To bundle or not to bundle?

Effective decision-making for

business and IT services

In association with
The Outsourcing Unit
London School of Economics
and Political Science

By Professor Leslie Willcocks and Dr. Ilan Oshri, The Outsourcing Unit,
London School of Economics and Political Science, and
Dr. John Hindle, Accenture
Foreword
As outsourcing has grown over A bundled approach to outsourcing
the past couple of decades into a comes with its own set of
$300+ billion industry, buyers and challenges, to be sure. A more
providers alike have learned to effective enterprise-level governance
increase the value derived from model is needed, for example,
the outsourcing relationship. In its along with advanced relationship
youth, outsourcing was primarily management capabilities. The initial
a cost play. As outsourcing has choice of provider also becomes
matured, we are seeing new, more more important, too—one that can
collaborative engagement models provide multiple services. It’s also
that enable more strategic kinds important to look for a firm that can
of business value. do things with your organization,
Kevin Campbell
not to it—one that complements
Group Chief Executive—Technology,
One of the most important current your long-term business strategy, Accenture
developments is the move to not just the transactional needs of
combine or “bundle” multiple the moment.
processes and technologies with a
single provider. A decade or more This research report is one of the
ago, such a move might have been first comprehensive analyses of the
looked at with some suspicion, but potential of bundled outsourcing.
companies have become aware It provides documented insights
that whatever savings they might into some of the myths and realities
have realized from a multi-sourcing of bundling, and the factors that
approach have been more than shape sourcing decisions. It also
negated by the hidden costs of offers guidance in structuring the
managing an ever-more-complex sourcing decision-making process
roster of providers. for best results, and points the way
towards a new model of strategic Mike Salvino
Bundling is already delivering collaboration between providers and Group Chief Executive—Business Process
significant value for major buyers, one that has the potential Outsourcing, Accenture
companies around the world. to drive high performance through
Unilever, for example, has gained outsourcing.
from bundling the management
of its applications and its HR
functionality. A comprehensive
bundling arrangement at Bristol-
Myers Squibb—application
development and maintenance,
finance, and R&D—has helped the
company adjust to regulatory and
industry challenges, and has helped
the company in its productivity
and transformation initiatives.

2
Executive summary
This paper details the key research findings on the purchasing
decisions clients make on bundling, or not bundling, IT (ITO)
and business process outsourcing (BPO) services. We studied
over 1,850 outsourcing contracts, and carried out interviews
with 69 leading clients and suppliers in ITO and BPO services.
At the macro level we found IT, IT infrastructure and
applications bundling accounting for over 70 percent of
bundling activity, followed by bundled BPO, (for example billing,
finance and accounting) representing some 15 percent of
bundling activity. As yet we found few clients who outsourced
to the same supplier their main IT together with BPO.

Key findings are: performed, the client is more likely • Some organizations reach a tipping
• The maturity of the organization to to go for bundled services. point where the client is likely to
manage innovation and suppliers has Relationships need to be many-to- pursue an add-on strategy, gradually
a big influence on their ability to many between client and supplier bundling services over time, until
contemplate bundled services. with lots of touch points and ‘glue’. they decide to go for a more
• Some organizations bundle as start- comprehensive bundling strategy.
• Clients lack clarity on how to assess
getting value, especially cost ups or to achieve fast change. If The paper assesses the myths and
efficiencies, from bundled services. they are immature in outsourcing realities inherent in the trade-offs
As result they tend to evaluate based management terms and have poor between bundling and unbundling.
on function or silo. experiences subsequently, they We uncover the key role that 20
move to multi-supplier sourcing in drivers play when considering bundled
• Lack of reliable, economically based
their second and third generation or unbundled ITO and BPO services.
reasons push decisions towards
outsourcing arrangements. Some of These drivers are grouped into five
individual judgement, logic, and
these organizations look subsequently areas: client factors, relational factors,
political influences.
for supplier consolidation. supplier market and capabilities factors,
• Organizations mature in their
• Bundling occurs often where there and cost effectiveness characteristics,
sourcing strategy and management
is a strong and large-scale change and form the basis of a decision-
capability are attracted to bundling
agenda, through peer pressure, or making matrix designed for client use.
where they can get innovation and if
in a belief that, in a recession, with From the research we also distill five
they can offset risk to, or share risk
limited resources available, it will client profiles—Strategic Explorer,
with the vendor.
be cheaper. Service Extender, Operational Exploiter,
• More mature organizations all Experimentor , and Multi-sourcer—
• A bundled service proposition of any
emphasize that if the relationship of those organizations more, or less,
scale needs a client Board member
with a supplier is strong, and it has likely to buy bundled services.
driving it.

3
Contents
Introduction 5
Market analysis: Bundled ITO/BPO services 2003-2008 7
To bundle or not to bundle? Insights for client organizations 8
Assessing the trade-offs: Myths and reality 10
Drivers of bundling/unbundling decisions 12
Action point: Making the optimal decision 16
Emerging client profiles 19
Changing lanes: Building client capabilities for managing bundled services 21
Notes 23
Appendix 1: A note on methodology 24
References 25
About the authors 27

4
Introduction
We define bundled services as:
A mix of business process and/or IT services purchased
separately or at the same time from the same supplier where
synergies and efficiencies are sought in end-to-end processing,
governance, relationship management, cost and performance.

On this definition there can be bundling The BPO market in 2008 was less than Although ITO and BPO spend is
within IT—for example the same the ITO market, but growing at a faster increasing, the average size of
supplier for infrastructure, applications, rate. We estimate that the market for individual contracts and the duration
development; within BPO, for example mainstream BPO expenditure is likely of contracts has been decreasing. For
training and development and payroll to grow worldwide by 10 percent to example, the Everest Group found that
in the HR function; or across ITO and 20 percent a year from $140 billion among the ITO contracts signed in
BPO services, for example procurement, in 2005 to over $300 billion by 2012. 1998, 24 percent of contracts were
IT applications, selected HR activities. BPO expenditure will be in areas such worth more than $400 million and
The possible choices for bundling are as the human resource function, 33 percent of contracts were worth
considerable, making these complex procurement, back office administration, between $50 and $100 million. In
decisions, with important cost and call centers, legal, finance and 2005, only 11 percent of contracts
service consequences. In our view, accounting, customer facing operations were worth more than $400 million
bundling is an important trend that and asset management. BPO is and 57 percent of contracts were
will grow considerably in the next five outpacing ITO because many executives worth between $50 and $100 million.
years, as suppliers mature their ability recognize that they under-manage Concerning contract duration, the
to deliver bigger scope offerings, and their back offices, and do not wish to Everest Group found that 37 percent
clients develop their ability to plan for invest in back office innovations. of contracts signed in 1998 were more
host and manage such deals. How does Suppliers are rapidly building than nine years in duration compared
bundling fit with the overall trend capabilities to reap the benefits from to 18 percent in 20052. Into 2009, in
lines for ITO and BPO? improving inefficient processes and recessionary conditions, we were
functions. IT provides major seeing more contracts with shorter
The global IT outsourcing (ITO) market
underpinning for, and payoff from, terms in years, and smaller total
has increased each year since we’ve
reformed business processes. Thus, contract value, more frequent
been tracking it. In 2008, the global
many of the BPO deals will swallow renegotiation and repricing, and more
ITO market was estimated to be
much of the back office IT systems1. multi-sourcing.3 At the same time
between a $230 to $250 billion market.

