Response from: Steve Hamrin

Do you mean "Incurring" additional costs in outsourcing is inevitable?

Response from: carol

Yes, it is incurring Steve. Thanks for the correction!

Response from: bpo

Yep, one has to be very cost conscious. With the rising wages, dollar devaluation in the BPO areas, etc... Gotta change the currency of my BPO contracts.. Hahaha!

Response from: Bit-Simple

The additional costs in outsourcing that are implied above also apply to in-house work as well. For example if you are producing work in-house and you change your requirements, or are adversely affected by regulatory changes or you do not sufficiently define the role that your developers should fulfill, then clearly you will still bear the cost. Companies should not treat their internal development teams or their outsourcing partners as black-boxes with whom they do not actively interact. Successful projects are build out of on-going dialog between all of the stakeholders. In this way unforeseen costs are predicted earlier. Plans can be drawn up to mitigate the impact of risks becoming true issues, and the working relationship between the parties is much more productive. Project whether outsourced or in house must be actively managed. It is not enough just to put an extra line-item in the budget for "unexpected costs"