Phil Fersht shared with me results of a survey AMR did with Global Services Media. In the section where they asked respondents about inhibitors to outsourcing, the answers were somewhat surprising.
“While companies are tackling severe economic conditions, priorities clearly get focused on critical management decisions surrounding business focus, ensuring company stability through the volatility and uncertainty. The upheaval of moving complex process over to third-party providers and offshore locations is a challenge we have documented many times at AMR. “
The other problem I see is long transition periods outsourcers quote. 6-9 months are not unusual. Not only does that upfront investment in duplicate labor kill ROI, it also gives the provider a long grace period where SLAs do not kick in. After thousands of such transitions outsourcers have done, you think we would move to more normal of a 2-3 month transition.