Discover the Hidden Costs of Outsourcing
Avoid surprises. Uncover, measure, and mitigate hidden costs of outsourcing.
- Business and IT leaders have come under increasing pressure to cut costs, in part due to hype surrounding the cost-cutting potential of outsourcing.
- Outsourcing projects frequently go over budget and fail to deliver the promised cost savings.
- IT leaders hesitate to use outsourcing when the final project costs are highly unpredictable.
Our Advice
Critical Insight
- Info-Tech identifies seven hidden costs of outsourcing that, on average, add 25% to the overall cost of an engagement.
- IT leaders underestimate the magnitude of each of these costs at least 20% of the time. Effective management of outsourcing requires the IT leader to correctly budget for and take steps to reduce these hidden costs.
- Each of the costs manifests in a different way for application and infrastructure outsourcing, but apps and infra engagements mostly experience the costs with the same frequency and magnitude.
- While large, brand name outsourcing vendors offer a host of client management services, these services do not reduce the likelihood that hidden costs will creep up on clients.
Impact and Result
- Find the risk of each hidden cost for your outsourcing project pertinent to your outsourcing engagement characteristics and your organization characteristics.
- Manage your outsourcing engagement to reduce hidden costs and increase your net benefit.
- Decrease hidden costs both for contracts that are already signed, as well as contracts that are up for review or renewal.
- Calculate the net outsourcing cost you can expect with each available vendor.
Discover the Hidden Costs of Outsourcing
1. Avoid and mitigate the hidden costs of outsourcing
Improve the budget performance of your outsourcing engagement.
2. Predict the likely hidden costs of outsourcing for each vendor under consideration
Make an informed choice whether to outsource and choose the best vendor, based on the total cost picture.
About Info-Tech
Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.
We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
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A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.
Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.
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Each call will focus on explaining the material and helping you to plan your project, interpret and analyze the results of each project step, and set the direction for your next project step.
Contributors
- Acosta Sales & Marketing
- FTP Inc.
- GTS Central Europe
- Health Intelligence
- Jay Lambert Consulting
- Medbuy
- Sage Automation
- The Royal Conservatory School
- Thundermist Health Center
- An additional six companies contributed to this research. Due to the sensitivity of the information, their identities will be kept confidential.