Outsourced Function: Which Costs More?

Filed in archive Outsourcing Issues on July 30, 2007

Let's face it, money is a very important part in outsourcing because most companies are into this kind of business strategy because of it.

Not all outsourced functions cost the same. There are several functions which costs more as compared to others. One factor here could be the infrastructure as well as the gadgets used for this kind of outsourcing. The research which I am currently focusing in was able to find out which outsourcing function costs more and which costs less.

Here is a short breakdown of the research results:

All IT Functions - 21%
Disaster recovery/power backups - 14%
Hardware and Network Operations - 12%
Operations/end user support - 10%
Equipment leases - 8%

Personally, I already expected that IT functions would cost more considering that outsourcing could also equate to more IT work. Any thoughts on this research finding?