Study: Outsourcing Boom Is OverBy Stan Gibson | Posted 2006-07-11 Print
A new study finds that the outsourcing boom is coming to a close due to experienced customers becoming more savvy and picky about the work they hand to outsourcing providers.
The outsourcing boom has passed and maturity is setting in, according to a new study from consulting firm DiamondCluster International in Chicago.
The leveling off is due in part to experienced customers becoming more savvy and more picky about the work they hand to outsourcing providers.
The reticence on the part of some customers is due to disappointment with the performance of their outsourcing providers, the study found.
"I expected the abnormal termination trends to go down, but they remained pretty high," said Tom Weakland, leader of the outsourcing advisory services practice at DiamondCluster. Abnormal terminations occur when customers scrap a contract before its scheduled completion date.
Premature contract terminations, particularly with onshore providers, continue to be a prevalent trend, he noted.
The study found that 47 percent of buyers reported they had prematurely terminated at least one outsourcing relationship in the prior 12 months.
Read the full story on eWEEK.com: Study: Outsourcing Boom Is Over
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