Study: Outsourcing Boom Is Over

[David Abramowitz]

The article stated: The study found that 47 percent of buyers reported they had prematurely terminated at least one outsourcing relationship in the prior 12 months. It is evident that many companies are not aware of studies of this nature, nor are they aware of the experience of the company next door. They just have overactive CFOs who buy into the hype without knowledge, research, or forethought. Dave

[B_Sing]

It also said:

Only 28 percent of buyers terminated at least one offshore deal, but 42 percent of onshore customers had done so. Of those, 53 percent cited poor performance by their onshore provider.

What to make of that?

[R.Daugherty]

that quarter results CEO's believed the huge consulting companies, who got fat on US tax dollars without delivering anything that worked, when they promised IT clueless executives 10% savings if IT was outsourced to them. The US companies could get rid of their computer people, oh excuse me, transfer them to the consulting companies for them to get rid of, and the consulting companies would run their operations better on a leaner budget with all the buzz words we hear day in and day out ad nauseum. The US consulting companies transferred as much overseas as fast as they could while sucking more than ever could be saved off the top, so the domestic outsourcing is the worst of all scenarios. The other 58% that haven't cancelled are either paying for it with our tax dollars or haven't got past an even more exorbitant penalty phase yet. rd

[David Abramowitz]

.......and still,,,,most other firms (considering outsourcing) have not heard the news. Dave

[padshore@optonline.net]

As the Duke of Wellington said " There are lies, damn lies, and statistics" Either I'm reading this article differently than what the other respondents are doing, OR, I'm misreading what the other respondents are stating, but my take from this is that even MORE jobs are going offshore as the outsourcing contracts to onshore companies are being terminated. It does'nt say that the number of outsourcing contracts are diminishing. Anyone else have a different take? Alan

[B_Sing]

Wow - you apparently got a lot more out of that than I did. I thought that it indicated that companies were more satisfied with outsourcing offshore rather than on. That made me wonder if that's really true, and if it is, why?

[Guest.Visitor]

When Lou Dobbs announces that the outsourcing boom is over, then I might believe it. I've actually been thinking about putting some money in funds that specialize in BRIC companies. :-) The economy here in the USA aint exactly hot. Chris

[B_Sing]

When Lou Dobbs announces the outsourcing boom is over and the sky isn't falling, HE'LL be out of a job. That's why he won't do it. ;-) There are a couple of IMHO good articles on Mr. Dobbs here and here. I'll see your Dobbs and raise you a Kudlow ;-).

[R.Daugherty]

You must be joking, Brian. Lou is plenty busy with immigration. Outsourcing plays second fiddle these days. But he's doing a great job on both, or at least that's one opinion from this CNN watcher. Ralph

[Guest.Visitor]

and down the drain went my privacy. Despite having my phone number on do not calling list, I get calls from telemarketeers. I can tell by their accent that it is someone from my birthplace India! How do they find my address when I change it every three to six months? Guess what? It is all thanks to the call centres in India that have access to my personal records but are not obliged by any privacy rules.