It has been noted that many of the outsourcing deals fail to take off as proper planning is not done. Also the suppliers and the clients are divided on the aim of the contract. A survey of around three hundred C level executives and outsourcing suppliers was undertaken and it was found out that there was a lack of alignment between the customers and suppliers. Most of the suppliers stated that reduction in costs was the reason behind outsourcing and only fourteen percent of them attributed to the IT skills.
The end result is that it leads to poor returns, missed opportunities and inability to achieve transformational objectives. Also a very few companies are interested in realizing the long term benefits of the contract.
I believe that a long term planning and a vision is required if the companies want to prevent failing of outsourcing deals.
