Sterling Report | Page 9

STERLING
SECTION 2:

From scale to substance – The Goliath problem

While outsourcing demand is increasing, loyalty to large, legacy providers is declining. Recent industry data suggests that a significant majority of organisations would consider switching providers even if currently satisfied, driven by a need for greater flexibility.
Execution risk arises when delivery is routed through distant hierarchy layers or when accounts are staffed by transient junior resources.
RightFirms – State of Outsourcing 2026 show recurring operational failures: scope drift, hidden cost escalation and frequent leadership changes on client accounts. Procurement teams reported that complex change requests stalled while account managers navigated internal tiers and some mid-market buyers moved security or critical functions back in-house because they judged vendor responsiveness insufficient.
sterling-outsourcing. com