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Bring IT Back Home: Repatriating Outsourced Services

McLean Report: Research Note


If you've decided that things just aren't working out between you and your outsourcer, carefully plan your efforts to either find another outsourcer or repatriate the outsourced work to minimize risk to your business.

Nothing Lasts Forever

For all its benefits, outsourcing may not be for everyone. And even if you think it's for you, it may not be forever. Of the outsourcing arrangements that end in failure, it's estimated that over 90 percent of them will end up being taken over by other outsourcers. The remaining organizations may decide to reclaim the previously-outsourced work. Some reasons include:

  • Cost. Work is often outsourced as a means of bringing cost savings to the organization. If these savings are not realized - often due to unforeseen logistical overhead and reduced productivity - and leadership believes the outsourced services could be more efficiently delivered in-house,...
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