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Outsourcing contracts reach all-time high

Filed in archive Outsourcing News by Danny on April 20, 2006

Outsourcing contracts reach all-time high
According to new research by sourcing firm TPI, outsourcing contracts reached an all-time high during the first quarterlinks of 2006.

The report stated that 83 contracts worth €18 billion have been signed in this period compared to 76 contracts valued at €12bn at the same time in 2005.

Duncan Aitchison, managing director of TPI, said that the strong quarter can be attributed to the rise of contracts being restructured. He stated, "However, even when even when we exclude restructurings, the number of contracts signed so far this year is still a first quarter record."

Aitchison however said that savings from outsourcing have been over-estimated and that client expectations are not usually met. He said, "In our experience, outsourcing arrangements which focus solely on delivering huge savings often fail to meet client expectations. 15 percent is not only a realistic saving, but also a significant one."

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