Preliminary results from a survey carried out on behalf of CMS Cameron McKenna show dissatisfaction with outsourcing in the Square Mile and highlight the need for more consideration of structure in the sector, according to the City firm.

The results of interviews with 22 senior City directors responsible for outsourcing work in the financial services markets including to overseas venues - ranging from research to basic bureaucratic jobs - highlighted that many are deterred because of regulatory implications, with a common perception that the regulatory regime is unduly onerous.


It also found that few businesses give consideration to using innovative or distinctive structures when outsourcing.


When asked about what structures they had used for outsourcing and why, most respondents were advocates of transferring the function outright to the third party supplier. Little thought was given to alternative structures, such as joint ventures. Many complained that there is often a drop in the level of service after an initial 'honeymoon period'.