Has Outsourcing Peaked?On bMighty, Paul Korzeniowski reports that global outsourcing has been in a slowdown all year. The reasons? Cheap foreign labor isn't really so cheap, in part because salaries overseas have gone up while the dollar has gone down, but also: "Outsourcing suppliers have struggled to deliver on many of their promises. While many claimed to be able to dynamically adjust to a company's changing business requirements, some have not been able to deliver on that promise. To make their own business viable, outsourcing suppliers need to take a cookie cutter approach to delivering their services, with little or no tailoring to clients' needs." I like the conclusion: "Outsourcing was once portrayed as a panacea to IT challenges. The fact that many such claims have proven hollow means IT employees can walk over and shake the CEO's hand rather than head for cover when he approaches them."
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