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Pitfalls and lessons from Outsourcing

Pitfalls and lessons from Outsourcing

At one time or another, every firm is faced with the question of whether outsourcing would be beneficial for the company. Experience shows that weighing this question is no easy task, from deciding which areas can be outsourced and largely standardized, to how the relationship with the service provider can best be directed.

Oftentimes companies want to optimize already concluded outsourcing contracts and amend them to set them back on track.

It’s clear that outsourcing is not always a magic solution for cutting costs, increasing cost transparency or making services more flexible. Clear rules and success factors can be developed based on experience with both successful and unsatisfactory outsourcing projects. These conclusions can then in turn serve as the framework for a successful approach to similar deliberations and projects.

Based on the rules and success factors, the authors of this report have developed models, which can be used as guidelines for implementing outsourcing projects.