The Outsourcing Weblog

Motivation

April 12th, 2004 › Outsourcing Issues › admin ›

What's the primary motivation for a company's decision to outsource? cost reduction? Most likely, but it's not everything.

Quoted from Customer Relationship Management News and Information:

"Still, the primary motivation does appear to be cost reduction. As companies weigh all the factors, it is important that they not be bedazzled by the initial lower costs and ignore mitigating expenditures that could offset some of the expected savings."

Further, Deloitte & Touche said:

"Offshoring should not be considered a panacea for all ills," says Phil Asmundson, deputy managing director of Deloitte & Touche's technology, media and telecommunications. In some cases, it may be more efficient to fix a process, such as billing, rather than offshore [it]."

Companies, beware. Outsourcing is only one of the alternatives in fixing a problem. It's not a cure-all medicine.