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6-Oct-09 Outsourcing, once thought of as the panacea for high IT overhead, has come under fire lately for several reasons. Hidden costs have come back to haunt penny pinching technology companies.
Off shore vendors are supposed to save you money because of their lower labor and overhead costs. However, Darin Stahl, Lead Analyst for Info-Tech Research Group was quoted in Executive Brief as saying: "Info-Tech has noticed that 44 percent of initial agreements were entered in order to reduce costs, and yet 39 percent of agreements result in increased annual costs." What pitfalls lead to such poor returns, and how can your company avoid them?