Reliability questions hamstring procurement

The outsourcing market is being damaged by a perceived lack of reliability and fear of long-term contracts according to a survey out today.

Out of 100 IT directors questioned by BlueStar Solutions, 46 per cent already outsource some, or all, of their IT infrastructure.

But headline grabbing IT failures have dissuaded 31 per cent of technology chiefs from letting go of the reins. A further 29 per cent of respondents cited concern of long tie-ins as a major problem.

Ian Knight, VP Europe at BlueStar, said in a statement: "While the figures show a promising future for outsourcing, the research shows there are still challenges to overcome.

"Most noticeably outsourcers need to be able to tailor their services to the demands of individual market sectors."

Although companies with an annual turnover above £250m were more likely to outsource, with 54 per cent claiming to do so, the small and medium sized market is catching up, with 48 per cent of respondents with a turnover between £50m and £250m outsourcing some of their IT needs.

Outsourcing was most common in the financial services sector, followed by retail, transport and manufacturing.