Three quarters of UK organisations are disappointed with the quality of work provided by offshore outsourcers, according research from Valueshore Spain, a group of IT consultancies. However 78 per cent of organisations said they still base their outsourcing decisions on cost rather than quality.

Though cost was still the main deciding factor in outsourcing deals, 94 per cent of respondents admitted they were increasing the likelihood of their IT projects failing to meet their requirements by focusing on cost alone.

“There needs to be a fundamental change in the way that many businesses think about offshore outsourcing,” said Daniel Naoum, co-founder of Valueshore Spain. “Taking a cost-only approach can have a detrimental effect on the quality of work received. Businesses also need to open their eyes towards the ‘hidden’ costs. The cheapest option doesn’t always provide to the biggest overall savings, as quality concerns can often result in more management time being required and increased travel and troubleshooting costs.”