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Outsourcers blamed for cocking up programmes at one in three big firms

Deloitte survey says third parties to blame for major disruption

Outsourcers are to blame for causing major disruptions at one in three major UK companies over the last three years, according to research by consultancy firm Deloitte.

The global survey, which included the responses of 107 UK companies across different sectors, also found that 80 per cent of UK companies are dependent on outsourcers for operations – the highest proportion in any country.

Just 11 per cent said they feel equipped to deal with such failures during times of uncertainty.

But many companies and government organisations continue to outsource at speed, despite the associated risks.

As revealed by The Register, Lloyds Banking Group is to offshore nearly 2,000 IT jobs as part of a major outsourcing deal with IBM.

Kristian Park, global extended enterprise risk management partner at Deloitte, said the management processes and technology that supports the oversight of these relationships are not keeping up, creating an "execution gap".

"Whilst there is clear organisational commitment to address this, it is not being matched by the right skills, processes and technology to achieve intended results."

Deloitte estimates that most large organisations take between two to three years to develop a framework for better managing risk. The report identified technology as one of the key areas where greater governance was needed.

However, Park added that in some cases it could take a backseat with Brexit. "In the current climate, some will be focussing on issues such as where they will continue to be located, or assessing talent models, particularly during the two-year time frame in which the UK intends to depart from the European Union," he said.

Deloitte was recently in the dog house with the UK government after a leaked memo said civil servants were struggling to cope with more than 500 Brexit-related projects amid Cabinet splits.

Subsequently the global consultancy firm agreed not to bid for government contracts for six months following a furious row with Prime Minister Theresa May. ®

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