Forty percent of
outsourcing suppliers are more confident in the UK market than
they were in 2008, according to the
National Outsourcing Association
(NOA).
The NOA's latest research showed an 8% growth in outsourcing
spending over the last year. The IT outsourcing market grew 12% and
business process outsourcing grew6%.
The extension of existing contracts hadthe greatest impact on
outsourcing service providers' turnover, according to 40% of
respondents. Ninety per cent of respondentssaid customers taking
outsourced work back inhouse had a low impact.
The most common contracts types also changed over the last year.
Outsourcing contracts have decreased in length according to 18%.
But 90% of respondents say the value of contracts have remained the
same or increased.
Martyn Hart, Chairmen of the NOA, said outsourcing has always
been seen as a way for a business to cut costs, and shouldnot be
surprising the industry continuesto grow.
"However, with the increased pressure on companies to cut costs,
many are pushing through higher volume low-cost contracts, over
shorter time frames, which more often than not sets the outsourcing
contract up to fail" he said.