UK Companies Disappointed with Offshoring, But Admit Projects are All About Cost Savings
March 24th, 2010Three quarters of British businesses are disappointed with their offshorers, according to new research.
The companies expressed frustration with the quality of work being provided, according to a survey, but most businesses still said they chose the cheapest outsourcing option instead of the best quality.
Nearly all businesses – ninety-four percent – admitted that the focus on cost was increasing the likelihood of their projects failing.
Two-thirds of businesses still plan to offshore more work in the next two years, stated the results of the survey by Valueshore Spain, a Spanish government-backed group of IT consultancies. Two hundred IT directors were interviewed.
“Businesses also need to open their eyes towards the ‘hidden’ costs,” said Daniel Naoum, co-founder of Valueshore Spain. “The cheapest option doesn’t always provide to the biggest overall savings, as quality concerns can often result in more management time being required and increased travel and troubleshooting costs.”
Seventy percent of firms were considering …
Nearly a Quarter of UK Small Businesses Look to Outsource
December 4th, 2009Almost one quarter (22 percent) of UK small and medium enterprises (SMEs) are considering offshoring, while one in ten are very likely to offshore elements of their businesses in 2010, according to research conducted by ICM Research in November on behalf of SLASSCOM, the development body for Sri Lankan outsourcing.
The report, entitled ‘The SME Offshoring Readiness Index’ also found that 20 percent of businesses had increased their interest in offshoring as a direct result of the recession. Recession aside, the biggest driver behind UK SMEs’ interest in offshoring was the current cost of UK labour with 28 percent indicating this was an issue. 13 percent also said they would use offshoring due to a lack of available UK skills.
The survey also found that some SMEs would use offshoring to focus on core competences (16 percent) and to extend service hours (14 percent). These positive signs were backed up in that …