5
many organizations were looking to transaction costs—suppliers must bid bundling makes strategic and
consolidate suppliers, and searching more frequently because contracts are operational sense. We discuss the 20
for cost efficiencies in management shorter, suppliers face more competition key factors that emerge from our
and governance.4 because smaller-sized deals means study that determine whether a
that more suppliers qualify to bid, and bundled or unbundled decision is the
How can we reconcile smaller, shorter
suppliers need to attract more customers optimal route for a client organization.
deals with an overall increase in the
in order to meet growth targets. Given From this, and as a way of consolidating
ITO/BPO markets? Undoubtedly many
these experiences, especially in the the lessons from the research study,
client organizations have been actively
2003-2009 period, this suggests that we provide a weighted 20-factor
pursuing more multi-sourcing. Multi-
bundled and unbundled outsourcing framework to enable clients make
sourcing has always been a major
produce different trade-offs that need more effective decisions in this
practice, and the overall growth is
to be assessed more closely than they important area. Finally, we detail from
driven by client organizations signing
have been. our research base five client profiles,
more contracts with more suppliers.
distilling the alternative routes
While multi-sourcing helps clients In what follows, we analyze, first, organizations have been pursuing into
access best-of-breed suppliers and the major market developments for bundled ITO and BPO services.
mitigates the risks of reliance on a bundled outsourcing, then provide a
single supplier, it also means increased series of insights from recent client
transaction costs as clients manage and supplier interviews on when
more suppliers, interdependencies and bundling is attractive and feasible.
interfaces. Governance, contracting, We then look more closely at the
measurement and comparison become trade-offs and the logic applied to the
complex tasks.5 Multi-sourcing also decision to bundle or not to bundle to
means that suppliers incur more suggest under what circumstances

6
Market analysis:
Bundled ITO/BPO services 2003-2008
Table 1: High level analysis of bundled services contracts 2003-2008

# % Secondary Leading client Client Market

Bundle contracts contracts vendor Solution area industry charact. size
AO-BPO 20 2.3% 23.8% Application Local gov Varies 4.5B
management
AO-IO- 47 5.4% 27.1% AM, data centers, Banking/fed and Varies 17B
BPO various BPOs local gov
Bundled 127 14.5% 11.8% Billing, finance and Banking/fed and Most large 21B
BPO accounting local gov firms
IO-AO 658 75.4% 5.0% AM, data centers Banking/fed and US/UK, 149B
local gov/health varies
care/process
manufacturing
IO-BPO 21 2.4% 9.1% Customer care, billing Local and fed gov Varies 3.7B

IO=IT outsourcing; AO=applications outsourcing; BPO=business process outsourcing)

We have analyzed 865 bundled 2. For both AO-BPO and AO-IO-BPO 5. Competitive bid type is by far the
outsourcing contracts signed between it is more common to have a second most common bidding practice than
2003 and 2008 to draw a conclusion provider than in the other bundling any other approach (e.g. incumbent or
about bundled services market trends, arrangements (e.g. IO-AO). sole sourced)
as described in Table 1. The value of
3. The leading industries (i.e. with the
bundled outsourcing contracts signed
highest number of contracts and total
in 2003 was $US 38 billion. This rose
contract value) vary depending on the
to a peak of $95 billion in 2006 when
bundling arrangement. Local and
204 such contracts were signed. In
federal government is the leading
2007 200 contracts were signed at a
industry in AO-BPO and IO-BPO. It is
value of $46 billion. Clearly bundled
also among the leading industries
outsourcing is an interesting and
(either 2nd or 3rd) in AO-IO-BPO,
dynamic market, with revenues never
bundled BPO and IO-AO. Banking is
less than $35 billion in any one year
the leading industry in AO-IO-BPO and
between 2003 and 20086.
bundled BPO. Health care and process
When comparing the different types of manufacturing are among the 3 top
bundled services, the following market industries in IO-AO.
trends emerge:
4. The average contract length is
1. IO-AO is by far the most popular 76 months, with the varying averages
bundled services between 2003 and for the bundling arrangements as
2008 (per number of contracts and per follows: AO-BPO: 99 months, AO-IO-
market size). BPO: 97 months, bundled BPO:
77 months, IO-AO: 74 months, and
IO-BPO: 90 months.

7
To bundle or not to bundle?
Insights for client organizations
Our work has thrown up a range of insights that are useful to
clients considering whether to bundle or not to bundle.

Insight 1 Both still went down the multiple that this inhibits their ability to
(relatively few) suppliers route but identify the value of the bundled
The maturity of the organization to could see the point of bundling, service proposition and pushes them
manage innovation and suppliers has especially as they were confident of into uncoupling services and leaves
a big influence on their ability to move their own in-house capability to manage them open to multiple vendor solutions.
into bundled services. This was the that. This needs to be contrasted with Clients need some way to identify in
case with a major oil company and a another client who seemed to move detail the synergies from bundled
telecom multinational, both mature into bundling because the supplier services, and how to value those
and with their in-house capability was incumbent for consultancy synergies. In interviewing one European
sorted, and both willing to bundle services, with whom they had a good and one Indian-based major supplier
services as they felt necessary going relationship, and felt they did not we found that they also struggled to
forward. Secure in their own ability really have the capability in-house to demonstrate the financial advantages
to manage and implement sourcing manage multiple suppliers. Also another accruing from both technical synergies
strategy, they had high propensity to client organization moved into bundling (production costs) and from common
buy bundled services if they could find because of poor governance and management arrangements (transaction
the right supplier and right risk/reward learning capability in-house. costs) though could point to how such
deal. Other players that were relatively financial advantages could arise.
smart clients—for example a global Clients would then ask: ‘show me
mail company and a European telecoms Insight 2
actual examples’.
firm—rated the relationship dimension We found that clients do not know
as very high as an attraction into how to evaluate getting value from
bundled services, but also saw bundled services. As a result they
innovation with a supplier as dependent tend to evaluate based on function
on their own (client) shaping of the or silo. This is quite an important, if
context, contract and relationship. worrying finding. We would suggest

