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Outsourcing is now entrenched in UK, says recruitment firm


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OUTSOURCING has become an "accepted and entrenched" practice among UK companies, according to research by recruitment specialist Manpower.

Outsourcing to India cuts costs by 50
June 07, 2005 16:24 IST Outsourcing ITES-BPO work to India has helped companies achieve 40-50 per cent cost savings, according to the National...

A survey of 2100 companies and organisations found atbreastudes towards outsourcing had improved in the last two years, with more than half saying it has become an established way of working, a rise of 14 per cent since 2003.

And there was an increase in businesses who view outsourcing as a means of saving time and money - from 47 to 64 per cent.

The research comes just days after high street health and beauty retailer Boots signed a near-£400 million outsourcing deal in a bid to slash costs, with some of the work finding its way to India.

Companies are most likely to outsource areas such as printing and design (40 per cent), telecommunications (21 per cent), product and service maintenance (19 per cent) and IT services (19 per cent).

Chris Arthur, Manpower operations director for solutions, said: "Outsourcing appeals to many because, by removing non-core business functions, they can better focus on what they're good at."

But Martyn Hart, chairman of the National Outsourcing buttociation, called on businesses to act responsibly when outsourcing.



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