The reasoning has come (not from one investment bank executive or any research king) from this international law firm, Bird and Bird and sourcing consultancy, Quantum Plus. Got to be different from Aberdeen’s and McKInsey’s, let’s hear out what they have to say about why outsourcing fails in the first place?
Or should I ask, why outsourcing relationship fails? It’s because strong relationships are not maintained throughout the lifetime of an outsourcing contract. This finding has been realized from a survey done by the two parties, it was based on a series of interviews and online questionnaires. The sample size involved experienced people who have been handling outsourcing projects for more than 5 years. 
The survey… sheds significant light on why outsourcing arrangements fail and what makes them more likely to succeed, finding strong evidence that companies can make an important difference to the success of their outsourcing by maintaining strong relationships throughout the lifetime of a contract. Continuity of personnel, strong governance and alignment of expectations are key hallmarks of success. The survey also revealed considerable resistance to in-sourcing as the preferred solution at the end of a lifecycle.
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