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More than Cost-saving in Outsourcing

Filed in archive Outsourcing Advisors by Carol Kendrick on September 15, 2006

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As mentioned, one of the main reasons why there are many companies are considering outsourcing is to save on expenses. This should not be the ONLY reason why companies outsource and as a category in looking for the best outsourcing vendor.

Professor Leslie Willcocks from the information systems and innovation department at the LSE gave a sound advice when choosing the best outsourcing provider for your company. The professor said that "three-quarters of winner's curse outsourcing deals - where the provider makes no profit - also result in a bad experience for the customer."

I totally agree with the professor's advice, after all what is the point of a business when it is not earning? Beware of outsourcing vendors who have very low prices because their delivery might be really low so as to coincide with the price that they are offering.

Companies who really wants to benefit from their outsourcing deals should look beyond the cost-saving strategy. This includes picking out an outsourcing vendor which would deliver quality results for quality prices.


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