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UK Firms Looking beyond Cost Savings in Outsourcing

by: Sarah Joson

Wednesday, December 4, 2013 | Outsourcing News |

Industry consultancy firm KPMG, recently reported that 490 UK outsourcing contracts worth £10 billion are using outsourcing for customer service improvement, rather than just to reduce costs.

It was also found that businesses are now more willing to invest as economies are getting better. Some factors they are looking to spend on are innovation and new technology, mainly if they see the benefits in improving customer service operations.

Through KPMG’s "Service Provider Performance and Satisfaction" report, it was revealed that 48 percent of the respondents said they based outsourcing decisions on the need to improve service levels, and that there was a 20-point increase in the desire to improve quality from the time the issue was initially raised in 2009.

However, KPMG cited challenges that can stunt the effort to improve organization-wide capabilities. Fifty-six percent of the respondents noted that they outsource to gain access to skilled talent. The report also stated that outsourcing clients want to be more involved in the outsourcing operation, rather than it being an "out of sight" agreement.


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