Dr James Rieley, formerly CEO of a US manufacturing company and author of Gaming the System and Plain Talk about Business Performance warns against ignoring the hidden costs of outsourcing in this column for the Telegraph.
Among these:
They include the cost attached to good (or bad) morale; good (or bad) long-term customer satisfaction; high (or low) ability to get your staff to understand what you want to achieve; and the most frightening, the high (or higher) costs that will be incurred to ensure that the outsourcing decision really can work.
It’s a truly cantankerous write-up that concludes:
Perhaps the ultimate test would be to ask the managers making the decisions what the real costs of outsourcing will be and if they don't know, outsource them instead.
Hear! Hear!
