If South Africa wants to gain substantial jobs on the outsourcing merry-go-round, local companies are going to have to ensure that they maintain high levels of service and expertise -- or lose out to other outsourcing companies.

This is according to Org Geldenhuys, a co-founder and director of Pretoria-based IT recruitment company, Abacus Recruitment.

Geldenhuys said recent research shows that more than 50 percent of IT directors in the U.K. are dissatisfied with their outsourcing suppliers -- and are considering switching their outsourcing contract to another vendor.

According to a Gartner report, out of 68 top executives polled by the company, more than 50 percent are already in the process of switching their supplier because of poor performance.

Another problem uncovered by the research is the fact that 21 percent of those interviewed believe that their current outsourcing policy is "not aligned" to the company"s business strategy.

"The top priorities highlighted include cost efficiency, service quality, adaptability and relationship management -- and these are all things that local companies should take serious cognizance of if they want to remain competitive," says Geldenhuys.

"Outsourcing, like any other business pursuit, needs to be managed properly. If there are no clear business benefits, the client is going to reconsider everything once the contract period is up for renewal," he concludes.