Wednesday, April 20, 2005

[IWS] Deloitte: OUTSOURCING SURVEY (79% Negative Experiences) [20 April 2005]

IWS Documented News Service
_______________________________
Institute for Workplace Studies                 Professor Samuel B. Bacharach
School of Industrial & Labor Relations          Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor                  Stuart Basefsky
New York, NY 10016                      Director, IWS News Bureau
________________________________________________________________________

Deloitte

Calling a Change in the Outsourcing Market
The Realities for the World's Largest Organizations
[20 April 2005]
http://www.deloitte.com/dtt/cda/doc/content/us_outsourcing_callingachange.pdf
[full-text, 34 pages]

[excerpt]
While outsourcing has become a dominant trend, emerging evidence indicates that results have
been mixed, and there are few in-depth studies that can help senior executives recognize the
inherent complexities and common pitfalls of outsourcing. Deloitte Consulting LLP conducted a
study to help fill this gap and provide a fresh point of view on outsourcing.

Press Release
Calling a Change in the Outsourcing Market
New Study Reveals Outsourcing Falling from Favor
[20 April 2005]
http://www.deloitte.com/dtt/research/0%2C1015%2Ccid%25253D80376%2C00.html

While outsourcing has become a dominant trend in the marketplace, there are few in-depth studies available to help senior executives recognize its inherent complexities and common pitfalls. This study fills that gap.

Deloitte Consulting LLP is pleased to announce the release of a new study based on personal interviews with 25 of the largest organizations across eight industry sectors. This study uncovers what few studies report: outsourcing is not delivering its expected value to large organizations.

The study reveals that:
   * Seventy percent of participants have had significant negative experiences with outsourcing projects and are now exercising greater caution in approaching outsourcing.
   * One in four participants have brought functions back in-house after realizing they could be addressed more successfully and/or at a lower cost internally.
   * Forty-four percent of participants did not see cost savings materialize as a result of outsourcing.

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Stuart Basefsky                 *
Director, IWS News Bureau               *
Institute for Workplace Studies *
Cornell/ILR School                      *
16 E. 34th Street, 4th Floor            *
New York, NY 10016                      *
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