Corporates Critical of Outsourcing Service Levels

The majority of users regard their outsourcing deals as failures, but the general dissatisfaction is not enough to slow down the momentum in the booming outsourcing market.

Rita Terdiman, research director at the Gartner Group, said corporates were becoming increasingly concerned about the level of service they receive.

?We?re starting to sense unhappiness in outsourcing land. It won?t lead to a shift away from the trend to outsource ? users need outsourcing too much for that ? but the users may fight back with the threat of contract renegotiation.?

Terdiman predicted that more than half of the outsourcing deals will not be considered successful by senior management because they have not delivered expected increases in IT effectiveness or business value. She cited a survey of 1,400 chief information officers across the globe, conducted by management consultancy Deloitte & Touche, which confirmed the level of dissatisfaction.