Well-documented history of outsourcing failures | Article

• A Gartner study released at its 2003 Gartner Symposium/ITxpo 2003 stated half of the year’s outsourcing projects would fail to deliver on bottom-line promises. (Information Week, 3/26/2003)
• “Few outsourcing mega deals have been successful in the past 10 years — at least 50% fail in the first year and 80% don’t produce any savings.” (Bobby Gill, senior associate, technology, media and telecoms group, at law firm Osborne-Clarke) (The Banker, 3/1/2003)
• . . . for every raging success, there is a bone-crushing failure. (Insurance Networking News: Executive Strategies for Technology Management, 3/1/2003)
• A 1996 American Management Association study of 619 firms found that less than 25% of those that outsourced finance and accounting functions fully achieved their goals of cost reduction, time reduction, or quality improvement. (Government Accounting Office Report, 10/20/1997)
• A Gartner Group survey of 180 clients in 1995 found that only 37% of outsourced IT arrangements were viewed as successful in achieving objectives (Acquisition Review Quarterly, 3/22/1999)

 

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