Firms shifting services back indoors

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.

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.

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