Outsourcing more costly than doing it in-house, and it costs on average 20% more. When a section of media as well a section of industry (there is no proof that these inclined studies are industry sponsored) is hell bent on establishing the fact that outsourcing actually forces firms to pay more, another part of the industry phooophooing these talks with their statistics and surveys and studies.
The latest study done by Compass Management from UK found that instead of 18% less than in-house costs escalate “reaching 36% above comparable top quartile internal operations by year three.”
In the final years of outsourcing contract, the survey says, outsourcing providers charge on average 30%-45% above in-house costs.
Does that mean that eager to outsource CEOs are taken on ride by the providers?
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