Relationships 'key' to outsourcing success

18th June 2007

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The success of IT outsourcing depends largely on the relationships between people, a senior analyst has said.

Commenting on the results of a recent survey by Forrester Research, which ranked IT outsourcing suppliers worse than larger inshore one in terms of reliability, Sonoko Takahashi said that the business-customer relationship is crucial.

"IT outsourcing is primarily about relationships between people," said Mr Takahashi.

"To increase client satisfaction, offshore suppliers need to put more effort in to maintaining a relationship and a key part of this is building more flexibility into contracts from the start," he added.

The study revealed that 43 per cent of European IT decision-makers thought offshore outsourcers were less reliable in terms of project delivery, while a number of respondents also reported a lack of industry-specific expertise among offshore providers.

Mr Takahashi added: "Renegotiating with outsourcing suppliers and strengthening supplier management capabilities was ranked top of our respondents' agendas."