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IT outsourcing relationships buckling under pressure

Derek du Preez | April 23, 2013
Almsot all CIOs want to retender one or more deals

The Alsbridge report creates a worrying picture of outsourcing relationships across Europe. However, Simmonds argues that this isn't because there is something fundamentally wrong with outsourcing itself, it's just some deals aren't being carried out correctly and with the right expectations.

He believes that there is still plenty to be gained from a successful outsourcing deal.

 "A lot of it is about expectations. What we see a lot of is that clients engage with an outsourcer or a supplier and they think they want a partnership and they want it to be transformative - but actually when they get down to it contractually, they try to drive the price down as much as they can and they end up with a commodity service," he said.

"The report is a warning against not doing outsourcing properly. You can make it work very well and you can access a lot of skills, experience, and technology from the outsourcing provider. But don't do naively and without putting the proper effort in."


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