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13 IT Outsourcing Problems that May Lead You to Bankruptcy

While outsourcing IT functions seems attractive in terms of cost savings, it is not easy to take the right decisions leading to fruitful results.

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The problem is that the argument being made, that outsourcing higher-end, higher value business processes will lead to erosion of the ability to innovate is at once obvious and flawed.

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IT Outsourcing: How Offshoring Can Kill Innovation

Harvard Business School professors David Pisano and Willy Shih argue that overzealous offshore outsourcing can cripple a company’s ability to innovate.

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IT outsourcing has been meeting key service needs of major global corporations for the past few decades. Everest conducted an outreach with major IT outsourcing providers.

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Outsourcing can improve efficiency

IT outsourcing is no longer seen as a company not being able to cope with its workload, says expert. According to Jagdish Dalal outsourcing is now seen as a sensible business decision.

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If you have now decided to join the outsourcing bandwagon or if you are still contemplating whether it’s for you, this gruesome process can actually be quantified and qualified.

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With outsourcing there is no calm, relaxing “summer break.” You are either in your deal, in a new deal, or you have to run things yourself.

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Squabbles between IT departments and their outsourcing providers over price, scope, performance, delays or requirements can turn into big legal problems if left unaddressed.

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The global economic meltdown late in 2008 shook almost every industry imaginable except for the outsourcing industry, which remained sturdy and unaffected in the heat of financial flight.

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The global outsourcing scenario is fast moving and quick changing. It is found that many of the leading companies are now switching away from multiple year mega contracts to single vendors.

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