Every one in five IT outsourcing deals end up being a failure as these deals favor the client at the expense of the vendor from the start. These are the findings from a research which was carried out by Leslie Willcocks, professor, technology, work, and globalization, London School of Economics. The research has been titled Winner’s curse and it has been found out that these contracts not only forces the suppliers to accept them at minimal return but in the long term too they are not able to meet the needs of the client.
He further stated that a number of clients go in for suppliers which offer lowest cost rather than best results and suppliers too cut their costs in order to get hold of a high profile business. He used an example of deal between UK-based IT services provider ITNet and Esso in order to prove his point.
He stated that in order to solve this problem clients should avoid the cheaper option and should try and match price against quality of service in order to get the best value for money.
