Outsourcing is failing to reach its strategic objectives, according to a recent report from Deloitte.

The report states that although outsourcing suppliers are meeting cost objectives, many companies are disappointed with outsourcers’ overall ability to provide continuous process and technology developments.

According to the report, 37 per cent of firms wanted to improve customer service while 27 per cent were hoping to gain a competitive advantage through outsourcing deals.

According to the National Outsourcing Association (NOA), however, these figures show that the objectives set by these firms were not strategic but cost-based.

“To claim that outsourcing per se is failing to meet companies’ strategic objectives is probably a bit far fetched,” said Martyn Hart, NOA chairman.

“The report clearly shows that only a small number of businesses entered into an outsourcing contract for strategic reasons. The supplier cannot be expected to provide a strategic service if end users do not make it clear what they want from an outsourcing contract right from the start.”

Published in eCCF

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