Feature

UK firms demand short outsourcing contracts

Companies are calling the outsourcing shots, demanding shorter contracts from multiple suppliers, according to PMP Research.

 

UK businesses are still in love with outsourcing, but they are changing the rules of play, preferring multiple partners to one supplier. Two-thirds of the 100 UK businesses polled say they prefer multiple suppliers, compared to just 19% who prefer a single outsourcer.

 

Despite acknowledging the difficulties involved, almost half the respondents have tried to bring services back in house or change suppliers.

 

This supplier polygamy has nothing to do with poor performance, as only 13% of the respondents claim their suppliers have let them down. The motivator for this change is to retain flexibility over their contracts, which is reflected in the ever-shrinking contract lengths awarded to suppliers.  Most deals are expected to run from one to two years, or two to five years.

 


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This was first published in August 2006

 

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