Outsourcing Backlash Starts
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Nearly one in four companies are actively bring outsourced activities back in-house, according to a survery from Deloitte Consulting. The largest reason seems to bad experiences, with over 70% reporting significant negatives. Even the much vaunted cost savings have not appeared. 44% of them could not see outsourcing contracts achieving significant cost savings. Hidden costs in outsourced contracts, were cited by half of the respondents as the most common problem. 57% said they had to pay for services which they thought were included in the original contract. Those that are not bringing the contracts back in-house, are often shortening the term from ten years to five or less. According to senior strategy principal at Deloitte, Ken Landis, firms found that outsourcing add complexity and increase the workload for management. Senior executives from companies with an average turnover of $50bn. Face-to-face interviews were used.
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