The Hindu Business Line : `75 pc of MNCs use outsourcing services'

AS much as 75 per cent of US and European multinational companies now use outsourcing or shared services to support their financial functions and would continue to do so over the next 12-24 months, according to PricewaterhouseCoopers' Management Barometer Survey.

"Seventy-two per cent of European multinational companies have outsourced financial functions over the past two years compared with 77 per cent in the US. Additionally, 71 per cent of European companies and 78 per cent of US companies plan to use these services in the next 12-24 months," a release said.

Product sector companies (80 per cent) were more focused on using these services over the next one to two years than service companies (63 per cent).

The report noted that 29 per cent of US and European companies expected to increase their use of outsourcing of financial functions, with spending expected to be nearly 16 per cent higher than current levels.

"The trend of MNCs wanting to increase their outsourcing offers tremendous opportunity for the service providers with facilities in India, as they are cost effective and bring value to clients. The BPO industry in India last year had recorded a growth of 50 per cent over the previous year and should do even better in future," it said.

It added that growth in this sector would get further impetus, as Indian BPO companies have robust security practices and emphasis is laid in developing trust with clients on this score. "While earlier there were varying quality standards on this aspect, today there is focus on standardization of security, such as data and IP security," it added.