8
Insight 3 arrangements. All seemed unlikely to
move back to one major supplier, but
The follow-on insight from the above on the other hand, all worried that,
is that as a result, on bundled services, through a combination of poor
an organization will tend to take an sourcing strategy and over-reaction,
even more ‘political’ than ‘economic’ they had commissioned too many
approach to decision-making. With no suppliers, and were working on
strong financial support for gains from consolidation and reduction. This
bundling, other client and relationship offered some scope for bundling,
factors take on much greater weighting but recognizing that such clients still
in the decision. This is supported by rated the importance of retaining a
our 20 factor framework detailed below. semblance of competition between
Of course, if our factor weightings their suppliers.
turn out to be correct, client and
relationship and political factors will
also be key, but this shaping context Insight 7
would be greatly assisted if a way of Bundling occurs often where there is a
providing reliable economically-based strong and large-scale change agenda,
reasons for bundling services could through peer pressure, or in a belief
be found. that, in a recession, with limited
resources available it will provide a
Insight 4 cheaper alternative.

Mature organizations will look at

bundling if they can get innovation— Insight 8
i.e. they have high ambition in these A strong insight from talking to clients
sort of deals—and if they can shift risk about how their organizations make
to, or share risks with, the vendor— decisions is that a bundled service
they see large vendors as more able to proposition really does need a client
absorb such risk over long periods of Board member driving it. The ancillary
time. The message here to a supplier strong finding was that the relationship
is to offer both. factors we identified as key (see
below) received strong independent
Insight 5 endorsement but that relationships
needed to be many-to-many between
More mature organizations all client and supplier with lots of touch
emphasize that the relationship—if you points and ‘glue.’
know them well and the track record
is OK to good—you are more likely to
go for bundled services. This was not a Insight 9
prompted response. One interesting route to pursue further
is the notion of a tipping point where
Insight 6 a client is likely to pursue an add-on
strategy, gradually bundling services
Some organizations we interviewed over time. What factors create this
did bundle as start-ups (e.g. a major tipping point? Our weighted 20-factors
Asia Pacific telecom) or to achieve fast framework can be used here to help a
change but were immature in their client make decisions (see Table 2).
ability to manage outsourcing and had
poor experiences subsequently. One
consequence was a move to multi-
supplier sourcing in their second and
third generation outsourcing

9
Assessing the trade-offs:
Myths and reality
This is an assessment, based on our findings, of the common
trade-offs clients consider and how far these trade-offs are
based in reality.7

Five common concerns emerging from increased control comes at a price in of suppliers. One must also ask how
our interviews were: terms of increased management cost, big the risks are with bundling or not
• Control—Does multi-sourcing or time, effort and measurement. At the bundling relative to the other risks a
bundling give you more control? How? same time, an argument can be made business will take in its main line of
that bundling makes a client larger operations. In other words, often an
• Risk—Is going with one supplier more
and more important to a provider, thus organization will often impose—
risky, or less risky?
making the provider more responsive. inconsistently—a higher standard of
• Incremental or big bang?—Should we In multi-supplier environments retained risk for a back office deal than even
grow into bundled outsourcing or can management capability needed to for a strategic business initiative.
it be done in one deal? manage outsourcing regularly costs
On incremental bundling, we found
• Tidy then outsource?—Should we between 4-10 percent of total contract
many organizations taking this route
straighten out our technology and value8. As multi-sourcing governance
over time, but we also found several
processes first, or does bundling has been moving up the outsourcing
organizations gaining from making a
obviate this need? agenda in the last three years, we are
major one-off bundling deal, though
seeing these costs also rise further9.
• Cost and operational gains?—Is there this was a relative rarity when it came
really a big difference in the costs On risk, there is more risk in depending to complex BPO arrangements (see
of management for bundling versus on one or two suppliers—much depends Table 1). As we indicate elsewhere in
multi-supplier and silo outsourcing? on their capabilities and their financial this paper, much depends on the
Does a primary contractor model strength, for example. However, with ability of both the client and supplier
solve the problem? multi-sourcing the risks move into to manage such arrangements and
other areas, including cracks between such capabilities are not yet commonly
On control, multi-sourcing may well
service, security issues, hidden costs held. A related approach that we have
give you more power and more control
with continued monitoring and renewal seen in organizations is where they
over each individual supplier, with
of contracts, and possible replacement have straightened out their own IT
less dependence on each. However,

10
When does bundled outsourcing make operational sense?
The major advantages experienced • Standardizes and simplifies operations
with bundling included: • Mitigates delivery risk through
• Simplifies and expedites procurement simplified points of contact
and contracting (sole-source v. • Reduces service provider costs/prices
tendering) through simplified management and
• Simplifies the governance process scale economies
• Reduces duplicate management • Supports a pre-existing standardizing
layers, processes, and costs technology and process trajectory. A
• Reduces operating risk by limiting prime example is with ERP
points of failure • Can drive larger holistic back-office
• Can achieve operational synergies change
across business processes and
between a business process and
supporting IT

and/or business processes first, arrangement. The primary contractor

sometimes through a shared services model also runs its share of risks and
route, then sought a bundled has not always had a happy history11.
outsourcing arrangement. This is a
However, this does not make bundled
more tactical route and mitigates
outsourcing a ‘no-brainer’. Far from it.
some of the risk of outsourcing
These gains from bundling (see “When
inefficient IT and processes, though
does bundled outsourcing make
the risk may well be worth taking, if
operational sense?” above) are possible
it saves time and cost, as we saw in
but a great deal really does depend on
some cases. On cost, the cost gains
the maturity and capabilities of both
of bundling two or more business
client and supplier to deliver on the
functions, for example IT and HR,
promises inherent in the bundling deal
or procurement and HR, rather than
they go for. Given this, then it is not
outsourcing them separately to
surprising to find clients display a
different suppliers can be of the order
range of profiles when it comes to
of 10-15 percent10. This may well be
bundled outsourcing.
more where a supplier can bring in a
more standardized management and
measurement process, and can truly
implement standardized business
processes and IT. A primary contractor
model can be a half-way house but it
is unlikely to achieve significant cost
savings or process standardization or
innovation over a bundled outsourcing

11
Drivers of bundling/unbundling decisions
We analyzed prior literature drawn from strategy, economics,
marketing, information systems, and our own research work.
We also placed our preliminary model in front of outsourcing
specialists to gain further feedback. From this we arrived at a
provisional list of factors. For each factor, from prior research,
we established the rationale as to why each factor would
influence buying behavior. At this stage we called each rationale
a hypothesis, indicating that it required further testing.

