The overwhelming majority of businesses outsource functions such as logistics as a cost-cutting measure, while only a few companies consider outsourcing to be a strategic business imperative. So says a recent study by Accenture, the global consulting company.

Accenture canvassed 150 senior executives at Fortune 1,000 companies in the automotive, consumer goods, retail, industrial equipment and transportation industries. Participants were asked about current and future outsourcing initiatives, what prevented them from making more effective use of outsourcing, and what kind of returns on their investment they expected.

Nearly nine out of 10 respondents to the survey (87 percent) noted that their companies outsourced at least one aspect of their businesses. For instance, 27 percent outsource information technology, 27 percent outsource logistics and/or distribution and 25 percent outsource customer service and technical support. Interestingly, two-thirds of the respondents reported that they had no plans to expand outsourcing to other business areas within the next 18 months.

"There is a distinct gap between how companies use outsourcing now and the strategic possibilities it offers, but apparently there are hurdles that must be overcome before many companies will embrace outsourcing more strategically," said Greg Caster, a partner in Accenture's Products Operating Group, in announcing the survey results. "While executives have long realized that outsourcing basic business activities can enhance operational efficiency," he said, "only a select few are ready to use outsourcing as a tool to drive business growth."

About one-half (48 percent) of the executives surveyed said that the fear of losing operational control was the most significant barrier to increasing their use of outsourcing. Other impediments included cultural barriers in the organization, cited by 19 percent; the potential cost, mentioned by 14 percent; and concerns about long-term dependency on an external organization, cited by 11 percent. Just 6 percent mentioned diminished vendor relationships and collaboration capabilities as an impediment to the increased use of outsourcing.

The study also found that executives required a quick return on their investment (ROI). One-fourth of respondents expected to achieve ROI within the first six months, and almost half expected it within seven to 12 months. "The demand for rapid ROI leads companies to undertake bite-sized projects instead of business-transformation initiatives that may be necessary to compete long-term," said Caster. "Those that invest in the long-term vision will be better positioned to reap both the short- and longer-term benefits."