Sunday, August 07, 2005

As the fad turns

Deloitte
Calling a Change in the Outsourcing Market
New Study Reveals Outsourcing Falling from Favor

While outsourcing has become a dominant trend in the marketplace, there are few in-depth studies available to help senior executives recognize its inherent complexities and common pitfalls. This study fills that gap. [PDF - 823kb; 34 pp]

Deloitte Consulting LLP is pleased to announce the release of a new study based on personal interviews with 25 of the largest organizations across eight industry sectors. This study uncovers what few studies report: outsourcing is not delivering its expected value to large organizations.

The study reveals that:

* Seventy percent of participants have had significant negative experiences with outsourcing projects and are now exercising greater caution in approaching outsourcing.

* One in four participants have brought functions back in-house after realizing they could be addressed more successfully and/or at a lower cost internally.

* Forty-four percent of participants did not see cost savings materialize as a result of outsourcing.
Ahh, the slow unwinding of an old fashioned golf ball. I remember it well: smooth balata skin peeled back to reveal yards and yards of elastic that, when unwound enough, reveals a rubber core containing mysterious pasty and possibly toxic goo that squirts you in the eye at high pressure. Good times. Geez, the last golf ball I cut up would have been right around the time of, oh, I dunno, say Savings and Loan Deregulation?

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