How the tech industry is helping to save companies millions of dollars on outsourcing
The number of outsourcing jobs has fallen more than 50% in the past decade, with some companies relying on outsourcing as their only way to save money, according to a report from the McKinsey Global Institute.
The McKinsey report found that outsourcing has contributed to a $4.5 billion saving in total for companies across the globe in the last 10 years.
The McKinsey study also found that the number of people working in this sector has fallen by nearly one third since the mid-1990s, from nearly a quarter of the workforce to just under 10%.
The report noted that this has contributed significantly to the growth of the global outsourcing industry, as companies can save money on labor costs by outsourcing to third parties.
McKinsey said that the increase in outsourcing has occurred largely because of a surge in the cost of human capital, particularly the knowledge that technology is becoming more important than ever in the modern economy.
This has resulted in the rise of new business models that allow companies to cut costs and shift more of their labor costs to third-party outsourcing companies.
The new outsourcing models have also enabled companies to hire people for roles that are not as critical as traditional roles.
In a report titled The Next Great American Job, McKinsey said the growth in outsourcing jobs and the cost reduction associated with it are fueling a new generation of companies that want to become the next wave of employers.
This is creating a boom in the growth and employment of new companies in the technology, financial services and medical fields.
The report notes that this is driving an “overall trend toward increased outsourcing of jobs in the U.S.”
The McKinseys report noted a number of reasons for the decline in outsourcing, including the decline of middle management positions in the IT, finance and health industries, as well as changes in the workforce.
The most common reason cited by the report was a decrease in the demand for middle management and the outsourcing of tasks, which was largely the result of the rise in automation.
In addition, the report said, many organizations are shifting more of the costs of hiring employees into third-parties, which are often the largest single source of outsourcing.
In the healthcare industry, McKinseys said that healthcare companies are shifting most of the risk-sharing to third party companies and outsourcing jobs that are needed to meet the needs of their patient populations.
In this new environment, McKinays report said it is becoming increasingly difficult for companies to effectively reduce costs while providing adequate healthcare coverage.
The report also noted that companies are also moving more of costs to subcontractors, which have lower labor costs and lower costs of goods and services than companies.
McKinsey estimated that the average cost of a healthcare contractor is around $3,000.
While the McKinseys study was published on Friday, it is still early days for the industry and the industry is still in the early stages of growth, said Andrew Zirns, director of McKinsey’s Center for Health Technology and Information.
For more information on the report, go to: http://www.kinney.com/insights/news/us/outlook/index.html?src=nyt&ref=us The report is available at http://news.insiders.com