Speaking at the Shared Services Outsourcing Network conference in Amsterdam, KPMG’s director, Claudio Altini, said the decision to outsource is no longer simply about reducing costs or headcount.

Research from KPMG shows that more than two-thirds of service providers polled were cautiously optimistic about pipeline growth for the next quarter and KPMG would expect that key areas of interest will be customer demand for IT services to increase between now and the end of June.

Altini summarised the key reasons behind changes in outsourcing: “too often, in the past, outsourcing relationships have broken down because of mixed messages around the three Rs – rates, results and responsibilities. Now, however, businesses are no longer prepared to accept standard terms and conditions for outsourcing their core services. They want proof that service delivery arrangements are flexible, can move with the strategic needs of an organisation and will meet the targets demanded by stakeholders.”