Increasing Flexibility Through IT Outsourcing
Source: Ernst & Young
Despite the potential benefits, the outsourcing decision is not always an easy one to make. There are many unique risks that must be addressed. Staff issues featured at the top of the list of difficulties identified by the outsourcing survey, cited by 12% of respondents. Such staff problems may be at the buyer or provider end of the equation. For the buyer, there may be problems of an employee backlash, with fears of job losses and internal reorganizations. On the provider side, staff problems may arise due to the physical distance, which may make staff relationships more challenging. Different corporate cultures may also result in communication issues.