European firms trying to manage multiple IT outsourcing relationships

By not looking for multiple IT outsourcing relationship, companies are taking risk for too much dependency on single source of service provider.

[ClickPress, Mon Aug 21 2006] Latest survey in outsourcing industry taken for European firms states that almost 40% large companies of them do not have formal outsourcing planning. They are struggling to manage IT outsourcing relationships.

Though some major firms had agreement with four or more partners, but the majority of outsourcing companies do struggle to manage multiple IT outsourcing relationships. Mike Thompson, Chief Consulting Executive at Pegasus, said, “leading firms are not paying much attention towards the importance of multiple IT outsourcing. The are still dependent upon one source for their major outsourcing task, which could proved to be risky in long term.”

“What report shows at first glance is that companies are good while negotiating terms and conditions with their outsourcing companies for providing reliable outsourcing services, however, they are still not putting much use of their resources in finding out better options for planning and management of multiple outsourcing relationship, “ he added.

“You can plan well and negotiate better terms and conditions if you plan your multiple IT outsourcing business. This will also help you to understand outsourcing industry closely. In many cases, we have found that outsourcing business relationships have been jeopardized due to misunderstandings, workloads, non-commitments of outsourcing service providers. By doing so, in fact, you are minimizing the risk of operational failure.” Mike Thompson suggested

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