IT outsourcing customers are losing patience with service providers who aren’t working with them to provide value beyond the basic terms of their contracts.
According to the 2014 State of Outsourcing study conducted by outsourcing analyst firm HfS Research in conjunction with KPMG, close to a quarter of outsourcing clients will actively seek to replace their current provider if they have not effectively helped them standardise, automate, or transform their processes within the next two years.
The survey of 312 companies found that:
- 37 percent of outsourcing customers will consider looking for a new provider if they fail to meet compliance requirements
- 28 percent may do so if the provider is failing to provide greater flexibility to achieve scale
- 27 percent will look for a new provider if they don’t lower operating costs
- 22 percent will consider moving on if their provider can’t deliver better standardised or transformed processes.
Outsourcing comes of age
Pre-recession mid-market businesses saw IT outsourcing as a way of cutting costs and improving operational efficiency. Post-recession, it’s less about cutting costs, with the same mid-market companies increasingly looking to their service provider to add value to their business.
Do you think you may have outgrown your outsourcing provider? Are you able to move the conversations to include better analytical capability, increased innovation, more savvy and creative support talent, and access to better tools?
Over the course of the next few weeks we will look at what value added outsourcing really means and what benefits it brings, as well as providing top tips on what to look for when evaluating an outsourcing provider.
Contact one of our team to find out more about Outsourcing from Acora.