Research carried out by KPMG has revealed that outsourcing is frequently being driven by businesses’ need for improved customer satisfaction.

The research revealed that may large contracts, worth more than £10 billion and involving the outsourcing of technology services, are being driven by the need to develop customer service.

The study known as the ‘Service Provider Performance and Satisfaction’ found that 48 per cent if respondents based their decision to outsource on the desire to improve service levels.

The move to outsourcing comes after companies have been impacted by skill shortages, with 58 per cent of respondents saying that ‘the need to access skills’ was an influential factor for outsourcing.

Jason Sahota, director in KPMG’s Shared Services and Outsourcing Advisory team, said: ““The impact of a marketplace dominated by customers demanding more for less, combined with a decline in the number of staff able to meet these high standards, means that the pressure to deliver is stronger now than at any time in the past few years”.

Service providers looking to “VPO” to enhance customer experience

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