Outsourcing does not always (they used the word, rarely) achieve the lucrative cost savings being predicted during the board meetings and in many cases actually enhances costs and has a negative impact on service. The opinion has come from an overwhelming two-thirds of UK IT chiefs in silicon.com's CIO Jury 12-strong IT user panel, whose verdict is that outsourcing doesn't save money. The report here.
Well, last year we have seen some deals went haywire. There were instances when BPO providers have escalated the pricing during the 2nd and 3rd stage of the contract,
fully utilizing the laws and byelaws of the agreement. And mostly the clients only budged. There were also instances when giant outsourcing and software firms could not deliver desired quality services because the work was too niche. No wonder, in 2007 we saw lot of contracts being bifurcated in pieces and instead of awarding the contract to single player being given to multiple service providers, including niche ones.
Loads of acquisitons will take place this year, keep an eye on BPO Tiger for the latest updates and masala news.
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