Outsourcing Dilemma: The Search for Competitiveness, The

The outsourcing solutions – conclusions

For certain key non-core functions such as IT and finance there are, in theory, considerable competitive advantages to be obtained from their transfer to external specialists. However, many organizations have found, to their considerable cost, that outsourcing is fraught with difficulties.

Experienced observers of outsourcing arrangements will have little trouble accepting the following as factual.

It is possible to work with just one provider on a sole sourcing deal and yet obtain a contract that provides for an improved service at a reduced cost to the client. However, there is also a good chance that the arrangement will fail to meet the client’s needs. The process of working with a number of providers ...