The Truth About Outsourcing: Cost Savings? Quality Improvement? It May Get Messy!

The growth of outsourcing has blurred the traditional boundaries of businesses globally. While cost savings remain the greatest motivation, smart companies have developed more sophisticated approaches to contracting out business functions. Multiple suppliers may be involved as they seek to improve outcomes, tap into innovation or manage growth. Whether or not outsourcing really boosts a firm's bottom line or productivity usually depends on how deeply the decision-makers understand the process, insist the experts. One aspect not to be ignored is the often high and sometimes hidden in-house costs of managing outsiders.