From our [e.g., LSE] database of 650 Client factors advisers and their recipes, how CEO,
plus outsourcing arrangements we CIO and COO knowledge and
selected 300 deals where there was There are eight such factors. Their preferences play out—these are difficult
sufficient data to draw conclusions on combined weighting of 40 indicates to predict and need close attention
all 20 factors. We established, through client factors to be the most influential to understand. But key influencer
piloting ten deals, that a total scoring of the five groupings shown in Figure 1. preferences are important in shaping
of 100 seemed to work. Using this as The first factor is whether the decision- a ‘dominant coalition’ in favor or
the total 20 factor score we worked making process is centralized or against a degree of bundling services.
through each deal. Each factor was decentralized. A more centralized
process favors a bundled service The maturity of an organization’s
weighted in importance in that deal.
decision. It is interesting to note that ability to develop sourcing strategy
For the whole 300 sample we then
organizations that multi-source wrestle and manage suppliers, its history of
found the median for each factor (see
continually with the issue of needing success, learning, and of requisite
also Appendix 1—Note on methodology).
to simplify and coordinate governance capabilities built—these all influence
We then tested the factors framework
and decision-making, but while bundling decisions. Mature clients are
against our 69 interviewees and
decision-making processes remain in a better position to undertake a
finalized a weighted 20 decision factors
more fragmented, bundled service bundled services option. But a strong
framework (see Table 2)12.
decisions, especially across ITO and preference for competitiveness among
Figure 1 shows that the key factors BPO, are unlikely. suppliers, and question marks on
shaping bundling and unbundling supplier capabilities can also lead
decisions group into five major areas. Who the main decision-makers and mature clients to adopt a best-of-
Let us look at each of these in more influencers are in the sourcing breed strategy. On the other hand we
detail. decision, and their preferences, have have examples of clients with limited
a considerable role to play in what resources or weak learning capabilities
decisions get made. Is procurement also going for single source contracting.
in charge, what is the influence of

12
Figure 1: Main factors in bundling/unbundled outsourcing decisions

Client market
forces and
characteristics
10 percent

Supplier and
Client factors Client outsourcing
40 percent propensity market
characteristics
18 percent

Cost
Relational
effectiveness
factors
factors
12 percent
20 percent

Source: Willcocks, Oshri, Hindle, 2009.

Organizational and technological reduction, a new CEO/CIO, a change cultures will favor service bundling.
factors also have a bearing on in business strategy, or in acquisition Prior relations between client and
bundling decisions. These relate to policy—may well favor a bundling supplier, especially where the supplier
size, infrastructure, interdependence decision. has had good communications with
of activity, degree of reliability, a client’s dominant coalition, can
Heavy users and high spenders on
transparency of information needed. influence client’s propensity to contract
outsourcing will tend to consider
Large size, high complexity, high for bundled services. However, more
bundled services. A further factor we
interdependence of activities, and high influential is where relationships were
identified related to risk attitude.
reliability needs will favor longer-term developed as an incumbent supplier.
Organizations with a high risk
bundled service contracts. Organizations Strong relationships as an incumbent
perception concerning IT or back-
needing technological integration and where combined with a track record of
office back up, security, complexity
seamless information and technical service delivery, inclines a client to
tend to favor bundled services.
service will prefer to go for bundled outsource more services to the
services, where available. incumbent supplier.13
Relational factors
Business profile, and the existence of
a ‘burning platform’ may well work in We identified three sets of relational Client market forces and
favor of a bundled decision. A business factors, scoring them a combined characteristics
doing badly, or needing to do something weighting of 12. Culture—whether
clients were transaction-orientated or We gave a combined weighting of 10
different, may well see bundled services
relationship orientated had a role to to four factors under this heading. In a
as a cost-driven, low management
play here. For example the USA and highly regulated environment the strong
solution. But we also found also large,
UK tend to be more transaction- requirement for regulatory compliance
well performing firms tending to buy
orientated than South Korea and will favor bundled decisions, on the
bundled services, where other factors
Scandinavian countries. Other things whole. Bundled services will lower
were favorable. A burning platform—
being equal, relationship-oriented complexity, especially if the supplier
we found examples relating to cost

13
offers assistance with regulatory logistics in 1990s. Thus certain sectors Part of this incumbent advantage
mandates. Geography can have an are to be found creating a momentum relates to demonstrable additional
effect. Bundled service options are more in favor of, or against, bundling. capabilities. Indeed provider capabilities
likely to be taken up in the lead markets are a bigger influence than mere
of the USA and UK, perhaps cancelling incumbency. Here clients look for a
Supplier and outsourcing
out their transaction-orientated cultures, supplier that is widely capable across
but more relationship-orientated market characteristics different services and able to use IT in
cultures not in USA and UK could now Here we identified four factors, with each, offers a wide scope of service
start to grow faster into bundling. We a combined weighting of 18. Initial geographically, and can deal with large
found strong propensity amongst large choices and incumbent vendors shape contract size. The few suppliers that
companies in Norway and Netherlands, future bundling—incumbency and can service large scope, bundled deals
for example, and also in South Korea. capability to do other services lead will be prioritized, but there is a
Additionally bundling is favored by to client propensity to given them caveat—a limited number of supplier
organizations requiring a higher level bundled services. This goes beyond the options may also inhibit bundled
of innovation from a supplier. Here, relationship effect mentioned above. service decisions.
bundling is the quid pro quo to the Incumbents with additional capability
We identified two lesser factors under
supplier for its innovation investment shape bundled services strategy and
this heading. Where a supplier offering
and its provision of more integrated stand to gain from these. Reinforcing
is of interdependent services then a
services. There is also sector influence. this finding, a 2007 Everest Research
‘lock-in’ effect can occur, where the
For example telecoms, manufacturing Institute survey of BPO scope
client is more likely to buy the combined
and utilities sectors take the lead on aggregation found that if a buyer
service, already integrated, as bundled
bundling, especially where a firm is initially selected a generalist supplier,
services. Finally, external media attention
based in a single region and is large 40 percent of the time the buyer will
given to bundled services can create a
buyer. Some sectors prefer industry select the same supplier for other
bandwagon effect, increasing a firms’
verticals for example UK military functions.14
propensity to look for bundled services.

