Tag Archives: outsourcing

Why Offshoring Fails

Statistical data about offshoring failures is controversial and it is difficult to say whether the failure percentage of offshored projects is higher, lower, or equal to the failure rate of onshore projects. According to the 2005 Ventoro Report on offshoring, 45 percent of the respondents in their survey considered their offshoring strategy to be successful, while 36% considered it a failure. According to Gartner, “Through 2007, 80 percent of organizations that outsource customer service and support contact centres with the primary goal of reducing cost will fail.” So it seems that before declaring a project a failure, it is necessary to have clear criteria how to measure success and failure – by cost savings alone or by taking other factors (i.e. quality and customer satisfaction) into account. Continue reading

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