Sourcing has positive impact: Report

Mumbai, Feb 7 (UNI) Despite significant challenges, the majority of organisations believe their sourcing service provider contributes positively to their organisation's overall success, a KPMG's IT Advisory report said.

Titled as 'Strategic evolution - A global survey on sourcing today', the report has been prepared by KPMG's Global Partners in charge, Egidio Zarrella (IT advisory) and Pradeep Udhas (sourcing advisory) on the inaugural day of the three-day NASSCOM summit here today.

Only 14 per cent of respondents said they had a significant misalignment of financial and commercial expectations with their service provider. More than 650 organisations in 32 countries participated in the survey. The report examines the global sourcing marketplace focusing on the current trends in the design, development and management of sourcing initiatives and the way in which performance and effectiveness of these contracts are measured.

Now more than ever, organisations are looking to sourcing to provide tangible business benefits. Eighty nine per cent of organisations plan to maintain or increase their current level of sourcing, the report says. Surprisingly, over one-third of organisations didn't know their labour and time cost spent in the sourcing selection process.

UNI