Outsourcing control 'remains SME concern'

26th November 2007

Small businesses may embrace outsourcing of IT services, but they are likely to link up with local firms in order to retain some semblance of control, it has been suggested.

Outsourcing IT can offer benefits through more reliable services and more time for employees to focus on their work rather than dealing with the technology issues that regularly arise.

But Martyn Hart of the National Outsourcing Association noted that owners of smaller firms retain the desire to have at least one hand on the reigns by choosing an outsourcing firm nearby.

He suggested that this is due to concerns that "they might lose control so they try and take steps to make sure that doesn't happen".

"Small businesses don't normally let outsourcing contracts out to organisations that are much bigger than themselves.

"They tend to let them to local businesses so they are often in close proximity…so the actual communication tends to be on an informal basis rather than a formal one," he added.

Outsourcing is growing in popularity, with call centres often seen as a prime candidate for the service as the location of the office is not particularly relevant to customers.

According to a Datamonitor report, some 100,000 agents of UK companies will be working in Indian call centres by 2009, although many firms are choosing to keep their outsourcing on these shores due to concerns over damaging their brand by basing their customer support abroad.