Beware the shrewd outsourcer: analyst

Beware the shrewd outsourcer: analyst

Yet another analyst has fired a warning to customers considering an outsourcing wonder cure, indicating the practice can be expensive and poses major risks to organisations if it isn't handled properly.

According to Bill Brockmann, director of Catalyst Consulting, while most organisations expect to save money through outsourcing their IT infrastructures, many fail to recognise the impact such an approach could have on their customer service levels and profits.

"We have seen many organisations that have entered into an outsourcing agreement only to find that user satisfaction drops, and costs increase," Brockmann claimed.

"This is despite the fact that they usually all devise contracts that specify technical service levels and costing expectations."

Brockmann argued that while most outsourcing decisions are covered by confidentiality agreements, service providers should not take it upon themselves to slack off.

"It's not just a question of devising a few benchmarks, because applying benchmarking to an outsourcing agreement can work in the outsourcer's favour," Brockmann said.

"They have gone through this experience many times before and know how to position themselves to look good."

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