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Study Shows more IT Leaders are Unhappy with Outsourcing Deals

by: Sarah Joson

Thursday, April 25, 2013 | Outsourcing News |

IT Leaders not Happy with their Outsourcing Contracts

In a report done by sourcing advisor Alsbridge plc, it was revealed that 76 percent of IT executives are considering changing the terms of their outsourcing contracts.  It was also found that 26 percent are unhappy with at least two of their ITO contracts, 40 percent are still waiting for the confirmation of the details after signing the deals, and 47 percent said they often have disagreements with IT providers during renegotiations.

Meanwhile, amidst the fewer number of dissatisfied IT leaders, there are some who are searching for better deals.

One of the reasons for the dissatisfaction is the countless conditions that were soon found to be ineffective. Meanwhile, others said they want to change the contract to keep up with the trends in technology.

Also, during the course of the outsourcing contract, the client will end up paying more than what is initially allotted for the contract. Revenues were likewise seen falling short, which is usually seen in the public sector.

Even with the large number of unhappy customers, outsourcing is still considered as an effective tool as 53 percent said they will renegotiate and only one fourth plan to switch to a new supplier. However, 61 percent were unsuccessful in renegotiating with their existing provider.


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