Computers

With the proliferation of outsourcing, there is little doubt that it has become the business byword of the last few years. Organisations of all sizes are realising the benefits of using suppliers to handle processes such as technology, HR, finance and procurement. Lured by the cost savings and the ability to harness external expertise much more economically than providing that experience in-house, more and more organisations believe outsourcing to be the cure all for business ills.

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However, this is not necessarily the case. The rush to outsourcing that has been endemic over the last five years or so has been followed by a number of monumental outsourcing disasters. This has served a purpose in the sense that organisations now realise they shouldn’t be blinkered by the promises of cost savings – outsourcing is a very tricky and subtle process and needs to be broached as such. Outsourcing can fail for a number of reasons, from contract issues to relationship breakdowns, from clashes in working practices to soaring costs. But recently it has been reported that failures in quality assurance and inadequate testing have been behind some large scale outsourcing failures.


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