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Gartner says to stop outsourcing now

This Datamation article titled "Stop Outsourcing Now", notes that the prestigious Gartner Group suggests that IT outsourcing has been a failure for many computer shops:
"And while outsourcing and offshoring might save a company money in the short run, it's often not a lasting result, according to Cohen, who says many companies will save money the first year. If a company was in really bad shape before they outsourced some work, they might save money for two years. However, when the deal hits the third-year mark, things tend to blow up, says Cohen. "
''[Companies] need to go back and analyze why they're outsourcing and why their work is offshored,'' Cohen adds. ''Go back and restructure those deals. They may require a new set of service metrics or new terms and conditions... First go back and put together a sourcing strategy that relates directly to the business strategy and align a sourcing plan and a business case. Then look at the whole portfolio of providers and realign expectations and details of the deal.''


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