Recession results in outsourcing inertia

 

Too hard to change to cheaper provider.

Nearly two-thirds of firms intend to stick with their current outsourcing partner, despite the economic downturn, because changing supplier is viewed as both too time consuming and costly.

Law firm Pinsent Masons interviewed 200 business leaders about their outsourcing plans and found the majority (64 per cent) have no plans to look for lower-cost outsourcing partners.

Nevertheless, one in four businesses leaders said they would be renegotiating the terms of existing deals.

And one in ten of those questioned said they were looking at bringing outsourced services back in house.

"Our survey indicates that sourcing has not yet been given the priority that it merits; businesses are concentrating on more traditional measures to save costs. This may impact the ability of business to respond when there is an upturn," said Garfield Smith, partner at Pinsent Masons.

Copyright © 2010 Computing


Recession results in outsourcing inertia
 
 
 
Top Stories
Myer CIO named retailer's new chief executive
Richard Umbers to lead data-driven retail strategy.
 
Empty terminals and mountains of data
Qantas CIO Luc Hennekens says no-one is safe from digital disruption.
 
BoQ takes $10m hit on Salesforce CRM
Regulatory hurdles end cloud pilot.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Who do you trust most to protect your private data?







   |   View results
Your bank
  35%
 
Your insurance company
  5%
 
A technology company (Google, Facebook et al)
  9%
 
Your telco, ISP or utility
  8%
 
A retailer (Coles, Woolworths et al)
  4%
 
A Federal Government agency (ATO, Centrelink etc)
  18%
 
An Australian law enforcement agency (AFP, ASIO et al)
  15%
 
A State Government agency (Health dept, etc)
  7%
TOTAL VOTES: 4121

Vote
Do you support the abolition of the Office of the Information Commissioner?

   |   View results
I support shutting down the OAIC.
  27%
 
I DON'T support shutting the OAIC.
  73%
TOTAL VOTES: 1403

Vote