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Outsourcing Is Not Just About the Money

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One of the points constantly referenced in most reports about the maturing outsourcing market is companies' increased interest in factors other than cost.

 

These days, it's not as much about saving money as it is about speeding time to market, supplementing sparse workforces, or offloading routine functions to allow in-house staff to turn their attention to more strategic matters.

 

Or so the analysts tell us. There have been some exceptions, such as a Gartner survey earlier this year that found more than half of respondents used tactical IT outsourcing to attain short-term, cost-focused benefits. For what it's worth, Gartner says this type of shortsighted strategy is a big mistake.

 

A recent Hewitt Associates survey offers more of the "not just cost" mantra. According to a report in India's Business Standard, the top drivers for outsourcing are efficiency, quality, availability of manpower and cost -- in that order.

 

We suspect what companies really want is to have it all. One thing they need to remember, however: Quality may suffer if they insist on rock-bottom pricing.

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