Avoiding the outsourcing ‘ditch’

Interesting article and report by Deloitte on outsourcing.  This does not discuss the pros and cons of this strategy, but rather the implications of adopting it.  They identify that one in three outsourcing agreements fall apart in the first year (end up in the ‘ditch’).  Hence it is clear that the transition from insourcing to outsourcing needs to be managed very carefully.  The article goes on to identify some of the potential pitfalls and ways of managing the transition.  These include being prepared, developing an joint master plan, assigning clear management responsibility with the right skill set, and tracking and resolving issues as an when they arise.

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