Firms move away from single outsourcing supplier deals

Companies outsourcing their IT and business processes are moving away from single-supplier deals and looking to spread their options, new research has revealed.

Companies outsourcing their IT and business processes are moving away from single-supplier deals and looking to spread their options, new research has revealed.

In a survey of over 100 businesses across industrial sectors,  more than two-thirds of those polled said they preferred to select multiple outsourcing suppliers.

Less than a fifth of firms had opted for a single outsourcer, the study by PMP Research found.

More than three-quarters of the surveyed firms planned to use multi-sourcing in  future, compared with just 16% of companies intending to stick with a single supplier, the research carried out for the Evaluation Centre IT procurement website found.

Nearly half the companies said they had tried to switch outsourcing suppliers or to take services back in house, although these moves were often described as “difficult” (53%) or “very difficult” (5%).

Moves to switch suppliers were not necessarily prompted by dissatisfaction with their performance, the survey found. Half the surveyed firms reported that service level agreements had been either met (26%) or exceeded (36%). Instead, organisations were keen to retain flexibility in their outsourcing deals.

But businesses are struggling to assess the return on investment in outsourcing deals, with more than half those surveyed finding it “fairly hard” and another 23% finding it “very hard” to calculate the financial benefits.

 

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