More on Sunday Business Post, The IT outsourcing section is full of articles about how to save money and increase productivity by outsourcing.
What’s wrong with these article? It completely ignores the fact that in may cases outsourcing actually increases cost.
Gartner: Outsourcing costs more than in-house
GARTNER: OUTSOURCING DEALS BASED ON PRICE ALONE ARE LIKELY DOOMED
And it’s not just Gartner stating this, More and more real life business situations are proving that short term gains are reversed with long term failures and will result with increased expenses. Outsourcing is proving to be an accountant’s favorite trick to improve the short term profit projections at the expense of long term gains, and company stability or as a means to project profitability to enhance the sale of a business.
One more thing, It’s also a consultants trump card.