Foes of outsourcing get good news

According to our BT Trax data, interest in outsourcing news has been steadily climbing since November 2004, growing approximately 10-fold. So what is the hubbub all about?

TraxAccording to our BT Trax data, interest in outsourcing news has been steadily climbing since November 2004, growing approximately 10-fold. So what is the hubbub all about? Not too surprisingly, a loose collection of stories over the past few months, reporting that the cost of outsourcing is often greater than in-house solutions, has captured loads of attention. In March, Gartner  reported that outsourced customer service can cost about 1/3 more than in-house, and a recent Deloitte survey revealed that almost 45%of firms had no cost savings from their outsourcing arrangements, while just under 60% actually had to absorb costs they thought were part of the outsourcing contract.  Layered on top of this is the news of the growing bottleneck in the Indian outsourcing market and accompanying wage inflation hammering away at cost savings.

These reports are undoubtedly sweet music to the ears of IT and business professionals who fear the loss of even more jobs to outsourcing. And when Dell CEO Kevin Rollins admits he is 'philosophically opposed to outsourcing' (over 100 thousand of our members tuned into this news), could be the times are a changin'.