Recession results in outsourcing inertia

By on
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
Tags:

Most Read Articles

You must be a registered member of iTnews to post a comment.
| Register

Poll

How should the costs of Australia's piracy scheme be split?
Rights holders should foot the whole bill
50/50
ISPs should foot the whole bill
Government should chip in a bit
Other
Flash is heading towards its grave, and that's...
Great! Good riddance
Sad! Flash had some good qualities
Irrelevant. I don't care
What's Flash?
View poll archive

Whitepapers from our sponsors

What will the stadium of the future look like?
What will the stadium of the future look like?
New technology adoption is pushing enterprise networks to breaking point
New technology adoption is pushing enterprise networks to breaking point
Gartner names IBM a 'Leader' for Disaster Recovery as a Service
Gartner names IBM a 'Leader' for Disaster Recovery as a Service
The next era of business continuity: Are you ready for an always-on world?
The next era of business continuity: Are you ready for an always-on world?

Log In

Username:
Password:
|  Forgot your password?