The Hidden Costs of Outsourcing

IT Outsourcing can help a company to achieve its goals and objectives by enabling them to focus on their core, value creating, competencies.

However, as this article in Forbes details brilliantly, there can be a hidden cost if the outsourcing arrangement is poorly constructed...

 

The Hidden Costs of Outsourcing - Forbes

http://news.google.com

The problem is that IT is an extremely complex and rapidly changing set of activities, which is precisely the kind for which outsourcing is problematic,” Tadelis says. “For a good outsourcing relationship, (...)

In our opinion, as well as clearly defining outcomes and objectives, the key to success is choosing the right partner - if the relationships at the most senior levels are strong then the outsourcing arrangement is likely to work. If these relationships don't exist, the outsourcing arrangement is likely to be managed to the letter of the contract and unlikely to been seen as a long-term success by neither the client nor supplier.

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