Friday, April 14, 2006

Outsourcing Saves Less Than Claimed

One more reason U.S. companies should do their homework before sending American jobs overseas: "(Reuters) Outsourcing of information technology and business services delivers average cost savings of 15 percent, a survey found on Thursday, disproving market claims that outsourcing can reduce costs by over 60 percent. After professional fees, severance pay and governance costs, savings range between 10 percent and 39 percent, with the average level at 15 percent."

No comments: