September 2013 |

Non-core costs

Businesses around the world have been on a journey, whether deliberate or not, of cost externalization. A significant portion of any business’s revenues are now being spent outside their own organization. What was once a labor cost, is now a supplier invoice.

The Wall Street Journal and The Sunday Times have both covered our latest research, confirming that the trend of ‘corporate virtualization’ presents new challenges for today’s business leaders as they seek improved business performance and closer control of risk, reputation and quality.

Below is a visual summary of our latest analysis into the spend patterns of 2,000 global organizations over three years, highlighting the extent to which this externalization of cost has occurred and exploring the implications of this largely overlooked change in business behavior.

In short, your business is not what you think it is…

(Click the below image to enlarge)

Corporate virtualization infographic - A global study of cost externalization and its implications on profitability