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Outsourcing News : Article

New challenges dog outsourcing customers

Poor business alignment, compliance requirements snag deals.

Outsourcing deals have historically been marred by poor communications between the buyer and the supplier and failures by the customer to adequately manage the relationship and measure performance metrics. While those issues remain, outsourcing customers now face a new set of challenges, including regulatory compliance requirements and shortages of experienced outsourcing relationship and contract managers, according to users and other industry experts here at this week's OutsourceWorld.

Ninety percent of outsourcing deals fail because customers don't measure the results of the work being done," said Keith W. Fiveson, managing consultant at ITESA, a New York-based consulting firm. He added that customers are having a "tough time" finding people in the market who have experience managing outsourcing contracts or relationships with outsourcing providers.

Posted: Thursday, October 20, 2005

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