Guessing is not a strategy: How to build decision velocity with AI and real-time data
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The Real Outlay on Outsourcing
Although outsourcing typically delivers lower costs, recent studies have shown that about half of outsourcing contracts ultimately fail. Why? Often, management abdicates responsibility for an "out of sight, out of mind" outsourced project, fails to consider hidden costs such as travel, underestimates the importance of culture clash, or outsources a critical function that should be done in-house.
In order to ensure a successful outsource relationship, whether the work is going to a domestic firm or being shipped overseas, executives must carefully choose partners and establish meticulous management practices, say a handful of senior executives who have had mixed results with outsourcing. They must also know when to just say "No" to the short-term temptations of outsourcing for the long-term good of their organizations.
"Look at what makes your business special. Typically, it's the knowledge about your industry and your business niche," says Dion DeLoof, CEO of Anteo Group, a project-based information technology staffing and ROI consulting firm based in Atlanta and London. "Outsource the well-defined, straightforward tasks that don't involve a lot of architecture and creative thinking. But when it comes to your core competency, think hard about whether you want to send that outside."
David …
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