The rich and long history of outsourcing—now around 200 years if you consider outsourcing for agriculture, manufacturing, accounting and now medical opinion—has evolved to be a more complex process over the years. Today’s outsourcing is for tasks that are mission critical for enterprises worldwide. These include outsourcing for high-end tasks such as product design and engineering, strategic outsourcing of functions and niche skills that require innovation, and others that can transform processes and make them more efficient.
Outsourcing has moved away from mere cost savings, which was the traditional de facto factor for outsourcing, towards value addition or enabling companies to focus on core functions. There is no leeway for failure, yet outsourcing efforts continue to fail. Here are our top 10 reasons why.