14
However, this effect can be short-lived • Risk reduction through focusing on standardizing as a
if performance does not improve and • Less governance shared service across all processes, the
should suppliers fail to develop customer contact part of a process they
• Simpler contracting (cheaper legal
dependencies between bundled services, run for a client, and likewise for its
costs)
and deliver on their promises. administrative back-end e.g reporting.
• Ability to move to standardized This leaves the middle sections of a
practices process which tend to be more domain-
Cost effectiveness factors • Synergies across services and processes specific e.g procurement or sub-
The area of cost is weighted 20 out of • Less management time getting to components, HR (recruitment, training
100. Cost emerged as a constant key contract remuneration) and here the idea is to
concern in our research, and received standardize for the client globally on
• Lower relationship management costs
even more emphasis in the 2008-9 the relevant process and charge the
interviews. In particular two types of It is possible that the transaction cost client for idiosyncrasies away from
costs emerged from the study, namely savings between a single and multiple that standardized process. This then
management and integrated services supplier route may be substantial enables the supplier to provide a
efficiencies. As we discussed above, enough to offset where a single supplier standard contract for all standardized
management and transaction costs might offer a less attractive deal on shared services (but not necessarily
should be demonstrably lower, and production costs, but it is likely—if the the domain specific ones). Obviously
integrated service efficiencies much supplier is instituting the practices the reduction in both transaction and
more achievable with bundling of listed below—that these will also be production costs is large if this can be
services. lower anyway. achieved across a client’s several IT/BP
activities. The size of this gain as passed
From a client perspective we suspect Most large suppliers are now busy
on to the client will be one attractive
the transaction cost saving from reducing their internal transaction
aspect of bundled service purchase.
bundled service purchase are large costs (the costs of doing business with
but hidden. They include typically: themselves), and their production costs

15
Action point: Making the optimal decision
‘There is a surprising thing in mathematics. In a multi-variate
problem, the optimal result is often reached with none of the
variables at its maximum value.15’

This observation applies equally well How to use the decision and HR training and development.
to decisions on bundled/unbundled Should these be bundled and outsourced
services. Organizations have pursued,
matrix to one supplier, or left unbundled and
and will continue to adopt, multi- Your evaluation is based on five sets outsourced to several suppliers?
sourcing and ‘best-of-breed’ strategies of factors. Each set is weighted, with
the sets combined forming a total Each factor has a group of factors has
and will find plenty of good reasons
possible score of 100. The factors and an individual weighting as indicated.
for doing so. However, the market has
moved on, technologies have developed, weighting are: An informed stakeholder discussion
client and supplier capabilities have 1. Client factors 40 group should assess carefully the
grown apace and new possibilities appropriate score for each factor group.
2. Relational factors 12
have opened up. One important growing If a supplier really can support bundling
trend, containing several mini-trends 3. Client market forces and
then score it 9 or 10; otherwise make
within it, has been the bundling of characteristics 10
a judgment as to what the supplier
ITO and BPO services. Under what 4. Supplier and outsourcing market can support, and score it to suit. As a
circumstances can a client take characteristics 18 final example, under Cost Effectiveness
business advantage of this rising set 5. Cost effectiveness factors 20 Characteristics, does bundling lead to
of capabilities? What sort of client is demonstrably lower management and
Total 100
likely to gain from bundling rather transaction costs? If so, score this
than unbundling? And what sort of Step 1 factor between 7-10. If not score it
client is better suited to multi-sourcing The unit of analysis is a group of lower than this to suit.
approaches? In Table 2 we provide a services that an organization is wishing
summary of our research, and a decision to outsource. For example, this could
matrix for client use. be HR payroll, related IT applications

16
Table 2: To bundle or not to bundle outsourcing services—The decision matrix
Client factors (weighting 40) Tend to bundle Tend not to bundle
1. Decision-making process Centralized Decentralized
2. Dominant coalition preferences Possible Possible
i.e. – procurement, COO, CIO, CEO, advisors
3. Maturity of company with outsourcing Yes Best-of-breed if desire for vendor
i.e. – history of success/learning, internal capabilities built competition
4. Organizational and technological factors
Size Large Small
Complexity High Low
Interdependent activities High Low
Reliability needs High Low
Technological integration High Low
Seamless information/technical service High Low
5. Burning platform
Cost crisis Yes No
New CEO or CIO Possibly Possibly
Acquisition/merger Likely Possibly
New consolidation strategy Yes Unlikely
6. Business profile
Business doing badly/Need to do something different Yes Unlikely
Large, well performing firm Likely Possible
7. Heavy users and high spenders on outsourcing Yes No
8. Risk attitude to back-up, security, complexity Perception of high systemic risk Perception of low risk

Relational factors (weighting 12)

9. Culture
Transaction-orientated e.g. UK, USA Less likely Probably
Relationship-orientated e.g. South Korea Very likely Less likely
10. Prior relational aspects: client and supplier
Strong relations between senior managements Very likely Less likely
11. Relationships/performance as incumbent supplier Strong relationships Weak
Track record of service delivery Poor record
Client market forces and characteristics (weighting 10)
12. Strong regulatory compliance needs Reduce complexity If no complexity reduction
If supplier assistance If no supplier help
13. Geography—advanced market More likely More likely
e.g. USA and UK
e.g. North and South Europe
14. Level of innovation required More supplier investment Low innovation required
More integrated services Low integration
15. Sector influence
e.g. telecoms and utilities Likely Possible
e.g. retail Possible Likely
e.g. high preference for industry verticals Likely Possible
e.g. high competition intensity Likely Possible

Supplier and outsourcing market characteristics (weighting 18)

16. Initial choices and incumbent vendors shape future bundling Incumbent vendor with additional Poor record
services and integration capabilities No strong additional capabilities
17. Provider capabilities
Widely capable across different services Yes Concern over too few suppliers
Able to use IT in each scope of service geographically Yes
Can deal with large contract size Yes
18. ‘Lock-in’ through supplier services
Supplier offerings as interdependent services More likely Less likely
19. External media and bandwagon effect
High media attention on bundled services Likely Likely if performances do not
improve and if suppliers fail to
develop dependencies between
bundled services
Cost effectiveness factors (weighting 20)
20. Management and integrated services efficiencies
Management and transaction costs If demonstrably lower Possible
Integrated service efficiencies Yes Unlikely

17
Table 3: Sourcing factor analysis
Unbundle Bundle
Quick scan
score
0 33 50 66 100
Tipping point (UNB) Tipping point (B)

Tending Tending
Decision Yes towards towards Yes
unbundling bundling

1. Re-run the analysis; confirm results

Action Proceed 2. Identify variables susceptible to influence Proceed
3. Perform risk assessment

Multi-sourcer
Organization Operational Strategic
or Service Extender
typology Exploiter Explorer
Experimenter

Step 2 salient factors, and ensuring that the

Having scored each factor, total the risk profile of the consequent decision
scores to make a single score out of 100. is sensible.

