Many UK Firms Regard Outsourcing As Failure

Despite Digby Jones, Director General of the employers' federation the CBI, saying that many British firms will have to regard outsourcing as a survival issue, 38% of British businesses polled in a recent survey said that outsourcing had been a complete failure or had delivered fewer benefits than expected.

The survey of 925 companies around the world was undertaken on behalf of Proudfoot Consulting. Here are some of the findings:

44% of all British firms chose to keep all business functions in house, compared to 33% in the United States.

In companies where outsourcing was seen as a failure, 15% had brought the outsourced functions back in house.

11% of UK firms outsource their back office support functions, compared to a 6% global average.

The most frequently outsourced function in the UK and globally is IT (no surprises there).

Only Australian and German companies are less likely than their UK counterparts to outsource at least some part of their operations. South African companies are the most likely.

82% of telecommunications companies outsource some part of their operations, followed by oil & gas companies (69%) and financial services companies (68%).

Companies in the financial services sector are most likely to outsource their back office support areas (20%).

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