Saving cost remains the most important factor behind outsourcing. The monk like business veterans may take the round table conference by storm while suggesting how and why other reasons are important, but the moot fact remains the same. Latest study from Gartner exactly says so in a bit rounded manner. “Gartner Says Cost Remains Primary Factor When Organisation Enters
into Outsourcing Relationship.”
But blind eye dependency on cheap labor can actually destroy a fi
rm's goodwill earned over years and millions being spent on marketing. There have been quite a few cases over last 10-12 months, where organizations have taken back part of their outsourcing function back home.
Companies that outsource services purely to cut costs are likely to set themselves up for short-term gains and long-term criticisms from management, according to Gartner. Gartner research continues to show that reducing cost remains one of the primary drivers for outsourcing, but placing too much emphasis on cost reduction usually leads to dissatisfaction because many savings are either unsustainable or never achieved.
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