Monday 12th May, 2014    

According to an International Business Report by Grant Thornton a leading assurance, tax and advisory firm, two in five business leaders globally either currently (or plan to) outsource back office processes.

The cost savings and process efficiencies outsourcing can provide are recognised across the world, although some business leaders remain reluctant to lose control of a key process.

The report reveals that outsourcing is most prevalent in Latin America (51%), although large proportions of business communities in North America, Asia Pacific and Europe have also engaged with outsourcing providers (or are planning to).

The processes businesses are most likely to outsource include tax (49%), IT (46%) and HR and payroll (36%). Of those businesses with no plans to outsource, 44% indicate an unwillingness to lose control of a key process.

Samantha George, head of outsourcing at Grant Thornton UK, said: "Outsourced solutions now exist for a considerable number of service lines, and providers have become expert at tailoring solutions to the individual needs of their clients. This is positive news: outsourcing can free up resources tied into back-office processes and put them into higher value-add functions, helping to drive business growth."

Among those businesses which currently (or plan to) outsource back office services, 57% globally cited improving efficiencies, marginally ahead of reducing cost (55%), as the key drivers. In both North America and the EU, the number of businesses citing improving efficiencies as the key driver of outsourcing rises to two-thirds.