Companies move away from single-supplier sourcing

Organisations are increasingly looking to spread their options when it comes to choosing an outsourcing supplier, according to the latest survey of the market from PMP Research.

Many are signing shorter contracts and are prepared to consider switching suppliers or even contemplate taking their facilities back in-house to get what they want.

Two-thirds of those polled (68%) say they prefer selecting multiple suppliers to opting for a single outsourcer (19%).

This trend is set to continue, with three-quarters (77%) indicating they will be going down the multi-sourcing route in the future, compared to 16% who want to stick with one supplier.

Around half (47%) report trying to transfer from one outsourcing supplier to another at some point, or attempting to re-activate their services internally, although such moves are often characterised as either ‘difficult’ (53%) or ‘very difficult’ (5%).

These decisions are not the result of growing dissatisfaction with outsourcers’ performance. Half of the sample reckon their current service level agreements (SLAs) are either met exactly as anticipated (26%) or even exceeded (36%).

Moreover, 10% say there has never been an instance where a supplier has failed to provide a service as specified once the contract begins. A third (33%) maintain such a problem is very rare and 38% state that while this has occasionally happened, it has been possible to find a solution fairly easily. Only a minority (13%) claim this has occurred frequently.