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UK firms get tough on outsourcing team changes

Outsourcing firms’ tendency to change project personnel could prompt end users to insert new contract clauses

Doug Woodburn, CRN 08 Oct 2008
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Outsourcing firms will come under more pressure to insert legal terms into contracts that limit or control the number of team changes, Fujitsu Services has asserted.

Coleman Parkes Research conducted 50 detailed telephone interviews with large, blue chip UK organisations on behalf of the IT services firm.

58 per cent said they had experienced team changes of three or more throughout the duration of an outsourcing contract, which Fujitsu claimed could impact the success of the project and ruin the client relationship.

A third indicated they are thinking of putting legal paragraphs in the contract to limit or control the number of team changes.

Rob Devlen, head of business consulting at Fujitsu Services, said he had never seen a contract with limits on team changes written in, but claimed this may become the norm in the future.

“More people are looking for outsourcing to drive change they can actually measure. If people perceive that having the same team in place for the duration of the project is a driver of its success, I suspect they will look to do this,” he said.

See also:

Fujitsu Services could be the latest channel firm to make large-scale redundancies after confirming it is in talks with the 1,000 staff who worked on the National Programme for IT in the NHS.  27 Jun 2008
Outsourcing set to overtake project-based services in 2008 as credit crunch hits home  01 May 2008
Schools opt to outsource IT headache to reseller  07 Nov 2007

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Tags: It-services, Outsourcing, Strategy, Fujitsu-services

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