Insourcing - bringing business services back in-house - is a growing trend, research from the National Outsourcing Association has revealed.
An NOA survey of more than 60 top outsourcing professionals found that six out of 10 believed that insourcing was not a passing fad and posed a "significant risk" to outsourcing contracts.
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A number of major firms have recently brought IT services back in-house. Last year, US banking firm JP Morgan announced that merger with Bank One would see 4,000 IT staff return to the company, abandoning a £2.8bn outsourcing deal with IBM. Prudential has also announced that it is bringing part of its IT operations in house from Capgemini.
Tower Hamlets local authority in east London has said it improved the quality of its IT helpdesk service after ending an outsourcing agreement with ITNet last year.
The NAO research found that 30% of those surveyed felt the trend towards insourcing was a reaction to bad outsourcing experiences.
NOA chair Martyn Hart said, “If suppliers are going to retain and win business with the threat of insourcing looming, it is essential they take steps to understand their customers' needs and wants.”