| Author: |
boz |
| Dated: |
Friday, June 17 2005 @ 11:54 PM EDT |
| Viewed: |
594 times |
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 Here's an interesting study by management consulting company DiamondCluster on predictions and recent trends on global outsourcing:
http://www.diamondcluster.com/Ideas/Viewpoint/PDF/DiamondCluster2005OutsourcingStudy.pdf
Nothing in this report really suprises me due to my own personal experiences, but it was a good read nonetheless.
I believe we're in sort of an offshoring bubble, with companies racing to send as many jobs to countries with cheaper labor as quick as possible. Those that do this on the basis of cost alone are finding out now that the savings is not what they thought it would be. Relationships become difficult to manage, quality suffers, and productivity decreases along with overall efficiency. With the difficulties that arise from poorly though out outsourcing strategies, it is no suprise that the amount of early contract terminations with outsourcing providers has increased. As poor providers overseas are weeded out and successful ones merge with others, prices will inevitably increase.
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