Posted on 16 July 2013.

A new study by European outsourcing market tracker?Whitelane Research, highlights that UK outsourcing customers are becoming far more selective when it comes to providers.
According to the study, 13% of organizations are planning to insource (or outsource less), while 20% percent of the 700 existing contracts will not be renewed with the current service provider.
?There are many surprising things about the research,? Jef Loos, Whitelane?s head of sourcing research Europe, told?Information Week. Loos was struck, for example, by the fact that almost 50% of all outsourced contracts have been renegotiated in the last couple of years by CIOs. In 80% of cases, he said, the renegotiations delivered cost reductions, better terms and conditions and/or quality improvement.
According to Loos, the feedback shows that U.K. outsourcing customers have become more selective, but also that providers are targeting their customers more closely to avoid costly tender processes that they likely won?t win.
The firm says buyers should also plan for further consolidation in the service provider area, citing Atos? acquisition of Siemens SIS, North America?s CGI swoop on former U.K. independent Logica and Vodafone?s buyout of Cable & Wireless as examples of a trend that?s likely to continue.
For full story please visit http://www.informationweek.com/global-cio/outsourcing/uk-outsourcing-market-gets-more-competit/240157292
Source: http://thesauce.net.au/competition-heats-up-in-uk-outsourcing-market/
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