The Hidden Cost of IT Outsourcing  

Oleh:

Barthelemy, Jerome

Jenis: Article from Bulletin/Magazine - ilmiah internasional
Dalam koleksi: Sloan: Management Review vol. 42 no. 3 (2001), page 60-69.
Topik: outsourcing; hidden cost; IT; ourtsourcing

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: SS27.3 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

The cost of information - technology outsourcing involves more than vendor fees, but how much of that additional cost is really necessary ? A survey of 50 outsourcing efforts shows that companies are largely unaware of costs associated with such activities as transitioning to a new vendor and so tend not to take measures to reduce them. Jérôme Barthélemy of Audencia Nantes graduate school of management in France looks at four kinds of hidden costs that can erode the benefits a company anticipates from outsourcing. Drawing on lessons from company interviews, he provides anecdotes that show how the choices that a company makes can lead to high hidden costs. When searching for a vendor, for example, companies often try to spend as little as possible. However, spending more at the search stage reduces hidden costs throughout the outsourcing effort and saves considerable expense later. Companies should include certain clauses in the contract, select a trustworthy vendor and be certain about the vendor's role.

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