Outsourcing is not flawed, says research

Outsourcing contracts are exceeding users’ expectations in 29% of firms, and matching them precisely in 61%. Only 9% of companies believe their outsourcing contracts have let them down. Those are among key results of research commissioned by outsourcing consultancy Orbys from Benchmark Research. It finds businesses largely very satisfied with cost savings, pricing structures, quality of service, ease of doing business and suitability of the contract, indicating that outsourcing some aspects of IT is a better deal than some realise. However, contracts are taking time to bed in and lack of post-contract consideration is causing problems for some. Also, surprisingly, contracts agreed after 2000 are achieving lower satisfaction ratings than those let earlier. Orbys CEO David Keighley says: “One of the clear signs of a growing maturity is that organisations are now prepared to renegotiate contracts. 84% of organisations had made changes after the contract had been signed. They are obviously far more confident about managing the supplier relationship.” His advice: “A contract needs constant reinvigoration… How many [companies] are focused on both internal and external needs? Did they address price performance, end user satisfaction and relationship management? If not, it is easy to end up with great price performance, but unhappy end users.” He also recommends using third party advisors, and claims that the research proves that those that do tend to fare better.