Almost two thirds of outsourcing fails

Up to 65% of all outsourcing contracts worth over £20m unravel before their full time, according to a recent study by management consultants Compass. Europe’s €4bn outsourcing industry is entering a mid-life crisis, the report concludes. Uncompetitive costs and negative customer services are blamed for creating “a new mood of mistrust.” Rob Lewis reports.

“The costs to both parties of this level of failure are high and the legal and advisory costs can quickly escalate,” says Simon Scarrott, head of business development at Compass.