Outsourcing: One Provider or Many?

According to a survey last month by the Information Services Group (ISG), companies in the UK currently tend to outsource their IT provision services to multiple providers, rather than using only one source.

The survey asked 2,000 global firms about the way they currently outsource their IT operations, and found that only 6% of UK businesses currently outsource to single providers, with the majority preferring to divide their required services between multiple providers instead. In America, the situation is almost entirely the other way around; only 12% of American firms said that they would use five or more firms, with the majority preferring to use a single source.

There are advantages and disadvantages to each approach:

Single Provider:              

• It’s easier to manage a single bulk contract than it is to manage multiple supplier relationships.
• There is no potential for confusion over which responsibilities lie with which provider.
• You will have one contact for all your outsourced IT needs, so you will always know who to contact.
• You will need to find a provider who can cover all your needs; some providers may not have specific expertise in all the areas that you require.

Multiple Providers:

• By opening a bidding process on multiple contracts, you can find the most cost effective provider for each specific area.
• Because your providers can each be focused on specific responsibilities, you can choose specialists in each area, which increases efficiency.
• You will need to maintain a number of supplier relationships, which needs careful management to maximise efficiency
• You will need to understand where the responsibilities of different contracts overlap, in order to ensure that your providers collaborate effectively.

While the approach you choose to take is up to you, here at Tristar IT we believe that our IT support in London offers an excellent option for any company; our experienced engineers have a breadth of knowledge and experience that means that they can understand your requirements and respond quickly and appropriately. We offer a free audit and health check of your systems which will allow us to give you an accurate quote, whichever level of support you might require, helping you to understand what we can offer you and budget accordingly.