Step 3 While this analysis is at the level of

See Table 3. A score between 66 and several services, we also found five
100 means that the organization is types of clients, each type tending to
past the tipping point for bundling, be making bundled or unbundled
and should certainly make a bundled decisions (see Table 3). The next
decision for the services under section develops Table 3 and provides
consideration. A score between 0 details of these five types of client
and 33 is past the tipping point for organizations.
unbundling and means that an
unbundled decision is the right one.
Scores between 34 and 65 need much
further analysis. A score between 34
and 50 suggests unbundling is the right
way to go but, you need to assess
which factors need to be leveraged to
make this a good decision, and perform
a risk assessment of the consequences
of leveraging these factors. Alternatively
a score between 51 and 65 suggests
bundling is a better decision but only
after further assessment, leveraging

18
Emerging client profiles
Our analysis included generating client profiles of those
organizations more, or less, likely to buy bundled services.
Five client profiles emerged:
1. The Experimentor type
2. The Operational Exploiter type
3. The Multi-sourcer type
4. The Service Extender type
5. The Strategic Explorer type

The Experimentor type The issue for the Experimentor type is the daily operational aspects of
its under-developed internal outsourcing managing individual outsourcing
The Experimentor type has just got on management capabilities, making it contracts through SLAs but less on the
the learning curve with outsourcing, unable to manage large-scale long-term, strategic, innovative and
therefore its outsourcing management contracts, form strong relationships relational aspects. The Operational
capabilities are underdeveloped, and with suppliers or assess the economics Exploiter will have developed routines
are based on sporadic experimentation of different outsourcing models. This and practices to ensure the delivery
with various sourcing models and may well be combined with an of value from each single outsourced
settings which addressed some specific understandable orientation amongst service, but will be less aware of or
needs. In most cases, these are small decisions makers and influencers concerned with synergies between
scale outsourcing contracts covering towards risk mitigation through multi- the various outsourced services. The
low value, stable services. At the same sourcing, shorter term contracts, and a Operational Exploiter tends to outsource
time its lack of experience can result ‘best-of-breed’ approach to suppliers. mainly low value but also some high
in the Experimentor making sometimes Experimentors were much more frequent value activities and has experimented
quite serious mistakes in outsourcing in the period 1992-2003, but in our with both single and multi-vendor
risky, or critical areas to the wrong most recent sample, only a small settings. Bundling outsourced services
vendor(s) on poor contracts. The number of firms demonstrated this would become an option when more
Experimentor type tends to switch profile of behavior. and more services are outsourced and
between vendors and sourcing settings where potential operational efficiencies
in a continuous search for superior start becoming self-evident. The
performance. Bundled services is just The Operational Exploiter
Operational Exploiter may be aware of
another value proposition in this regard. type the synergies between the outsourced
As the Experimentor type’s approach is services, but less able to extract value
The Operational Exploiter has very
neither strategic nor operational—its from these synergies mainly because its
likely developed good outsourcing
philosophy is ‘This could be gold’. outsourcing management capabilities
management capabilities focused on

19
have been focused on extracting service cost efficiencies, this will be of the market and aligning its sourcing
value and efficiencies from individual because it manages and runs these approach with the firm’s business
contracts, and because it lacks the itself. A Multi-sourcer tends to look strategy Quite a few of the cases we
ability to assess the business impact to itself for innovation rather than have studied fell into this category.
of synergies between individual through relationships with a vendor,
outsourced services. Its approach to though more recently Multi-sourcers
The Strategic Explorer type
bundled services is ‘I should outsource have been looking for closer
another service because there are relationships with, and more value The Strategic Explorer possesses highly
cost advantages and efficiencies in from, their longer-serving suppliers. developed outsourcing capabilities in
bundling this service with the others’. most areas critical for successful
Some of the firms we studied have outsourcing projects such as vendor
The Service Extender type selection, relationship management,
focused on developing operational
excellence around the management of The Service Extender type has been vendor management, domain expertise,
outsourcing, which in turn drives their outsourcing for a while; however, this learning capabilities, all of which
vendor selection. In such cases the type tends to work with one vendor or developed through scale and advanced
services to be outsourced and managed a very small number of vendors. Its management systems. The Strategic
have been geared towards what we outsourcing management capabilities Explorer outsources both low-value
have titled here as operational have been developed mainly based on and high value activities in both single
exploiter. long-term relationships with one or a and multi-vendor settings, is confident
very small number of service providers. in its ability to enter a large bundled
For this reason, bundling services is services contract mainly because of
The Multi-Sourcer type the next logical step in the outsourcing its strong retained organization and
Typically, the Multi-sourcer type has activities that the Extender type has highly developed domain expertise.
built a strong capability to manage pursued. Its approach to bundled This type will expect innovation from
multiple suppliers, and is into its third services is ‘it is only making sense to the vendor and the ability to realize
generation of outsourcing contracts. outsource another service to my synergies between the different services
Its dominant coalition favors both service provider’. In other words the outsourced. The Strategic Explorer will
outsourcing, which it does extensively, Extender moves further into bundling be able to assess the degree to which
and also a best-of-breed strategy, services through an incremental ‘add- synergies between the different
which it manages tightly, in an aligned on’ strategy, as it builds its internal services have been realized and will
way with business strategy, and with capability to manage suppliers, aspire systematically measure these
strong governance mechanisms in strengthens relationships with outcomes. Its approach to bundled
place. The Multi-sourcer tends to incumbent suppliers, and satisfies services is ‘My vendor and I can improve
outsource in ways which keep low the itself that supplier capabilities merit my value proposition only when we
switching costs in and out of different extending both contract length and innovate across my end-to-end
suppliers, while retaining advantages scope of work. An Extender buyer will services’. In our sample, we found that
from keeping suppliers in competition have a dominant coalition favoring some firms are thinking strategically
for work. The Multi-sourcer will readily supplier consolidation, and will about bundled services; however, they
incur the management and transaction recognize that its size, complexity may fail to design and implement a
costs required to maintain this multi- and interdependence of operation is system that leverages the potential
supplier strategy, though it works hard continually pointing towards the need value across the range of services.
to continually reduce these costs. The for reliability, technological integration,
organization may well be large and in and seamless service. An Extender
parts complex, but does not have high buyer will also be looking to outsource
needs for reliability, interdependence, more IT and business processes in the
seamless service and technological future, though it may not be primarily
integration, or manages these aspects focused on the cost advantages of
itself, or is willing to manage the gaps bundling rather than unbundling
between supplier service and what is specific services. Instead, an Extender
required on these aspects. Where a type will be concerned about becoming
Multi-sourcer achieves integrated more strategic in its approach to use

