Storyboard: Discover the Hidden Costs of Outsourcing


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Info-Tech researchs shows that seven hidden costs will typically add 25% to the price of an outsourcing engagement. We arrange the costs in four categories:

  • Transition costs: unexpected costs to mesh your processes with those of the vendor and bring the vendor’s staff up to speed.
  • Extra fees: charges that you do not expect for service that you thought were covered in the engagement fee.
  • Management costs: the unexpected burden of managing the relationship.
  • Rework costs: surprises that come after you have received the deliverable from the vendor.

This storyboard will help you take steps to protect yourself from the extra fees, or at least budget for them appropriately.

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Search Code: 46526
Published: August 16, 2011
Last Revised: August 16, 2011

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