Outsourcing pays off

Outsourcing represents a recession-proof way of maintaining corporate activity through the downturn, according to magic circle firm Allen & Overy, which has launched a major marketing effort to promote its work in the field.Allen & Overy has conducted a survey of 150 mid-sized and blue-chip companies across Europe which showed 94% had outsourced functions in the past three years for fees of more than 7 billion.All of the companies which spend more than 25 million each year on outsourcing intend to devolve further sectors of their work in the next three years, according to the survey.The City firm is gearing up its outsourcing group with an international marketing drive to evangelise its message to companies.Last week it held a breakfast seminar for representatives of more than 100 companies, and the group's lead partner Laurence Jacobs took a team from the firm to Antwerp and Amsterdam on the same day for similar seminars.Mr Jacobs said outsourcing would emerge as a key business strategy during the recession as companies look for ways to reduce costs and focus on their core business.He added: 'In some sectors, an increasingly wide range of business services are outsourced, we are seeing the development of "virtual corporations".'Jeremy Fleming