20
Changing lanes: Building client capabilities
for managing bundled services
Figure 2: Developing bundled services client capabilities

Strategic Explorer

Multi-Sourcer

Service Extender
Sourcing management
capabilities
Operational
Exploiter

Experimenter

Strategic sourcing capabilities

Our analysis demonstrates that many While all the types (save Experimentor) conditions for partnership with the
clients have not sufficiently developed present viable outsourcing strategies various vendors. The second area is
their outsourcing management for organizations, depending on their sourcing management capabilities—
capabilities to realize the synergies culture and dominant corporate focusing on extracting efficiencies,
and efficiencies offered by bundled governance model (e.g., centralization building management capabilities, and
services. As discussed above, none of v. decentralization), for companies developing tools and methodologies
the firms studied have, to date, that would consider pursuing bundled to realize the potential in strategically
managed to develop an ideal Strategic services as a strategic approach, we partnering with vendors. On our
Explorer profile, though some have offer the framework shown in Figure 2. analysis, most of the firms identified
begun to move in that direction. Most For those organizations that wish, and as Operational Exploiters are well
of the firms have developed their have strong rationales for, retaining positioned to improve the benefits
outsourcing management capabilities a Multi-sourcer stance, the from bundled services by further
to correspond with the Operational recommendation is to still improve investing in relational capabilities and
Exploiter or Extender type. At the their management and strategic vendor development. Firms identified
same time the Multi-sourcers in our sourcing capabilities. as Extenders are even more inclined
sample revealed a strategic sourcing toward bundling and will be even
In examining the primary buyer
approach that worked for them, based more willing to make the necessary
types, there are two areas needing
on their assessment of the limited investment in strategic sourcing and
development within the firm in order to
capabilities suppliers were offering in sourcing management capabilities.
capitalize of the promises of bundled
the marketplace, the need to engender But Experimentors require massive
services. One is the strategic sourcing
competition amongst suppliers, the investment in both areas, and therefore
capabilities developed in-house, mainly
advantages of retaining considerable should first assess whether bundled
focusing on aligning sourcing strategy
internal capability, and their own services is a strategic direction they
with dynamic business strategy over
specific needs that would not necessarily need to take.
a five-year period, and creating the
be served by bundling certain services.

21
In Figure 2 we map the development a multi-supplier approach but, because
path emerging from our research. The they have strategic sourcing insight,
Experimentor tends to move towards may well see the advantages of
being an Operational Exploiter. Its bundling some services where they
hard-won experience leads it to take a identify that suppliers have the requisite
multi-supplier route, outsourcing capability, the technology has developed
relatively stable, mature activities on to support integration of services, they
3-5 year contracts. It has learned to can see a strong economic rationale,
mitigate operational risk with and they feel confident that reducing
outsourcing, and will look to build up supplier numbers will not lose them
its sourcing management capability control of their sourcing arrangements.
but will not focus strongly on building
strategic sourcing capability. The
Operational Exploiter will tend to
develop that strategic sourcing
capability based on its heritage in
multi-supplier outsourcing and will
tend to evolve into a Multi-sourcer.
A Service Extender has a different
heritage and more strategic
understanding. Improvement lies in
evolving towards the Strategic Explorer
profile. Multi-sourcers have a huge
learning and capability investment in

22
Notes
1 8 14
Willcocks, L. and Lacity, M. (2009) Willcocks and Lacity, M. (2006) Clearly the first outsourcing decisions
The Practice of Outsourcing: From Global Sourcing of Business and IT and who the incumbent suppliers are
Information Systems To BPO and Services. Palgrave, London. Our more can have considerable affect on
Offshoring. Palgrave, London. Chapter recent analysis finds these management subsequent bundling patterns. From
1 reviews trends and statistics. costs for offshoring to be even higher— a 2007 Everest Research Institute
2
to be between 12-15 percent of total private report—Scope Aggregation in
See Tisnovsky, R. (2006) “IT
contract value. See Willcocks and Outsourcing: Why The Strong Get
Outsourcing in SME Businesses,”
Lacity (2009) op. cit. Stronger. Everest call this the
Everest Research Institute White Paper.
9
‘penetrate and radiate’ model.
See www.everestresearchinstitute.com. Lacity, M. and Willcocks, L. (2009)
15
3
Information Systems and Outsourcing: Our thanks to Simon Sammons of
See Lepeak, S., Toon, M. and Morris, P.
Studies in Theory and Practice. Palgrave, Accenture for this observation.
(2009) Equaterra Pulse Survey Period 4,
London
2008. Equaterra, London
10
4
This figure comes from a report
Willcocks, L. and Lacity, M. (2009) op.
by Equaterra (2005) Bundled versus
cit.
Unbundled Outsourcing Deals. Equaterra,
5
Ways of managing multi-supplier London September.
relationships are suggested by Sharma, 11
Lacity and Willcocks (2001) and
A. (2008) Challenges with Multi-
Willcocks and Lacity (2009) op. cit.
sourcing. IDC, New York. Simonson, E.
point to cases where management
(2008) Managing Multiple Outsourcing
costs were not noticeably lower than
Relationships. Everest Research Institute,
other models, and best practices were
New York. These focus on developing
not shared between the different
simpler, enterprise governance
suppliers.
models, supplier portfolio strategies,
12
strengthening internal management It should be noted that the final
capabilities and applying multi-sourcing weightings represent the collation of
to mainly commoditised services. See judgments, and that for each weighted
also Willcocks and Lacity (2009) op. factor the median expresses the
cit. and Lacity, M. and Willcocks, L. middle value. In such a large sample
(2001) Global Information Technology we found many cases where certain
Outsourcing: In Search Of Business factors outweighed others in different
Advantage. Wiley, Chichester. ways than the ones expressed here
6
(note that the median tends to be
Raw data on these outsourcing deals
more robust than the mean in the
was collected by IDC. Analysis was by
presence of such outlying values).
John Hindle and Ilan Oshri.
13
7
From a 2007 Everest Research
This section was strengthened by
Institute private analysis—Scope
conversations with Martin McPhee,
Aggregation in Outsourcing: Why the
Simon Sammons, Barbara Duganier
Strong Get Stronger.
and Charles Sutherland of Accenture.
Their perspectives and sharing of
experiences were very helpful and
we gratefully acknowledge their
contribution.

