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The Hidden Costs of Outsourcing

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Susie West
CEO, sharedserviceslink
2013/07/24

Every day, more organizations are eagerly embracing the concept of offshore outsourcing to lower costs, increase efficiency and productivity, and enable employees to focus on the innovative, core endeavors that drive business forward. After all, lower wages and higher productivity is a winning concept that should result in significant cost savings and improve a company’s bottom line.

However, outsourcing does not always deliver on its promise. Labor costs in the developing countries are rising, along with the competition to tap them. Fast turnover and other factors result in numerous hidden costs of outsourcing that make such projects far less attractive. According to Gartner Group, only 20% of outsourcing projects will save the host company money.

There are many hidden costs organizations should be aware of, which are detailed in this downloadable report.

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