Outsourcing contracts under greater scrutiny, survey finds

One in four businesses that outsource are planning to renegotiate the terms of their outsourcing contracts in response to the economic downturn, according to a survey of 200 businesses in the UK.

Perhaps unsurprisingly, the most common term for renegotiation is the price of the contract, according to research commissioned by Pinsent Masons, the law firm behind OUT-LAW.COM. One in ten respondents said that they intend to bring outsourced processes back in-house.

Nearly two-thirds (63%) of the businesses polled said they would not be reviewing their outsourcing arrangements with their current supplier, mainly to avoid the time-consuming and expensive tender process associated with a new procurement process.

It is widely regarded as best practice for a business to review regularly its outsourcing suppliers. However, because most businesses are focused on reducing costs, relatively few are asking their outsourcing vendors to retender this year.

Read more: http://www.out-law.com/page-10127

Source: Out-Law.com

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SMEs at a disadvantage when it comes to winning public sector contracts

According to a new report by House of Commons All Party Parliamentary Small Business Group (APPSBG), small and medium-sized businesses are disadvantaged when it comes to winning public sector contracts by complex, expensive and outdated tender processes,

The report - supported by ACCA (the Association of Chartered Certified Accountants) - recommends that the government does more to remove barriers that are preventing SMEs from winning public sector contracts

"The procedures and practices used in many tenders disadvantage SMEs over larger companies. Many small businesses and contractors believe that days spent preparing tenders with a low probability of success are better spent earning, and therefore do not bid for public work all," said Professor Robin Jarvis, head of ACCA's small business unit.

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