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Survey uncovers relationship problems for outsourcers

Kevin Reed, Management Consultancy 02 Jun 2004

The UK's largest companies have only lukewarm relationships with outsourcing providers despite entering into long-standing strategic partnerships together, according to a survey.

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Only 15% of respondents felt they were in a 'professional and engaged' relationship with their outsourcing partner, while 72% found the experience to be 'adequate'. And 13% admitted their experience was 'problematic'.

The survey, conducted by outsourcing advisory consultancy Morgan Chambers, included the views of 51 FTSE100 companies and looked at their opinions of UK outsourcing providers.

Most businesses have long contracts with outsourcers. Over three-quarters (82%) of the 157 companies involved in the survey have agreements in place for longer than a year, with 35% in place over five years.

An overwhelming 79% said that outsourcers had delivered against the terms of their service level agreement, with 21% dissatisfied with the technical delivery as measured within the contract.

Despite the high level of SLA satisfaction, only 22% thought that their provider had 'totally delivered' to expectation.

Morgan Chambers argued that meeting the SLA is a 'basic client expectation', and there is a need to show value elsewhere.

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