Outsourcing does work but must be done correctly, say experts

The trouble caused to British Airways by the Gate Gourmet dispute has shown that one of the few things that no company can outsource is the risk of a serious breakdown in its supply chain. The lesson is not that outsourcing does not work, management experts say, but that it needs to be done correctly.

Outsourcing is one of the most powerful trends in modern business life. Accurate figures for the total value of services outsourced in the UK are hard to come by, but £2.5bn was spent on consultants advising on and managing outsourcing projects alone, according to the Management Consultancies Association.