Outsourcing Does Not Offload Your Risk

by Carole Edrich

When weighing the benefits of outsourcing, it is important not to ignore the risks. In fact, recent studies from two continents indicate that 50% of strategic outsourcing deals fail in the first 18 months. Reasons for the failures include a loss of control over the activity, process, or service outsourced and an increasing reliance on the outsourcer. Further problems can result if scope, service levels, scale, operational requirements, customer requirements, or external environment changes.

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Outsourcing Does Not Offload Your Risk 22 October 2003