April 19th, 2005
70% of companies had negative experience with outsourcing, 44% did not get any cost saving
InfoWorld TechWatch points to Deloitte & Touche study of current outsourcing practices, where an overwhelming number of respondents has had negative experience with outsourcing and half of the respondents faced hidden costs. 70% of participants have had negative experiences with outsourcing. 25% of respondents realized that they could handle certain functions better in-house, and revised their outsourcing contracts. 44% did not see cost-savings from outsourcing. 57% ended up absorbing costs that they believed were included in the contracts with vendors. Nearly 50% cited hidden costs as the biggest problem.
Alex is a software engineer in the San Francisco Bay Area. ITFacts is created and updated by a group of statistics-obsessed individuals.
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