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UK Firms ‘Disappointed’ with Quality of Outsourced Work

by: Karen Cayamanda

Wednesday, March 24, 2010 | Outsourcing News |

Cost Only Approach in BPO is not Effective

Majority (75%) of UK organizations said they are disappointed with the quality of outsourced work. This is based on the research released by Valueshore Spain, Spanish Government-backed group of IT consultancies.

The research further shows that of the 200 UK IT directors surveyed, 78 percent still use day rates to calculate outsourcing costs, and that majority of organizations look at cost instead of quality of work when it comes to making outsourcing decisions.

Companies should change their perception of what offshore outsourcing can do for them. "Taking a cost-only approach can have a detrimental effect on the quality of work received. Businesses also need to open their eyes towards the 'hidden' costs. The cheapest option doesn't always provide to the biggest overall savings, as quality concerns can often result in more management time being required and increased travel and troubleshooting costs," said Daniel Naoum, co-founder of Valueshore Spain. By failing to consider the hidden costs, companies will lose opportunities for cost savings and pay an outsourcing bill that’s more expensive than what was initially planned.


Source:
http://www.freshbusinessthinking.com

 

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