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Most of UK IT Companies Will Not Downgrade IT Outsourcing in 2013

An aggregate 74% of IT spending organisations in the United Kingdom will outsource more in 2013 or keep outsourcing stable, according to specialist research firm Whitelane Research.
Whitelane's latest study on IT outsourcing and IT service provider performance in the UK, which included over 230 big IT spenders in the country, revealed that the majority of the 37% which are stepping up IT outsourcing this year to call centers in India made the decision mostly with a view to achieving cost reductions. While cost cutbacks were cited as the main reason by 70%, almost half of those organisations also indicated non-cost based factors, such as the focus on core activities, improvement of service quality and access to resources.
According to the UK study - which is based on the spenders' evaluation of more than 700 unique IT outsourcing contracts to inbound and outbound call center with an aggregate combined annual value of over £15 billion, and is part of Whitelane's annual IT outsourcing studies involving CIOs and CFOs in 13 European countries - 85% of the organisations were satisfied with their outsourcing contracts, with 12% reporting a high level of satisfaction.
Only 22% of the participants have not renewed one or more contracts with the same 24x7 call center last year, representing less than 7% of all contracts, Whitelane Research notes. According to the researcher, the high rate of renewals is down to the fact that almost half of the enterprises renegotiated their contracts, with the vast majority getting lower costs and improved terms.