Outsourcing not all it's cracked up to be
Just when the zealots would have us believe that outsourcing was on the verge of steamrolling IT departments and leaving far fewer employees in its wake, Deloitte and Touche issued the results of a study that indicates myriad twists in just such a plot.
Deloitte's report, Calling a Change in the Outsourcing Market, found:
-- 70 percent of participants have had negative experiences with outsourcing.
-- One in four respondents realized that they could handle certain functions better in-house, and yanked those back inside the corporate walls.
-- 44 percent did not see cost-savings from outsourcing.
-- 57 percent ended up absorbing costs that they believed were included in the contracts with vendors.
-- Nearly 50 percent cited hidden costs as the biggest problem.
The list goes on and on. Literally. More than 80 percent of respondents have either limited or no transparency to a vendor's pricing schema, 73 percent are working to reduce outsourcing vendor dependancy, and nearly 50 percent lack a corporate-wide methodology to evaluate the business case for outsourcing.
More at the link provided.
I never really brought that argument. I saw counter examples right away.
Posted by: EBrown at April 20, 2005 07:16 PMI didn't figure you did. But just as forty years ago the idea was that government almost always worked, now we've gone the other direction. And if you ask me, the direction we're going in now is much worse than the one we went in forty years back.
Posted by: Lester Spence at April 20, 2005 11:39 PM
So what does this say for the conservative argument that private sources are almost always better than government? Transparency and accountability aren't just catchphrases huh?
Posted by: Lester Spence at April 19, 2005 10:55 PM