Contracts renewed on price, not performance_2

Finance directors in the UK might not renew contracts for outsourced services, even though they are very satisfied with their suppliers, according to a new survey.

Three-quarters of the 71 respondents rated their outsourcing suppliers as either good or extremely good.

However, 53 per cent said they might not renew the contract, preferring to go for the best price. In the past five years, 62 per cent of finance directors have changed outsourcing suppliers.

Tim Couldrick, a partner at Tarlo Lyons, which carried out the...

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