Outsourcing: The blind leading the blind … pt. 2
Ralph Welborn and Vince Kasten make some cogent points about vendor management in their article The Truth about Global Outsourcing: 10 lessons we've learned about the difficulties of getting it done. Inflexibility is a key feature in most of their lessons.
The key reason [for the failure of global outsourcing contracts]? Lack of contract flexibility and the one-size-fits-all approach. The world changes; customer needs change; technologies change. What doesn't? Too frequently, the answer to that is outsourcing contract terms. Outsourcers (understandably) try to lock customers into long-term deals based on contract terms and pricing that will be out of date six months after the contract is signed. The result? Frustration, irritation, and a sense of impotence regarding lack of understanding and insight into why the sales promises of outsourcing aren't meeting up with its delivery realities.
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