Fleet News

Fleets reassess moves to outsource operations

Outsourcing core fleet functions has grown in popularity as the recession accelerated a trend for companies to consider alternative solutions. Many opted to move away from a traditional in-house fleet manager.

However, as costs continue to dominate the fleet agenda, could this trend be about to reverse?

Some experts point to growing uncertainty about whether insourcing or outsourcing is the most cost-effective solution.

CFC Solutions reports a number of enquiries from medium to large fleets looking for software that will enable them to bring some or all of their fleet operations back in-house.

“Outsourcing has received a lot of publicity as a fleet solution for companies that are looking to save money,” said Neville Briggs, managing director at CFC Solutions.

“However, our experience is slightly different. Since the start of the recession, we have seen more outsourcing but, lately, there has been an almost equal buzz surrounding insourcing.”

CFC’s experience is backed by the findings of a Fleet News poll. When asked if they would consider bringing fleet management back in-house, companies were split with 47% voting yes, 41% no and 12% saying it could be a possibility.

Companies base the decision to either insource or outsource their fleet operations on the same perceived benefit: to reduce costs.

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