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Concerns About Outsourcing

By Joe Danowsky

A popular managerial concept for over two decades, outsourcing now holds even greater appeal as large numbers of lesser-paid, skilled workers become accessible through improved telecommunications and workflow management techniques. As convincingly depicted in Lisa R. Smith's accompanying article, the direct cost advantages of outsourcing are stronger than ever, and at least some outsourcers are providing high quality service even for security-sensitive functions previously kept in-house.

Earlier analyses of outsourcing framed the decision to outsource primarily as a weighing of predictable cost savings vs. the risk of selecting an unsatisfactory outsourcer. Accordingly they offered useful advice mainly on the question of how to select and effectively deal with a reliable outsourcer. (See “Selecting an Outsourcer”.)

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