23
Appendix 1:
A note on methodology

Our review of extant research including recent studies into BPO, For this paper we then conducted 54
examined firstly a number of reliable offshore outsourcing, the configuration further interviews with 32 client
third party databases comprising some of outsourcing arrangements and organizations of ITO and BPO services
1200 outsourcing deals (including 865 objectives pursued by clients. This in USA, Europe and Asia Pacific. This
bundled contracts) signed globally database consists of 650 plus sample was opportunistic and gave
between 2003 and 2008. This exists outsourcing arrangements. We also insights into a range of sectors and
as a listing of headline characteristics reviewed the marketing literature to cultures including energy, mining, retail,
of these deals and gives insight into seek further insight on factors that oil, insurance, telecoms, ICT services,
propensity to buy bundled services at explain the purchasing of bundled gaming, utilities, financial services,
the level of who is buying, what they services. We developed two deliverables. manufacturing, healthcare, parts
are buying, where these services are Firstly, a provisional model of the distribution, mail and communications,
being delivered, and who is delivering weighted factors that need to be We also interviewed a further 15
those services. We also reviewed the investigated to establish outsourcing outsourcing experts drawn from three
existing ITO and BPO literature from purchasing behavior, with the specific major suppliers, including Accenture.
1990-2008. Virtually none focuses purpose of attempting to identify The analysis of the interviews provided
on client propensity to buy bundled which factors can explain propensity insights into buying practices, helped
services. But there are major studies to buy bundled services either as ITO us to refine the weighted model of
on determinants of outsourcing bundles, BPO bundles, or ITO/BPO client propensity to buy bundled
decisions, goals sought from outsourcing hybrid bundles. Secondly, we developed services in the ITO/BPO space, and
and sourcing strategies pursued during an open-ended questionnaire for using develop the five major client profiles.
this period. These provided insight into with interviewees at organizations that
buying behavior, outcomes, and how do buy, or potentially will buy bundled
these affect subsequent buying services, to determine the key factors
patterns. Our own research in ITO and for them.
BPO from 1991-2009 was also reviewed,

24
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26
About the authors

Dr. Leslie P. Willcocks is recognized Dr. Ilan Oshri is Associate Professor of Dr. John Hindle is Senior Manager,
as one of the world’s leading experts Strategy and Technology Management Outsourcing Marketing, Accenture.
on outsourcing. He is Professor of at Rotterdam School of Management His responsibilities at Accenture include
Technology Work and Globalization Erasmus, The Netherlands. Ilan holds a managing research and thought
and Director of the newly established PhD degree in Strategic Management leadership programs, industry events,
Outsourcing Unit at London School and Technological Innovations from and relationships with European
of Economics and Political Science. He Warwick Business School. He is the industry analysts and sourcing advisers.
is also Associate Fellow at Templeton co-author of three recent books— He also serves as Vice-Chairman of the
College, Oxford, holds several chairs at Handbook of Global Outsourcing and HR Outsourcing Association (HROA),
major universities, and has been for Offshoring (Palgrave, 2009), Knowledge Co-Chairman of HROA Europe, and
the last 19 years Editor-in-Chief of Processes in Globally Distributed Context holds appointment as Adjunct
the Journal of Information Technology. (Palgrave, 2008), Standards-Battles in Professor of Human and Organizational
He is co-author of 33 books including Open Source Software (Palgrave, 2008)— Development at Vanderbilt University.
most recently Information Systems and is co-editor of Outsourcing Global John has an extensive international
and Outsourcing: Studies in Theory Services (Palgrave, 2008). His work has business background, with over 30
and Practice (Palgrave, 2009) and appeared in leading academic journals years’ experience as a senior executive
The Practice of Outsourcing: From including Communications of the ACM, and adviser to companies in the US
Information Systems to BPO and MISQ Executive, and Journal of Strategic and Europe, and has published widely
Offshoring (Palgrave, 2009). He has Information Systems, and also in trade in trade, practice, and academic media.
published over 180 refereed papers in press and numerous books. Ilan is the
journals such as Harvard Business co-founder of the Global Sourcing
Review, Sloan Management Review, Workshop and an associate member of
California Management Review, MIS the Outsourcing Unit at the LSE.
Quarterly, Journal of Management
Studies and Journal of Strategic....

27
What’s
What’snext?
next?
To
To learn
learn how
how Accenture
Accenturecan
canhelp
helpyou
yououtperform,
reach us at http://www.accenture.com/Global/
outperform, reach us at www.accenture.com/
Outsourcing/Bundled_Outsourcing/default.htm
InfrastructureOutsourcing.

2009 Accenture
Copyright © 2008 Accenture is a global management
About Accenture About the Outsourcing
All rights reserved. consulting, technology services and
Accenture
outsourcingis company.
a global management
Combining
Unit, London School of
Accenture, its logo, and consulting,
unparalleled experience,services
technology and
comprehensive Economics and Political
High Performance Delivered outsourcing company. Combining
capabilities across all industries and Science (LSE)
are trademarks of Accenture. unparalleled experience, comprehensive
business functions, and extensive The Outsourcing Unit, LSE provides
capabilities
research on across all industries
the world’s and
most successful
business functions, and extensive world class research, education and
companies, Accenture collaborates advice on all aspects of outsourcing
research on the
with clients world’s
to help them most successful
become
companies, Accenture collaborates to make it less risky and demonstrably
high-performance businesses and more cost-effective.
with clients toWith
governments. help178,000
them become
people in
high-performance businesses and http://outsourcingunit.org/index.html
49 countries, the company generated
governments. With approximately
net revenues of US$19.70 billion for
177,000
the fiscalpeople serving
year ended clients
Aug. in
31, 2007.
more thanpage
Its home 120iscountries, the
www.accenture.com.
company generated net revenues
of US$21.58 billion for the fiscal
year ended Aug. 31, 2009. Its home
page is www.accenture.com.

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