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Is outsourcing reaching its limits or simply pausing for breath?

Outsourcing is a management tool that is taking the business world by storm, or so it would seem from reading much of the dedicated coverage of outsourcing topics featured in business and IT publications and websites. Thus it was very surprising to me to come across two recently released studies on outsourcing published by leading consulting firms - Deloitte Consult......

Full article >>> utsourcing relationships add complexity to the business. Instead of simplifying operations, outsourcing often introduces complexity, increased cost, and friction into the value chain, requiring more senior management attention and deeper management skills than anticipated. Many companies outsource because they think they can manage vendors more easily and effectively than they can employees. Indee......

Full article >>> for buyers. The Deloitte study points out that really big companies like those it surveyed often have greater economies of scale opportunities than most of their vendors. Indeed the notion of outsourcing as an effective tactic for reducing costs takes a pounding in this report. Very few respondents indicated that outsourcing saved them any substantial costs. Instead, the main benefit was allowing......

Full article >>> h inefficient processes and ineffective managers that are under constant and intense pressures to improve their performance. For these organizations, the perceived benefits of outsourcing, and particularly offshore outsourcing, will likely be too hard to resist.

Click here to read Part II: We will discuss the key findings from a survey of the IT outsourcing......

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Source:wistechnology.com By Tony DiRomualdo 07/28/05


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