October 28, 2005
Call for planning before outsourcing
Outsourcing has won several rounds in the match up to market expectations, and there are many success stories in the business. However, the pro-outsourcing argument is also dented by failures of outsourced projects and premature closure of contracts.
One such experience that is cited in the market is that of Sainsbury’s IT systems that were outsourced to Andersen Consulting, but Sainsbury is now calling for the foreclosure of the deal five years before schedule. The argument of cost savings does not always hold true because extra expenses are encountered under another head. Times Online reports:
Companies, and perhaps those public-sector organizations that are increasingly looking to outsource, may find that they need to take a second opinion before plunging into a multimillion-pound deal which is crucial to the success of their organization.
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