by: Sarah Joson
Friday, June 28, 2013 | Outsourcing News |
The outsourcing market in the UK is becoming stricter in selecting their outsourcing partner, according to a study by Whitelane Research, a European outsourcing market analyst. The report showed that 13 percent of businesses are either looking forward to decreasing the use of outsourcing, or sourcing processes internally. Furthermore, 20 percent out of the 700 active outsourcing contracts will not be renewed.
Jef Loos, head of sourcing research for Whitelane’s European sector, stated that the report generated unexpected results. For instance, he was surprised that nearly 50 percent of the contracts have already been going through renegotiations, and 80 percent of which were able to improve expenses, terms and conditions, and overall quality of services.
Loos said this is proof that British outsourcing buyers are now more careful and that outsourcing service providers are retargeting their leads.
Whitelane also said clients should consider mergers and acquisitions in the service provider side, with several activities such as Atos’ purchase of Siemens SIS, Vodafone taking over Cable & Wireless at the forefront.
Meanwhile, Loos and the rest of Whitelane recommend that buyers who are satisfied with their current partners should renew and renegotiate contracts with their current provider for them to avoid transition expenses. Suppliers, on the other hand, should strive to maintain their contract to stay away from costly tendering processes, and use surplus to offer their patrons discounts.
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