Study: Outsourcing Boom Is Over

By Stan Gibson  |  Posted 2006-07-11 Email Print this article 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



 
 
 
 
Stan Gibson is Executive Editor of eWEEK. In addition to taking part in Ziff Davis eSeminars and taking charge of special editorial projects, his columns and editorials appear regularly in both the print and online editions of eWEEK. He is chairman of eWEEK's Editorial Board, which received the 1999 Jesse H. Neal Award of the American Business Press. In ten years at eWEEK, Gibson has served eWEEK (formerly PC Week) as Executive Editor/eBiz Strategies, Deputy News Editor, Networking Editor, Assignment Editor and Department Editor. His Webcast program, 'Take Down,' appeared on Zcast.tv. He has appeared on many radio and television programs including TechTV, CNBC, PBS, WBZ-Boston, WEVD New York and New England Cable News. Gibson has appeared as keynoter at many conferences, including CAMP Expo, Society for Information Management, and the Technology Managers Forum. A 19-year veteran covering information technology, he was previously News Editor at Communications Week and was Software Editor and Systems Editor at Computerworld.
 
 
 
 
 
 

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