One-stop shop days are numbered?

The 'total' approach to outsourcing may not have quite had its day, but there is growing evidence that many companies prefer to do business with a series of niche operators.

Outsourcing specialist Integris questioned 150 IT directors and found that more than 60% were using different suppliers to handle different areas of their business. These findings are consistent with those of market researchers Metrica whose survey of 2000 network managers in top UK companies revealed a preference for using service providers for specific purposes.

The results suggest misgivings about wide-ranging outsource contracts, which can leave clients feeling they have less control over service levels and costs.

In another business area - mail and messaging services - Bell & Howell has questioned companies in the Times Top 1000 about their preferences for outsourcing strategy. Over half favour an approach based on the appointment of several best-in-class specialists under the control of an in-house manager.

This attitude seems to run counter to the trend recorded by the Centre for Facilities Management in their report 'UK Facilities Management Market 99'. Figures included there show a decline in single service contracts and a significant rise in TFM contracts.

That change may not be inconsistent with the preference for specialists, however, since many TFM companies deliver their management skills and use sub-contractors to deliver services.

In the Bell & Howell study, the second most favoured outsourcing strategy was several best-in-class companies under the management of one company.

Elliott Chase