The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Less than half of US and European corporates say outsourcing is cost effective, says survey

Three-quarters of US and European multinationals use outsourcing or shared services to support their financial functions although less than half of them consider outsourcing to be cost effective, according to a recent PricewaterhouseCoopers' Management Barometer Survey. US corporates lie marginally ahead of their European counterparts in their willingness to outsource, with 77% compared to 72% outsourcing some portion of the finance function in the past two years. Outsourcing providers will also be cheered by news that 29% of US and European corporates expect to increase the level of outsourcing in their finance functions, with a concomitant rise in spending expected to be 16% above today's levels.

But according to the survey, nearly one-third of corporates see little benefit in outsourcing, only 9% feel they are able to break even with outsourcing and 4% believe they are losing money. So how can corporates change this?

"Many multinational companies that outsource financial functions do not find it to be cost effective," says Dan DiFilippo of PricewaterhouseCoopers' performance improvement team. "Companies that turn to outsourcing for cost savings should conduct comprehensive feasibility studies to better understand their potential return on investment. Many companies enter outsourcing arrangements without conducting a proper cost-benefit analysis."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree