KPMG Sourcing Advisory 3Q12 Global Pulse Survey - KPMG Institutes

3Q12 Global Pulse Survey | Market Conditions
KPMG firms’ advisors were next polled on the change in demand or usage
levels over the past one to two quarters, and expected change in usage
levels over the coming one to two quarters, across four different categories
of business and IT services delivery models employed in service delivery
improvement efforts. These categories are BPO, ITO, shared services and internal
process improvement efforts (see Figures 3, 4, and 5).
• The greatest growth in demand was once again cited for shared services efforts,
identified by 41 percent of advisors, down four percent from last quarter (see
Figure 3). The percentage of advisors citing growth in demand for internal process
improvement fell again from 44 to 40 percent. The number of advisors citing demand
growth for ITO also fell from 38 to 30 percent, while BPO demand growth remained low
at 20 percent of advisors. Twelve percent of advisors cited decreasing levels of demand
for BPO. These weaker BPO growth expectations primarily reflect less demand for more
traditional, horizontal BPO (e.g., FAO, HRO, and source to pay) versus more specialized,
industry-specific BPO, where demand is stronger but deals are smaller and more diverse.
In general, however, buyer organizations’ appetites to undertake any sort of change effort
became more muted, representative of an increasingly pervasive “wait and see” attitude in
uncertain economic times and in some markets an election year.
• Looking forward over the next one to two quarters (see Figure 4), the greatest expected growth
is for shared services efforts, identified by 49 percent of advisors, followed by, and identified by 48
percent of advisors, unchanged from last quarter. Expectations for increased usage of ITO remained
dropped from 40 to 30 percent, while BPO demand growth expectations slipped from 33 to 28
percent of advisors polled.
• Figure 5 illustrates the net change in demand (up minus down citations) by KPMG firms’ advisors over
the past six quarters,
14 Shared Services and Outsourcing Advisory / KPMG Sourcing Advisory 3Q12 Global Pulse Survey / October 2012
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