April 27, 2005
Reasons Why Outsourcing Contracts Fail
According to Paul Beaucham, a UK based consultant, outsourcing can be a very profitable venture, but only if handled correctly. Mr. Beaucham recommends making a number of in-house preparations prior to engaging in outsourcing. These include, identifying the current status, the level of performance, and the cost allocation of a particular service. Then, determining the need and attempting to reduce in-house costs. Silicon.com Reports:
The first two tasks help you work out what you could or should be outsourcing, but some IT should not be outsourced at all. The third (and it's a good process to work through anyway) is to reduce your costs - if you do not, the outsourcer will. But in doing this task you will identify the true cost of your services - and the answer may show you provide an effective service for the price.
Read More: Leader: Ancient reasons why outsourcing fails
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