Research from
sourcing advisory firm Orbys Consulting reveals that 43% of large
companies feel their supplier doesn’t match their performance
expectations and 35% say it fails to meet their
needs.
Many of the companies report declining or static service levels
and have resorted to remedial programmes with their supplier,
renegotiated the contract or in extreme cases brought services back
in-house. Even so, 82% of respondents say they are satisfied with
outsourcing overall.
IT directors could avoid taking such drastic action if they spent
longer identifying their requirements at the outset, as well as
proactively managing the contract, suggests Orbys.
“The fact that overall satisfaction is relatively high despite the
failure to meet expectations, the high incidence of problems and
only partially effective corrective action, suggests a surprising
level of acceptance and complacency with this standard of
underperformance,” says Mark Sukiennik, director at Orbys
Consulting.
The research is based on interviews with 82 mature organisations
in the finance, retail and manufacturing sectors, with turnovers of
£100m-plus and multiple outsourcing deals in place.
