement for creating highly collaborative business relationships that enable true win-win relationships in which both parties are equally committed to each other’s success.”*

We believe that strategic partnerships and new business models represent the next level for the outsourcing service business. It is not up to them, nor is it up to you, but it is up to all of us to help adapt to the new ways of working.

* Does your workplace outsourcing create value beyond savings? A point of view on the future of real estate and facilities management, EY, 2016,$FILE/EY-workplace-outsourcing-value-beyond-savingsreport-2016.pdf, accessed June 2016.

The article was written by:

  • Magnus Kuchler
    Partner and Leader of Advisory Services, EY, Sweden
  • Henrik Järleskog
    Head of Vested, Advisory Services, EY, Sweden
  • Amanda Lundell
    Senior Consultant, Outsourcing Advisory Services, EY, Sweden

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