Outsourcing Not Meeting Your Expectations?

If your company is outsourcing, have you noticed that it is not quite as easy as you thought it would be? Are there costs that you hadn't considered or relationships with vendors that are more difficult that you had anticipated? Are your senior managers spending a lot more time smoothing things over? If so, you are not alone.

According to a Deloitte study released earlier this month titled, "Calling a Change In the Outsourcing Market," companies often fail to realize the expected benefits of outsourcing. Twenty-five companies that spent $50 billion in outsourcing participated in this study.

Deloitte suggests avoiding outsourcing when based only on expected cost benefits. "Moreover, the vendors' structural advantages do not always translate into cheaper, better or faster services. The world's largest companies should be able to replicate the vendors' structural advantages in-house and rely on vendors only under specific circumstances, such as fixed deep-seated structural problems or maintaining infrastructure operations."

To view this report visit http://www.deloitte.com/dtt/research/0,1015,sid%253D45635%2526cid%253D80376,00.html

Deloitte & Touche USA LLP


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