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
Windows 10 lands in Australia
Campaign to get business to upgrade kicks off.
 
NSW to build its own myGov
Service NSW digital profiles available by September.
 
Android bug leaves a billion phones open to attack
Hackers only need phone number to target devices.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Should law enforcement be able to buy and use exploits?



   |   View results
Yes
  14%
 
No
  50%
 
Only in special circumstances
  17%
 
Yes, but with more transparency
  18%
TOTAL VOTES: 740

Vote