UK Companies Disappointed with Offshoring, But Admit Projects are All About Cost Savings

Three 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 ‘nearshoring’ work to locations closer to the UK, with some businesses citing concerns with staff churn and communications difficulties with service providers that are located farther afield.