Why some outsourcing bargains are bad deals

03/10/2010 | CIO.com

If your outsourcing partner is undercutting the market rate by 20% or more, it could be time to re-examine that relationship, Stephanie Overby writes. The vendor could be making up the difference by hiring less-skilled workers, or by tacking on extra charges, she notes. "[Underpriced IT services] can hide quietly for years with no problems," outsourcing consultant Adam Strichman says. "However, when they grow, it brings problems front and center, as the vendor tries to make it up elsewhere, which causes friction."

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