Cost in Outsourcing
The primary reason why most companies outsource is because of the cost-saving that it brings to the organization.
Though that is the case, outsourcing mainly because of cost is not a good start in outsourcing because other important details such as training and quality could be overlooked. Outsourcing is not a miracle worker as other companies expect it to be. Even if you could save money on outsourcing, it is not a big amount over-all.
Coming up with a reason aside from cost should be done by companies so that their jumpstart in the outsourcing field should be right.
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While it can’t be the only factor, cost will always be a critical success factor in outsourcing. As reported by Globe & Mail columnist and RIS CEO Peter Thompson today, researchers at the University of Calgary have reached some positive conclusions to this end when looking at the relationship between outsourcing and ecomonic growth; that technology outsourcing is seven times more financially rewarding than outsourcing other functions. See the full article at: http://www.theglobeandmail.com/servlet/story/RTGAM.20070514.wtq-thompson0515/BNStory/GlobeTQ/home
Comment by Corcoran on May 15, 2007 2:13 pm