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Cost savings still clinch IT services contracts


"Cost savings are the main reason UK businesses outsource services, but more than one-third now cite service improvements as the top reason.

Research by the National Outsourcing Association (NOA) of its members revealed that 54% of outsourcing buyers gave cost reduction as the main reason for doing so, while 36% said improved services were the main driver. The remaining 10% cited access to other value-add services as the top reason.

The NOA also asked suppliers for their views, and results were similar. A total of 56% said their clients were most interested in cost savings, 27% said improved services and 17% said access other value-add services.

According to the survey, suppliers are promising cost savings, with 60% offering savings between 11% and 30%, but 57% of executives buying the services expect savings of between 21% and 40%.”


NCC Weekly News Update 11 August 2014



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