Outsourcing: You need more staff, not less

Outsourcing may be the buzzword of the day and the business trend of choice among CEOs looking to save a few pence but it seems that a skills shortage could be mangling the drive towards outsourcing.

Companies who have outsourced areas of their business are not keeping enough relevant skills in-house to maintain quality control over their outsourcing arrangements, according to analyst house Gartner.

Gartner estimates badly-handled relationships are costing European businesses €6bn a year in wastage. It’s a claim that hasn't gone unnoticed by the businesses themselves – corporate satisfaction with outsourcing deals is now under 50 per cent.

Ian Marriott, VP of IT Services and Sourcing at Gartner, said in a statement: "While there is a lot of focus on reduced headcount as a result of outsourcing, contrary to popular belief, enterprises must gain staff and add new skills to make outsourcing work."

Gartner recommends companies should be looking at spending five to 10 per cent of the cost of an outsourcing deal on staffing a team charged with overseeing the processes and relationships with outsourcing providers.