Outsourcing firms remain out and loyal
Firms outsourcing IT tend to keep it out and remain with their original vendor, according to research by outsourcing advisers Morgan Chambers.
Of the 117 contracts signed in 1995 and tracked by the firm, none have so far been brought back in-house, and of 36 recent renewals only nine have switched vendors. However, 75 per cent of those surveyed in the banking sector said they would change suppliers if there was no risk attached, while 40 per cent of government respondents said they had seen no improvement in service levels since outsourcing.
Meanwhile, according to the ITNet index, the total outsourcing market in the UK is now worth nearly #1.4bn, representing over 20 per cent growth this year. The largest single source of contracts is central government.